SIGNIFICANT ACCOUNTING POLICIES AND PRACTICES {Annexed To And Forming Part Of Tie Financial Statements For The Year Ended On That Date) The company complies with the provision of the Company’s Act 1956 read with the General Circular 1572013 Dated 13.09.2013 of the Ministry of Corporate Affairs In respect of section 133 of the Companies Act 2013 and the applicable Accounting Standard brscribed by the Companies (Accounting Standard) Rules, 2006 issued by the Central Government of India. The financial statements have been brpared in accordance with the accepted Accounting Standards in India. A summary of significant accounting policies, which have been applied consistently, is set out below. All the assets and liabilities have been classified as current and non-current as par rthe company's normal operating cycle and other criteria set out in schedule VI of the Companies Act, 1956. a) Accounting Convention The Accounts have been brpared in accordance with historical cost convention. b) Fixed Assets Fixed Assets are stated at their original cost less debrciation. An impairment loss is recognized where applicable when the carrying value of fixed assets exceeds its market value or value in use whichever is higher. Debrciation Debrciation on Fixed Assets has been provided for on written down value basis at the rates specified in Schedule XIV as amended by Companies (Amendment) Act, 1988, and in respect of assets acquired or sold during the year. prorate debrciation for the period calculated on day's basis during which each such assets was In use has been prowled. c) Investments Securities which are intended to be held for one year or more are classified as non-current long term investments. Investments are stated at cost less permanent diminutions in value, if any. d) Revenue Recognition Income and expenditure are accounted for on accrual basis. e) Retirement Benefit i) The company contributes to government administered fund towards which the company has no further liability beyond its monthly contribution. ii) Accrued Liability in respect of retirement gratuities is ascertained by the management up to 31" March 2014 and is funded to approve gratuity fund. iii) Leave Encashment on retirement as on 31" March' 2014 as calculated by the management, has been provided for in the Accounts. f) Taxation Current tax is determined on the basis of the amount payable for the year under Income Tax Act. Deferred tax is calculated at Current Statutory income Tax rate and is recognized on timing difference between taxable income and accounting income that originate hi one period and are capable of reversal in one or more subsequent period. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward only to the extent that there Is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized 1 (I) Accrued gratuity liability as on 31st March, 2014 amounting to Rs. 17.78 Lacs has been funded to approved gratuity fund However, as the Number of Employees is below the minimum number specified as per The Payment of Gratuity Act,1972 hence the said Act is not applicable to the Company and no disclosure is required under AS-15 is made. (it) Liability for accumulated Leave as at 31st March, 2014 amounting to Rs. 7.52 Lacs as ascertained by the Management has been provided for. 2. Particulars required in terms of Paragraph 9BB of non Banking Financial Companies Prudent)of Norms (Reserve Bank) Direction, 1988 are appended to the Balance Sheet. 3. i) The Company has received the registration certificate u/s 45(1 A) of the Reserve Bank of India Act, 1934. (ii) Since the Company did not accept any deposit from the public during the year the question of compliance with Section 45(1 B) of Reserve Bank of India Act. 1934 regarding maintenance of minimum investment in approved securities does not arise. 4. There are no amounts due/overdue to micro, small and medium enterprises covered under "Micro, Small and Medium Enterprises Development Act 2006. 5. No provision has been made for fall in value of investments of Rs. 75.51 Lacs as the management considers It as a temporary Phenomenon. 6. Salary, Bonus & other allowances. Contribution to Provident Fund and other fund, staff welfare, Telephone and mobile expenses have been stated net of receipt being Rs. 2,19,800/-, 22,336/-, 5,558/- and Rs. 5,3207- respectively. 7. There are no serrate reportable segment as per Accounting Standard -17 8. The Company has made a provision of 0.25% for Standard Assets in terms of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Direction 2007 as amended. 9. Previous year's figures have been re-arranged and re-grouped wherever necessary. For S.S. Kothari & Co. Chartered Accountants Firm Registration No. 302034E Tapan Kanti Sengupta) Partner Directors Membership No. 50938 G.D.Bangur LN.Bihani S.GDaga O.P.Modani Place : Kolkata Dated: 13.052014 |