| 1.1 Basis of accounting and preparation of financial statements.
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
1.2 Inventories
Stock in trade is valued scrip wise, at cost or net realisable value
whichever is lower in case of listed shares. Whereas in case of
unquoted shares, valuation is at cost. Cost is calculated on the basis
of first- in- first- out method.
1.3 Cash & Cash Equivalents
In the cash flow statement, cash and cash equivalents includes cash on
hand, demand deposites with banks, other short term highly liquid
investments with original maturities of three months or less.
1.4 Tangible Fixed Assets:
Fixed Assets have been stated at historical cost inclusive of
incidental expenses, less accumulated depreciation.
1.5 Depreciation:
Depreciation has been provided on Straight line Method on prorata-basis
and in some cases to the extent available at the rates and in the
manner prescribed in schedule XIV to the Companies Act, 1956.
1.6 Revenue Recognition
Sales are recognised on transfer of significant risks and rewards of
the ownership of the goods to the buyer and are reported net of
turnover / trade discounts, returns and claims if any. Revenue from
services are accounted as and when incurred.
Dividend income on investments is accounted for when the right to
receive the payment is established.
Interest income is accounted on time proportion basis taking into
account the amount outstanding and applicable
1.7 Investments
Long term investments are stated at cost, less provision for diminution
in the value other than temporary, if any.
1.8 Employee benefits
The Company does not have any employee to whom gratuity or any
retirement benefits are payable.
1.9 Earning per Share:
Basic earning 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.
1.10 Taxation
Tax liability is estimated considering the provision of the Income Tax,
1961. Deferred tax is recognised on timing differences; being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. On prudent basis, deferred tax assets are recognised and
carried forward to the extent only when there is reasonable certainty
that the assets will be adjusted in future.
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