| 1.1. Basis of Accounting
The Financial Statements have been prepared on accrual basis, except
wherever otherwise stated, under the historical cost convention, in
accordance with the accounting principles generally accepted in India
and comply with the Accounting Standards as referred to in the
Companies (Accounting Standards) Rules 2006 issued by the Central
Government in exercise of power conferred under sub-section (i) (a) of
Section 642 and the relevant provisions of the Companies Act, 1956.
Dividend on Investments in Mutual Funds is consistently accounted for
on receipt basis.
1.2 Use of Estimates
The preparation of financial statements in conformity with the
generally accepted accounting principles requires Management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements. Actual results could differ from those
estimates. Any' revision to accounting estimates is recognized
prospectively in the current and future periods.
1.3 Depreciation
Depreciation is provided on the fixed assets as per the Written down
Value method at the rates and in the manner prescribed in Schedule XIV
to the Companies Act, 1956.
1.4 Investments
Investments are valued at cost. All investments are of long term
nature. Diminution other than temporary in the book value of Investment
is charged to revenue.
1.5 Inventories
Shares held as inventories are valued at cost or market price whichever
is lower.
1.6 Accounting for Taxes on Income
Provision for current Income tax is made on the basis of the assessable
income under the Income-tax Act, 1961. Current tax is the amount of tax
payable on the taxable income for the year determined in accordance
with the provisions of the Income-tax Act, 1961.
Deferred tax is recognized on timing differences; being the differences
between the taxable income and accounting income that originate in one
period and is capable of reversal in one or more subsequent periods.
Deferred tax assets subject to the consideration of prudence are
recognized and carried forward only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. The
tax effect is calculated on the accumulated timing difference at the
year and based on the tax rates and laws enacted or substantially
enacted as on the Balance Sheet date.
1.7 Impairment of Assets
The Company identifies assets to be impaired based on cash generating
unit concept at the yearend in terms of paragraphs 5 to 13 of the
Accounting Standard 28 issued by the Institute of Chartered Accountants
of India for the purpose of arriving at Impairment loss there on, if
any, being the difference between the book value and recoverable value
of relevant assets. Impairment loss when crystallizes is charged
against the revenue of the year.
1.8 Revenue recognition:
The Company follows the Mercantile System of .Accounting and recognizes
income and expenditure on accrual basis except taxes due on assessment.
1.9 Contingent Liabilities and Provisions
Disputed liabilities and claims against the Company including claims
raised by the revenue authorities pending in appeal for which no
reliable estimate can be made of the amount of the obligation or which
are remotely poised for crystallization are not provided for in
accounts but disclosed in notes on accounts.
However, present obligation as a result of past event with possibility
of outflow of resources, when reliably estimated, is recognized in
accounts, wherever applicable.
The balances of Trade Payables, as appearing in the accounts are
subject to the confirmation from the respective parties and
consequential reconciliation, if any. However the Company anticipates
no significant variations from its book values as on the Balance Sheet
date.
The balances of Loans and Advances ,as appearing in the accounts are
subject to the confirmation from the respective parties and
consequential reconciliation, if any. However the Company anticipates
no significant variations from its book values as on the Balance Sheet
date.
The income from trading in shares of year has been shown as business
profit/losses considering shares as stock in trade. Closing stock of
Shares have been valued at Cost or market price whichever is low as per
Accounting Standard - 2 Valuation of Inventory
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