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Accounting Policies of Kothari World Finance Ltd. Company

Mar 31, 2016

BASIS OF PREPARATION:_

The Financial statements are prepared in accordance with generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies (Accounts) Rules, 2014 issued under Section133 of the Companies Act, 2013.The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

The company has also re-classified the previous year figures in accordance with the requirements applicable in the current year.

USE OF ESTIMATES:_

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balance of assets & liabilities, revenue and expenses and disclosures relating to contingent liabilities. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the current and future periods.

FIXED ASSETS

i) Fixed Assets are stated at cost inclusive of all expenses directly attributable in bringing the Assets to their working condition.

ii) The Company provides depreciation on the basis of the useful life and residual value of fixed assets, as prescribed under Schedule II of the Companies Act, 2013.

STOCK IN TRADE & INVESTMENTS_

i) The securities acquired with the intention of short term holding and trading position are considered as stock in trade and shown as Current Assets. Other securities acquired with the intention of long-term holding are considered as Long Term Investments and are stated at Cost.

ii) In respect of investment, brokerage and stamp duty payable are considered to arrive at the cost. However, in respect of the securities held in stock in trade, brokerage and stamp duty are written off as revenue expenditure.

iii) The securities held as stock in trade under the current asset are valued at cost or market value whichever is lower.

iv) The investments are shown in the Balance Sheet at cost.

STATUTORY RESERVES_

In accordance with Section 45 - IC of the Reserve Bank of India (Amendment) Act 1997, Twenty percent of the profit after taxation has been transferred to Statutory Reserve.

Leave encashment is not provided in the Books. It is accounted on a cash basis.


Mar 31, 2014

A) BASIS OF PREPARATION:

The financial statements are prepared in accordance with generally accepted accounting principles in India. The Company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under the Companies ( Accounting Standard ) Rules 2006 issued under Subsection 3C of Section 211 of The Companies Act , 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year. The company has also re- classified the previous year figures in accordance with the requirements applicable in the current year.

B) USE OF ESTIMATES:

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balance of assets & liabilities, revenue and expenses and disclosures relating to contingent liabilities. The management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any revision of accounting estimates is recognized prospectively in the current and future periods.

C) FIXED ASSETS:

i) Fixed Assets are stated at cost inclusive of all expenses directly attributable in bringing the Assets to their working condition.

ii) Depreciation

a) The Company provides depreciation on Written Down Value Method at the rates prescribed under Schedule XIV OF THE Companies Act, 1956.

b) Depreciation on Assets has been provided on pro-rata basis from the date of acquisition or till the date of disposal as the case may be.

D) STOCK IN TRADE & INVESTMENTS

i) The securities acquired with the intention of short term holding and trading position are considered as stock in trade and shown as Current Assets. Other securities acquired with the intention of long-term holding are considered as Long Term Investments and are stated at Cost.

ii) In respect of investment,brokerage and stamp duty payable are considered to arrive at the cost. However in respect of the securities held in stock in trade, brokerage and stamp duty are written off as revenue expenditure.

iii) The securities held as stock in trade under the current asset are valued at cost or market value whichever is lower.

iv) The investments are shown in the Balance Sheet at cost.

E) STATUTORY RESERVES

In accordance with Section 45 - IC of the Reserve Bank of India (Amendment) Act,1997, Twenty percent of the profit after taxation has been transferred to Statutory Reserve.

F) Leave encashment is not provided in the Books. It is accounted on a cash basis.


Mar 31, 2012

A) Basis of Accounting

The Financial Statements are prepared under historical cost convention and on accrual basis.

b) Fixed Assets

(i) Fixed Assets are stated at cost inclusive of all expenses directly attributable in bringing the assets to their working condition.

(ii) Depreciation

(iii) The Company provides depreciation on Written down Value Method at the rates prescribed under Schedule XIV of the Companies Act, 1956.

(iv) Depreciation on Assets has been provided on pro -rata basis from the date of acquisition or till the date of disposal as the case may be.

c) Stock in trade and investments

(i) The securities acquired with the intention of short term holding and trading position are considered as stock in trade and shown as Current Assets. Other securities acquired with the intention of long-term holding are considered as Investments being of long term nature are stated at Cost.

(ii) In respect of investment, brokerage and stamp duty payable are considered to arrive at the cost. However in respect of the securities held in stock in trade, brokerage and stamp duty are written off as revenue expenditure.

(iii) The securities held as stock in trade under the current asset are valued at cost or market value whichever is lower.

(iv) The investments are shown in Balance Sheet at cost, In the case of quoted investments, provisions for diminution in value of investments is not made, since the Investments are Long Term Investments.

d) Statutory Reserve

In accordance with Section 45 - IC of the Reserve Bank of India (Amendment) Act, 1997, Twenty percent of the profit after taxation has been transferred to Statutory Reserve.


Mar 31, 2009

A) Basis of Accounting

The Financial Statements are prepared under historical cost convention and on accrual basis.

B) Fixed Assets

i) Fixed Assets are stated at cost inclusive of all expenses directly attributable in bringing the Assets to their working condition.

ii) Depreciation

a) The Company provides depreciation on Written Down Value Method at the rates prescribed under Schedule XIV OF THE Companies Act, 1956.

b) Depreciation on Assets has been provided on pro -rata basis from the date of acquisition or till the date of disposal as the case may be.

C) Stock in trade and investments

i) The securities acquired with the intention of short term holding and trading position are considered as stock in trade and shown as Current Assets. Other securities acquired with the intention of long-term holding are considered as Investments being of long term nature are stated at Cost.

ii) In respect of investment.brokerage and stamp duty payable are considered to arrive at the cost. However in respect of the securities held in stock in trade, brokerage and stamp duty are written off as revenue expenditure.

iii) The securities held as stock in trade under the current asset are valued at cost or market value whichever is lower.

iv) The investments are shown in Balance Sheet at cost, In case of quoted investments, provisions for diminution in value of investments is made, if such diminution is of permanent nature in the opinion of management.

D) Statutory Reserve

In accordance with Section 45 - IC of the Reserve Bank of India (Amendment) Act, 1997, Twenty percent of the profit after taxation have been transferred to Statutory Reserve.

E) Earning per share: -

In accordance with the Accounting Standard 20"Earaing per Share" issued by The institute of Chartered Accountants of India, basic earning per share is computed by dividing net profit after tax for the year by the weighted number of equity shares outstanding for the period. Diluted earning per shares has not been computed, as the company has not issued any dilutive potential equity shares

F) Segment Reporting: -

Based on the guiding principle given in the Accounting Standard -17 "Segment Reporting " issued by the institute of Chartered Accountants of India, the companys main activities is investment and finance and hence the said segment wise reporting is not applicable.

G) There are no amount payable to any small scale industrial undertaking.

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