ACCOUNTING POLICIES & NOTES FORMING PART OF THE ACCOUNTS 1.1 Summary of Significant Accounting Policies General a. Basis of Preparation The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) in compliance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on accrual basis under the historical cost convention. Further in view of the revised schedule VI of the Companies Act, the company has also reclassified the brvious year figures in accordance with the requirements applicable for the current year b. General The company follows the accrual method of accounting. The financial statements have been brpared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses. c. Use of Estimates The brparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual amounts and the estimates are recognised in the period in which the results are known / materialised. d. Fixed Assets Fixed assets are stated at cost including taxes, duties, freight, insurance etc. related to acquisition and installation. e. Debrciation Debrciation is provided to the extent of debrciable amount on written Down Value (WDV) at the rates and method brscribed in the Schedule II of the Companies Act, 2013 and manner at written down value Method Rates and on pro rata basis for the additions during the year. f. Inventories The company has converted its investments into its stock-in-trade on the first date of the financial year. The inventories have been valued at the method brscribed in the Accounting Standards. g. Revenue Recognition Revenue is recognized and expenditure is accounted for on their accrual. h. Provisions, Contingent Liabilities & Contingent Assets Provisions involving substantial degree of estimation in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. i. Employees Benefit Gratuity The liability for gratuity has not been provided as per the provisions of Payment of Gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year. Provident Fund The provisions of the Employees Provident Fund are not applicable to the company since the numbers of employees employed during the year were less than the minimum brscribed for the benefits. Leave Salary In respect of Leave Salary, the same is accounted as and when the liability arises in accordance with the provision of law governing the establishment. j. Taxation Taxes on Income are accrued in the same period as the revenue and the expenses to which they relate. Deferred tax assets are recognized to the extent there is a virtual certainty of its realization. k. Impairment of Assets As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine: a. Provision for Impairment Loss, if any, required or b. The reversal, if any, required of impairment loss recognized in brvious periods. Impairment Loss is recognized when the carrying amount of an asset exceeds its recoverable amount. l. Borrowing Cost Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off to revenue. m. Deferred Revenue Expenditures Miscellaneous Expenditure are written off uniformly over a period of 5 years. n. Income Tax Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more periods. 1.2 Summary of Significant Accounting Policies General a. Contingent Liabilities & Commitments - Nil b. Additional Information disclosed as per Part II of The Companies Act, 2013 – Nil c. Segment Reporting – The company is primarily engaged in the single business of trading in shares and securities and there is no reportable secondary segment i.e. geographical segment. Hence, the disclosure requirement of Accounting Standard-17 “Segment Reporting” as notified by Companies (Accounting Standards) Rules, 2006 (as amended) is not applicable. d. Amount due from/to company /firm in which Directors are Interested : As given below f. Confirmation of balances/reconciliation of accounts pertaining to certain advances / creditors / debtors is pending as at period end. Hence, the balances have been adopted as per the books of accounts. g. Previous years’ figures have been regrouped, rearranged wherever necessary to make them comparable with those of current year. As per our report of even date For N. Kanodia & Co. Chartered Accountant Nikunj Kanodia Proprietor (DIN : 01625637) Membership No. 069995 For & on behalf of Board of Directors Vikash Kothari Director Raj Kumar Sharma (DIN : 06823998) Director Jagannath Pandit CFO Payal Bafna Company Secretary Kolkata, May 29, 2015 |