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Accounting Policies of Twentyfirst Century Management Services Ltd. Company

Mar 31, 2015

A) Basis of preparation of financial Statements

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable Accounting Standards and the relevant provisions of the Companies Act 2013 of India.

b) Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ. Differences between the actual results and estimates are recognized in the period in which the results are known or materialized.

c) Revenue Recognition

Revenue Income and Expenditure are generally accounted on accrual or as they are earned or incurred except in case of significant uncertainty. Profit/Loss from trading activity is recognized on trade dates on first in first out basis. In respect of completed transactions pending settlement process, necessary treatment is given in the accounts for the Profits/Losses arising from these transactions. Dividend income is recognized when right to receive the payment is established.

d) Fixed Assets

Fixed asset is stated at cost less depreciation and impairment losses.

e) Depreciation

Assets are depreciated under the written down value method at the rates prescribed in Schedule IInd of the companies Act 2013 and on the revised carrying amount of the asset, identified as impaired on which depreciation has been provided over the residual life of the respective assets.

f) Investments

Current and Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such decline is other than temporary.

g) Current and Deferred Tax

Provision for current income tax is made in accordance with the Income Tax Act 1961. Deferred Tax Liabililties and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. No deferred tax asset has been created on carried forward losses as per income tax, as there is no reasonable certainty of reversal of the same in one or more subsequent year.

h) Employment Benefits

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan provides a lump sum payment to the vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment with the company. The estimates used for provision of Gratuity are not as per "AS 15 - Employee Benefits" issued by ICAI.

Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to profit and loss account in the year in which they accrue.

i) Contingent Liabilities

Provision is recognized 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. Disclosure for contingent liability is made when there is a possible obligation or present obligation that may, but probably will not require an outflow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote.

j) Impairment of assets

The carrying amount of assets is reviewed at each Balance Sheet date for indication of any impairment based on internal/ external factors. An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value and impairment loss is charged to the Profit & Loss account. The impairment of loss recognized in the prior accounting period is reversed if there has been a change in estimates of recoverable amount.

k) Current assets, loans & advances

The current assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in the balance sheet.

l) Borrowing costs

Borrowing costs that are attributable to the acquisition of assets are capitalized as part of cost of the asset. All other borrowing costs are charged to statement of Profit and Loss.

m) segment reporting

The Company operates in only one segment i.e., Capital Market operations, hence segment reporting in accordance with Accounting Standard-17 is not applicable.


Mar 31, 2013

A) Basis of preparation of financial Statements

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable Accounting Standards and the relevant provisions of the Companies Act 1956 of India.

b) Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ. Differences between the actual results and estimates are recognized in the period in which the results are known or materialized.

c) Revenue Recognition

Revenue Income and Expenditure are generally accounted on accrual or as they are earned or incurred except in case of significant uncertainty. Profit/Loss from trading activity is recognized on trade dates on first in first out basis. In respect of completed transactions pending settlement process, necessary treatment is given in the accounts for the Profits/Losses arising from these transactions. Dividend income is recognized when right to receive the payment is established.

d) Fixed Assets

Fixed asset is stated at cost less depreciation and impairment losses.

e) Depreciation

Assets are depreciated under the written down value method at the rates prescribed in Schedule XIV to the companies Act and on the revised carrying amount of the asset, identified as impaired on which depreciation has been provided over the residual life of the respective assets.

f) Investments

Current investments are carried at cost. Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such decline is other than temporary.

g) Current and Deferred Tax

Provision for current income tax is made in accordance with the Income tax act 1961. Deferred Tax Liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. No deferred tax asset has been created on carried forward losses as per income tax, as there is no reasonable certainty of reversal of the same in one or more subsequent year.

h) Employment Benefits

No provision for gratuity has been made in accounts, however in the event of any employee leaving the services by reason of death / incapability / retirement or resignation, gratuity for the period of the services shall be paid and accounted for on cash basis.

No provision for leave encashment has been made in the accounts. However encashment of leave can be availed by the employee for balance in the earned account as of preceding financial year.

All carry forward earned leaves with maximum limit of 10 days are available for a ailment but not for encashment.

Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to profit and loss account in the year in which they accrue.

i) Contingent Liabilities

Provision is recognized 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. Disclosure for contingent liability is made when there is a possible obligation or present obligation that may, but probably will not require an outflow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote.

j) Impairment of assets

The carrying amount of assets is reviewed at each Balance Sheet date for indication of any impairment based on internal/external factors. An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value and impairment loss is charged to the Profit & Loss account. The impairment of loss recognized in the prior accounting period is reversed if there has been a change in estimates of recoverable amount.

k) Current assets, loans & advances

The current assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in the balance sheet.

I) Borrowing costs

Borrowing costs that are attributable to the acquisition of assets are capitalized as part of cost of the asset. All other borrowing costs are charged to statement of Profit and Loss.

m) segment reporting

The Company operates in only one segment i.e., Capital Market operations, hence segment reporting in accordance with Accounting Standard-17 is not applicable.


Mar 31, 2012

A) Basis of preparation of financial Statements

The financial statements are prepared under the historical cost convention on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable Accounting Standards and the relevant provisions of the Companies Act 1956 of India.

b) Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ. Differences between the actual results and estimates are recognized in the period in which the results are known or materialized.

c) Revenue Recognition

Revenue Income and Expenditure are generally accounted on accrual or as they are earned or incurred except in case of significant uncertainty. Profit/Loss from trading activity is recognized on trade dates on first in first out basis. In respect of completed transactions pending settlement process, necessary treatment is given in the accounts for the Profits/Losses arising from these transactions. Dividend income is recognized when right to receive the payment is established.

d) Fixed Assets

Fixed asset is stated at cost less depreciation and impairment losses.

e) Depreciation

Assets are depreciated under the written down value method at the rates prescribed in Schedule XIV to the companies Act and on the revised carrying amount of the asset, identified as impaired on which depreciation has been provided over the residual life of the respective assets.

f) Investments

Current investments are carried at cost. Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such decline is other than temporary.

g) Current and Deferred Tax

Provision for current income tax is made in accordance with the Income tax act 1961.

Deferred Tax Liabilities and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. No deferred tax asset has been created on carried forward losses as per income tax, as there is no reasonable certainty of reversal of the same in one or more subsequent year.

h) Employment Benefits

No provision for Gratuity has been made in accounts, however in the event of any employee leaving the services by reason of death/ incapability/ retirement or resignation, gratuity for the period of the services shall be paid and accounted for on cash basis.

No provision for leave encashment has been made in the accounts. However encashment of leave can be availed by the employee for balance in the earned account as of preceding financial year. All carry forward earned leaves with maximum limit of 10 days are available for availment but not for encashment.

Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to profit and loss account in the year in which they accrue.

i) Contingent Liabilities

Provision is recognized 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.

Disclosure for contingent liability is made when there is a possible obligation or present obligation that may, but probably will not require an outflow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote.

j) Impairment of assets

The carrying amount of assets is reviewed at each Balance Sheet date for indication of any impairment based on internal/ external factors. An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value and impairment loss is charged to the Profit & Loss account. The impairment of loss recognized in the prior accounting period is reversed if there has been a change in estimates of recoverable amount.

k) Current assets, loans & advances

The current assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in the balance sheet.

I) Borrowing costs

Borrowing costs that are attributable to the acquisition of assets are capitalized as part of cost of the asset. All other borrowing costs are charged to statement of Profit and Loss.

m) Segment reporting

The Company operates in only one segment i.e., Capital Market operations, hence segment reporting in accordance with Accounting Standard -17 is not applicable.


Mar 31, 2010

A) Basis of Accounting

The Companys accounts are maintained under the historical cost convention on an accrual basis. These financial statements comply with relevant provisions of the Companies Act, 1956, and the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b) Revenue Recognition

i) Profit/Loss from trading activity is recognised on trade dates on first in first out basis. In respect of completed transactions pending settlement process, necessary treatment is given in the accounts for the Profits/Losses arising from these transactions.

ii) Dividend income is accounted for on receipt basis.

c) Fixed Assets

Assets are capitalised at cost inclusive of cost of installation and incidental charges if any.

d) Depreciation

Assets are depreciated under the written down value method at the rates prescribed in Schedule XIV to the companies Act.

e) Investments

Investments of the Company are valued at cost.

f) Income Tax

In view of the brought forward losses no tax provision has been made for the Year ended 31st March, 2010. The Company is disputing tax liability arising out of addition of Rs. 1,292.48 lakhs made by the Income-tax Officer for the assessment year 2003-04 and the matter is pending before the Honble High Court of Madras. No provision towards tax liability is considered necessary as this addition, which is disputed, has not resulted in any additional tax liability for the assessment year 2003-04.

g) Deferred Tax (AS-22)

Deferred Tax Liabililty has been created against unabsorbed depreciation as per (AS -22), accordingly an amount of Rs. 0.09 Lacs has been charged to Profit and Loss Account. Deferred tax asset has not been created against carried forward losses and unabsorbed depreciation, since there is no virtual certainty supported by convincing evidence with the organisation, that sufficient future taxable income will be available against which such deferred tax assets can be realised. h) Gratuity and Employment Benefits

No provision for Gratuity has been made in accounts, however in the event of any employee leaving the services by reason of death or incapability, gratuity for the period of the services shall be paid and accounted for on cash basis.

The company does not have a policy of leave encashment in respect of its employees and no provision for encashment of unavailed leave on their retirement or separation.

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