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.
4. 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.
6. Investments
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.
7. Inventories
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.