Mar 31, 2015
1. Basis of Preparation
The financial statements have been prepared to comply in all material respects with the Accounting Standards notified under section 133 of the Companies Act, 2013, read with rule 7of the Companies (Accounts) Rules, 2014. The financial statements have been prepared under historical cost convention, on an accrual basis and in accordance with the generally accepted accounting principles in India. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.
2. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles require the management to make certain estimates and assumptions that affect the reported amounts of Assets, Liabilities and disclosure of Contingent Liabilities at the reported date and the reported amounts of revenues and expenses during the reported period. Although these estimates are based upon management's best knowledge of current events and action, actual result could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future period.
3. Fixed Assets
Fixed Assets have been stated at original cost of acquisition and subsequent improvement thereto, inclusive of taxes, freight and other incidental expenses related to cost of acquisition, improvements and installation less accumulated depreciation.
Depreciation on all tangible and intangible Fixed Assets is provided on the reducing balance method up to 95% of the total cost over the estimated useful life of the assets as prescribed under Schedule II to the Companies Act, 2013 on pro- rata basis.
5. Cash Flow Statement
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non cash nature, any deferrals or accruals of past and future operating cash receipts or payments and item of income and expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.
Long -term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary.
Inventories are valued at cost or market value whichever is lower.
8. Revenue Recognition
A. Brokerage income is recognized when the settlement of transaction of sale and purchase of securities take place.
B . All other income and expenditure items having a material bearing on the financial statements are recognized on accrual basis except in the case of dividend income, interest receivable from /payable to government on tax refunds/late payment of taxes, duties/levies which are accounted for on cash basis.
9. Taxes on Income
Tax expenses comprises of current and deferred tax charge or credit.
Current Tax is determined as the amount of income tax payable to taxation authorities in respect of taxable income for the period on the basis of provisions of Income Tax Acts, 1961.
Deferred tax liability is recognized on timing difference between the book and tax profits for the year and quantified using the tax rate and laws currently enacted or substantively enacted as on the Balance Sheet Date.
Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future income will be available against which such deferred tax assets can be realized.
9. Employee Benefits
The Provident Fund and Gratuity is not applicable to the company in view of number of employees is less than the required as per respective act. Leave Encashment is being accounted on payment basis.
10. Contingencies and Events Occurring Alter the Balance Sheet Date
Events occurring after the date of the Balance Sheet, which provide further evidence of conditions that existed at the Balance Sheet date or that arose subsequently, are considered up to the date of approval of accounts by the Board of Directors, where material.
11. Impairment of Assets
The Company assess at each Balance Sheet date whether there is any indication that an asset is impaired. If any such indication exists, the Company estimates the recoverable amount of the assets. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the Asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit and Loss Account. If at the Balance Sheet date there is an indication that if a previously assessed impairment loss no longer exists, The recoverable amount is reassessed and the asset is reflected at the recoverable amount.
12. Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation(s), in respect of which a reliable estimate can be made for the amount of obligation. Provisions are not discounted to their present value and are determined based on the best estimate 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.
Contingent Liabilities, if material, are disclosed by way of notes.
Contingent Assets are neither recognised nor disclosed in the financial statements.