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Accounting Policies of Sugal & Damani Share Brokers Ltd. Company

Mar 31, 2015

GENERAL

The financial statements are prepared under the historical cost convention and are in accordance With applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013.

Income and Expenses are accounted for on accrual basis.

REVENUE RECOGNITION

Brokerage Fee income is accounted for, on accrual basis in accordance with the agreement entered into.

Dividend Income is recognized when it is actual received.

Interest Income is recognized on accrual basis.

I. USE OF ESTIMATES:

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.

II. FIXED ASSETS:

Fixed Assets are stated at cost less depreciation

III. DEPRECIATION & AMORTISATION.

a) As per the instruction Under Schedule of Depreciation to the Companies Act, 2013 the company has charged depreciation on assets at the revised rates. As a result of the change in the depreciation rates, the Profits Before Taxes for the year ending 31st March 2015 has decreased by sum of Rs.2.62 lakhs Further the amount of Transitional depreciation on the assets as per the aforesaid revised depreciation rates before the financial year 2014-15 has been adjusted with the reserves and surplus as shown at Schedule no 2. on notes on financial statement for the year ended 31.03.2015. As a result of the said adjustment of past depreciation, the amount of Reserves & Surplus as on 31st March 2015 has reduced by Rs.25.74 lakhs.

b) Deferred Revenue Expenses are written off in equal installments over a period of 5 accounting years. (To the extent not written off or adjusted).

IV. INVESTMENTS:

Long Term Investments are stated at cost. Provision for Diminution in the value of Long Term Investments is made only if such a decline is other than temporary.

V. INVENTORIES - Stock In Trade

The Securities held as stock in trade under current assets are valued at lower Weighted Average Cost.

VI. TAXATION:

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

Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

VII. EMPLOYEE RETIREMENT BENEFITS:

a) Short Term Employee Benefit obligations are estimated and provided for.

b) Post employment benefits and other long term employee benefits:

Defined Contribution Plans:

Company's contribution to Provident Fund, Super Annulations Fund, Employee state Insurance and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Defined Benefit Plans :

Company's Liabilities towards Gratuity and other Retirement Benefits are recognized on the Basis of Actuarial Valuation Report.

VIII. PROVISION, CONTIGENT LIABILITIES AND CONTIGENT ASSETS

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a 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. Where 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. Contingent asset are neither recognized nor disclosed in the financial statements.

IX. EARNINGS PER SHARE

Basic earning per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. The number of equity shares used in computing the dilutive equity earnings per share comprises the weighted average number of equity shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares, unless they are anti- dilutive.


Mar 31, 2014

I. USE OF ESTIMATES:

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.

II. FIXEDASSETS:

Fixed Assets are stated at cost less depreciation.

III. DEPRECIATION & AMORTISATION.

a) Depreciation on Fixed Assets is provided on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

b) Deferred Revenue Expenses are written off in equal instalments over a period of 5 accounting years. (To the extent not written off or adjusted).

IV. INVESTMENTS:

Long Term Investments are stated at cost. Provision for Diminution in the value of Long Term Investments is made only if such a decline is other than temporary.

V. INVENTORIES-Stock In Trade

The Securities held as stock in trade under current assets are valued at lower of Weighted Average Cost.

VI. TAXATION:

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

Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

VII. EMPLOYEE RETIREMENT BENEFITS:

a) Short Term Employee Benefit obligations are estimated and provided for.

b) Post employment benefits and other long term employee benefits: Defined Contribution Plans:

Company''s contribution to Provident Fund, Super Annulations Fund, Employee state Insurance and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Defined Benefit Plans:

Company''s Liabilities towards Gratuity and other Retirement Benefits are recognized on the Basis of Actuarial Valuation Report.

VIII. PROVISION, CONTIGENT LIABILITIES AND CONTIGENT ASSETS

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a 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. Where 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. Contingent asset are neither recognized nor disclosed in the financial statements.

IX. EARNINGS PER SHARE

Basic earning per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. The number of equity shares used in computing the dilutive equity earnings per share comprises the weighted average number of equity shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares, unless they are anti-dilutive.


Mar 31, 2012

GENERAL

The financial statements are prepared under the historical cost convention and are in accordance With applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

Income and Expenses are accounted for on accrual basis.

REVENUE RECOGNITION

Brokerage Fee income is accounted for, on accrual basis in accordance with the agreement entered into.

Dividend Income is recognized when it is actually received.

Interest Income is recognized on accrual basis.

I. USE OF ESTIMATES:

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.

II. FIXED ASSETS:

Fixed Assets are stated at cost less depreciation .

III. DEPRECIATION & AMORTISATION.

a) Depreciation on Fixed Assets is provided on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

b) Deferred Revenue Expenses are written off in equal installments over a period of 5 accounting years. (To the extent not written off or adjusted).

IV. INVESTMENTS:

Long Term Investments are stated at cost. Provision for Diminution in the value of Long Term Investments is made only if such a decline is other than temporary.

V. INVENTORIES - Stock In Trade

The Securities held as stock in trade under current assets are valued at lower of Weighted Average Cost or Market value.

VI. TAXATION:

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

Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

VII. EMPLOYEE RETIREMENT BENEFITS:

a) Short Term Employee Benefit obligations are estimated and provided for.

b) Post employment benefits and other long term employee benefits:

Defined Contribution Plans:

Company's contribution to Provident Fund, Employee state Insurance and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Defined Benefit Plans:

Company's Liabilities towards Gratuity and other Retirement Benefits are recognized on the Basis of Actuarial Valuation Report.

VIII. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a 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. Where 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. Contingent asset are neither recognized nor disclosed in the financial statements.

IX. EARNINGS PER SHARE

Basic earning per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. The number of equity shares used in computing the dilutive equity earnings per share comprises the weighted average number of equity shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares, unless they are anti-dilutive.


Mar 31, 2010

GENERAL

The financial statements are prepared under the historical cost convention and are in accordance With applicable mandatory Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

Income and Expenses are accounted for on accrual basis.

REVENUE RECOGNITION

Brokerage Fee income is accounted for, on accrual basis in accordance with the agreement entered into.

Dividend Income is recognised when the right to establish dividend is established.

Interest Income is recognised on accrual basis.

I. USE OF ESTIMATES:

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.

II. FIXED ASSETS:

Fixed Assets are stated at cost less depreciation

III. DEPRECIATION:

Depreciation on Fixed Assets is provided on straight line method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

IV. INVESTMENTS;

Long Term Investments are stated at cost. Provision for Diminution in the value of Long Term Invest- ments is made only if such a decline is other than temporary.

V. INVENTORIES - Stock In Trade

The Securities held as Stock in trade under current assets are valued at lower of Weighted Average Cost (or) Market Value.

VI. MISCELLANEOUS EXPENDITURE:

(To the extent not written off or adjusted)

Deferred Revenue Expenses are written off in equal installments over a period of 5 accounting years.

VII. TAXATION:

Current Tax is the amount of tax payable on the taxable income for the year and determined in accor- dance with the provisions of the Income Tax Act, 1961.

Deferred Tax is recognized, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

VIII. EMPLOYEE RETIREMENT BENEFITS:

a) Short Term Employee Benefit obligations are estimated and provided for.

b) Post employment benefits and other long term employee benefits:

Defined Contribution Plans:

Companys contribution to Provident Fund, Super Annuation Fund, Employee state Insurance and other funds are determined under the relevant schemes and/or statute and charged to revenue.

Defined Benefit Plans:

Companys Liabilities towards Gratuity and other Retirement Beneifts are recognized on the Basis of Actuarial Valuation Report,

IX. PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably wilt not, require an outflow of resources. Where 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. Contingent asset are neither recognized nor disclosed in the financial statements.

X. EARNINGS PER SHARE

Basic earning per share is computed by dividing net profit or loss for the period attributable to equity shareholders by the weighted average number of shares outstanding during the year. The number of equity shares used in computing the dilutive equity earnings per share comprises the weighted average numberof equity shares considered for deriving basic earnings per share, and also the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares, unless they are anti-dilutive.

XI. QUANTITATIVE DETAILS

The activities of the company do not involve the production or sale of goods. Accordingly, quantitative details of safes and certain information required under paragraphs 3,4C and 4D of part II of schedule VI of the companies Act, 1956 have not been given.



 
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