Accounting Policies of Gajanan Securities Services Ltd. Company

Mar 31, 2024

2. Significant Accounting Policies

2.1 Basis of Preparation:

The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 (‘Act’) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under Section 133 of the Act read with Rule 3 of the Companies Act (Indian Accounting Standards) Rules, 2015 and relevant amendment rules issues thereafter.

The standalone Ind AS financial statements are presented in Indian Rupees rounded off to two decimal places to nearest hundred (“INR”) as per the requirement of Schedule III to the Companies Act, 2013, unless otherwise indicated.

2.2 Basis of measurement

The financial statements of the Company have been prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) on the accrual basis of accounting and historical cost convention with the exception of certain material items that have been measured at fair value as required by the relevant Ind AS and explained in the ensuing policies below. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

2.3 Use of estimates and judgments

The preparation of the financial statements in conformity with Ind AS requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as at the date of the financial statements and the reported amount of revenues and expense during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3. Significant accounting policies 3.1 Property, Plant and Equipment

Property, Plant and Equipment are stated at cost less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use. Depreciation is provided on a Straight-Line Method (SLM) over the estimated useful lives of the property, plant and equipment as estimated by the Management and is generally recognized in the statement of profit and loss.

3.2 Inventories

Inventories are stated at lower of cost or net realizable value.

3.3 Recognition of Income and Expenditure:

Revenue Recognition: Revenue is recognized as and when the economic benefits will flow to the company. Revenue from Mutual fund is recongnised as per Fair value Gain on Financial Instruments classified as FVTPL (Net) on each reporting period. Income from Sale of Shares is recognised on the date of transaction. All expenses are recognized on accrual basis.

3.4 Current and Non-current Classification

The company presents assets and liabilities in statement of financial position based on current / noncurrent classification.

The company has presented non-current assets and current assets before equity, non-current liabilities and current liabilities in accordance with Schedule III, Division II of Companies Act, 2013 notified by Ministry of Corporate Affairs.

An assets is classified as current when it is:

a) Expected to be realised or intended to be sold or consumed in normal operating cycle.

b) Held primarily for the purpose of trading.

c) Expected to be realised within twelve months after the reporting period or

d) Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current

A liability is classified as current when it is :

a) Expected to be settled in normal operating cycle

b) Held primarily for the purpose of trading

c) Due to be settled within twelve months after the reporting period or

d) There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

All other liabilities are classified as non-current

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. Deferred tax assets and liabilities are classified as non-current assets and liabilities. The company has identified twelve months as its normal operating cycle.

3.5 Investment in subsidiaries and associates

Investment in equity shares of subsidiaries and associates shall be accounted either at cost or in accordance with Ind AS 109, Financial Instruments. The Company has elected to account its investment in subsidiaries and associates at cost.

3.6 Financial Instrument

Trade receivables are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the company becomes a party to the contractual provision of the instrument. All financial instruments are recognized initially at fair value.

On initial recognition, a financial asset is classified and measured at

-Amortized cost;

- Fair value through other comprehensive income - debt investment

- Fair value through other comprehensive income - equity investment; or

- Fair value through profit and loss (FVTPL)

3.7 Accounting for Taxes on Income:

Income tax expense comprises current tax and deferred income tax. Current income tax for current and prior periods is recognized at the amount expected to be paid to or recovered from the tax authorities, using the tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. Deferred income tax assets and liabilities are recognized for all temporary difference arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements.

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Mar 31, 2015

A) Accounting Convention:

1. The accounts have been prepared on historical cost basis and on the accounting principles of a going concern.

2. Accounting policies not specifically referred to otherwise are consistent and in accordance with the generally accepted accounting policies.

3. The Company is following mercantile basis consistently.

b) Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

c) Inventories:

Company is engaged in the business of broking/dealing in shares & securities. The inventory includes quoted as well as unquoted shares. The inventory have been valued by the company at cost instead of lower of cost or net realizable value as prescribed by AS 2. The valuation of inventory has been taken, valued and certified by the directors. Due to the above, the valuation of inventory is higher by Rs. 42025/- and the net profit is overstated by the same amount.

d) Depreciation on Fixed Assets:

Depreciation on Fixed Assets has been provided for on Written Down Value at rates determined based on useful lives of the respective assets and the residual values in accordance with Schedule II of the Companies Act, 2013 or re-assessed by the Company based on technical evaluation. Further, due to applicability of Schedule II during the year is higher by Rs. 33366/-

e) Revenue Recognition:

Income & Expenditures are recognised on accrual basis.

f) Employee Benefits

Since the Payment of Gratuity Act, 1972 does not apply to the company, disclosure under AS 15 has not been made.

g) Investments:

Non current investments(long term) are stated at cost.

h) Provision for taxation:

The company during the year has provided current tax as computed under the provisions of the Income Tax Act, 1961.

i) Considering the reasonable certainty required under AS 22 and greater prudence, the recognition of deferred tax has not been done as the company has brought forward of losses and there is no virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised.

j) Previous year figures have been regrouped and rearranged to make them comparable with the current year figures.

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Mar 31, 2014

A) Accounting Convention:

1. The accounts have been prepared on historical cost basis and on the accounting principles of a going concern.

2. Accounting policies not specifically referred to otherwise are consistent and in accordance with the generally accepted accounting policies.

3. The Company is following mercantile basis consistently.

b) Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

c) Inventories:

Company is engaged in the business of broking/dealing in shares & securities. The inventory includes qouted as well as unquoted shares. The inventory have been valued by the company at cost instead of lower of cost or net realizable value as prescribed by AS 2. The valuation of inventory has been taken, valued and certified by the directors. Due to the above, the valuation of inventory is higher by Rs. 41516/- and the net profit is overstated by the same amount.

d) Depreciation on Fixed Assets:

Depreciation on Fixed Assets has been provided for on Written Down Value method as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

e) Revenue Recognition:

Income & Expenditures are recognised on accrual basis.

f) Investments:

Non current investments(long term) are stated at cost.

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Mar 31, 2013

A) Accounting Convention:

1. The accounts have been prepared on historical cost basis and on the accounting principles of a going concern.

2. Accounting policies not specifically referred to otherwise are consistent and in accordance with the generally accepted accounting policies.

3. The Company is following mercantile basis consistently.

b) Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

c) Inventories:

Company is engaged in the business of broking/dealing in shares & securities. The inventory includes qouted as well as unquoted shares. The inventory have been valued by the company at cost instead of lower of cost or net realizable value as prescribed by AS 2. The valuation of inventory has been taken, valued and certified by the directors. Due to the above, the valuation of inventory is higher by Rs. 132,688/- and the net profit is overstated by the same amount.

d) Depreciation on Fixed Assets:

Depreciation on Fixed Assets has been provided for on Written Down Value method as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

e) Revenue Recognition:

Income & Expenditures are recognised on accrual basis.

f) Investments:

Non current investments(long term) are stated at cost.

g) Provision for taxation:

The company during the year has suffered losses, so the question of provision for taxation does not arise.

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Mar 31, 2012

A) Accounting Convention:

1. The accounts have been prepared on historical cost basis and on the accounting principles of a going concern.

2. Accounting policies not specifically referred to otherwise are consistent and in accordance with the generally accepted accounting policies.

3. The Company is following mercantile basis consistently.

b) Fixed Assets:

Fixed Assets have been stated at cost less depreciation.

c) Inventories:

Company is engaged in the business of broking/dealing in shares & securities. The inventory includes qouted as well as unquoted shares. The inventory have been valued by the company at cost instead of lower of cost or net realizable value as prescribed by AS 2. The valuation of inventory has been taken, valued and certified by the directors. Due to the above, the valuation of inventory is higher by Rs. 206,894/- and the net profit is overstated by the same amount.

d) Depreciation on Fixed Assets:

Depreciation on Fixed Assets has been provided for on Written Down Value method as per the rates prescribed in Schedule XIV of the Companies Act, 1956.

e) Revenue Recognition:

Income & Expenditures are recognised on accrual basis.

f) Investments:

Non current investments(long term) are stated at cost.

g) Provision for taxation:

The company during the year has suffered losses, so the question of provision for taxation does not arise.

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Mar 31, 2011

I. GENERAL

a) These accounts are prepared on the historical cost basis and on the accounting assumption of a going concern

b) Accounting policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles.

11 RECOGNITION OF INCOME AND EXPENDITURE:

The company follows the mercantile system of accounting and recognizes income and expenditure on accrual and prudent basis, unless specifically stated to be otherwise, except dividend, which is accounted for on cash basis.

III. FIXED ASSETS

Fixed assets are shown at historical cost less accumulated depreciation,

IV. DEPRECIATION.

Depreciation on fixed assets is provided on written down value basis at the rates prescribed under Schedule XIV of the Companies Act, 1956.

V. GRATUITY

Gratuity to employees is charged to profits in the year in which it becomes due and payable. No provision is made for liability of future payments of gratuity to retiring employees.

VI. INVESTMENTS

Investments (long Term) are being valued at cost.

VII. RETIREMENT BENEFITS:

Retirement benefits are not accounted for in the books of accounts.

VIII. INVENTORY.

Inventory of quoted shares are valued at cost.

IX. DEFERRED TAX:

Deferred Tax is recognized to consideration of prudence on Timing Difference being difference between taxable and accounting income/ expenditure that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which Deferred Tax Assets will be realized.

X. CONTINGENT LIABILITIES:

Contingent Liabilities not provided for are disclosed in the notes on accounts.