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Accounting Policies of Grandma Trading & Agencies Ltd. Company

Mar 31, 2015

Depreciation on Fixed Assets:

The Schedule II of the Companies Act, 2013 is being implemented from 1st April, 2014 and the Company has adopted the new method of Depreciation on its Fixed Asset i.e. "Depreciation on the basis of useful life" as provided in Part C of Schedule II.

However during the reporting period the Company does not hold any fixed assets.

3. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risk and rewards of ownership of products are passed on to the customers.

Interest income is recognized on the time proportion basis.

Dividend income is recognized when right to receive is established.

4. FIXED ASSETS:

Fixed Assets, if any, are stated at cost of acquisition and other direct or indirect cost incurred up to the date the assets is put to use. However there were no fixed assets during the year.

5. DEPRECIATION:

Since the Company has no fixed assets no depreciation has been charged for the Financial Year 2014-2015.

6. INVESTMENTS:

Long term Investments are valued at cost. Provision for diminution in value of investment is made to recognize a decline other than temporary.

Current Investments are valued at lower of cost or fair market value.

However, the company does not have any investments during the year.

7. INVENTORIES:

Stocks of Shares are valued at Cost or Net Realizable Value whichever is lower.

8. MISCELLANEOUS EXPENDITURE:

Miscellaneous Expenditure comprising of share issue expenses and are written off in five equal installments.

9. SUNDRY DEBTORS AND RECEIVABLES:

Sundry Debtors and Loans and Advances are stated at the value if realized in the ordinary course of business. Irrecoverable amounts, if any are accounted and / or provided for as per management's judgment or only upon final settlement of accounts with the parties.

10. TAXES ON INCOME:

Provision for income tax is made on the basis of estimated taxable income for the current year at current rates.

Current Tax represents the amount of Income Tax payable in respect of the taxable income for the reporting period as determined in accordance with the provisions of the Income Tax Act, 1961.

11. EARNING PER SHARE:

The Company reports basic and diluted Earning Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end.

12. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized at the balance sheet date when

a) there is a present obligation as a result of past events.

b) there is a probability that there will be an outflow of resources.

c) the amount of obligation can be reliably estimated.

Contingent Liabilities are not recognized but are disclosed in the notes in case of:

a) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of obligation cannot be made.

b) a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the company.

13. OTHER ACCOUNTING POLICIES:

These are consistent with the generally accepted accounting practices


Mar 31, 2014

1. GENERAL:

a) Financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

b) Financial Statements are prepared on historical cost basis and in consonance with the Generally Accepted Accounting Principles.

c) All revenues and expenses are accounted on accrual basis except to the extent stated otherwise.

2. REVENUE RECOGNITION:

Revenue from sale of products is recognized when the risk and rewards of ownership of products are passed on to the customers. Interest income is recognized on the time proportion basis.Dividend income is recognized when right to receive is established.

3. FIXED ASSETS:

Fixed Assets, if any, are stated at cost of acquisition and other direct cost incurred up to the date the assets is put to use. However there were no fixed assets during the year.

4. DEPRECIATION:

Since the Company has no fixed assets no depreciation has been charged for the Financial Year 2013-2014.

5. INVESTMENTS:

Long term Investments are valued at cost. Provision for diminution in value of investment is made to recognize a decline other than temporary.

6. INVENTORIES:

Stocks of Shares are valued at Cost or Net Realizable Value whichever is lower.

7. MISCELLANEOUS EXPENDITURE:

Miscellaneous Expenditure comprising of share issue expenses and are written off in five equal installments.

8. SUNDRY DEBTORS AND RECEIVABLES:

Sundry Debtors and Loans and Advances are stated at the value if realized in the ordinary course of business. Irrecoverable amounts, if any are accounted and / or provided for as per management''s judgment or only upon final settlement of accounts with the parties.

9. TAXES ON INCOME:

Provision for income tax is made on the basis of estimated taxable income for the current year at current rates.

Current Tax represents the amount of Income Tax payable in respect of the taxable income for the reporting period as determined in accordance with the provisions of the Income Tax Act, 1961.

10. EARNING PER SHARE:

The Company reports basic and diluted Earning Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic EPS is computed using the weighted average number of equity shares outstanding during the period. Diluted EPS is computed using the weighted average number of equity and dilutive equity equivalent shares outstanding during the year end.

11. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized at the balance sheet date when

a) there is a present obligation as a result of past events.

b) there is a probability that there will be an outflow of resources.

c) the amount of obligation can be reliably estimated.

Contingent Liabilities are not recognized but are disclosed in the notes in case of:

a) a present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of obligation cannot be made.

b) a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not within the control of the company.

12. OTHER ACCOUNTING POLICIES:

These are consistent with the generally accepted accounting practices


Mar 31, 2012

1. GENERAL:

a) Financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

b) Financial Statements are prepared on historical cost basis and in consonance with the Generally Accepted Accounting Principles.

c) All revenues and expenses are accounted on accrual basis except to the extent stated otherwise.

2. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition and other direct cost incurred up to the date the assets is put to use. However there were no fixed assets during the year.

3. DEPRECIATION:

Since the Company has no fixed assets no depreciation has been charged for the Financial Year 2011-2012.

4. INVENTORIES:

Inventories are valued at lower of Cost or Net Realizable Value.

5. MISCELLANEOUS EXPENDITURE:

Miscellaneous Expenditure comprising of share issue expenses and are written off in five equal installments.

6. SUNDRY DEBTORS AND RECEIVABLES:

Sundry Debtors and Loans and Advances are stated at the value if realized in the ordinary course of business. Irrecoverable amounts, if any are accounted and / or provided for as per management's judgment or only upon final settlement of accounts with the parties.

7. TAXES ON INCOME:

Provision for income tax is made on the basis of estimated taxable income for the current year at current rates.

Current Tax represents the amount of Income Tax payable in respect of the taxable income for the reporting period as determined in accordance with the provisions of the Income Tax Act, 1961.

8. EARNING PER SHARE

The Company reports basic and diluted Earning Per Share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic and Diluted EPS are Computed by dividing the net profit for the year attributable to equity share holders by the number of equity shares outstanding during the year.


Mar 31, 2010

A) RECOGNIATION OF REVENUE:

The Financial statements are prepared under the historical cost convention, on accrual basis of accounting, in conformity with the accounting principles generally accepted in India and comply with the accounting standards referred to in Section 211 (3C) of the Companies Act, 1956 of India.

B) FIXED ASSETS :

Fixed Assets are stated at historical cost of acquisition/ construction less depreciation, attributable interest and expenses of bringing the respective assets working condition for their intended commercial use are capitalised.

C) DEPRECIATION

Depreciation is charged at written down value method at the rates prescribed in Schedule XIV of the Companies Act1956.

D) SYSTEM OF ACCOUNTING :

Company has followed Mercantile Method of Accounting.