SIGNIFICANT ACCOUNTING POLICIES : 01 ACCOUNTING CONVENTIONS The Financial Statements are brpared on Historical Cost Convention. Financial Statements are brpared in accordance with relevant brsentational requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards. 02 INVESTMENTS Investments that are readily realizable and intended to be held for not more than a year are classified as Current Investments. All other Investments are classified as Non-Current Investments. Current Investments are stated at lower of cost and market rate on an individual investment basis. Non-Current Investments are considered 'at cost' on individual investment basis, unless there is a decline other than temporary in the value, in which case adequate provision is made against such diminution in the value of investments. 03 RECOGNITION OF INCOME & EXPENDITURE Income & Expenditures are accounted for on accrual basis, except dividend those are accounted for on Receipt Basis. 04 TAXES ON INCOME Current Tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognised, subject to consideration of prudence, in respect of deferred tax assets / liabilities on timing difference, being the difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods. 05 CONTINGENCIES : These are disclosed by way of notes on the Balance sheet. Provisions is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end , till the finalization of accounts and material effect on the position stated in the Balance Sheet PROVISIONING FOR STANDARD ASSETS : The Reserve Bank Of India, vide Notification No DNBS 223 / CGM (US) 2011 DATED 17 JANUARY, 2011 has issued direction to all NBFCs to make provision of 0.25% on STANDARD ASSETS with immediate effect. Accordingly the Company has made provision @ 0.25% on Standard Assets in accordance therewith. 07 PROVISIONING FOR DEFERRED TAXES : The Provision for current tax is made after taking into consideration benefits admissibleunder the provisions of the Income Tax Act, 1961. Deferred Tax resulting from "timings difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future. 08 EARNING PER SHARE Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders, by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares 09 FIXED ASSETS Fixed Assets are stated at cost less accumulated debrciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use 10 DEbrCIATION ON FIXED ASSETS Debrciation has been provided on written down value method at the rates and in the manner brscribed in schedule XIV of the Companies Act, 1956. 11 IMPAIRMENT OF ASSETS I.The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their brsent value at the weighted average cost of capital. II.After impairment, debrciation is provided on the revised carrying amount of the assets over its remaining useful life. viii The Financial Statement and Notes on Account has been brpared as per Companies Act, 2013 with their Schedule as the same is effective from 1st April, 2014. ix Provision for Outstanding Standard Assets have been made @ 0.25% as per RBI Circular No.: DNBPS.PD.CC.No. 207/03.02.002 /2010-11 dated: 17-01-2011 x Provision for taxation on Income for the year has been made under section 115JB of the income tax act, being Minimum alternate tax higher than tax calculated on income under normal computation as per income tax act. Accordingly the statement of profit and loss has been credited minimum alternate tax credit receivable has been debited with similar amount. xi The management has assessed that there is no impairment of Fixed assets requiring provisions in the accounts. Accordingly, there is no debit to the Profit & Loss Account for the impairment of assets. xi The management has assessed that there is no impairment of Fixed assets requiring provisions in the accounts. Accordingly, there is no debit to the Profit & Loss Account for the impairment of assets. xii No Provision has been made on account of gratuity as none of the employees have put in completed years of Service as required by the Payment of Gratuity Act. xiii No provision has been made on account of leave salary as there are no leave to the credit of employees as at the end of the year. xiv Previous Year figures have been regrouped, rearranged or recasted wherever considered necessary. xv In formations required to be furnished under paragraph 13 of Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 2007 is annexed separately. xvi No provision has been made for fall in the market value of investment as the said fall is of temporary in nature. For and behalf of the Board In terms of our report of even date For MAROTI & ASSOCIATES (CHARTERED ACCOUNTANTS) Tapas Mondal Director & CFO (DIN :00087387) Pradeep Kumar Daga Managing Director (DIN : 00080515) Sanjaya Kumar Rout Company Secretary M. K. Maroti ( Partner ) M. No. 057073 Place : Kolkata Date : 26th Day of May, 2015 |