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Accounting Policies of Madhusudan Securities Ltd. Company

Mar 31, 2015

A. BASIS OF PREPARATION

The financial statements are prepared under the historical cost convention on an accrual & going concern basis of accounting, in accordance with the generally accepted Accounting Principles, Accounting Standards notified under the Companies Act, 2013 and the relevant provisions thereof.

b. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c. TANGIBLE FIXED ASSETS & DEPRECIATION

Tangible Fixed Assets, if any, are stated at cost of acquisition net of accumulated depreciation. Cost comprises purchase price and directly attributable cost incurred for bringing the asset for its intended use.

Depreciation on fixed assets, if any, shall be provided as per Straight Line Method at the rates and in the manner specified in Schedule II of the Companies Act, 2013.

d. REVENUE RECOGNITION

The Revenue is recognized on accrual basis. However, the recognition of revenue is restricted to the extent it is probable or there is a certainty that the economic benefits will flow to the Company and the revenue can be reliably measured. The Revenue shall be accounted on the basis of prudence to the extent it is quantifiable.

Interest is recognized on a time proportionate basis taking into account the amount outstanding and the rate as applicable.

Dividend is recognized when Company''s right to receive dividend is established and / or receipts, whichever is earlier.

e. INVESTMENTS

Investments, which are readily realizable and intended to be held for not more than 12 months from the date on which such investments are made, are classified as Current Investments. All other Investments are classified as Non-current investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Non-current Investments are carried at cost. However, provision in diminution in the value is made to recognize a decline, other than temporary, in the carrying value of each investment.

Profit or Loss on sale of investments is recorded at the time of transfer of title from the company and is determined as the amount of difference between the sale proceeds and the carrying value of investment as on that date.

f. TAX EXPENSES

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company

g. RETIREMENT AND OTHER EMPLOYEE BENEFITS

The provisions of Provident Fund Act, 1952 and Payment of Gratuity Act, 1972 are not applicable to the Company at present as the number of employees does not exceed the statutory limits prescribed in the Act.

h. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

Where material, events occurring after the Balance Sheet Date are considered up to the date of approval of accounts by the Board of Directors

i. PROVISIONS

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These estimates are reviewed at the required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

j. CONTINGENT LIABILITIES

The company does not recognize a contingent liability but discloses its existence in the financial statements. A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.


Mar 31, 2014

A. BASIS OF PREPARATION

The financial statements have been prepared to comply in all material respects with the applicable accounting principles in India, the applicable accounting standards notified under section 211(3C) of the Companies Act, 1956, section 133 of the Companies Act, 2013 read with the General Circular 15/2013 dated 13th September, 2013 and the relevant provisions thereof.

b. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c. Tangible Fixed Assets & Depreciation

Tangible Fixed Assets, if any, are stated at cost of acquisition net of accumulated depreciation. Cost comprises purchase price and directly attributable cost incurred for bringing the asset for its intended use.

Depreciation on fixed assets, if any, shall be provided as per Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

d. REVENUE RECOGNITION

The Revenue is recognized on accrual basis. However, the recognition of revenue is restricted to the extent it is probable or there is a certainty that the economic benefits will flow to the Company and the revenue can be reliably measured. The Revenue shall be accounted on the basis of prudence to the extent it is quantifiable.

Interest is recognized on a time proportionate basis taking into account the amount outstanding and the rate as applicable.

Dividend is recognized when Company''s right to receive dividend is established and / or receipts, whichever is earlier.

e. Investments

Investments, which are readily realizable and intended to be held for not more than 12 months from the date on which such investments are made, are classified as Current Investments. All other Investments are classified as Non-current investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Non-current Investments are carried at cost. However, provision in diminution in the value is made to recognize a decline, other than temporary, in the carrying value of each investment.

Profit or Loss on sale of investments is recorded at the time of transfer of title from the company and is determined as the amount of difference between the sale proceeds and the carrying value of investment as on that date.

f. TAX EXPENSES

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company

g. RETIREMENT AND OTHER EMPLOYEE BENEFITS

The provisions of Provident Fund Act, 1952 and Payment of Gratuity Act, 1972 are not applicable to the Company at present as the number of employees does not exceed the statutory limits prescribed in the Act.

h. EVENTS OCCURRING AFTER THE BALANCE SHEET DATE

Where material, events occurring after the Balance Sheet Date are considered up to the date of approval of accounts by the Board of Directors

i. PROVISIONS

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These estimates are reviewed at the required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

j. CONTINGENT LIABILITIES

The company does not recognize a contingent liability but discloses its existence in the financial statements. A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably.

# As per the records of the company, including the register of members c) Terms / rights attached to the equity shares

The Company has equity shares having a Face value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors, is subject to the approval of the shareholders in the ensuing Annual General Meeting.

* - The Special Reserve was created as per the RBI Regulation u/s 45 (IC) in the past. The Company has further added in its Main Object to Dealing in Textile Garments. Therefore, application of provisions of NBFC will not be applicable and the said reserve shall be part of General Reserve, henceforth.

All the investments held by the Company in Shares and others are long term in nature, are registered in Note: its own name (Physical / Demat form) or are under process of registration by the Company and are free from any encumbrances.

No Provisions is made for diminishing in value of investment being Long Term in nature as considered by the management


Mar 31, 2012

I. Basis of Accounting:

The financial statements are prepared under the historical cost convention, on an accrual & ongoing concern basis, in accordance with the generally accepted accounting principles in India and materially comply with mandatory accounting standards issued by the Institute of the Chartered Accountants of India and the provisions of the Companies Act, 1956.

ii. Other Accounting Policies:

These are generally consistent with the well accepted accounting standard principles and practices.

iii. Revenue Recognition:

Revenue is recognised only when it can be reliably measured and it is reasonable to expect ultimate collection. In case of uncertainties, revenue is recognised only when it becomes reasonably certain that ultimate collection will be made.

Interest income (net) is recognised on time proportion basis.

Dividend income is recognised when the right to receive dividend is established and/ or receipts.

iv. Fixed Assets:

Fixed Assets, if any, held by company are valued at cost less depreciation, if any.

v. Depreciation:

Depreciation on fixed assets, if any, shall be provided as per Straight Line Method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

vi. Shares Investment:

Investments are valued at cost plus brokerage and other incidental charges. Profit or losses on investment are accounted as and when realised as Capital Gain/ Loss, if any.

vii. Expenses:

All expenses are accounted for on accrual basis.

viii. Retirement Benefits:

The provisions of the Provident Fund Act 1952 are not applicable to the company, as number of employees does not exceed the statutory limits prescribed in the Act.

ix. Taxes on Income:

Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company

x. Events Occurring After the Balance Sheet Date

Where material, events occurring after the Balance Sheet Date are considered up to the date of approval of accounts by the Board of Directors.

xi. Contingent Liabilities and Contingent Assets

Contingent liabilities are not recognised but are disclosed in the Notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2010

I. Basis of Accounting:

The financial statements are prepared under the historical cost convention, on an accrual & on going concern basis, in accordance with generally accepted accounting principles in India and materially comply with mandatory accounting standards issued by the Institute of the Chartered Accountants of India and the provisions of the Companies Act 1956.

ii. Other Accounting Policies:

These are generally consistent with the well accepted accounting standard principles and practices.

iii. Revenue Recognition;

Revenue is recognised only when measurability and realisability is certain. In case of uncertainties revenue recognition is postponed to the year in which it is properly measured, and realisability is assured.

Interest income is recognised on time proportion basis.

Dividend income is recognised when the right to receive dividend is established and/ or receipts.

iv. Fixed Assets:

Fixed Assets, if any are stated at historical cost of acquisition net of depreciation provided as per policy.

v. Shares Investment:

Investments are valued at cost plus brokerage and other charges. Profit or losses on investment are accounted as and when realised as Capital Gain/ Loss, if any. No Provisions is made for diminishing in value of investment being Long Term in nature as considered by the management

vi. Expenses:

All expenses are accounted for on accrual basis.

vii. Depreciation:

Depreciation on Fixed Assets, if any shall be provided as per Straight Line method at the rates and in the manner specified in schedule XIV of the Companies Act, 1956.

viii. Retirement Benefits:

The provisions of the Provident Fund Act 1952 are not applicable to the company, as number of employees does not exceed the statutory limits prescribed in the Act

ix. Events Occurring After the Balance Sheet Date

Where material, events occurring after the Balance Sheet Date are considered upto the date of approval of accounts by the Board of Directors.

 
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