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Accounting Policies of My Money Securities Ltd. Company

Mar 31, 2018

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND ESTIMATES

a) Basis of Preparation

The financial statements have been prepared on the historical cost basis except for certain financial assets which have been measured at fair value

The financial statements of the company have been prepared to comply in all material aspects with the Indian Accounting Standards (‘Ind AS’) notified under section 133 of the Companies Act, 2013, read together with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016, issued by the Ministry of Corporate Affairs (‘MCA’)

The said financial statements for the year ended March 31, 2018 are the first Ind AS financial statements for the Company. The transition to Ind AS has been carried out from Accounting Standards notified under section 133 of the Companies Act, 2013 read together with Paragraph 7 of the Companies (Accounts) Rules, 2014 (‘IGAAP’), which is considered as previous GAAP for the purpose of Ind AS 101.

The accounting policies, as set out in the following paragraphs of this note have been consistently applied, by the Company to all periods presented in the said financial statements.

The financial statements are based on the classification provisions contained in Ind AS 1, ‘Presentation of Financial Statements’ and division II of Schedule III of Companies Act, 2013.

All the amounts included in the financial statements are reported in Indian Rupees.

b) Basis of Measurement

The financial statements have been prepared on the accrual and going concern basis, and the historical cost convention except where the Ind AS requires a different accounting treatment. The principal variations from the historical cost convention relate to financial instruments classified as fair value through profit or loss.

Fair Value Measurement

Fair value is the price at measurement date, at which an asset can be sold or paid to transfer a liability, in an orderly transaction between market participants. The Company’s accounting policies require, measurement of certain financial assets at fair value.

c) Basis of transition to Ind AS

The adoption of Ind AS is carried out in accordance with Ind AS 101 on April 1, 2016 being the transition date. Ind AS 101 requires that all Ind AS standards that are issued and effective for the year ending March 31, 2018, be applied retrospectively and consistently for all the periods presented. However, in preparing these financial statements, the company has availed of certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting differences between the carrying values, if any, of the assets and liabilities in the financial statements as at the transition date under Ind AS and previous GAAP have been recognised directly in equity at the transition date.

In these financial statements, the Company has presented three balance sheets - as of March 31, 2018, March 31, 2017 and April 1, 2016. The Company has also presented two statements of profit and loss, two statements of changes in equity and two cash flows for the year ended March 31, 2018 and 2017 along with the necessary and related notes.

Ind AS 101 allows first-time adopters certain optional exemptions and mandatory exceptions from full retrospective application of Ind AS. The following mandatory exception from retrospective application of Ind AS has been applied by the Company:

Estimates Exceptions -On an assessment of the estimates made under the previous GAAP financial statements, the Company has concluded that there is no necessity to revise the assessment under Ind AS (except for adjustments to reflect any difference in accounting policies), as there is no objective evidence that those estimates were in error. However, estimates that are required under Ind AS but not required under previous GAAP are made by the company for the relevant reporting dates, reflecting conditions existing as at that date without using any hindsight.

d) Revenue Recognition

Revenue is recognized when it is probable that the entity will received the economic benefits associated with the transaction and the related revenue can be measured reliably. Revenue is recognized at the fair market value of consideration received or receivable.

Dividend Income is recognized when the Company’s right to received the payment is established.

e) Property, Plant and Equipment (‘PPE’)

PPE are initially recognized at cost. The initial cost of PPE comprises its purchase price (including non-refundable duties and taxes but excluding trade discounts and rebates), and any directly attributable cost of bringing the asset to its working condition and location for its intended use.

Subsequent to initial recognition, PPE are stated at cost less accumulated depreciation or any impairment losses. When significant parts of PPE are required to be replaced in regular intervals, the Company recognises such parts as separate component of assets.

Depreciation on PPE is computed using the Written-down Value method over the useful life of the asset as defined in Schedule II to the Companies Act, 2013.

f) Financial Instruments

The financial instruments are recognized in the balance sheet when the Company becomes a party to the contractual provisions of the financial instrument.

The determines the classification of its financial instruments at initial recognition.

The Company has classified all its Financial Assets as measured at Fair Value through Profit & Loss Account and all its Financial Liabilities as measured at Amortised Cost.

g) Inventory

The Company is primarily engaged in the dealing of shares therefore the inventory mainly consists financial instruments. Closing stock of shares is carried at fair value as on reporting date.

Inventory of currency is valued at market value as on reporting date.

h) Taxes

The income tax expense comprises of current and deferred income. Income tax recognized in the statement of Profit and Loss, except to the extent that it relates to items recognised in the other comprehensive income or directly in equity, in which case the related income tax is also recognised accordingly.

i. Current Tax

The current tax is calculated on the basis of the tax rates, laws and regulations, which have been enacted or subsequently enacted as at the reporting date. The payment made in excess / shortfall of the Company’s income tax obligation for the period is recognized in the balance sheet as current asset / liability.

ii. Deferred Tax

Deferred tax is recognised, using the liability method, on temporary differences arising between the tax bases of assets and liabilities using and their carrying value in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised.

i) Cash and Cash Equivalents

Cash and cash equivalents includes cash in hand, bank balance and any deposits with original maturities of three months or less. However, for the purpose of cash flows, in addition to the above items, any bank overdrafts / cash credits that are integral part of the Company’s cash management, are also included as a component of cash and cash equivalents.

j) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of past event, it is probable that an outflow of resources will be required to settle the said obligation, and the amounts of said obligation can be reliably estimated.

k) Contingencies

A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

l) Borrowing Costs

Borrowing costs consist of interest and other ancillary costs that the Company incurs in connection with the borrowing of funds. The borrowing costs directly attributable to the acquisition or construction of any asset that takes a substantial period of time to get ready for its intended use or sale are capitalised. All the other borrowing costs are recognised in the statement of profit and loss within finance costs of the period in which they are incurred.


Mar 31, 2016

NOTE:1

NOTES FORMAING PART OF THE FINANCIAL STATEMENTS AS AT MARCH 31, 2016 SIGNIFICANT ACCOUNTING POLICIES

a) Corporate Information

My Money Securities Limited is a public limited company and incorporated as under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange (BSE Ltd.) Ahmadabad Stock Exchange, Delhi Stock Exchange and Jaipur Stock Exchange. The company is engaged in the business of dealing in shares & currency and acting as a Broker in the National Stock Exchange and Metropolitan Stock Exchange of India Ltd. (Formally known as MCX Stock Exchange Ltd.).

b) Basis of Accounting

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under section 133 of the Companies Acts, 2013, read together with paragraph 7 of the Companies (Accounts) rules 2014. The financial statements have been prepared on accrual basis under the historical cost convention.

Method of Accounting followed is mercantile system.

c) Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialize.

d) Revenue Recognition

Income/Expenses/Revenues are accounting for on accrual basis in accordance with Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India except the dividend is accounted for in the year of receipt of dividend.

e) Depreciation and Amortization

Depreciation is provide on all assets is provided using the Straight-line method over the useful lives and in the manner prescribed under schedule II to the Companies Act, 2013.

f) Investments

Investments are in the nature of long term investments and are valued at cost to the company in accordance with AS-13 accounting for investments.

g) Inventories

Inventories are valued at lower of cost or Market value.

h) Provision for Current & Deferred Tax Expenses

Tax expenses for the year, comprising current tax and deferred tax, is provided in the accounts for determination of net profit for the year.

Deferred Tax has been provided for all timing differences as required under the provision of accounting standards issued by ICAI.

i) Impairment of Fixed Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charges for when an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

j) Contingencies

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow or resources is remote, no provision or disclosure is made.


Mar 31, 2015

A) Corporate Information

My Money Securities Limited is a public limited company and incorporated as under the provisions of the Companies Act, 1956. Its shares are listed on Bombay Stock Exchange (BSE Ltd.) Ahmadabad Stock Exchange, Delhi Stock Exchange and Jaipur Stock Exchange. The company is engaged in the business of dealing in shares & currency and acting as a Broker in the National Stock Exchange and MCX Stock Exchange.

b) Basis of Accounting

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards notified under section 133 of the Companies Acts, 2013, read together with paragraph 7 of the Companies (Accounts) rules 2014. The financial statements have been prepared on accrual basis under the historical cost convention.

Method of Accounting followed is mercantile system.

c) Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

d) Revenue Recognition

Income/Expenses/Revenues are accounting for on accrual basis in accordance with Accounting Standard (AS-9) issued by the Institute of Chartered Accountants of India except the dividend is accounted for in the year of receipt of dividend.

e) Depreciation and Amortisation

Depreciation is provide on all assets is provided using the Straight-line method over the useful lives and in the manner prescribed under schedule II to the Companies Act, 2013.

f) Investments

Investments are in the nature of long term investments and are valued at cost to the company in accordance with AS-13 accounting for investments.

g) Inventories

Inventories are valued at lower of cost or Market value.

h) Provision for Current & Deferred Tax Expenses

Tax expenses for the year, comprising current tax and deferred tax, is provided in the accounts for determination of net profit for the year.

Deferred Tax has been provided for all timing differences as required under the provision of accounting standards issued by ICAI.

i) Impairment of Fixed Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charges for when an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

j) Contingencies

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation. A disclosure for contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow or resources is remote, no provision or disclosure is made.

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