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Accounting Policies of Mudit Finlease Ltd. Company

Mar 31, 2015

1.i Basis of preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles in India ("GAAP"), applicable Accounting Standards issued by The Institute of Chartered Accountants of India and under the historical cost convention, on accrual basis.

1.ii Revenue Recognition

Revenue is being recognized in accordance with the guidance Note on Accrual Basis of Accounting issued by The Institute of Chartered Accountants of India. Accordingly wherever there are uncertainties in the realization of income, the same is not accounted for till such time the uncertainty is resolved. Income from sale of shares is recognized on the execution of transaction on the stock exchange. Income from jobbing operation and from F&O Activities is recognized on the settlement date. Income from interest on loan given is recognized on a time proportion basis at the time of squared up of interest bearing loan accounts or at the end of financial year, which ever is earlier. Dividend income is recognized on receipt basis.

1.iii Treatment of Expenses

All expenses are accounted for on accrual basis.

1.iv Fixed Assets

Fixed Assets are stated at historical cost, less depreciation. Costs of fixed assets include taxes, duties, freight and other expense incidental and related there to the construction, acquisition, and installation of respective assets.

1.v Borrowing Cost

Borrowing costs that are allocated to the acquisition or construction of qualified assets are capitalized as part of cost of such assets. A qualifying asset in one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charges to revenue.

1.vi Depreciation

Depreciation is provided on fixed assets on the basis of written down value method on pro-rata basis at the useful life prescribed in schedule II to the Companies Act, 2013.

1.vii Inventories

Stock-in-trade (quoted) is valued at cost (on first-in-first-out (FIFO) basis) or market prices, whichever is lower.

1.viii Taxation

Provision for current income tax has been made as per the provisions of the Income Tax Act. Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.ix Employees Benefits

No provision has been made for the retirement benefits payable to the employees since no employee has yet put in the qualifying period of service and the liability for the same will be provided when it becomes due. Provisions of provident fund and ESI have not been made, as the provisions of the same are yet not applicable to the company. The company is not paying leave encashment benefits to its employees as per the rules of the company.

1.x Leases

The Company has taken office building on lease, which is classified as an Operating Lease and lease payments are recognized as an expenses.

1.xi Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.xii Accounting for Provisions, Contingent Liabilities and Contingent Assets Provisions are recognized when there is a present legal or statutory obligation as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non- occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent Assets neither recognized nor disclosed.


Mar 31, 2014

1.i Basis of preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles in India ("GAAP"), applicable Accounting Standards issued by The Institute of Chartered Accountants of India and under the historical cost convention, on accrual basis.

1.ii Revenue Recognition

Revenue is being recognized in accordance with the guidance Note on Accrual Basis of Accounting issued by The Institute of Chartered Accountants of India. Accordingly wherever there are uncertainties in the realization of income, the same is not accounted for till such time the uncertainty is resolved. Income from sale of shares is recognized on the execution of transaction on the stock exchange. Income from jobbing operation and from F80 Activities is recognized on the settlement date. Income from interest on loan given is recognized on a time proportion basis at the time of squared up of interest bearing loan accounts or at the end of financial year, which ever is earlier. Dividend income is recognized on receipt basis.

1.iii Treatment of Expenses

All expenses are accounted for on accrual basis.

1.iv Fixed Assets

Fixed Assets are stated at historical cost, less depreciation. Costs of fixed assets include taxes, duties, freight and other expense incidental and related there to the construction, acquisition, and installation of respective assets.

1.v Borrowing Cost

Borrowing costs that are allocated to the acquisition or construction of qualified assets are capitalized as part of cost of such assets. A qualifying asset in one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charges to revenue.

1.vi Depreciation

Depreciation is provided on fixed assets on the basis of written down value method on pro-rata basis at the rates prescribed in schedule XIV to the Companies Act, 1956.

1.vii Inventories

Stock-in-trade (quoted) is valued at cost (on first-in-first-out (FIFO) basis) or market prices, whichever is lower.

1.viii Taxation

Provision for current income tax has been made as per the provisions of the Income Tax Act.

Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.ix Employees Benefits

Provision of Gratuity has not been made, as presently no employee is eligible for the same. Provisions of provident fund and ESI have not been made, as the provisions of the same are yet not applicable to the company. The company is not paying leave encashment benefits to its employees as per the rules of the company.

1.x Leases

The Company has taken office building on lease, which is classified as an Operating Lease.

1.xi Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.xii Contingent liabilities

Contingent liabilities are not provided for in the accounts but are disclosed in notes to accounts.


Mar 31, 2013

I Basis of preparation of Financial Statements

Thefinancial statementsare prepared and presented underthe historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles in India ("GAAP"), applicable Accounting Standards issued by The Institute of CharteredAccounlants of India and underthe historical cost convention, on accrual basis. 1.

ii Revenue Recognition

Revenue is being recognized in accordance with the guidance Note on Accrual Basis of Accounting issued by The Institute of Chartered

Accountants oflndia.Accordingly wherever there are uncertainties in the realization of income, the same is notaccounted for till such time the uncertainly is resolved.

Income from sale of shares is recognized on the execution of transaction on the stock exchange. Income from jobbing operation and from F&O

Activities is recognized on thesettlementdate. Income frominterest on loan given is recognized onatime proportion basisatthe time ofsquared up of interest bearing loan accountsorattheend of financial year, which everis earlier Dividend income is recognized on receiptbasis.

.iii TreatmentofExpenses All expenses are accounted for on accrual basis.

iv FixedAssets

Fixed Assets are stated at historical cost, less depreciation. Costsoffixed assets include taxes.duties.freightand other expense incidental and related there to the construction, acquisition, and installation of respective assets. 1

v Borrowing Cost

Borrowing costs thatare allocated tothe acquisition or construction of qualified assets are capitalized as part of cost of such assets. Aqualifying assetinone that necessarily takes substantial period of time to getready for intended use.Allother borrowing costs are charges to revenue. 1.

vi Depreciation

Depreciation is provided on fixed assetson the basisof written down value method on pro-rata basisatthe rates prescribed in schedule XlVtothe Companies Act, 1956. I.

vii Inventories

Stock-in-trade (quoted) isvaluedatcost(onfirst-in-first-out(FIFO)basis)or market prices, whbhever is lower.

viii Taxation

Provision for current income tax has been made as perthe provisionsof the Income TaxAct.

Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequentperiods. 1.

ix Employees Benefits

ProvisionofGratuityhas not been made, as presently no employee is eligible forthe same. Provisions of providentfund and ESI have not been made, as the provisions of the same areyetnotapplicable to the company. The company is not paying leaveencashmentbenefits to its employees as per the rules of thecompany 1a Leases

The company has taken office building on lease, which is classified as an Operating Lease. 1.

xi Earnings Per Share

Basicearnings pershareare calculated bydividing the netprofitorlossforthe period attributabletoequityshareholders by theweighted average numberofequilysharesoutstandingduring the period. 1.

xii Contingent liabilities

Contingentliabilitiesare not provided forin the accounts butaredisclosed in notes to accounts.


Mar 31, 2012

1.i Basis of preparation of Financial Statements

The financial statements are prepared and presented under the historical cost convention on accrual basis of accounting in accordance with the generally accepted accounting principles in India ("GAAP"), applicable Accounting Standards issued by The Institute of Chartered Accountants of India and under the historical cost convention, on accrual basis.

1.ii Revenue Recognition

Revenue is being recognized in accordance with the guidance Note on Accrual Basis of Accounting issued by The Institute of Chartered Accountants of India. Accordingly wherever there are uncertainties in the realization of income, the same is not accounted for till such time the uncertainty is resolved.

Income from sale of shares is recognized on the execution of transaction on the stock exchange. Income from jobbing operation and from F&O Activities is recognized on the settlement date. Income from interest on loan given is recognized on a time proportion basis at the time of squared up of interest bearing loan

accounts or at the end of financial year, which ever is earlier. Dividend income is recognized on receipt basis.

1.iiiTreatment of Expenses

All expenses are accounted for on accrual basis.

1.iv Fixed Assets

Fixed Assets are stated at historical cost, less depreciation. Costs of fixed assets include taxes, duties, freight and other expense incidental and related there to the construction, acquisition, and installation of respective assets.

1.v Borrowing Cost

Borrowing costs that are allocated to the acquisition or construction of qualified assets are capitalized as part of cost of such assets. A qualifying asset in one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charges to revenue.

1.vi Depreciation

Depreciation is provided on fixed assets on the basis of written down value method on pro-rata basis at the rates prescribed in schedule XIV to the Companies Act, 1956.

1.vii Inventories

Stock-in-trade (quoted) is valued at cost (on first-in-first-out (FIFO) basis) or market prices, whichever is lower.

1.viiiTaxation

Provision for current income tax has been made as per the provisions of the Income Tax Act.

Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.ix Employees Benefits

Provision of Gratuity has not been made, as presently no employee is eligible for the same. Provisions of provident fund and ESI have not been made, as the provisions of the same are yet not applicable to the company. The company is not paying leave encashment benefits to its employees as per the rules of the company.

1.x Leases

The company has taken office building on lease, which is classified as an Operating Lease.

1.xi Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

1.xii Contingent liabilities

Contingent liabilities are not provided for in the accounts but are disclosed in notes to accounts.

 
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