1.1 System of Accounting
The financial statements have been prepared on a going concern and on accrual basis, under the historical cost convention and in accordance with the generally accepted accounting principles, the accounting standards prescribed in the: Companies (Accounting Standards) Rules, 2014 issued by the Central] Government and relevant provisions of the Companies Act 2013, to the extent applicable.
1.2 Use of Estimates
The preparation of the financial statements in conformity with the generally accepted accounting principles requires the1 management to mate estimates and assumption that affect the reported amount of assets, liabilities, revenues & expenses and disclosure of contingent assets & liabilities. The estimates & assumptions used in tine accompanying financial statements are based upon management s evaluation of the relevant facts and circumstances as of the date of the Financial Statements. Actual results may defer from the estimates & assumptions used in preparing the accompanying Financial Statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized.
1.3 Revenue recognitions
a, interest and other income are accounted on accrual basis on loans & advance but where receipt of interest is doubtful/ N.P.A, no provision has been made in the books.
b. Other Income is accounted for on accrual basis.
1.3 Fixed Assets
Fixed assets are stated at cost less depreciation/ amortization. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.
1.5 Depreciation/Amortization
Deprecation on tangible assets has been charged on S,L.M, as prescribed under the Companies Act. 2013.
1.6 Investments
Current Investments are valued at cost and non-current investments are valued on cost or market price whichever is lower.
1.7 Taxation
Income-tax expense comprises current tax (i.e. amount of tax for the period determined in accordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period) and fringe benefit tax.
Deferred taxation
The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted at the balance sheet date. Deferred tax assets are recognized only lo the extent there is reasonable certainly that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainly of realization of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up lo reflect the amount is reasonable/virtually certain as the case may be the realized.
Impairment of Assets
The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired based on internal/external factors, if any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generated unit to which the asset belongs, is less than its carrying amount, the carrying amount is reduced to its recoverable amount.
1.9 Provisions, Contingent Liabilities & Contingent Assets
Contingent liabilities, if material, are disclosed by way of notes, contingent assets are not recognized or disclosed in the financial statements. A provision is recognized when an enterprise has a present obligation as a result of past event(s) and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation(s), in respect of which a reliable estimate can be made for the amount of obligation.
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