1919. SIGNIFICANT ACCOUNTING POLICIES
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) The financial statements have been prepared under the historical Cost convention in accordance with the generally accepted accounting principal and provisions of the Companies Act,1956, subject to what is stated hereinafter.
b) The company follows the mercantile system of accounting and Recognizes significant items of income and expenditure on accrual Basis with the exceptions stated below:-
(i) Leave Travel Concession expenses are accounted for in the year in which LTC is availed.
ii) Remission of demurrage including those on behalf of other parties, on settlement.
iii) Claims for liquidated damages from the contractors for delayed execution of work, when the amount is finally determined and agreed upon..
iv) Subscription fee from associate subscribers and service charges from regular subscribers on receipt. However, Subscription for received in advance is accounted for in the relevant year.
c) Grants from Government are taken to capital or revenue account as Per directions of the Ministry of Commerce and Industry. Specific capital grants are reduced from the cost of specific assets.
d) Expenditure/ Income of Fairs/Exhibitions held in India and abroad, is accounted for, in the year in which the event commences. However, in case of long term events having duration of three months or more, spread over two accounting periods, major period of which falls in the subsequent accounting period the surplus/deficit of such event is accounted for in the year in which the event concludes.
e) Cost of exhibits of the Company and items of interior decoration displayed at fairs, are treated as revenue expenditure. However, new exhibits in stock for utilization in future fairs are treated as closing stock.
f) Provision for expenses is made on estimated basis, where bills are awaited and expenditure pertaining to the current year is yet to be incurred.
g) Expenditure incurred through CPWD on Civil, Electrical and Horticulture work, is accounted for, on the basis of accounts rendered by them.
h) Income and Expenditure relating to previous years, not exceeding Rs. 10,000 in each case, are treated as pertaining to the current year.
i) Income from dividend is accounted for as and when declared.
j) In cases where contracts with llcensee(s) have expired, dues are accounted for provisionally on the basis of the expired contracts/revised accords till a final decision in the matter is reached/revised contracts executed.
2. FIXED ASSETS
Fixed Assets are stated at cost, net of grants received and/or accumulated depreciation.
3. DEPRECIATION
i) Assets costing Rs.5,000 or less individually are depreciated @100%
ii) Depreciation is calculated on the straight line method on pro Rata basis from/ up to the month of addition/ deletion at the rates determined by the management. These rates are not lower than the rates prescribed in the Companies Act, 1956.
iii) Leasehold land acquired on perpetual lease basis is not being Amortized.
4. INTANGIBLE ASSETS
The cost of the Softwares acquired or developed internally are treated as revenue expenditure and written off equally over a period of three years from the year in which the software is available for use.
5. INVESTMENTS
Current Investments are carried at the lower of cost and market value. Long term Investments are stated at cost. Provision for diminution in the value of long term investments is made only if decline in value is other than temporary in the opinion of the management.
6. EMPLOYEES BENEFITS
i) The company took over the assets and liabilities of erstwhile Trade Development Auth