| 10. SIGNIFICANT ACCOUNTING
POLICIES AND NOTES TO ACCOUNTS |
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1. ACCOUNTING POLICIES
These financial statements of the company are prepared
on a going concern assumption under the historical cost
convention and on accrual basis. In accordance with the
applicable Accounting Standards except where otherwise
stated. |
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(a) FIXED ASSETS:
i) Fixed assets (except Land and Building) are valued
at cost (net of CENVAT) less Depreciation.
ii) Cost includes purchase price, Finance charges in case
of major expansion or modernization and other attributable
expenses for bringing the assets to their working condition
for their intended use, duly certified by the engineers
of the concerned departments. |
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(b) DEPRECIATION:
i) Depreciation on the fixed assets are provided for at
the rates and in the manner specified under Schedule XIV
of the Companies Act, 1956, as under straight line method.
ii) Depreciation on additions/deletions during the year
is charged on pro rata basis from the date of such addition
/deletion.
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| (c) REVENUE
RECOGNITION |
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| All the items of expenses are
accounted for on accrual basis .Income is accounted for
on accrual basis where the collectibility of the same
is reasonably certain. |
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| (d) CONTINGENT
LIABILITIES: |
| Where there is a reliable estimable
amount of present obligation that warrant to be settled
as a result of past event with probable outflow of resources
embodying economic benefit, provision is made in the account
thereof. Other liabilities are disclosed in Notes to Accounts. |
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| (e) TAXATION |
| Income tax is provided as per
provisions of Income Tax Act ,1961.Deferred tax is recognized
subject to consideration of prudence on timing difference
being the difference between Taxable income and Accounting
income that originate in one year and capable of reversal
in one or more subsequent period/periods. |
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| 10B. NOTES TO ACCOUNTS |
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| i) Information of Related
Parties pursuant to AS 18 issued by ICAI. |
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| Related Party disclosures : |
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| a) List of Related Parties: |
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Nicco Corporation
Limited
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Ultimate Holding
Company------
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Nicco Engineering
Services Limited
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Holding
Company
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| The following transactions
were carried out with the related parties in the ordinary
course of business |
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NICCO Engineering
Services Ltd
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31.03.10
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31.3.09
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31.03.10
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31.03.09
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------Equity
Equity Shares----------
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Rs 10,00,000
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Rs 10,00,000
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Rs 4,99,300
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Rs 4,99,300
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| Loan
repayment |
-
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-
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Rs.2,36,224
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Nil
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| Amount
due |
-
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-
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Nil
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Rs.2,36,224
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| b). Key Management Personnel: |
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| a) Mr Udayan Ray ----------------------------
Director |
| b) Mr Sanjoy Bhattacharya-------------------
Director |
| c) Mr Deepak Guha ---------------------------
Director |
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| ii) Deferred Tax has
not been considered on account of accumulated loss and
unabsorbed depreciation, as a measure of prudence due
to successive losses incurred by the company.. |
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| iii) Previous year figures
have been regrouped wherever necessary. |
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As per our attached report of even
date
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FOR G.BASU & CO.
Chartered Accountants
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On behalf of the Board of Directors
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Udayan Ray
Director
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Deepak Guha
Director
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(Manoj Kumar Das)
(Partner)
Membership Number: 013783
Basu House,3 Chowringee Approach
Kolkata: 700 072
Kolkata, The 23rd day of April, 2010 |
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