Mar 31, 2014
A. Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
b. Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation. The
cost comprises purchase price, borrowing cost if capitalization
criteria are met and directly attributable cost of bringing the assets
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
All other expenses on existing fixed assets, including day to day
repaired maintenance expenditure and cost of replacing parts, are
charged to the statement of profit and loss for the period during which
such expenses are incurred.
Gains or losses arising from de recognition of fixed assets are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit & loss when the asset is de recognized.
c. Depreciation on Tangible Fixed Asset
Depreciation on tangible fixed asset is calculated on Straight Line
method using the rates prescribed under the Schedule XIV to The
Companies Act, 1956. The assets are depreciated upto 95% of the cost.
d. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, will be classified as current investments. All other investments
will be classified as non- current investments.
Long term investments are carried at cost. However, provision for
diminution in value is to be made to recognize a decline, other than
temporary, in the value of investments.
e. Inventories
The company accounts for the traded shares & securities remaining
unsold at the end of the year as Inventory and the same are valued at
cost or market value whichever is lower.
f. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
Revenue from sales is recognized on the basis of delivery of shares &
securities.
Dividend income is accounted on receipt basis.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest Income is included under the head "Other Income" in the
statement of profit & loss.
Profit from sale of investments is recognized at the time of sale.
g. Income Tax
Tax expense comprises current tax. Current income tax is measured at
the amount expected to be paid to the tax authorities in accordance
with the Income Tax Act, 1961 enacted in India and tax laws prevailing
in the respective tax jurisdiction where the company operates. The tax
rates and tax laws used to compute the amount are those that are
enacted, at the reporting date.
h. Provisions and Contingent liabilities
A provision is recognized when the Company has a present obligation as
a result of past event. It is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the 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 estimate.
Where no reliable estimate can be made, a disclosure is made as a
contingent liability. A disclosure for a contingent liability is also
made when there is a possible 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.
i. Cash & Cash equivalents
Cash and cash equivalents comprise cash and balance with banks in
current accounts. The company considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or
less and that are readily convertible to known amounts of cash to be
cash equivalents.
Mar 31, 2013
A. Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
b. Tangible fixed assets I
Fixed assets are stated at cost, net of accumulated depreciation. The
cost comprises purchase price, borrowing cost if capitalization
criteria are met and directly attributable cost of bringing the assets
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price. Subsequent
expenditure related to an item of fixed asset is added to its book
value only if it increases the future benefits from the existing asset
beyond its previously assessed standard of performance. All other
expenses on existing fixed assets, including day to day repaired
maintenance expenditure and cost of replacing parts, are charged to the
statement of profit and loss for the period during which such expenses
are incurred.
Gains or losses arising from de recognition of fixed assets are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit & loss when the asset is de recognized.
c. Depreciation on Tangible Fixed Asset i
Depreciation on tangible fixed asset is calculated on Straight Line
method us ng the rates prescribed under the Schedule XIV to The
Companies Act, 1956. The assets are depreciated upto 95% of the cost.
d. Investments
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, will be classified as current investments. All other investments
will be classified as non- current investments. Long term investments
are carried at cost. However, provision for diminution in value is to
be made to recognize a decline, other than temporary, in the value of
investments.
e. Inventories
The company accounts for the traded shares & securities remaining
unsold at the end of the year as Inventory and the same are valued at
cost or market value whichever is lower.
f. Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
Revenue from sales is recognized on the basis of delivery of shares &
securities. j
Dividend income is accounted on receipt basis.
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest Income is included under the head "Other Income" in the
statement of profit & loss.
Profit from sale of investments is recognized at the time of sale.
Income Tax
Tax expense comprises current tax. Current income tax is measured at
the amount expected to be paid to the tax authorities in accordance
with the Income Tax Act, 1961 enacted in India and tax laws prevailing
in the respective tax jurisdiction where the company operates. The tax
rates and tax laws used to compute the amount are those that are
enacted, at the reporting date.
h. Provisions and Contingent liabilities
A provision is recognized when the Company has a present obligation as
a result of past event. It is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the 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.
anjp"''adjusted to Where no reliable estimate can be made, a disclosure
is made as a contingent liability. A disclosure for j j.
a contingent liability is also made when there is a possible obligation
that may, but probably will not, I! require an outflow of resources.
Where there is a possible obligation or a present obligation in respect
I of which the likelihood of outflow of resources is remote, no
provision or disclosure is made.
i. Cash & Cash equivalents
Cash and cash equivalents comprise cash and balance with banks in
current accounts. The company [ considers all highly liquid investments
with a remaining maturity at the date of purchase of three S Months or
less and that are readily convertible to known amounts of cash to be
cash equivalents.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article