Gazi Financial Services and Investments Ltd. कंपली की लेखा नीति

Mar 31, 2013

1. Basis of Accounting:

The financial statements have been prepared to comply in all material aspects with the Accounting Standards notified by Companies Accounting Standard Rules, 2006 under the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis; however there are few instances where accounting is done at time of payment. The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

2. Use of Estimates:

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

3. Revenue Recognition:

Income is recognized when the services are rendered to customers.

4. Taxation

4.1 Income tax is computed in accordance with Accounting Standard 22- ''Accounting for Taxes on Income'' (AS-22), notified by the Companies (Accounting Standard) Rules, 2006. Tax expenses are accounted in the same period to which the revenue and expense relate.

4.2 Provision for current income tax is made for the tax liability payable on taxable Income after considering tax allowances, deductions and exemptions determined in accordance with the prevailing tax laws. The difference between the taxable income and the net profit or loss before tax for the year as per the financial statements are identified and the tax effect of timing differences is recognized as a deferred tax asset or deferred tax liability. The tax effect is calculated on accumulated timing differences at the end of the accounting year, based on the effective tax rates substantively enacted by the balance sheet date.

4.3 Deferred tax assets, other than an unabsorbed depreciation or carried forward losses, are recognized only if there is reasonable certainty that they will be realized in the future and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date. In situations where the Company has unabsorbed depreciation or carried forward losses, deferred tax assets are recognized only if there is a virtual certainty supporting by convincing evidence that the same can be realized against future taxable profits.

5. Fixed Assets:

Fixed Assets are stated at cost.

6. Depreciation:

6.1. The Company provides depreciation on the Fixed Assets at the rates and in the manner specified in Schedule XIV to the Companies Act, 19.56 or Written down Value Method.

6.2 Depreciation is provided at the rates as prescribed under Schedule XIV of the Companies Act, 1956 pro rata from the month of purchase.

6.3 No depreciation is charged on the assets sold discarded during the year.

7. Investments

- 7.1 Long term Investments are stated at cost of acquisition. Provision for diminution in the

value of long-term investments is made only if such decline is other than temporary in the opinion of the management.

7.2 Dividends are accounted for as and when received.

8. Accounting for Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognized in terms of Accounting Standard 29-Provisions, Contingent Liabilities and Contingent Assets'' (AS-29), notified by the Companies (Accounting Standards) Rules, 2006, when there is a present legal or statutory obligations as a result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made. Contingent Liabilities are recognized only when there is a possible obligation arising from past events, due to occurrence or non-occurrence of one or more uncertain future events, not wholly within the control of the Company, or where any present obligation cannot be measured in terms of future outflow of resources, or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an ongoing basis and only those having a largely probable outflow of resources are provided for. Contingent Assets are not recognized in the financial statements.

9. Related Party Transaction

Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and / or operating decision.

10. Going Concern

The accumulated losses of the Company as at 31st March, 2013 have exceeded 50% of the net worth of the Company as at year end. However, the management is confident of meeting the fund requirement as and when it arises. Therefore, the accounts are prepared on "Going Concern" basis.

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Mar 31, 2010

1. Basis of Preparation of financial statements

a) The accompanying financial statements have been prepared under the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) and the provisions of the Companies Act, 1956 as adopted consistently by the company.

b) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the GAAP followed by the company

2. Investments

a) Long term Investments are stated at cost of acquisition. Provision for diminution in the value of long- term investments is made only if such decline is other than temporary in the opinion of the management.

b) Dividends are accounted for as and when received

3. Preliminary Expenses

Preliminary expenses are written off over a period of ten years and charged to Profit & Loss Account.

4. Share issue Expenses

Share Issue expenses are written off over a period often years and charged to Profit & Loss Account.

5. Accounting for taxes on Income

Deferred tax is recognized, subject to the consideration of prudence, on 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 subsequent periods. The same is accounted for, using the tax rates as on Balance Sheet date. Deferred Tax assets are recognized only when there is virtual certainty of their realisation

6. Earning per Share

a) Earning per Equity Share is calculated by using weighted average number of Equity Shares outstanding during the period

b) Diluted Earning per share comprises the weighted average number of Equity Shares considered for deriving Basic Earnings per Equity Share and weighted average number of Equity Shares that could have been issued on the conversion of all dilutive potential Equity Shares at last issue price of each share. Dilutive potential shares are deemed converted as of the beginning of the period, unless they have been issued at a later date

c) In case of any Bonus issue or any other corporate action during the year affecting number of outstanding

shares, the number of equity shaves outstanding before the event is adjusted for the proportionate change in the number of equity shares outstanding as if the event had occurred at the beginning of the earliest period reported.

7. Revenue recognition

a) Income is recognized when the services are rendered to customers.

b) All expenses are accounted for on accrual basis unless otherwise specified.

8. Provision. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes, Contingent assets are neither recognised nor disclosed in the financial statements.

9. Related Party Transaction

Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and / or operating decision.

10. Use of Estimates

In preparing Companys financial statements in conformity with accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period actual results could differ from those estimates.