Lintas Mercantile Ltd. कंपली की लेखा नीति

Mar 31, 2010

The accounts are prepared on an accrual basis and under the historical cost conventions, and are in line with the relevant laws as well as the guidelines prescribed by the Department of Company affairs and the Institute of Chartered Accountants of India.

(A) SYSTEM OF ACCOUNTING :

The company has adopted the accrual basis of accounting in the preparation of the books of account.

(B) REVENUE RECOGNITION :

(i) Company is in the Business of Trading and Investing in Shares & Securities and though records of shares trading are maintained. Profit & loss on such.Trading and Sale of investments is recognized in Books of Accounts on realization of such Profit / Loss.

(ii) Dividend Income is accounted for on receipt basis.

(iii) Interest is recognized an accrual basis.

(B) FIXED ASSETS AND DEPRECIATION :

Fixed Assets are stated at cost less depreciation.

Depreciation on fixed assets is provided on Written down value Method as per rates specified in schedule XIV to the Companies Act 1956.

(C) INVENTORIES :

The Company accounts for the shares and securities remaining unsold at the end of the year as Stock in Trade and the same is valued at cost.

(D) PRELIMINARY EXPENSES & PUBLIC ISSUE EXPENSES :

These have been amortised in accordance with the section 35D of the Income - tax Act 1961.

(E) CONTINGENT LIABILITY :

Contingent Liabilities are determined on the basis of available information.

(F) SEGMENT REPORTING :

The Board of Directors of the company are of the opinion that there are no separate reportable segment as per AS-17, as the entire operation of the Company is related to one reportable segment comprising of dealing in shares and securities.

(G) INCOME TAXES :

(i) Current tax is measured at the amount expected to be paid to the taxation authorities , using the applicable tax rates and tax laws.

(ii) Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been announced up to the Balance Sheet date. Deferred tax assets and liabilities are recognised for the future tax consequences attributable to timing differences between the taxable income and accounting income. The effect of tax rate change is considered in the Profit & Loss Account of the respective year of change.

The maximum amount due from the Directors is Rs. Nil. Lacs (Previous year Rs. Nil lacs.) Provision of clause 4D of part II of schedule VI of the Companies Act, 1956, regarding value of imports expenditure incurred in Foreign Currency , amount of remittance in Foreign currency on accounts of dividends, export earning etc, are not given as all information required in the Clauses are Nil. ( Previous year Nil.)