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Accounting Policies of Magnanimous Trade & Finance Ltd. Company

Mar 31, 2014

1) GENERAL

The Financial statement are prepared under the historical cost convention on the basis of going concern as per applicable accounting standard and the provisions of the Companies Act 1956, as adopted consistently by the company The company follows mercantile system of accounting.

2) REVENUE RECOGNITION

Revenue / Income and expenditures are accounted for on accrual basis , as and when they are earned or incurred .

3) In the opinion of the board all the current assets and the loan and advances are approximately of the value stated if realized in the ordinary course of business. The provision for all known liabilities are adequate and are not in excess of the amount considered reasonably necessary. Sundry Debtors, Creditors and loans & advances are shown as appearing in the accounts, and are subject to confirmation.


Mar 31, 2011

1) GENERAL

The Financial statement are prepared under the historical cost convention on the basis of going concern as per applicable accounting standard and the provisions of the Companies Act 1956, as adopted consistently by the company . The company follows mercantile system of accounting,

2) FIXED ASSTES

Fixed Assets are Stated at cost/less accumulated depreciation . Cost comprises of purchase price or construction cost including any cost of bringing the asset to its working condition for use.

3) DEPRECIATION

Depreciation on Fixed Assets has been provided on W.D.V. method as per clarification and on the basis of rates specified in schedule XIV to the companies Act, 1956.

4) INVESTMENT

Long Term Investment are stated at cost. In case of permanent diminution in value of certain investment appropriate provision for the same was made in Accounts in earlier year. The same provision for the same was made in Accounts in earlier year. The same provision is continuing. There is no further diminution in value of investment.

5) INVENTORIES OF SHARES AND REAL ESTATE (STOCK IN TRADE)

a) Shares, stock are valued at cost as on 31st March, 2011 as per practice.

b) Real estate are valued at expected net realizable value or cost whichever is lower.

6) REVENUE RECOGNITION

Revenue / Income except divided and expenditures except Municipal Taxes are accounted for on accrual basis, as and when they are earned or incurred.

7) Deferred Tax resulting from timing difference between book & tax profits is accounted for under the liability method at the current rate of tax to the extent that the timing difference are expected to crystallize. Tax provision has been made according to Income Tax Act, 1961.

8) EMPLOYEES BENEFITS

The Company has provided gratuity amounting to Rs.27750.00 only (as per guide lines prescribed in AS-15, issued by The Institute of Chartered Accountants Of India & as per provisions of Gratuity Act) for all employees on completed year of Service. The provision is made for 15 days salary of each completed years of services.


Mar 31, 2010

1) GENERAL

The Financial statement are prepared under the historical cost convention on the basis of going Conner in per applicable accounting standard and the provisions of the Companies Act 1956.. as adopted consistently by the company . The company follows mercantile system of accounting.

2) FIXED ASSTES

Fixed Assets are stated at cost/revalued amount less accumulated depreciation . Coat Comprises of purchase price or construction cost including any cost of bringing the asset to its working condition for use.

3) DEPRECIATION.

Depreciation on Fixed Assets has been provided on W.D.V. method as per clarification and on the basis of rates specified in schedule XIV to the companies Act,1956.

4) INVESTMENT

Long Term investment are stated at cast. In case there is a permanent diminution in value of any investment appropriate provision for the same is made in Accounts.

5) INVENTORIES OF SHARES AND REAL ESTATE (STOCK IN TRADE)

a) Shares stock are valued cost as on 31st March 2010.

b) Real estate are valued at expected net realizable value or cost whichever is lower.

6) REVENUE RECOGNITION

Revenue/Income except dividend and expenditures except Municipal Taxes are accounted For on accrual as and when they are earned or incurred.

7) DEFERRED TAX

deferred Tax resulting from timing difference between book & tax profits is accounted for under the liability method at the current rate of tax to the extent that the timing difference are expected to crystallize. Tax provision has been made according to Income Tax Act,1961.

8) EMPLOYEES BENEFITS

The company has provided gratuity amounting to Rs.33400.00 only(as per guide lines prescribed in AS-15- issued by The Institute Of Chartered Accountants Of India & as per provisions of Gratuity Act, for all employees on completed year of service. The provision is made for 15 days salary of each completed year of services..


Mar 31, 2009

1) GENERAL

The Financial s atement are prepared under the historical cost convention on the basis of going concern i s per applicable accounting standard and the provisions of the Companies Act 1956,. as adoplid consistently by the company . The company follows mercantile system of accounting.

2) FIXED ASSTLS

Fixed Assets Ere staled at cost / revalued amount less accumulated depreciation , Cost comprises of rurchnse price or construction cost including any cost of bringing the asset to its working condition tor use.

3 ) DEPRECIATION

Depreciation on; Fixed Assets has been provided on W.D.V. method as per clarification and on the basis of ates specified in Schedule XIV to the companies Act 1956 .

4 ) INVESTMENT

Long Term investment are stated at cost. In case there is a permanent diminution in value of any .investment appropriate provision for the same is made in Accounts .

5) INVENTORIES OF SHAKES AND REAL ESTATE (STOCK IN TRADE)

a) Shares.stock are valued at cost as on 3Is'',March 2009 while upto proceeding previous year it was valued at cost or market price which ever is less. Due to change in basis of valuation profit has increased by Rs. 2132911.45,

b ) Real estate are valued at expected net realizable value or cost whichever is lower .

6) REVENUE RECOGNITION

Revenue / Income except dividend and expenditures except Municipal Taxes are accounted for on accrual basis , as and when they are earned or incurred .

7) Deferred Tax resulting from timing difference between book & tax profits is accounted for under the liability method at the current rate of lax to the extent that the timing difference arc expected to crystalyse . Tax provision has been made according to Income Tax Act 1961 .

8) Folowing Mutual funds were shown as stock in trade at cost or market price whichever is lower till 31.03.2008 and shown under the head Inventories in Balance Sheet as at 31.03.2008. The management has decided to convert the same into long term Investments as at 21.OS.08 & the market value of these Mutual Funds as at 21.08.2008 has been considered for calculating the value at which these arc to be transferred to Investment account. The difference between the cost and market value has been shown in profit & loss account for the year ended on 31.03.2009.

9 ) EMPLOYEES BENEFITS

The Company, lias provided gratuity amounting to Rs. 15,600.00 only( as per guide lines prescribed in AS - 15 , issued by The Institute Of Chartered Accountants Of India & as per provisions of Gratuity Act) for all employees on completed year of service. The provision is made for 15 days salary of each completed year of services .

 
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