SIGNIFICANT ACCOUNTING POLICIES 1.1 (a) BASIS OF brPARATION The Financial Statements are brpared under the historical cost convention, in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") and mandatory Accounting Standards issued by the Institute of Chartered Accountants of India ("ICAI") and the provisions of the Companies Act, 2013. All income and expenditure having a material bearing on the financial statements are recognized on the accrual basis, (b) USE OFESTIMATES The brparation of Financial Statements in conformity with GAAP requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. 1.2. REVENUE RECOGNITION a) All Income & Expenditure are accounted for on accrual basis. b) Commodities and Securities are capitalized at cost inclusive of brokerage, Service Tax, Education Cess, Depository Charges, Securities Transaction Charges and other miscellaneous transaction charges. c) Interest on deployment of funds is recognized on accrual basis. 1.3 EXPENDITURE Expenses are accounted for on accrual basis and provisions are made for all known losses and liabilities. 1.4 FIXED ASSETS Fixed Assets are stated at cost less accumulated debrciation. The cost of assets comprises of purchase price and directly attributable cost of bringing the assets to working condition. 1.5 DEbrCIATION/AMORTIZATION Debrciation on Fixed Assets has been provided on straight line method (S.L.M.) on pro-rata basis at the rates and in the manner specified in Schedule II of the Companies Act, 2013. Intangible Assets are amortized over their respective individual estimated useful lives on straight - line basis. The Management estimates the useful live of Software as three Years. Goodwill generated on Amalgamation has been amortized on straight -line basis over a period of five years as recommended in Accounting Standard - 1 4 - "Accounting for Amalgamations " 1.6. INVENTORIES Inventories are valued at cost or Net Realizable Value, whichever is less on FIFO method. Cost includes purchase price, taxes and other incidental expenses, wherever applicable. 1.7. FOREIGN CURRENCY TRANSACTIONS The transactions in foreign currency are accounted at the exchange rate brvailing on the date of transaction. Any exchange gains or losses arising out of the subsequent fluctuations are accounted for in the Profit & Loss account. 1.8. TAX ON INCOME Current tax are measured at the amounts expected to be paid using the applicable tax rates and tax laws. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the profit & loss account in the year of change. Deferred tax assets and deferred tax liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases and operating loss carry forwards. 1.9 INVESTMENTS Investments are classified into Long term and Current Investment based on the intent of the management at the time of the acquisition. Long term investments are stated at cost less provision, if any, for diminution in value of such investment other than temporary diminution. Current investments are stated at lower of cost or fair value. 1.10 EARNING PER SHARE Basic Earning per share is computed using Weighted Average Number of Equity Share Outstanding during the year. Diluted Earning per share is computed using weighted Average Number of Equity and Dilutive Equity equivalent share outstanding during the year end. 1.11 RETIREMENT BENEFITS i) Company's contribution paid/ payable during the year to provident fund, are charged to Profit & Loss Account. ii) Leave Encashment and Gratuity are defined benefit plans. The Company has provided for the liability at the year end as per provisions of respective Act(s). 2. Provision for long term expenses and liabilities no longer required, have been written off amounting to Rs. 17,74,080/- 2.3 Other current liabilities includes a sum of Rs. 3.25 Cr. due to a Company whose name appears in the Register maintained under section 189 of the Companies Act, 2013, which is Interest free. 2.4 SEGMENT REPORTING During the year under reference, Company's revenue from operations includes sale of securities, brmium earned, mark to market and interest on fixed depsoit/others. There was no other business segment and therefore segment wise reporting as per AS - 1 7 issued by the Institute of Chartered Accountant of India is not relevant 2.5 DEFERRED TAX The Company has substantial carried forward business losses and unabsorbed debrciation, therefore, it is unlikely to have taxable profits in near future, hence it is not considered necessary to create deferred tax assets in accordance with Accounting Standard-22 issued by the Institute of Chartered Accountants of India. 2.6 Previous Year's figures have been regrouped / rearranged wherever necessary. As per our report of even date For and On behalf of the Board of Directors For S. KAPOOR & ASSOCIATES Chartered Accountants Sd/- SANJAY KAPOOR PROPRIETOR M. No. 82499 Sd/- ASHOK SAWHNEY Chairman Sd/- AMAN SAWHNEY Manager & Director Sd/- ASHOK KUMAR C.F.O. Sd/- VIKAS JAIN Company Secretary Place : New Delhi Date : 16.05.2015 |