Notes to Financial Statements for the year ended 31st March 2015 1 STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES 1.1 Basis of brparation The financial statement have been brpared to comply in all material respect with the Accounting Standards notified under section 133 of the Companies Act, 2013 ("the Act"), read with rule 7 of the Companies (Accounts) Rules,2014 The Financial statement have been brpared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the company and are consistent with those in the brvious year. 1.2 Use of Estimates The brparation of financial statement in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumption that affect the reported amounts of assets, liabilities and contingent liabilities at the reported date and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the management best knowledge of current events and actions, actual results could differ from these estimates. Any revision in accounting estimates is recognised prospectively in current and future periods. 1. Fixed Assets: Fixed Assets have been stated at original cost of acquisition including taxes duties freight and other incidental expenses related to acquisition and installation of the assets concerned. 2. Debrciation: Debrciation on all tangible and intangible fixed assets is provided on the straight line method ( SLM ) upto 95% of the total cost of the basis of estimated useful lives as specified in Schedule II to the Companies Act 2013. 3. 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. 4 Inventory Stock in trade in shares is valued at lower of cost and market value. 5. Revenue Recognition: Brokerage are recognized when the transaction of sale and purchase of securities takes place. 6. Taxes on Income: Tax on income for the current period is determined on the basis of Income Tax Act, 1961.Deferred tax is recognized on timing difference between the accounting income and taxable income for the year and quantified using the tax rate and laws 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 taxable income will be available against which such deferred tax assets can be realized. 7 Employees Benefit Contribution to Provident Fund, Family Pension Fund are provided on accrual basis. Gratuity is being accounted on payment basis, Leave Encashment Leave Encashment is being accounted on payment basis. 8 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provision is recognised in the accounts when there is a brsent obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made.Provisions are not discounted to their brsent 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 are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. 3. Gratuity and leave encashment being accounted on payment basis, Since there was less than no. of employees as required by AS-15 during the year particulars except above required as per AS-15 are not applicable to the company. 4. Balances of Loans & Advances, Debtors & Creditors are subject to confirmation & reconciliation. 5. Sundry Creditors includes margin received on account of future and option segment. 6. Disclosures as required under the Micro Small and Medium Enterprise Development Act, 2006. This Information and that given in Note 7 - Trade Payables regarding Micro and Small Enterprise has been determined to the extent such parties have been identified on the basis of information available with the company. 7. Previous year's figures are reclassified where ever found necessary. For Lalit Kumar Dangi & Co. Chartered Accountants sd/- (CA Lalit Kumar Dangi) M NO. 45611 For and on behalf of the Board sd/- Hiten R Mehta Whole Time Director Kishore/- Shah Whole Time Director & CFO sd/- Ganesh Gupta (Company Secretary & Compliance Officer) Place: Mumbai Date: 30/05/2015 |