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Accounting Policies of Jhaveri Credits & Capital Ltd. Company

Mar 31, 2015

2.1 Basis of Preparation of Financial Statements

i. The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on an accrual basis.

ii. The Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 2013 as adopted consistently by the Company.

2.2 Use of Estimates:

The preparations of financial statements in conformity with generally accepted Accounting Principle requires Estimates and Assumptions to be made that affect the reported Amount of Assets and Liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Differences between Actual results and estimates are recognized in the period in which the results are known / materialized.

2.3 Fixed Assets:

Fixed Assets are stated at cost of acquisition, which includes taxes, duties, freight, and other identifiable expenditure relating to acquisition and installation as well as subsequent improvement.

2.4 Depreciation and Amortization:

i. The depreciation has been charged at W D V method on prorate basis as per rates prescribed in schedule II of the Companies Act, 2013.

ii. Depreciation on additions is provided on pro-rata basis.

2.5 Investments:

Current Investments are carried out at lower of Cost and quoted/fair value, computed category wise. Long Term investments are stated at cost. A provision for diminution in the value of long- term investments is made only if such a decline is other than temporary.

2.6 Inventories:

Inventories of the shares & securities are valued at cost.

2.7 Revenue Recognition:

a. Brokerage income is accounted on accrual basis. Interest income is recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

b. Dividend income is recognized when the right to receive dividend is established.

2.8 Provision for Current and Deferred Tax:

Income tax expense for the year comprises of current tax and deferred tax. Current tax provision is based on tax payable under the provisions of the Income Tax Act, 1961, which is computed in accordance with relevant, tax laws & rates. Similarly, provision is made for Deferred Tax for all timing difference items arising between taxable income & accounting income or expenses as the case may be, at currently enacted tax laws & rates.

Deferred Tax Assets are recognized only if there is reasonable certainty that the same will realized & are reviewed for appropriateness at the respective carrying values at each balance sheet dates.

2.9 Treatment of Contingent Liabilities:

Contingent Liabilities are determined on the basis of available information and disclosed by way of Notes to the Accounts.


Mar 31, 2014

1.1 Basis of Preparation of Financial Statements

i. The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on an accrual basis.

ii. The Financial Statements have been prepared under the historical cost convention, in accordance with generally accepted accounting principals and provisions of the Companies Act, 1956 as adopted consistently by the Company.

1.2 Use Of Estimates:

The preparation of financial statements in conformity with generally accepted Accounting Principle requires Estimates and Assumptions to be made that affect the reported amount of Assets and Liabilities on the date of financial statements and the reported amounts of revenue and expenses during the reporting period. Differences between Actual results and estimated are recognized in the period in which the results are known /materialized.

1.3 Fixed Assets:

Fixed Assets are stated at cost of acquisition, which included taxes, duties, freight and other identifiable expenditure relating to acquisition and installation as well as subsequent improvement.

1.4 Depreciation and Amortization:

i The depreciation has been charged at WDV method on prorate basis as per rates prescribed in schedule XIV of the Companies Act, 1956.

ii Depreciation on additions is provided n pro-data basis.

1.5 Investments:

Current Investments are carried out at lower of Cost and quoted/fair value, computed category wise.

Long Term investments are stated at cost. A provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

1.6 Inventories:

Inventories of the shares &securities are valued at cost.

1.7 Revenue Recognition:

(a) Interest incomes recognized on time proportion basis taking into account the amount outstanding and the rate applicable.

(b) Divided income is recognized when the right to receive dividend is established.

1.8 Provision for current and Deferred Tax:

Income tax expense for the year comprises of current tax and deferred tax. Current tax provision is based tax payable under the provisions of the Income Tax Act, 1961, which is computed in accordance with relevant, tax laws & rates. Similarly, provision is made for Deferred Tax for all timing difference items arising between taxable income & accounting income or expenses as the case may be, at currently enacted tax laws & rates.

1.9 Treatment of Contingent Liabilities:

Contingent Liabilities are determined on the basis of available information and disclosed by way Notes to the Accounts.


Mar 31, 2011

1. Basis of Preparation of Financial Statements

i. The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on an accrual basis.

II The Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles und provisions of the Companies Act, 1956 as adopted consistently by the Company.

2. Fixed Assets

Fixed Assets are stated at cost of acquisition, which includes taxes, duties, freight, and other identifiable expenditure relating to acquisition and installation as well as subsequent Improvement.

3. Depreciation and Amortization

I. The depreciation has been charged at W D V method on prorate basis as per rates prescribed in schedule XIV of the Companies Act, 1956.

ii) Depreciation on additions is provided on pro-rata basis.

4. Investments

Current Investments are carried out at lower of Cost and quoted/fair value, computed category wise.

Long Term investments are stated at cost. A provision for diminution in the value of long-term Investments is made only If such a decline Is other than temporary,

5. Inventories

Inventories of the shares & securities are valued at cost.

6. Revenue Recognition:

(a) Professional services/dividend/interest an securities I.e. Debentures, Bonds has been accounted for on receipt basis,

(b) Expenditures are not allocated segment wise to different segments.

7. Provision for Current and Deferred Tax;

Provision For current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 19G1. Deferred tax resulting from "timing difference" between taxable incomes and accounting income is accounted Tor using the Lax rates and laws that are enacted or substantively enacted as on the balance Sheets date. Deferred Tax Asset is recognized and carried forward only to the extent that virtual certainty that the assets will be realized in future.

8. Treatment of Contingent Liabilities:

Contingent Liabilities are determined on the basis of available information and disclosed by way of Notes to the Accounts.


Mar 31, 2010

1. Basis of Preparation of Financial Statements

i. The Company generally follows the mercantile system of accounting and recognizes significant items of income and expenditure on an accrual basis.

ii The Financial Statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 as adopted consistently by the Company.

2. Fixed Assets

Fixed Assets are stated at cost of acquisition, which includes taxes, duties, freight, and other identifiable expenditure relating to acquisition and installation as well as subsequent improvement.

3. Depreciation and Amortization

i) The depreciation has been charged at W D V method on prorate basis as per rates prescribed in schedule XIV of the Companies Act, 1956.

ii) Depreciation on additions is provided on pro-rata basis.

4. Investments

Current Investments are carried out at lower of Cost and quoted/fair value, computed category wise.

Long Term investments are stated at cost. A provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

5. Revenue Recognition:

Professional services/dividend/interest on securities i.e. Debentures, Bonds has been accounted for on receipt basis.

6. Provision for Current and Deferred Tax:

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference” between taxable incomes and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance Sheets date.

Deferred Tax Asset is recognized and carried forward only to the extent that virtual certainty that the assets will be realized in future.

7. Treatment of Contingent Liabilities:

Contingent Liabilities are determined on the basis of available information and disclosed by way of Notes to the Accounts.


Mar 31, 2009

(i) The financial statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentation requirement of the Companies Act, 1956 and on the basis of going concern.

(ii) a) Fixed assets are stated at original cost less accumulated Depreciation. Cost of acquisition includes of freight, duties, taxes and other incidental expenses. (b)The depreciation has been charged at W D V method on prorate basis as per rates prescribed in schedule XiV of the Companies Act, 1956.

2. Revenue Recognition

(a) Professional services /dividend / interest on securities i.e. Debentures, Bonds has been accounted for on receipt basis.

(b) Taxation provision have made as per Taxation law.

Deferred Tax Liability / Asset resulting from timing difference between book and taxable profit is accounted for considering the tax rate and laws enacted as on balance sheet date. Deferred tax asset, if any, is recognised and carried forward only to the extent that there is virtual certainty that the asset will be realised in the future.

3. Expenses

It is the companys policies to provide for all the expenses on accrual basis.

4. Investments

Investments are valued at cost. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary. The said diminution is determined for each investment individually. Market value is determined as>

(i) Quoted scripts are taken at the cost as investment.

(ii) Unquoted shares are taken at the cost as investment.

5. The management reviews periodically the outstanding debtors with a view to determining whether the debtors are good, bad or doubtful after taking in to consideration all the relevant aspects including the Tangible, intangible, Primary and collateral Security available, financial condition of debtors, the net-worth, standing and reputation of guarantor, if any, projected future performance of the debtors etc. based on such review, the management determines the extent of bad debts to be written off or provision to be made for debts doubtful of recovery.

6. (i) In the opinion of the board of directors Loans, Advances an other Current Assets in ordinary course of business will not be less than the amount as stated in the Balance Sheet. (ii) The provision for all known liabilities have been made except Otherwise stated.

7. Loans & advances includes the amount advanced and dues from the companies, firms wherein directors are interested and the companies under the same management, in our opinion & as per explanations given to us by management, such advances and the terms & conditions are in the normal course of business and are not prejudicial to the interest of the company.

8. Auditors Remuneration

2008-2009 2007-2008

Audit Fees Rs. 1,00,000/- 10,000/-

Other Rs. - -



9. There are no registered small scale undertaking in the list of creditors, hence no information is give with reference to the notification no GSR 129(E) dated 22.02.99 issued by the Department of company Affairs, Ministry of Law, Justice and Company Affairs.

10. Remittance and Expenditure in Foreign Currency: Rs. Nil (P.Y Nil)

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