NOTE 1.SIGNIFICANT ACCOUNTING POLICIES 1.1basis of accounting The financial statement are brpared under historical cost convention on an accrual basis with the accounting standards notified by the central government of india under section 133 of the companies act 2013 read with rule 7 of companies rules 2014 other pronouncements of institute of chartered accountants of India 1.2 use of estimate The brparation of financial statement in conformity with generally accepted accounting principle required estimated and assumption to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statement and the reported amount amounts of the revenues and expenses during the reporting year. Differences between actual results and estimated are recognized in the brsides in which the results are knows materialize 1.3 fixed assets are stated at cost acquisition construction and include other direct in directors and incidental expenses incurred to put them into use however the company is not having any fixed assets for the year under audit 1.4 INVESTMENT Long term investments are stated at cost less any provision for diminution in value which is other than temporary cost is inclusive of brokerage and stamp duty incurred in connection which their acquisition Short term investments are shown at cost or market value whichever is lowers cost is setemined on average basis 1.5 RETIREMENT BENEFITS Accrued liability on account of gratuity upto 31st march 2015 not been ascertained and will be accounted for on cash basis however the same is not applicable to the company as there is no employee on the of the company 1.6 TAXATION Provision for tax is made for current tax current tax is provided on the taxable income using the applicable tax retes and tax laws deferred tax assets and liabilities are not recognized as there is no such timing difference exist 1.7earnings per share The earrings considered in ascertaining the company EPS comprises the net profit after tax after reducing dividend on cumulative brference shares for the period irrespective of whether declared paid or not as per accounting standard 20 on earning per share issued by the institute of chartered accountants of India the number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period the diluted EPS is calculated on the same basis as the basis EPS after adjusting for the effects of potential dilutive equity unless the effect of the potential equity shares is anti dilutive equity shares anti dilutive 1.8IMPARIMENT OF ASSETS Assets are reviewed for impalement whenever or changes in circumstances indicate the carrying amount may not be recoverable an loss is recognized in accordance as 28 impairment for the amount by which the assets carrying amount as on carrying date the recoverable amount is higher of the assets fair value less cost to sell vis a vis value in use for the purpose of impairment assets are grouped at the lowest levest for which they are separately identifiable cash flows 1.9 FOREIGN CURRENCY TRANSACTION foreign currency transaction are translated at exchange rated brvailing date the loss or gain thereon are adjusted to the profit and loss account 1.10CONTINGENT LIABILITIES The company creates a provision when there is a brsent obligation as a result of past event that probable requires an outflow of resources and a reliable can be made of the amount of the obligation a disclosure for a contingent liability is made when there is possible obligation or that probable will not require an outflow of resources or where reliable estimate of the amount of the obligation connot be made 1.11INVENTORIES Quoted shares debentures units of mutual fund are valued at cost or market ever is less and unquoted shares or debentures are valued at cost the cost is determined by the average cost method 1.12 REVENUE RESONATION Debenture interest is recognized on accrual basis dividend on shares are recognized in the year of actual receipt FOR J.K.LOHOTI &CO CHARTERED ACCOUNTANTS J.K.LAHOTI PROPRIETORS MEMBERSHIP NO 16655 FIRM REGISTRATION NO 105508W SHEKHAR SOMANI DIRECTORS DIN 01912848 SANJAY SOMANL DIRECTORS DIN : PLACE : MUMBAI DATE : 30TH MAY 2015 |