NOTE-1 NOTES TO FINANCIAL STATEMENTS A. SIGNIFICANT ACCOUNTING POLICIES: - 1. Accounts are brpared on Historical Cost Convention accruing for incomes, expenditures, assets and liabilities. 2. a. Income from Project Consultancy is accrued considering stage wise completion of work, wherever agreed upon or feasible, otherwise it is accrued on percentage basis based on the quantum of work completed. b. Income from Merchant Banking is accrued on percentage basis based on quantum of work completed. 3. a. FIXED ASSETS: Fixed Assets are shown at cost less accumulated debrciation. Cost of asset includes all expenses related to acquisition of the asset. b. DEbrCIATION: Owned Assets: Debrciation is charged on Straight Line Method at the rates and in the manner provided in Schedule II of the Companies Act, 2013. 4. Miscellaneous Expenditure are written off as follows: a. Preliminary Expenses, Pre-Operative Expenses (other than under (b) below) & Public Issue Expenses — Pro-rata over 5 years. b. Pre-Operative Expenses relating to Merchant Banking Division and Registrar & Share Transfer Agents — Pro-rata over 5 years. c. Computer Software —Equally over 3 years. 5. All Assets and liabilities are brsented as current or non-current as per the company's normal operating cycle and other criteria set out in the revised schedule II of the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets of processing and the realization the company has ascertained its operating cycle as 12 months for the purpose of current / noncurrent assets / liabilities. 6. Taxes on Income. The Company provides for deferred tax using liability method, based on tax effect of timing differences resulting from the recognition of items in the financial statements and in estimation its current income tax provision. Deferred Tax Assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the assets can be realized in future. B. NOTES 1. Some of the debit/credit balances are subject to confirmation and reconciliation. 2. In view of the number of employees being below the stipulated numbers, the Payment of Bonus and payment of Gratuity Act are not applicable to the company for the year. 3. The advance given to Cochin Stock Exchange towards Corporate membership has been written off to the extent of Rs. 8,30,262/-, to arrive at the current value, as estimated by the Management. 4. The useful life of Fixed Assets has been revised in accordance with Sch II to the Companies Act 2013 which is applicable for accounting period commencing on or after 1st April, 2014. Consequently a sum of Rs. 0.25 lac being the caring amount net of residual value of fixed assets where remaining useful life as at 1st April 2014 in Nil has been charged to retained earnings as permitted by schedule II. In other case carrying amount has been debrciated over the remaining useful life of the assets and the effect on the profit is not material. As per our attached report of even date By Order of the Board Chartered Accountants Firm Registration No.: 000038N Sd/- C.V. Parameswar Partner Membership No: 11541 FOR THAKUR, VAIDYANATH AIYAR & CO. Sd/- Shripal Shah Executive Director Sd/- Shreyas Shah Executive Director Sd/- Malcolm Mascarenhas Company Secretary Mumbai, May 29, 2015 |