Mar 31, 2015
I. The Company is into the business of Advisory Services related to
Capital Market, Trading and Investments Activities in Shares &
Securities and engaged in treasury operations by way of providing
accounting principles in India, the applicable Accounting Standards
prescribed under Section 133 of the Companies Act, 2013 ('Act') read
with Rule 7 of the Companies (Accounts) Rules, 2014, till the Standards
of Accounting or any other addendum thereto are prescribed by Central
Government in consultation and recommendation of the National Financial
Reporting Authority, the existing (Accounting Standards) Rules, 2006}
and other relevant provisions of the Companies Act 2013.operating cycle
and other criteria set out in the Schedule III to the Companies Act,
2013.
ii. Use of Estimates :
expenses during the reported period. Differences between the actual
result and estimates are recognized in the period in which the results
are known/materialize. Management believes that the could differ from
these estimates.
iii. Cash Flow :
the Accounting Standard 3 issued by the Institute of Chartered
Accountants of India.
iv. Fixed Assets :
assets to its working condition for its intended use, less accumulated
depreciation and impairment loss.
Depreciation on tangible assets is calculated on a pro-rata basis on
the Written Down Value Method at the rates prescribed under Schedule II
to the Companies Act, 2013 with the exception of the following:- assets
costing Rs. 5,000/- or less are fully depreciated in the year of
purchase.
v. Revenue Recognition :
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured. The following specific recognition criteria must also be met
before revenue is recognized
a) Income from advisory services is recognised on accrual basis.
b) Profit / loss earned on sale of investment is recognised on trade
date basis. Profit/Loss on sale of Investment is determined on basis of
FIFO cost of the investment sold.
Other Income Recognition
Interest on investments and Loans and Advances is booked on a time
proportion basis taking into account the amounts invested or loan given
and the rate of interest.
Dividend income is recognized when the right to receive payment is
established.
Expenditure
Expenses are accounted for on accrual basis and provision is made for
all known losses.
vi. Foreign Currency Transactions :
Foreign currency transactions are recorded in the books at exchange
rates prevailing on the date of the transaction. Exchange differences
arising on foreign exchange transactions settled during the period are
recognized as income or expense in the profit and loss account of the
same period.
Foreign currency assets and liabilities are translated at the period
end rates and the resultant exchange differences, are recognized in the
profit and loss account.
vii. Borrowing Cost :
Borrowing Costs that are directly attributable to the acquisition or
production of qualifying assets are capitalized as the cost of the
respective assets. Other Borrowing Costs are charged to the Profit and
Loss Account in the period in which they are incurred.
viii. Employees benefits :
All employee benefit obligations payable wholly within twelve months of
the rendering the services are classified as Short Term Employee
Benefits. Such Benefits are estimated and provided for in the period in
which the employee renders the related service.
Post Employment Benefits
1. P.F. and E.S.I.C Scheme is not applicable to the company.
2. Since the Company has incorporated in year 2013, no employee is
under the category that is eligible for payment of Gratuity.
ix. Inventories
Inventories are measured at lower of the cost and net realizable value.
Cost of inventories comprises all costs of purchase (net of input
credit) and other costs incurred in bringing the inventories to their
present location and condition. Costs of consumable and trading
products are determined by using the First-In First-Out Method (FIFO).
x. Investments
Long-term Investments are carried individually at cost less provision
for diminution, other than temporary, in the value of such Investments.
Current investments are carried individually at the lower of cost and
fair value. Costs of investments include acquisition charges such as
brokerage, fees and duties.
xi. Accounting for taxes on Income :
a) Income tax comprises the current tax and net change in deferred tax
assets, which are made in accordance with the provisions as per the
Income Tax Act, 1961.
b) Deferred Tax resulting from timing differences between accounting
income and taxable income for the period is accounted for using the tax
rates and laws that have been enacted or substantially enacted as at
the balance sheet date. The deferred tax asset is recognized and
carried forward only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax asset can be realized.
As at Credit/ (Charge)
Particulars 1st April 14 for the year
Deferred Tax on Account of 2,39,229 (99,472)
Depreciation
Deferred Tax on Account of - -
Others
Net Deferred Tax (Assets)/ 2,39,229 (99,472)
Liabilities
As at
Particulars 31st March 15
Deferred Tax on Account of Depreciation 1,39,757
Deferred Tax on Account of Others -
Net Deferred Tax (Assets)/ Liabilities 1,39,757
xii. Leased Assets :
Assets acquired on leases where a significant portion of the risks and
rewards of the ownership are retained by the lessor, are classified as
Operating Leases. The rental and all other expenses of leased assets
are treated as revenue expenditure.
xiii. Provisions and Contingent Liabilities :
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
xiv. Impairment of Assets :
The Company assesses at each balance sheet date whether there is any
indication that an assets may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or recoverable amount of the cash
generating unit to which the assets belongs is less than the carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as impairment loss and is recognized in the profit
and loss account. If at the balance date there is an indication that if
a previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the assets is reflected at the recoverable
amount.
xv. Cash and cash equivalents :
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
xvi. Segment Information :
a) The Company's business segments are identified around products in
which company deals.
b) The accounting policies used in the preparation of the financial
statements of the Company are also applied for segment reporting.
c) Segment revenues, expenses, assets and liabilities are those, which
are directly attributable to the segment or are allocated on an
appropriate basis. Corporate and other revenues, expenses, assets and
liabilities to the extent not allocable to segments are disclosed in
the reconciliation of reportable segments with the financial
statements.
d) Figures in brackets are in respect of the previous year.
e) Segment Revenues, Results and Other Information: The Company is
operating in single segment vide finance and investments, thus segment
reporting is not applicable to the Company for the year under review.
xvii. Earnings per Share:
Earnings per share is calculated by dividing the profit/(loss)
attributable to the equity shareholders by the weighted average number
of equity shares outstanding during the year. The number used in
calculating the basic and diluted earnings per share are stated below:
Particulars 31.03.2015 31.03.2014
Net profit/(loss) for the year as per
profit and loss accounts (Rs.) 2,40,376 40,10,478
Weighted Average number of equity shares
for calculating Basic EPS 16,940,000 12,440,000
Weighted Average number of equity shares
for calculating Diluted EPS 16,940,000 12,440,000
Face value per share (Rs.) 10 10
Basic EPS on face value of Rs. 10/- 0.01 0.32
Diluted EPS on face value of Rs. 10/- 0.01 0.32
xviii. Related party transactions:
A. Related parties and their relationship
Key Management Personnel:
Mr. Samir Baid - Managing Director*
Mr. Manish Baid - Managing Director#
# Mr. Manish Baid Resigned from the post of Managing Director w.e.f.
30.09.2014
* Appointment as Managing Director w.e.f. 01.10.2014
Others: Enterprises over which Key Management Personnel are able to
exercise significant influence / controls
* GCM Securities Limited
* GCM Commodity & Derivatives Limited
* Global Capital Market & Infrastructures Limited
* Cadillac Vanijya Private Limited
* Chello Commotrade Limited
* Silver Pearl Hospitality and Luxury Spaces Limited
B. Details of Remuneration paid to Directors and their relatives
a. Payment to Directors
Mr. Manish Baid Ex-Managing Director Rs. 1,50,000/
Mr. Samir Baid Managing Director Rs. 1,50,000/-
b. Payment to Directors' Relatives - Nil
C. Transactions with related parties during the year ended 31st March,
2015: Not Any
D. Disclosure of material transactions with related parties during the
year ended 31st March, 2015: Nil
2. Other Notes and Additional Information forming part of Financial
Statements
i. In the opinion of the management, current assets, loans and
advances and other receivables are approximately of the value stated,
if realized in the ordinary course of business. The provisions of all
known liability are ascertained.
ii. Previous year figures have been restated to conform to the
classification of the current year.
iii. Provision for Gratuity has not been created since none of the
employee had worded for more than six months during the year
iv. Balances of Sundry Debtors, Unsecured Loans, and Sundry Creditors
are Loans & Advances are subject to reconciliation, since conformations
have not been received from them. Necessary entries will be passed on
receipt of the same if required.
v. The company has not provided for Gratuity and Leave Encashment to
Employees on accrual basis, which is not in conformity with AS-15
issued by ICAI. However, in the opinion of management the amount
involved is negligible and has no impact on Statement of Profit & Loss.
Mar 31, 2014
I) Basis of preparation of financial statements :
These financial statements have been prepared as of a going concern and
in accordance with the generally accepted accounting principles in
India under the historical cost convention on accrual basis. These
financial statements have been prepared to comply in all material
aspects with the accounting standards notified under Section 211(3C)
[Companies (Accounting Standards) Rules, 2006, as amended] and the
other relevant provisions of the Companies Act, 1956.
ii) Use of Estimates :
The presentation of financial statements in conformity with the
generally accepted accounting principles require estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenue and expenses during the reported period. Differences
between the actual result and estimates are recognized in the period in
which the results are known/materialize. Management believes that the
estimates used in the preparation of financial statements are prudent
and reasonable. Future results could differ from these estimates.
iii) Cash Flow :
Cash flow statement has been prepared in accordance with the "indirect
method" as explained in the Accounting Standard 3 issued by the
Institute of Chartered Accountants of India.
iv) Fixed Assets :
Fixed Assets are stated at cost of acquisition less accumulated
depreciation, amortisation, and impairment loss, if any. Fixed Assets
are accounted at cost of acquisition inclusive of inward freight,
duties taxes and other incidental expenses related to acquisition and
installation of Fixed Assets incurred to bring the assets to their
working condition for their intended use.
v) Depreciation :
Depreciation is provided for in the books on written down value method
as per the rates prescribed under Schedule XIV of the Companies Act
1956.
vi) Revenue Recognition :
Revenue is recognized to the extent it is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured. The following specific recognition criteria must also be met
before revenue is recognized
a) Income from advisory services is recognised on accrual basis.
b) Profit / loss earned on sale of investment is recognised on trade
date basis. Profit/Loss on sale of Investment is determined on basis
of FIFO cost of the investment sold.
Other Income Recognition
Interest on investments is booked on a time proportion basis taking
into account the amounts invested and the rate of interest.
Dividend income is recognized when the right to receive payment is
established.
Expenditure
Expenses are accounted for on accrual basis and provision is made for
all known losses.
vii) Foreign Currency Transactions :
Foreign currency transactions are recorded in the books at exchange
rates prevailing on the date of the transaction. Exchange differences
arising on foreign exchange transactions settled during the period are
recognized as income or expense in the profit and loss account of the
same period.
Foreign currency assets and liabilities are translated at the period
end rates and the resultant exchange differences, are recognized in the
profit and loss account.
viii) Borrowing Cost :
Borrowing Costs that are directly attributable to the acquisition or
production of qualifying assets are capitalized as the cost of the
respective assets. Other Borrowing Costs are charged to the Profit and
Loss Account in the period in which they are incurred.
ix) Employees benefits :
All employee benefit obligations payable wholly within twelve months of
the rendering the services are classified as Short Term Employee
Benefits. Such Benefits are estimated and provided for in the period in
which the employee renders the related service.
Post Employment Benefits
Defined Contribution Plan
All eligible employees of the Company are entitled to receive benefits
under the provident fund through a defined contribution plan in which
both the employee and the Company contribute monthly at specified
percentage of employee''s basic salary. These contributions are made to
a Government Approved Provident Fund. Contribution to the said
provident fund is Defined Contribution Plan. The contribution paid/
payable under the schemes is recognized during the period in which the
employee renders the related service.
Defined Benefit Plans
The costs of providing Gratuity (unfunded) is determined using
projected unit credit method on the basis of actuarial valuation
carried out by a third party actuary at each balance sheet date
x) Inventories
Inventories are measured at lower of the cost and net realizable value.
Cost of inventories comprises all costs of purchase (net of input
credit) and other costs incurred in bringing the inventories to their
present location and condition. Costs of consumable and trading
products are determined by using the First-In First- Out Method (FIFO).
xi) Accounting for taxes on Income :
i) Income tax comprises the current tax and net change in deferred tax
assets, which are made in accordance with the provisions as per the
Income Tax Act, 1961.
ii) Deferred Tax resulting from timing differences between accounting
income and taxable income for the period is accounted for using the tax
rates and laws that have been enacted or substantially enacted as at
the balance sheet date. The deferred tax asset is recognized and
carried forward only to the extent that there is reasonable certainty
that sufficient future taxable income will be available against which
such deferred tax asset can be realized.
xii) Leased Assets :
Assets acquired on leases where a significant portion of the risks and
rewards of the ownership are retained by the lessor, are classified as
Operating Leases. The rental and all other expenses of leased assets
are treated as revenue expenditure.
xiii) Provisions and Contingent Liabilities :
The Company recognizes a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
xiv) Impairment of Assets :
The Company assesses at each balance sheet date whether there is any
indication that an assets may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or recoverable amount of the cash
generating unit to which the assets belongs is less than the carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as impairment loss and is recognized in the profit
and loss account. If at the balance date there is an indication that if
a previously assessed impairment loss no longer exists, the recoverable
amount is reassessed and the assets is reflected at the recoverable
amount.
xv) Cash and cash equivalents :
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.