Parekh Distributors Ltd. कंपली की लेखा नीति

Mar 31, 2013

A BASIS OF PRESENTATION

The Company maintains its accounts on accrual basis following historical cost convention to comply in all material respects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 and the Rules. Management makes estimates and technical and other assumptions regarding the amounts of income and expenses, assets and liabilities, and disclosure of contingencies, in accordance with Generally Accepted Accounting Principles in India in the preparation of the financial statements. Differences between the actual results and estimates are recognized in the period in which they are determined.

a) Taxation :

The tax expense comprises of current and deferred tax. Current income tax is measured in accordance with the Income Tax Act 1961. the tax rates and tax laws used to compute the amount

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Mar 31, 2010

A) Accounting Concepts:

The Company follows the Mercantile System of Accounting and recognizes Income and Expenditure on accrual basis. Inspite of erosion of the entire net worth, the Directors are of the opinion that the Company will be in a position to make up the losses and continue its activities in future the accounts are prepared on historical cost basis and as a going concern. Accordingly, the financial statements are prepared in conformity with the Generally Accepted Principles in India, the applicable Accounting Standards notified by the Companies (Accounting Standards) Rules, 2006 and the other relevant provisions of the Companies Act, 1956. Accounting policies not referred to otherwise are consistent with the generally accepted accounting principles.

B) Going Concern:

These financial statements are prepared on a going concern basis, which assumes that the Company will continue to operate as a going concern for the foreseeable future. This requires continued shareholder support, which is assumed to be forthcoming

C) Revenue Recognition:

All revenue and expenses are accounted for on accrual basis. Income does not include service tax, which is separately shown as liability, to the extent not paid.

D) Fixed Assets:

Fixed assets are accounted at historical cost as reduced by depreciation provided thereon.

E) Depreciation:

Depreciation is provided on assets on written down value method at rates prescribed by Schedule XIV to the Companies Act, 1956. In respect of addition during the year, depreciation is provided for the entire year. No provision for depreciation is made for the assets sold during the year.

F) Provision for Taxation:

Provision for current income tax is based on the taxable profits of the Company computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods.