NOTE "1" SIGNIFICANT ACCOUNTING POLICIES 1. Accounting Convention and Concepts The Company follows the Historical Cost Convention and the Mercantile System of Accounting where the income and expenditure are recognized on accrual basis. 2. Fixed Assets Fixed assets are valued at cost less debrciation. Cost includes all expenses incurred for acquisition of assets. 3. Debrciation The Company provides debrciation on straight-line method on the basis of useful life of the assets as specified in Schedule II to the Companies Act, 2013. 4. Investments All investments are stated at cost of acquisition. The investments sold during the year are accounted on first-in-first-out basis and investments purchased and sold during the year are shown on net basis. Provision is made for diminution in the value of investments, wherever required. 5. Valuation of Stocks Stock of shares and securities are valued at cost or fair value, whichever is less. 6. Retirement Benefits The provision for retirement benefits such as provident fund, gratuity and superannuation is made for employees from the date of their respective appointment:- (i) The Company's contribution to the Provident Fund, Pension Fund, Superannuation Fund and other fund is charged to the Profit and Loss Account. (ii) The amount of Gratuity liability as ascertained on the basis of actuarial valuation by Life Insurance Corporation of India is paid/provided and charged to the Profit and Loss Account. (iii) Provision is made towards liability for leave encashment. 7. Impairment of Assets The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit and Loss Account. If at the Balance Sheet date there is an indication that brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of debrciated historical cost. As per the Accounting Standard 13, Stock-in-Trade (Shares) is required to be recognized at cost or fair value whichever is less. However, the same has not been followed as fair value of the shares are not available because those companies' shares are not quoted in the stock market. Hence, provision for the same has been made. Cash Flow is brpared as per Indirect Method. The brvious year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amount and other disclosures for the brceding year are included as an integral part of the current year's financial statement and are to be read in relation to the amount and other disclosure relating to the current year. As per our Report of even date For Mahendra Kumbhat & Associates Chartered Accountants Firm Regn. No.105770W Amar Chand Bagrecha Partner Membership No.56605 On behalf of the Board Mahesh K. Rachh Managing Director Mahendra S. Shah Director Mahesh Menon Director Jacqueline Patel Director P. B. Deshpande Company Secretary Place: Mumbai Dated: May 29, 2015 |