NOTES TO FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH. 2015 1. Corporate information: Gogia Capital Services Limited ("the Company") is engaged in the business of share broking and also a Depository Participant. The shares of the company are listed at Bombay Stock Exchange 2. Previous Year Figures The financial statements for the year ended 31st March, 2014 had been brpared as per then applicable, br-revised schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI of the Companies Act, 1956, the financial statements for the year ended 31st March,2015 are brpared as per revised Schedule VI. Accordingly, the brvious year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for brvious year does not impact recognition and measurement principles followed for brparation of financial statements. 3. Use of estimates The brparation of financial statements requires the management of the company to make estimates & assumptions that effect the reported amounts of incomes and expenses during the year and the reported balances of assets and liabilities and . discloses relating to the contingent liabilities as at the date of financial statements. Examples of such estimates include employee benefits and provisions for income taxes. Although these estimates are based on the management's best knowledge of the current events and actions, uncertainty about these assumptions and estimates could result in outcome requiring adjustments in future. 4. Significant Accounting Policies a. Revenue Recognition: Brokerage income is recognized on the trade date of transaction, upon confirmation of the transactions by stock exchanges and clients. Income from depository services and penal charges are recognized on the basis of agreements entered into with clients and when the right to receive income is established. b. Other Income Interest income is accounted on accrual basis. c. Fixed Assets Fixed Assets are valued at the cost of acquisitions including taxes, duties, and identifiable direct expenses are net of debrciation charges thereon. d. Debrciation & Amortization Debrciation has been provided on all the assets on Straight Line Method, at the rates and in manner brscribed in Schedule XIV of the Companies Act, 1956. Assets costing less than Rs. 5,000 are fully debrciated in the year of capitalization e. Impairment of Assets At each balance sheet date, the management requires the carrying amounts of its assets to determine whether there is any indication of that these assets were impaired. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. An asset is treated as impaired when carrying cost of assets exceeds its recoverable value. Impairment loss is charged to the profit & loss accounts in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. f. Transactions in foreign currency Transactions denominated in foreign currencies are recorded at the exchange rates brvailing on the date of transaction. Gain/Loss arising out of exchange rates variation is credited or charged to the Profit and Loss Account. Monetary items denominated in foreign currencies at the year end are reinstated at the year end rates. g. Employees benefits Short Term Employee Benefits such as salary and paid annual leave have been provided on yearly basis. The contributions to Provident Fund are charged to the statement of Profit & Loss for the year when the contributions are made. h. Provision for Current and deferred Tax Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing differences" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual certainty that the asset will be realized in future. , i. Provision, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent obligation as a result of past events & it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements. j. Cash Flow Statement Cash Flow Statement has been brpared on indirect method as per the guidelines and AS-3 issued by ICAI. k. Earning per share EPS is calculated by dividing the net profit for year attributable to equity shareholders by the weighted average no. of equity shares outstanding during the year as per AS-20 issued by ICAI. 1. BUSINESS SEGMENT The Operation of the company relates to only Stock Broking Services and Depository Services. 2. Debit and credit balances of the various parties are subject to confirmation. 3. The figures for the brvious year have been rearranged/regrouped wherever necessary so as make them comparable with current year. For Sunil Kulshreshtha & Associates Chartered Accountants For and on behalf of the Board Sunil Kumar (Prop.) Satish Gogia Managing Director Brijesh Saxena Director Place: New Delhi Date: 22/05/2015 |