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Accounting Policies of Goyal Associates Ltd. Company

Mar 31, 2014

1. Basis for preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as applicable and the applicable norms as laid down by the Reserve Bank of India. Except where otherwise stated, the accounting principles are consistently applied.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets, liabilities and contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Investments

a) Investments, which are intended to be carried for a period exceeding one year are treated as Long Term Investments. All other investments are considered as Current Investments.

b) Long Term Investments are carried at cost. Temporary diminutions in value of long term investments are not considered in the accounts. Current investments are carried at lower of cost and net realizable value. Cost for the purpose includes all costs incurred on purchase/acquisition of such investments.

4. Fixed Assets & Depreciation

Fixed Assets are stated at historical cost. Cost for the purpose includes all costs attributable to bring- ing the specified asset to its present location.

Depreciation on Fixed Assets is charged on Written Down Value method at the rates and manner as specified under Schedule XIV to the Companies Act, 1956.

5. Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset 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 the recoverable amount of the cash generating unit which the asset belongs to, is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recover- able amount subject to a maximum of depreciable historical cost.

6. Provision and Contingencies

Apart from the mandatory provisioning in accordance with the norms as laid down by the Reserve Bank of India from time to time, the Company creates provisions when there is 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. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed. Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

7. Inventories

Stock of shares are valued at lower of cost and market value. Cost for the purpose includes all costs attributable to the acquisition of stock including brokerage, taxes & duties etc. Cost Formulae used: FIFO method.

8. Revenue Recognition

a) Income from sales is recognized as and when the sales are complete.

b) Revenue in respect of all other income is recognized when a reasonable certainty as to its realiza- tion exists.

9. Employees'' Retirement and Other Benefits

a) Retirement gratuity is accounted for on accrual basis subject to the completion of one year by the employee concerned.

b) Provident Fund & Miscellaneous Provisions Act, 1952, is not applicable to the Company for the year under reference.

c) Cost of earned leave of the employees is estimated at the end of every year and expensed to the profit and loss account of the year in which such leave were earned.

10. Accounting for Taxes

a) Current Tax and Fringe Benefit Tax are accounted on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

b) Deferred Tax resulting from "timing differences" between accounting and taxable profit for the period is accounted by using tax rates and laws that have been enacted or subsequently enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future.

11. Prudential Norms issued by the R.B.I.

The Company follows the Prudential Norms as applicable to it, issued by the Reserve Bank of India in respect of Non-Banking Financial Companies (NBFCs).

12. Loan sanctioned/granted by the Company

The policy of the Company for sanction of any loan stipulates the period for which the loan is sanc- tioned and also the date for demanding or calling up of such loan. Similarly, interest, if any, on such loan is payable in accordance with the terms of sanction.


Mar 31, 2013

1. Basis for preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as applicable and the applicable norms as laid down by the Reserve Bank of India. Except where otherwise stated, the accounting principles are consistently applied.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make assumptions and estimates, which it believes are reasonable under the circumstances that affect the reported amounts of assets, liabilities and contingent liabilities on the date of financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Investments

a) Investments, which are intended to be carried for a period exceeding one year are treated as Long Term Investments. All other investments are considered as Current Investments.

b) Long Term Investments are carried at cost. Temporary diminutions in value of long term investments are not considered in the accounts. Current investments are carried at lower of cost and net realizable value. Cost for the purpose includes all costs incurred on purchase/acquisition of such investments.

4. Fixed Assets & Depreciation

Fixed Assets are stated at historical cost. Cost for the purpose includes all costs attributable to bringing the specified asset to its present location.

Depreciation on Fixed Assets is charged on Written Down Value method at the rates and manner as specified under Schedule XIV to the Companies Act, 1956.

5. Impairment of Assets

The Company assesses at each balance sheet date whether there is any indication that an asset 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 the recoverable amount of the cash generating unit which the asset belongs to, is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

6. Provision and Contingencies

Apart from the mandatory provisioning in accordance with the norms as laid down by the Reserve Bank of India from time to time, the Company creates provisions when there is 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. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed. Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

7. Inventories

Stock of shares are valued at lower of cost and market value. Cost for the purpose includes all costs attributable to the acquisition of stock including brokerage, taxes & duties etc. Cost Formulae used: FIFO method.

8. Revenue Recognition

a) Income from sales is recognized as and when the sales are complete.

b) Revenue in respect of all other income is recognized when a reasonable certainty as to its realization exists.

9. Employees'' Retirement and Other Benefits

a) Retirement gratuity is accounted for on accrual basis subject to the completion of one year by the employee concerned.

b) Provident Fund & Miscellaneous Provisions Act, 1952, is not applicable to the Company for the year under reference.

c) Cost of earned leave of the employees is estimated at the end of every year and expensed to the profit and loss account of the year in which such leave were earned.

10. Accounting for Taxes

a) Current Tax and Fringe Benefit Tax are accounted on the basis of estimated taxable income for the current accounting period and in accordance with the provisions of Income Tax Act, 1961.

b) Deferred Tax resulting from "timing differences" between accounting and taxable profit for the period is accounted by using tax rates and laws that have been enacted or subsequently enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future.

11 . Prudential Norms issued by the R.B.I.

The Company follows the Prudential Norms as applicable to it, issued by the Reserve Bank of India in respect of Non-Banking Financial Companies (NBFCs).

12. Loan sanctioned/granted by the Company

The policy of the Company for sanction of any loan stipulates the period for which the loan is sanctioned and also the date for demanding or calling up of such loan. Similarly, interest, if any, on such loan is payable in accordance with the terms of sanction.


Mar 31, 2012

A SYSTEM OF ACCOUNTING

(i) Company maintain its accounts on accrual basis following the historical cost convention in compliance with the Accounting Standards Specified to be mandatory by the Institute of Chartered Accountants of India and relevant provision of the Companies Act, 1956.

(ii) Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

B REVENUE RECOGNISE

1) Sales

Sale of securities is accounted on the basis of Contract notes issued by Stock Brokers.

2) Interest,commission, Duty Drawback and other Income are accounted on accrual basis.

3) Dividend is accounted on receipt basis.

C EXPENSES

It is company''s policy to account of expenses on accrual basis except expenses of traditional nature which are accounted on cash basis.

D INVENTORY

Closing Stock of Shares and Securities has been valued at cost or market price whichever is lower.

E INVESTMENT

There are no investments held by the Company.

F RETIREMENT BENEFITS

We have been informed that payment of Gratuity and provident fund are not applicable to company.

G PROVISION AND CONTINGENT LIABILITY

Provisions are recognised for present obligation, of uncertain timing or amount, arising as a result of past events where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability unless the probability of outflow of resources embodying economics benefit is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events, are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefit is remote.

H TAXATION

(a)

The Company has incurred losses in the year, so no tax has been charged.

(b) Deferred tax is provided in accordance with the Accounting Standards - 22, Accounting for taxes on Income, issued by the Institute of Chartered Accountants of India on timing differences between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets or liabilities are measured using the enacted tax rates for the current year. Adjustment of deferred tax assets or liability attributable to change in tax rates is shown in the profit and loss account as a part of deferred tax adjustment for the year.

I EARNING PER SHARE

Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

J SEGMENT REPORTING

The company has organised its operation into Financial Activities.


Mar 31, 2010

A SYSTEM OF ACCOUNTING

(i) Company maintain its accounts on accrual basis following the historical cost convention in compliance with the Accounting Standards Specified to be mandatory by the Institute of Chartered Accountants of India and relevant provision of the Companies Act, 1956.

(ii) Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

B REVENUE RECOGNISE

1) Sales

Sale of Fabric is recognised on the basis of dispatch of goods is accounted net of sales return, if any.

Sale of securities is accounted on the basis of debit notes issued to party.

2) Interest,commission, Duty Drawback and other Income are accounted on accrual basis.

3) Dividend is accounted on receipt basis.

C EXPENSES

It is company's policy to account of expenses on accrual basis except expenses of traditional nature which are accounted on cash basis.

D FIXED ASSETS AND DEPRECITION

Company does not have any fixed assets. Hence, no depreciation has been provided.

E INVENTORY

Closing stock of fabric/ shares and securities has been valued at Cost or market price whichever is lower.

F INVESTMENT

Investments are long term. Investment are valued at cost. Provision for diminution in value of investments is made only if such a decline is otherwise than temporary.

G RETIREMENT BENEFITS

We have been informed that payment of Gratuity and provident fund are not applicable to company.

H PROVISION AND CONTINGENT LIABILITY

Provisions are recognised for present obligation, of uncertain timing or amount, arising as a result of past events where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability unless the probability of outflow of resources embodying economics benefit is remote.

Possible obligations, whose existence will only be confirmed by the occurrence or non- occurrence of one or more uncertain future events, are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefit is remote.

I TAXATION

(a) Current corporate tax is provided on the profit for the year after considering applicable tax rates and laws.

(b) Deferred tax is provided in accordance with the Accounting Standards - 22. Accounting for taxes on Income, issued by the Institute of Chartered Accountants of India on timing differences between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets or liabilities are measured using the enacted tax rates for the current year.

Adjustment of deferred tax assets or liability attributable to change in tax rates is shown in the profit and loss account as a part of deferred tax adjustment for the year.

J IMPAIRMENT OF ASSETS

Impairment of loss is charged to the Profit and Loss Account in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

K EARNTNGTPER SHARE

Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

L SEGMENT REPORTING

The company has organised its operation into two business

- Trading in fabric

- financial Activities


Mar 31, 2009

A SYSTEM OF ACCOUNTING

(i) Company maintain its accounts on accrual basis following the historical cost convention in compliance with the Accounting Standards Specified to be mandatory by the Companies accounting standards and relevant provision of the Companies Act, 1956.

(ii) Accounting policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

B REVENUE RECOGNISE

1) Sales

Sale of Fabric is recognised on the basis of dispatch of goods is accounted net of sales return, if any.

Sale of securities is accounted on the basis of debit notes issued to party.

2) Interest commission. Duty Drawback and other Income are accounted on accrual basis.

3) Dividend is accounted on receipt basis.

C EXPENSES

It is company's policy to account of expenses on accrual basis except expenses of traditional nature which are accounted on cash basis.

D FIXED ASSETS AND DEPRECITTON

Company does not have any fixed assets. Hence, no depreciation has been provided.

E INVENTORY

Closing stock of fabric, shares and securities has been valued at Cost price and market price or market price whichever less.

F INVESTMENT

Investments are long term. Investment are valued at cost. Provision for diminution in value of investments is made only if such a decline is otherwise than temporary.

G RETIREMENT BENEFITS

We have been informed that payment of Gratuity and provident fund are not applicable to company.

H PROVISION AND CONTINGENT LIABILITY

Provisions are recognised for present obligation, of uncertain timing or amount, arising as a result of past events where a reliable estimate can be made and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation. Where it is not probable that an outflow of resources embodying economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability unless the probability of outflow of resources embodying economics benefit is remote. Possible obligations, whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events, are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefit is remote.

I TAXATION

(a) Current corporate tax is provided on the profit for the year after considering applicable tax rates and laws.

(b) Deferred tax is provided in accordance with the Accounting Standards - 22, Accounting for taxes on Income, issued by the Institute of Chartered Accountants of India on timing differences between tax and accounting treatments that originate in one period and are expected to be reversed or settled in subsequent periods. Deferred tax assets or liabilities are measured using the enacted tax rates for the current year. Adjustment of deferred tax assets or liability attributable to change in tax rates is shown in the profit and loss account as a part of deferred tax adjustment for the year.

J IMPAIRMENT OF ASSETS

Impairment of loss is charged to the Profit and Loss Account in the period in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in the prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

K EARNING PER SHARE

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

L SEGMENT REPORTING

The company has organised its operation into two business

- Trading in Shares .

- Trading in Shares & Securities

The analysis of geographical segment is based on the area in which major operating divisions of the company operate


Mar 31, 2008

1. Method of Accounting:

Company maintain its account on accrual basis following the historical cost convention in compliance with the Accounting standards specified to be mandatory by the institute of chartered Accountants of India and relevant provision of the companies Act, 1956.

2. Sales:

Sales are net of discount and returns it any.

3. Income and expenditures:

All incomes and expenditures to the extent considered payable and receivable respectively stated to be otherwise are accounted for on accrual basis.

4. Fixed Assets and Depreciation:

There is no Fixed Assets hence no depreciation has provided.

5. Inventories:

Closing stock of shares & Securities has been valued at cost.

6. Investments:

Investments reflected at the end of the year in the balance sheet are long term investments, provision for reduction / diminution in the value of investments, if any has not been provided as we have been informed by the management that such reduction or diminution is temporary. In absence of market value and regular quotations of securities, were cannot comment on the market value of the securities as on 31/03/2008.

7. Taxes on Income:

- Provision for income Tax is made in the books of account as per the provisions of income tax act, 1961.

- Provision for fringe benefit tax is made in the books of account as per the provisions of income tax act, 1961.

- As there is no liming difference provision for DTA/DTL is not made in the books of account.

8. Earning per shares:

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders y the weighted average number of equity shares outstanding during the periods.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

9. Segment Reporting policies:

The company has organized its operations into tow business:

- Trading of Fabrics

- Trading of shares and securities

The analysis of geographical segment is based on the area in which major operating divisions of the company operate.