Accounting Policies of Shell Infotech Ltd. Company

Mar 31, 2015

1. Basis of accounting: -

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Accounting Standards notified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

The financial statements have been prepared under the historical cost convention on accrual basis.

2. Revenue Recognition :-

Expenses and Income considered payable and receivable respectively are accounted for on accrual basis except discount claims, rebates and retirement benefits which cannot be determined with certainty during the year.

3. Fixed Assets :-

Fixed assets are stated at their original cost of acquisition including taxes, freight and -.other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date.

4. Depreciation :-

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the SLM method. Depreciation is provided based on useful life of the assets as prescribed in Schedulellto the Companies Act, 2013.

5. Miscellaneous Expenditure:-

Miscellaneous Expenditure comprises of Preliminary expenses that are amortized over a period of five years.

6. Retirement Benefits:-

The retirement benefits are accounted for as and when liability becomes due for payment.

7. Taxes on Income:-

Provisionfor current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted by the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is virtual certainty with convincing evidence that these would be realized in future. At each Balance Sheet date, the carrying amount of deferred tax is reviewed to reassure realization.

8. Provisions, Contingent Liabilities and Contingent Assets:- (As-29)

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities is disclosed in Notes to the account for:-

(i) Possible obligations which will be confirmed only by future events not wholly within the control of the company or

(ii) Present Obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are not recognized in the financial statement since this may result in the recognition of the income that may never be realized.

General:

Except wherever stated, accounting policies are consistent with the generally accepted accounting principles and have been consistently applied.

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Mar 31, 2014

1. BASIS OF ACCOUNTING

The Company prepares Its financial statements in accordance with applicable accounting standards and generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

2. INCOME 6 EXPENDITURE

Accounting of Income 6 Expenditure is done on accrual basis

3. FIXED ASSETS & DEPRECIATION

At Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction/Installation.

B) As stated in Schedule 6 to the financial statements, the Depriciation provided by the company for the Period is Rs.90,000/-, This is contrary to Accounting Standard (AS) 6 on "Depriciation Accounting" issued by the ICAI and the accounting policy being followed by the entity according to which depreciation should be provided on straight line basis.Had the company followed Depreciation as per Schedule VI of the Companies Act, the depreciation amount would be Rs.3,30,003/-. Hence there is a short provision of depreciation to the extent of Rs.2,40,003/-

4. SALES

Sales are exclusive of excise duty and after deducting discounts. Discounts are recognized when substantially all conditions appurtenant thereto have been fulfilled.

5. EMPLOYEE BENEFITS

a) Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered.

B) Gratuity liability has not been provided.

6. PROVISION CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision involving substantial degree of estimation in measurement are recognized when there is a present option as a result of past events and It Is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

7. Unless specifically stated to be otherwise, these policies are consistently followed.

8. SALARY INCLUDES FOLLOWING REMUNERATION TO THE MANAGING DIRECTOR, JOINT DIRECTOR & WHOLE TIME DIRECTOR

PARTICULARS

31.03.14 31.03.13

Salary 158,000 166,000

Perquisites - -

Contribution to Provident Fund - -

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Mar 31, 2011

A. Revenue Recognition:

Sales of services are recognized when the services are rendered.

b. Fixed Asset:

Fixed asset is stated at cost less depreciation

c. Depreciation of fixed asset:

Usually the Company provided Depreciation on the straight line method at the rates and the manner prescribed in schedule XIV to The Companies Act, 1956.But this year the company has provided depreciation amounting Rs. 1,20,000/- which is not as per the rates prescribed in schedule XIV to The Companies Act, 1956. If rates as per in schedule XIV is followed depreciation to be provided comes to Rs.3,30,003/-.Hence the profit for the year, fixed assets and Reserves and Surplus are over stated by Rs.2,10,003/-

d. Investments:

There are no Investments during the year.

e. Retirement Benefit:

Provision for retirement benefit is not made and accounted on payment basis.

f. Taxation:

Income Tax Provision is made at year end only.

Income-tax expenses comprise current tax and deferred tax charged or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax arising mainly on account of brought forward losses and unabsorbed depreciation under tax law, are recognized only if there is virtual certainty of its realization, supported by convincing evidence. Deferred tax asset on account of other timing difference are recognized only to the extent there is a reasonable certainty of its realization. At each Balance sheet date, the carrying amounts of deferred tax asset are reviewed to reassure realization.

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Mar 31, 2010

A. Revenue Recognition:

Sales of services are recognized when the services are rendered.

b. Fixed Asset:

Fixed asset is stated at cost less depreciation

c. Depreciation of fixed asset:

Depreciation is provided on the straight line method at (the rates and the manner prescribed in schedule XIV to The Companies Act, 1956.

d. Investments:

There arc no Investments during the year.

c. Retirement Benefit:

Provision for retirement benefit is not made and accounted on payment basis.

f. Taxation:

Income lax Provision is made at year end only.

Income-tax expenses comprise current lax and deferred tax charged or credit. The deferred lax asset and deferred tax liability is calculated by applying tax rale and tax laws that have been enacted or substantially enacted by the balance sheet date. Deferred tax arising mainly on account of brought forward losses and unabsorbed depreciation under (ax law, are recognized only it there is virtual certainty of its realization, supported by convincing evidence. Deferred tax asset on account of other timing difference are recognized only to the extent there is a reasonable certainty of its realization. At each Balance sheet date, the carrying amounts of deferred tax asset are reviewed to reassure realization.