Accounting Policies of First Financial Services Ltd. Company

Mar 31, 2015

1. Basis of Preparation of Financial Statements:

The financial statements have been prepared under the historical cost convention on accrual basis and are in accordance with requirements of the Companies Act, 2013 read with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI), to the extent applicable.

Accounting policies not specifically referred to are, otherwise in consistent and in consonance with the generally accepted accounting principles.

2. Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent liabilities as at the date of the financial statements. Actual results could differ from the estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

3. Revenue Recognition :

a) Sale of Shares is recognised as and when the Sales made when the risk and rewards of ownership are passed on to the Buyer.

b) Commission income is recognised as when the Company eligible to get it.

c) Interest Income is recognised on time proportionate basis taking into account the amount outstanding and the rate applicable.

d) All income and expenditure items having a material bearing on the financial statements are recognised on accrual basis except in the case of dividend income is accounted for on cash basis.

4. Fixed Assets/Depreciation:

a) Fixed assets are shown at historical cost inclusive of incidental expenses less accumulated depreciation.

b) Depreciation on fixed assets is provided on Straight Line Method at the rates prescribed under Schedule II of the companies Act, 2013.

c) Depreciation on fixed Assets purchased during the year, is provided on pro-rata basis with reference to the date of addition.

5. Impairment of Assets:

The Company assesses at each Balance sheet date whether there is any indication that an asset may be impaired based on internal/ external factors. If any such indication exists, the Company estimates the recoverable amount of the asset. 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.

6. Inventories:

Inventories comprise Shares held for Sale is valued at lower of cost or net realizable value.

7. 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, are classified as current investments. All other investments are classified as long-term investments.

8. Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with AS-20, 'Earnings Per Share'.

a) Basics earnings per share are calculated by dividing the net Profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

b) For the purpose of calculating diluted earnings per share, the net Profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

9. Taxes on Income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates. Deferred tax Assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realised in future.

10. Foreign Exchange Transactions

Foreign exchange transactions are recorded using the rate on the date of transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Profit and loss account of the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognized in the Profit and loss account.

11. Retirement Benefits

The Present liability towards gratuity and retirement benefits payable to employees on the payroll of the company as at 31st March, 2015 has not been ascertained and provided which is not in accordance with AS-15 on Accounting for Retirement Benefits as the same is accounted on cash basis.

12. Provisions and Continent Liabilities

Provisions are recognized when the Company has legal and constructive obligations as a result of a past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

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Mar 31, 2013

1. Accounting Convention

a) These Financial Statements have been prepared in accordance with the generally accepted accounting principles in India under the Historical cost convention. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

b) The company follows Mercantile System of accounting and recognizes items of income and expenditure on accrual basis except those with significant uncertainties.

2. Revenue Recognition

a) Sale of Shares is recognised as and when the Sales made when the risk and rewards of ownership are passed onto the the Buyer.

b) Commission Income is recognised as when the Company eligible to get it.

c) Interest Income is recognised on time proportionate basis taking into account the amount outstanding and the rate applicable.

3. Fixed Assets

The Company does not have Fixed Assets on its own. Hence this clause will not applicable to this company.

4. Depreciation

Since the Company does not have any Fixed Assets Depreciation there on cannot be provided for the same.

5 Inventories

Inventories comprises Shares held for Sale are valued at lower of cost and net realisable value.

6 Transaction in Foreign Currencies

The Company involved no transaction in foreign Currencies during the year.

7 Retirement Benefits

No provision Has been made for Gratuity , Provident fund and Leave encashment as no liability arises on the date of Balance Sheet.

8 Segment reporting

The company has no reportable Business or Geographical segment.

9 Taxes on Income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subject to consideration of prudence, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates. Deferred tax Assets arising from timing differences are recognised to the extent there is a reasonable certainty that these would be realised in future.

10 Earning Per Share

The Company reports basic and diluted earnings per equity share in accordance with AS-20, ''Earnings Per Share''.

a) Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

b) For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

11 Prior Period Item

Income or Expenses which arise in the current period as a result of change in the preparation of the financial statements of one or more prior periods is shown as "Prior Period Item".

12 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, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. If an investment is acquired, or partly acquired, by the issue of shares or other securities, the acquisition cost is the fair value of the securities issued. If an investment is acquired in exchange for another asset, the acquisition is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired, whichever is more clearly evident.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

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Mar 31, 2012

1. Basis of Preparation:

The financial statements have been prepared under the historical cost convention and materially comply with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and the provisions of the Companies Act, 1956. All income and expenditure having material bearing on the financial statements have been recognized on the accrual basis.

2. Use of Estimates:

The preparation of financial statement are in conformity with generally accepted accounting principals which requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent liabilities at on the date of financial statements and the results of operation during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

3. Accounting of Income/Expenditure:

All income and expenditure items having a material bearing on the financial statements are recognised on accrual basis except in the case of dividend incomes, debenture interest and interest receivable from/payable to government on tax refunds/late payment of taxes, duties/levies which are accounted for on cash basis.

4. Stock in Trade:

Closing stock in case of quoted shares has been valued at cost or market value whichever is lower. Wherever quotations are not available as on 31 March 2012, inventory has been valued at last traded price or at cost whichever is lower. Wherever quotations are not available due to scrip has been suspended / delisted for a considerable period of time by stock exchanges has been valued at nil rate. And Closing Stock for unquoted shares had been valued at cost.

5. Taxation:

Provision for income tax has been made in accordance with normal provisions of Income Tax, 1961. The deferred tax for timing difference between the book and tax profits for the year is accounted for, using tax rates and laws that have been substantively enacted as of the balance sheet date.

6. Earning per Share

Basic earning per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average, No of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders by the weighted average, No of equity shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

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Mar 31, 2010

A. Revenue Recognition:

The company follows the accrual system of accounting and accounts for income and expenditure on accrual basis.

The Company has ceased lending operations on account of cancellation of NBFC registration by Reserve Bank of India.

The Company has not provided interest on borrowing and deposits accepted in the earlier years due to negotiations for settlement.

b. Fixed Asset:

Fixed asset is stated at cost less depreciation

c. Depreciation of fixed asset:

Depreciation is provided on the straight line method at the rates and the manner prescribed in schedule XIV to The Companies Act, 1956.

d. All the fixed assets has been transferred as part of settlement negotiations.

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Aug 31, 2009

1. Basis of Accounting INCOME :-

The Company follows the accrual system of Accounting and accounts for income and expenditure on accrual basis.

The Company has ceased lending operations on account of cancellation of NBFC registration by RESERVE BANK OF INDIA and has not earned any income during the year.

The company has not provided interest on borrowing and deposits accepted in the earlier years due to negotiations for settlement.

2. Fixed Assets and Depreciation

Fixed Assets are stated at cost of acquisition. Depreciation is provided on Straight line method at the rates and in the manner prescribed in schedule XIV of the Companies Act 1956.

In respect of leased assets, the company has accumulated balance of Rs.49.78 lacs (net of withdrawals) as lease equalisation reserve.