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Accounting Policies of GCV Services Ltd. Company
Mar 31, 2010
A) Accounting Conventions
These accounts are prepared under historical cost convention and
accrual basis and are in conformity with mandatory accounting standards
and relevant provisions of the Companies Act, 1956.
b) Fixed Assets:
Fixed Assets are recorded at cost of acquisition less depreciation
Depreciation on Fixed Assets is provided on Straight Line Method at the
rates specified in Schedule XVI of the Companies Act, 1956
Investments are classified in to Current and long term. Long term
investment are stated at cost less provision, if any, for decline other
than temporary in their value.
e) Income from operations:
Income from operations are recognized one proving service and sale of
share are recognized on entering in to contract.
f) Retirement benefits:
As provisions of Provident Fund Act and Employees State Insurance
scheme are not applicable to Company no accounting policy decided.
There is no scheme for leave encashment to employee.
g) The company provide for Income tax on estimated taxable income and
based on expected out come of assessment appeals, in accordance with
the provisions of Income Tax Act, 1961 and rules framed there under.
Consequent to the issuance of the Accounting Standard 22 - "Accounting
for Taxes on Income" by Institute of chartered Accountants of India
which states that deferred tax should be recognized based on timing
differences between the accounting income and estimated income for the
year and quantify the same using the tax rates and law enacted or
substantively enacted as at the balance sheet date. As in the opinion
of management there is no virtual certainty, deferred tax assets are
not recognized and carried forward.