Mar 31, 2014
1. Basis of Preparation of Financial Statements
The Financial Statements have been prepared under Historical Cost
conventions and on accrual basis in accordance with the Generally
Accepted Accounting Principles (''GAAP'') applicable in India, Compa-
nies (Accounting Standard) Rules, 2006 notified by Ministry of Company
Affairs and Accounting Stan- dards issued by the Institute of Chartered
Accountants of India as applicable and relevant provisions of the
Companies Act, 1956, as adopted consistently by the Company.
2. Use of Estimates
The preparation of Financial Statements in conformity with Indian GAAP
requires estimates and as- sumptions to be made, that affects the
reported amounts of assets and liabilities on the date of the Financial
Statements and the reported amounts of revenue and expenses during the
reporting period. Differences between the actual results and estimates
are recognized in the period in which the results are known /
materialized.
3. Fixed Assets
Fixed Assets are capitalized at cost less accumulated depreciation
inclusive of purchase price, duties and other non refundable taxes,
direct attributable cost of bringing asset to its working condition and
financing cost till commercial production, if any.
Projects, if any, under which assets are not ready for their intended
use are shown as Capital Work-in- Progress. However no project was
undertaken during the year under review.
4. Depreciation / Amortization
Depreciation on fixed assets is provided on Straight Line Method (SLM)
at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
5. Inventories
Shares held by Company as stock-in-trade is valued at cost as per
consistent accounting policy de- cided & followed by the management.
Shares, Debentures and other Securities, purchased if any, are
accounted under Stock-in-trade on trade dates.
6. Revenue Recognition
Interest earned on loans is recognized on accrual basis. Revenue from
Capital gain on sale of securi- ties is recognized once trade is done
and delivery is given. Dividend is recognized when the right to receive
the payment is established.
7. Investment
Investments are classified as Current & Non Current Investments.
Current Investments are carried at lower of cost or Market / Fair Value
determined on an individual investment basis. Non-Current invest- ments
are valued at cost. However no fresh Investment was made by the Company
during the year.
8. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capital- ized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss A/c..
9. Taxation
Tax expenses for the year comprise of current tax and deferred tax.
Current tax is measured as amount
of tax payable in respect of taxable income for current year as per
Income Tax Act 1961 after considering tax allowances and exemptions, if
any. Deferred Tax assets or liabilities are recognized for further tax
consequence attributable to timing difference between taxable income
and accounting income that origi- nate in one year and are capable of
reversal in one or more subsequent year.
Due to brought forward losses no provision is made for current Income
Tax. Deffered Tax liability is created on account of timing difference
on Depreciation as per Companies Act and Income Tax Act. Company has
also w/off excess provision made in past years.
10. Leases Operating Lease
Lease where the lesser effectively retains substantially all risks and
benefits of the asset are classified as Operating lease. Operating
lease payments are recognized as an expense in the Profit & Loss
account.
11. Impairment of Assets
An asset is impaired when the carrying cost of assets exceeds its
recoverable value. An impairment loss is charged to Profit & Loss in
the year in which an asset is identified as Impaired. As on Balance
Sheet date, the Company reviews the carrying amount of Fixed Assets to
determine whether there are any indications that those assets have
suffered "Impairment Loss".
12. Earnings per Share
In determining the Earnings Per share, the company considers the net
profit after tax which includes any post tax effect of any
extraordinary / exceptional item. The number of shares used in
computing basic earnings per share is the weighted average number of
shares outstanding during the period.
The number of shares used in computing Diluted earnings per share
comprises the weighted average number of shares considered for
computing Basic Earnings per share and also the weighted number of
equity shares that would have been issued on conversion of all
potentially dilutive shares.
13. Retirement Benefits
Short term employee benefits - The undiscounted amount of short-term
employee benefits expected to be paid in exchange for the services
rendered by employees are recognised as an expense during the period
when the employees render the services. These benefits include
performance incentive and com- pensated absences.
According to management, since the number of employees are less than
mandatory limit, Company has not yet applied for registration under
Provident Fund Act or ESIC Act.
14. Segmental Reporting
Company operates only in one segment viz. financial activities.
15. Related Party Transactions
As per accounting standard 18 (AS-18) Related party disclosures,
notified in the companies (Accounting Standards) Rules 2006, the
disclosure of transactions with the related parties defined in AS-18
are given below;
1. Key Managerial Personnel:
a) Mr. Suresh Bafna
b) Mr. Ashok Bafna
c) Mrs. Manju Bafna
d) Mr. Himanshu Shah
2. Relatives of Key Management Personnel
Names of the Relative Relation
Prithviraj Bafna (Bafna Babulal & Sons) Brother of Director Mr. Suresh
Bafna
3. Parties where control exists
Name of the Party Nature of Control
Monarch Securities Pvt. Ltd. Mrs. Manju Bafna & Mr. Ashok Bafna -
Directors till 12/08/2013.
Simandhar Securities Pvt.Ltd. Mr. Suresh Bafna, Mrs. Manju Bafna & Mr.
Ashok Bafna are
Directors.
Monarch Project & Finmarkets
Ltd. Mr. Suresh Bafna, Mrs. Manju Bafna,
Mr. Ashok Bafna, Mr. Himanshu
Shah - Major Shareholders &
Mrs. Manju Bafna & Mr. Ashok Bafna are
Common Directors.
Further following Related Party Transactions were noticed during the
year -
Company carries on its Share Transactions with Monarch Project &
Finmarkets Limited, NSE Member.
16. Contingent Liabilities & Provisions
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
obligation can be made.
Mar 31, 2013
1. Basis of accounting:
The financial statements are prepared on the historical cost convention
basis and on accrual concept as a going concern in accordance with the
applicable Accounting Standards referred to in Sub section 3C of
Section 211 of the Companies Act, 1956 and normally accepted accounting
principles.
2. Accounting Standards:
Accounting standards as prescribed by the Department of Corporate
Affairs (Formerly known as Department of Company Affairs) and referred
to in the Companies Act, 1956 have been followed wherever applicable.
3. Fixed Assets and its Depreciation:
Fixed assets are stated at cost price comprising of the purchase price
and any attributable cost of bringing the assets to its working
condition for its intended use.
Deprecation is provided on Straight Line Method at the rates and in the
manner prescribed in Schedule XIV to the Companies Act, 1956 & on
pro-rata basis wherever applicable, if any.
4. Investments:
Company has not made any fresh investment during the year. Long Term
Investments are stated at Cost. A provision for diminution is made to
recognize a decline, other than temporary, in the value of long term
invest- ments, if any.
5. Stock in Trade
Shares held by Company as stock-in-trade is valued at cost as decided
by the management. Shares, Debentures and other Securities, purchased
if any, are accounted under Stock-in-trade on trade dates. Contracts
relating to specified shares intended to be squared-off in the same
settlement are accounted on the squaring up dates.
6. Contingent Liabilities:
No litigations are filed or is pending against the Company & Company
does not have any present obligation arising out of any past event as
is just being formed. Hence no provision arises or is made for
contingent liabilities.
7. Revenue Recognition:
Interest on Loans is provided as agreed with respective parties and
same is made on annual basis. Dividend income is recognized as and when
the right to receive dividend is established. Profit or losses from
Investments/ Stock-in-trade are recognized on trade dates on
first-in-first out basis.
8. Retirement Benefits:
Company has not applied under Provident Fund & Miscellaneous Provisions
Act & hence no provision is made towards retirement benefits of
Employees.
9. Borrowing Cost:
Company has taken loans from its members & other Corporate Bodies but
according to management & from records it appears same are temporary
loans and hence according to management interest is not payable to them
and hence is not provided for.
10. Taxation:
In view of loss incurred during the year, no provision for current tax
is made under the provisions of the Income Tax act, 1961. Deferred tax
Asset of Rs.119870/- resulting from timing differences'' between taxable
and ac- counting income, mainly on account of Depreciation, is
accounted for using the tax rates and laws that are enacted or
substantively enacted as on the Balance Sheet date.
11. Segmental Reporting:
The Company is operating only in one segment i.e. Finance.
12. Related Party Transactions:
As per accounting standard 18 (AS-18) Related party disclosures,
notified in the companies (Accounting Stan- dards) Rules 2006, the
disclosure of transactions with the related parties defined in AS-18
are given below;
1. Key Managerial Personnel:
a) Mr. Suresh Bafna
b) Mr. Ashok Bafna
c) Company carries on its Share Transactions with Monarch Project &
Fin markets Limited, NSE Member.
13. Earnings (Loss) Per Share:
Basic EPS - (0.67) = 7375069/- (Net Loss attributable to Shareholders)
/11010950 (Weighted Avg. No of Equity Shares)
Diluted EPS - (0.67) = 7375069/- (Net Loss attributable to
Shareholders) / 11010950 (Weighted Avg. No of Equity Shares)
Diluted EPS is similar to Basic EPS as there are no potential equity
share as on date.
Mar 31, 2012
1. ACCOUTING CONVENTION
The accounts have been prepared under the historical cost convention.
2. FIXED ASSETS
Fixed Assets are stated at cost inclusive of expenses in connection
therewith and deduction is made for the depre- ciation.
3. DEPRECIATION
Deprecation on Fixed Assets is provided on straight line method at the
rates and in the manner prescribed in Schedule XTV to the Companies
Act, 1956.
4. TREATMENT OF STOCK OF STATIONERY FORMS, SHARES ETC.
The entire amount of printing and stationery is treated as expenditure
for the year without making any provision for stock at the end of the
year. Further shares held by the Company as stock-in-trade is valued at
cost as decided by the management.
Shares, Debentures and other Securities, purchased if any, are
accounted under Stock-in-trade on trade dates. Contracts relating to
specified shares intended to be squared-off in the same settlement are
accounted on the squar- ing up dates. The brokerage is included in the
cost of Investments/ Stock-in-Trade.
5. VALUATION OF INVESTMENTS
Long term Investment are carried at cost less provision, if any, for
permanent diminution in the value of such investments. The comparative
shortfall is charged to revenue.
6. REVENUE RECOGNITION
Interest on Loans is provided as agreed with respective parties and
same is made on annual basis. Dividend income is recognized as and
when the right to receive dividend is established. Profit or losses
from Investments/ Stock-in-trade are recognised on trade dates on
first-in-first out basis.
7. EXPENDITURE
All the expenses comprising interest, rent and charges are provided on
accrual basis except certain petty expenses which are accounted on cash
basis.
8. TAXES ON INCOME
Current Charge for Income Tax including Deferred Tax, if any, is
calculated in accordance with the relevant tax regulations applicable
to the Company.
9. EMPLOYEE RETIREMENT BENEFITS
Leave encashment liabilities is accounted for on cash basis as the
liability on the date of the Balance Sheet is not expected to be
material.
10. Material Events occurring after Balance Sheet date are taken into
cognizance.
11. PRIOR PERIOD AND EXTRA ORDINARY ITEMS
Prior period and Extra ordinary Hero and changes in Accounting policies
having material impact on the financial attain of the company, if any,
have been disclosed.
12. Contingent liabilities ate not provided for and are disclosed by
way of notes, if any.
Mar 31, 2010
1. ACCOUTING CONVENTION
The accounts have been prepared under the historical cost convention.
2. FIXEDASSETS
Fixed Assets are stated at cost inclusive of expenses in connection
therewith and deduction is made for the depreciation.
3. DEPRECIATION
Deprecation on Fixed Assets is provided on straight line method at the
rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956.
4.TREATMENT OF STOCK OF STATI ON ERYFORMS ETC.
The entire amount of printing and stationery is treated as expenditure
for the year without making any provision for stock at the end of the
year.
5. INVESTMENTS/STOCK-IN-TRADE
(a) Shares, Debentures and other Securities are accounted under
Investments/Stock-in-trade on trade dates. Contracts relating to
specified shares intended to be squared-off in the same settlement are
accounted on the squaring up dates.
(b) The brokerage is included in the cost of Investments/
Stock-in-Trade.
6. VALUATION OFDSVESTMENTS/STOCK-IN-TRADE
Long term Investment are carried at cost less provision, if any, for
permanent diminution in the value of such investments. Stock-in-trade
is valued at cost or market value whichever is lower. The comparative
shortfall is charged to revenue. The comparison for each scrip is made
separately.
7. DETERMNATION OF THE MARKET VALUE OF INVESTMEN
i) Quoted shares, securities are taken at the year-end closing market
rates prevailing on the principal stock exchanges where they are
traded.
ii) Unquoted shares are taken at cost or break-up value of the shares
as per the last audited Balance Sheet of the Company concerned,
whichever is lower.
iii) Investment in estate finance is valued at cost taking into account
all the value additions made thereon.
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