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Accounting Policies of Gajanan Securities Services Ltd. Company

Mar 31, 2015

A) Accounting Convention:

1. The accounts have been prepared on historical cost basis and on the accounting principles of a going concern.

2. Accounting policies not specifically referred to otherwise are consistent and in accordance with the generally accepted accounting policies.

3. The Company is following mercantile basis consistently.

b) Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

c) Inventories:

Company is engaged in the business of broking/dealing in shares & securities. The inventory includes quoted as well as unquoted shares. The inventory have been valued by the company at cost instead of lower of cost or net realizable value as prescribed by AS 2. The valuation of inventory has been taken, valued and certified by the directors. Due to the above, the valuation of inventory is higher by Rs. 42025/- and the net profit is overstated by the same amount.

d) Depreciation on Fixed Assets:

Depreciation on Fixed Assets has been provided for on Written Down Value at rates determined based on useful lives of the respective assets and the residual values in accordance with Schedule II of the Companies Act, 2013 or re-assessed by the Company based on technical evaluation. Further, due to applicability of Schedule II during the year is higher by Rs. 33366/-

e) Revenue Recognition:

Income & Expenditures are recognised on accrual basis.

f) Employee Benefits

Since the Payment of Gratuity Act, 1972 does not apply to the company, disclosure under AS 15 has not been made.

g) Investments:

Non current investments(long term) are stated at cost.

h) Provision for taxation:

The company during the year has provided current tax as computed under the provisions of the Income Tax Act, 1961.

i) Considering the reasonable certainty required under AS 22 and greater prudence, the recognition of deferred tax has not been done as the company has brought forward of losses and there is no virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

j) Previous year figures have been regrouped and rearranged to make them comparable with the current year figures.


Mar 31, 2014

A) Accounting Convention:

1. The accounts have been prepared on historical cost basis and on the accounting principles of a going concern.

2. Accounting policies not specifically referred to otherwise are consistent and in accordance with the generally accepted accounting policies.

3. The Company is following mercantile basis consistently.

b) Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

c) Inventories:

Company is engaged in the business of broking/dealing in shares & securities. The inventory includes qouted as well as unquoted shares. The inventory have been valued by the company at cost instead of lower of cost or net realizable value as prescribed by AS 2. The valuation of inventory has been taken, valued and certified by the directors. Due to the above, the valuation of inventory is higher by Rs. 41516/- and the net profit is overstated by the same amount.

d) Depreciation on Fixed Assets:

Depreciation on Fixed Assets has been provided for on Written Down Value method as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

e) Revenue Recognition:

Income & Expenditures are recognised on accrual basis.

f) Investments:

Non current investments(long term) are stated at cost.


Mar 31, 2013

A) Accounting Convention:

1. The accounts have been prepared on historical cost basis and on the accounting principles of a going concern.

2. Accounting policies not specifically referred to otherwise are consistent and in accordance with the generally accepted accounting policies.

3. The Company is following mercantile basis consistently.

b) Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

c) Inventories:

Company is engaged in the business of broking/dealing in shares & securities. The inventory includes qouted as well as unquoted shares. The inventory have been valued by the company at cost instead of lower of cost or net realizable value as prescribed by AS 2. The valuation of inventory has been taken, valued and certified by the directors. Due to the above, the valuation of inventory is higher by Rs. 132,688/- and the net profit is overstated by the same amount.

d) Depreciation on Fixed Assets:

Depreciation on Fixed Assets has been provided for on Written Down Value method as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

e) Revenue Recognition:

Income & Expenditures are recognised on accrual basis.

f) Investments:

Non current investments(long term) are stated at cost.

g) Provision for taxation:

The company during the year has suffered losses, so the question of provision for taxation does not arise.


Mar 31, 2012

A) Accounting Convention:

1. The accounts have been prepared on historical cost basis and on the accounting principles of a going concern.

2. Accounting policies not specifically referred to otherwise are consistent and in accordance with the generally accepted accounting policies.

3. The Company is following mercantile basis consistently.

b) Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

c) Inventories:

Company is engaged in the business of broking/dealing in shares & securities. The inventory includes qouted as well as unquoted shares. The inventory have been valued by the company at cost instead of lower of cost or net realizable value as prescribed by AS 2. The valuation of inventory has been taken, valued and certified by the directors. Due to the above, the valuation of inventory is higher by Rs. 206,894/- and the net profit is overstated by the same amount.

d) Depreciation on Fixed Assets:

Depreciation on Fixed Assets has been provided for on Written Down Value method as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

e) Revenue Recognition:

Income & Expenditures are recognised on accrual basis.

f) Investments:

Non current investments(long term) are stated at cost.

g) Provision for taxation:

The company during the year has suffered losses, so the question of provision for taxation does not arise.


Mar 31, 2011

I. GENERAL

a) These accounts are prepared on the historical cost basis and on the accounting assumption of a going concern

b) Accounting policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles.

11 RECOGNITION OF INCOME AND EXPENDITURE:

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual and prudent basis, unless specifically stated to be otherwise, except dividend, which is accounted for on cash basis.

III. FIXED ASSETS

Fixed assets are shown at historical cost less accumulated depreciation,

IV. DEPRECIATION.

Depreciation on fixed assets is provided on written down value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

V. GRATUITY

Gratuity to employees is charged to profits in the year in which it becomes due and payable. No provision is made for liability of future payments of gratuity to retiring employees.

VI. INVESTMENTS

Investments (long Term) are being valued at cost.

VII. RETIREMENT BENEFITS:

Retirement benefits are not accounted for in the books of accounts.

VIII. INVENTORY.

Inventory of quoted shares are valued at cost.

IX. DEFERRED TAX:

Deferred Tax is recognized to consideration of prudence on Timing Difference being difference between taxable and accounting income/ expenditure that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which Deferred Tax Assets will be realized.

X. CONTINGENT LIABILITIES:

Contingent Liabilities not provided for are disclosed in the notes on accounts.

 
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