Parsoli Corporation Ltd. कंपली की लेखा नीति

Mar 31, 2009

A] BASIS OF ACCOUNTING

The Financial Statements are prepared under historical cost convention and on an accrual basis in accordance with the requirements of Companies Act, 1956 and applicable accounting standards.

B] REVENUE RECOGNITION

Revenue / Income and Cost / Expenditures are accounted on accrual basis, as they are earned or incurred. Brokerage income is accounted on the transaction date.

Dividend income is recognized as revenue in the year of receipt of dividend.

C] FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation.

D] DEPRECIATION

Depreciation on Fixed assets has been provided on prorata basis using straight line method at the rate specified in Schedule XIV to the Companies Act, 1956.

The cost of fixture and fittings installed in leased / rented premises, are amortised over the period of the lease / rent of the respective premises.

E] INVESTMENTS

Investments that are readily realisable and intended to be hold for not more than a year are classified as current investments. Ali other investments are classified as long term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long Term investments are carried at cost unless there is a diminution in the value of investments other than temporary.

F] INVENTORIES

Inventories oi shares / securities and foreign currencies are valued at lower of cost or market price.

G] IMPAIRMENT OF ASSETS

The company assess at each balance sheet date whether there is any indication that an asset may be impaired based on internal/external factors. If any such indication exits, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs, is less than its carrying amount, the carrying amount is reduced to its recoverable amount.

H] MISCELLANEOUS EXPENSES

Preliminary expenses are written off to the Profit & Loss account in five equal installments. Deferred revenue expenses are written off in 10 equal installments. I] FOREIGN EXCHANGE TRANSACTION

Foreign Exchange transactions have been recorded at the exchange rate prevailing at the time of transaction.

J] EMPLOYEE BENEFITS

Post employment and other long term benefits are recognized as expenses in the Profit and Loss Account for the year in which the employee has rendered services at the present value of amount payable based on actuarial valuation techniques.

K] TAXATION:

Taxes on income are computed whereby such taxes are accrued in the same period as the revenue and expenses to which they relate.

Current tax liability is measured using the applicable tax rates and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rate and the tax laws that have been enacted / substantially enacted at the balance sheet date.

Deferred tax assets are recognized only if there is a reasonably certainty of their realization.

L) EARNING PER SHARE:

In determining basic earning per share, the company considers the net profit after tax and includes post tax effects of any extra ordinary items. The number of share used in computing basic earning per share is the weighted average number of share outstanding during the period. The number of shares used in computing diluted earning per share comprises the weighted average share considered for deriving basic earning per share and also the weighted average number of equity shares which could have been issued on the conversion of old dilutive potential equity shares. The diluted potential equity shares are adjusted for the proceeds receivable, had the shares been actually issued at fair value (i.e. the average market value of the outstanding shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at later date.

M) PROVISION, CONTINGENT LIABILITY AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation measurement are recognized when there is present obligation as a result of past events and it is possible that there will be an out flow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2003

A] The Financial Statement of accounts have been prepared on the historical cost convention and on going concern concept. Accrual system of accounting is generally followed.

B] FIXED ASSETS

Fixed Assets are valued at cost less depreciation.

C] INVESTMENTS

Investments are stated at cost.

D] INVENTORIES

Inventories are stated at cost or market price whichever is lower.

E] PRELIMINERY EXPENSES & MISCELLENEOUS EXPENSES

1/10th of the preliminary expenses are written off to the Profit & Loss account.

F] DEPRECIATION

Depreciation has been provided on the Fixed assets on straight line method u/s. 205 (2) (B) of the Companies Act, 1956 consistent with accounting policy, at the rate and in the manner laid down in schedule XIV of the Companies Act, 1966. Depreciation on the fixed assets added or sold during the year has been calculated on pro-rata basis from the date of such addition or upto date of sale.

G] FOREIGN EXCHANGE TRANSACTION

Foreign Exchange transactions have been recorded at the exchange rate prevailing at the time of transaction.

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Mar 31, 2002

A] The Financial Statement of accounts have been prepared on the historical cost convention and on going concern concept. Accrual system of accounting is generally followed.

B] FIXED ASSETS

Fixed Assets are valued at cost less depreciation.

C] INVESTMENTS

Investments are stated at cost.

D] INVENTORIES

Inventories are stated at cost or market price whichever is lower.

E] PRELIMINERY EXPENSES & MISCELLENEOUS EXPENSES

1/10th of the preliminary expenses are written off to the Profit & Loss account.

F] DEPRECIATION

Depreciation has been provided on the Fixed assets on straight line method u/s. 205 (2) (B) of the Companies Act, 1956 consistent with accounting policy, at the rate and in the manner laid down in schedule XIV of the Companies Act, 1956. Depreciation on the fixed assets added or sold during the year has been calculated on pro-rata basis from the date of such addition or upto date of sale.

G] FOREIGN EXCHANGE TRANSACTION

Foreign Exchange transactions have been recorded at the exchange rate prevailing at the time of transaction.