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Summary of significant accounting policies

The company is engaged in the manufacture, sale and servicing of branded electronic appliances in India and other parts of the world. The financial statements are prepared under the historical cost convention on an accrual basis, in accordance with the generally accepted accounting principles

(a) Change in accounting policy

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

Up to the year ended the Company was recognizing dividend declared by subsidiary companies after the reporting date in the current year’s statement of profit and loss if such dividend pertained to the period ending on or before the reporting date.

If the company had used the earlier policy of recognizing dividend, the credit to the statement of profit and loss after tax for the current period and the current assets would have been higher.

(b) Use of estimates

The preparation of financial statements requires the management to make judgments, estimates and assumptions. Differences between the actual results and estimates are recognized in the year in which the results are known or materialized.

(c) Tangible fixed assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price less trade discounts and rebates, eligible borrowing costs and directly attributable cost of bringing the asset to its working condition for the intended use. Gains and losses on sale of fixed assets are recognized when the sale transaction is completed.

(d) Depreciation on tangible fixed assets

Depreciation on fixed assets is calculated on a straight-line basis using the rates arrived at based on the useful lives estimated by the management. Leasehold

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