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Accounting Policies of Action Financial Services (India) Ltd. Company

Mar 31, 2015

A. Accounting Concepts

The Financial statements of the Company have been prepared on accrual basis under historical cost convention, in accordance with Generally Accepted Accounting principles in India (Indian GAAP) to comply with the Accounting Standards specified in Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard or a more appropriate presentation of the financial statements requires a change in the accounting policy hitherto in use.

b. Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

c. Revenue Recognition

(i) Income from broking activities and depository services are recognized only when it is reasonably certain that the ultimate collection will be made.

(ii) Income from trading in securities and Derivatives comprises of profit or loss on sale of securities held as stock in trade and profit or loss on Derivative instruments is accounted for based on the "Guidance note on accounting for Equity Index and Equity Stock Futures and Options".

(iii) Interest income is recognized on time proportionate basis.

d. Fixed Assets

Tangible & Intangible Assets

All the fixed assets are accounted at cost of acquisition less accumulated depreciation.

e. Leased Assets

Operating Lease

Assets taken on lease under which the lessor effectively retains all the risk and rewards of ownership are classified as operating lease. Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreement.

Finance lease

Leased assets acquired on which significant risk and rewards of ownership is effectively transferred to the company are capitalized at lower of fair value or the amount paid under such lease arrangements.

f. Depreciation /Amortization

Depreciation on Fixed Assets is provided over the useful life of assets as specified under Schedule II of the Companies Act, 2013 under Straight Line Method. Goodwill is amortized over a period of Twenty years. Assets acquired under Finance lease are amortized over the period of lease or estimated useful life of Asset whichever is lower. Assets below Rs.5,000/-each are fully charged to Profit and loss. Application software is capitalized as Intangible Asset amortized over estimated useful life or before obsolescence,whichever is earlier.

g. Impairment of Fixed Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

h. Investments

Securities, which are bought with an intention of keeping for long term, are classified under Investments and are valued at cost plus brokerage and stamp charges. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

i. Stock In Trade

Shares and Debentures held as inventory are valued at cost or market price whichever is lower, whereby the cost of each script is compared visa-vis its market value and the resultant shortfall if any, is charged to revenue.

j. Taxation

(i) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income-tax Act, 1961.

(ii) Deferred tax on timing difference between taxable income and accounting income is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets are recognized for unabsorbed depreciation and carry forward losses to the extent there is virtual certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

(iii) Minimum Alternate Tax (MAT) Credit: MAT is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to the recognized as an asset in accordance with the recommendations contained in the Guidance Note issued by the ICAI, the said asset is created by way of credit to the Statement of Profit & Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convicting evidence to the effect that Company will pay normal Income Tax during the specified period.

k. Employee benefits

(i) Gratuity to employees is provided as per AS 15 and liability as on Balance Sheet date has been determined on the basis of actuarial valuation. The liability is not funded.

(ii) Leave encashment benefits payable to employees of the Company with respect to accumulated leave outstanding at the year-end are accounted for on the basis of an actuarial valuation as at the Balance Sheet date applying projected unit Credit Method done by an Independent Actuary

(iii) Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and ESIC are charged to Statement of Profit and Loss on accrual basis.

l. Derivative Transactions

Gain /losses on transactions pertaining to Equity & Currency Futures are recognized on continuous basis. Gain / losses on options contracts are recognized on squaring off /settlement day.

m. Earnings per Share

In determining the earning per share, the Company considers the net profit after tax and includes the post tax effect of any extra ordinary/ exceptional items and also after reducing dividend on cumulative preference shares for the period ( irrespective whether dividend is paid or not). The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per shares comprises the weighted average shares considered for deriving the basic earnings per share and also weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for any stock split and bonus shares issued.

n. Provisions for Contingent liabilities and Contingent assets

A provision is recognized for a present obligation as result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. Provisions are determined based on net estimate of the amount required to settle the obligation at the Balance sheet date. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2014

A. Accounting Concepts

The accounts have been prepared on accrual basis, in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, which have been prescribed by the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956, read with the General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013, to the extent applicable. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard or a more appropriate presentation of the financial statements requires a change in the accounting policy hitherto in use.

b. Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

c. Revenue Recognition

(i) Income from broking activities and depository services are recognized only when it is reasonably certain that the ultimate collection will be made.

(ii) Income from trading in securities and Derivatives comprises of profit or loss on sale of securities held as stock in trade and profit or loss on Derivative instruments is accounted for based on the “Guidance note on accounting for Equity Index and Equity Stock Futures and Options".

(iii) Interest income is recognized on time proportionate basis.

(iv) Dividend income is recognized on receipt basis.

d. Fixed Assets

Tangible & Intangible Assets

All the fixed assets are accounted at cost of acquisition less accumulated depreciation.

e. Leased Assets:

Operating Lease

Assets taken on lease under which the lessor effectively retains all the risk and rewards of ownership are classified as operating lease. Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreement.

Finance lease:

Leased assets acquired on which significant risk and rewards of ownership is effectively transferred to the company are capitalized at lower of fair value or the amount paid under such lease arrangements.

f. Depreciation /Amortization

Depreciation on Fixed Assets is provided on prorata basis in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956 under Straight Line Method. Goodwill is amortized over a period of Twenty years. Assets acquired under Finance lease are amortized over the period of lease or estimated useful life of Asset whichever is lower.

g. Impairment of Fixed Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

h. Investments

Securities, which are bought with an intention of keeping for long term, are classified under Investments and are valued at cost plus brokerage and stamp charges. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

i. Stock In Trade

Shares and Debentures are valued at cost or market price whichever is lower, whereby the cost of each script is compared vis-à-vis its market value and the resultant shortfall if any, is charged to revenue.

j. Taxation

(i) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income- tax Act, 1961.

(ii) Deferred tax on timing difference between taxable income and accounting income is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets are recognized for unabsorbed depreciation and carry forward losses to the extent there is virtual certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

k. Employee benefits

(i) Gratuity to employees is provided as per AS 15 and liability as on Balance Sheet date has been determined on the basis of actuarial valuation. The liability is not funded.

(ii) Leave encashment benefits payable to employees of the Company with respect to accumulated leave outstanding at the year-end are accounted for on the basis of an actuarial valuation as at the Balance Sheet date.

(iii) Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and ESIC are charged to Statement of Profit and Loss on accrual/ payment basis.

l. Derivative Transactions:

Gain /losses on transactions pertaining to Equity & Currency Futures are recognised on continuous basis. Gain / losses on options contracts are recognised on squaring off /settlement day.

m. Earning per Share

In determining the earning per share, the Company considers the net profit after tax and includes the post tax effect of any extra ordinary/ exceptional items and also after reducing dividend on cumulative preference shares for the period ( irrespective whether dividend is paid or not). The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earning per shares comprises the weighted average shares considered for deriving the basic earning per share and also weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for any stock split and bonus shares issued.

n. Provisions for Contingent liabilities and Contingent assets

A provision is recognized for a present obligation as result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. Provisions are determined based on net estimate of the amount required to settle the obligation at the Balance sheet date. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

A. Accounting Concepts

The accounts have been prepared on accrual basis, in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, which have been prescribed by the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956, to the extent applicable. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard or a more appropriate presentation of the financial statements requires a change in the accounting policy hitherto in use.

b. Presentation in Revised Schedule VI:

For the year 31.03.2012 revised Schedule VI notified under the companies act 1956, has become applicable to the company, for preparation & presentation of its financial statements. The adoption of revised schedule VI does not impact recognition & measurement principal followed for preparation of financial statements. However it has significant impact on presentation & disclosure made in the financial statements. The company has also reclassified the previous year figures in accordance with the requirement applicable in current year.

c. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

d. Revenue Recognition

(i) Income from broking activities and depository services are recognized only when it is reasonably certain that the ultimate collection will be made.

(ii) Income from trading in securities and Derivatives comprises of profit or loss on sale of securities held as stock in trade and profit or loss on Derivative instruments is accounted for based on the "Guidance note on accounting for Equity Index and Equity Stock Futures and Options".

(iii) Interest income is recognized on time proportionate basis.

(iv) Dividend income is recognized when right to receive is established.

e. Fixed Assets Tangible & Intangible Assets

All the fixed assets are accounted at cost of acquisition less accumulated depreciation.

f. Leased Assets:

Operating Lease

Assets taken on lease under which the lessor effectively retains all the risk and rewards of ownership are classified as operating lease. Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreement.

Finance Lease:

Leased assets acquired on which significant risk and rewards of ownership is effectively transferred to the company are capitalized at lower of fair value or the amount paid under such lease arrangements.

g. Depreciation /Amortisation

Depreciation on Fixed Assets is provided on prorata basis in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956 under Straight Line Method. Goodwill shall be amortized over a period of Twenty years. Assets acquired under Finance lease are amortised over the period of lease or estimated useful life of Asset whichever is lower.

h. Impairment of Fixed Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

i. Investments

Securities, which are bought with an intention of keeping for long term, are classified under Investments and are valued at cost plus brokerage and stamp charges. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

j. Stock In Trade

Shares and Debentures are valued at cost or market price whichever is lower, whereby the cost of each script is compared vis-a-vis its market value and the resultant shortfall if any, is charged to revenue.

k. Taxation

(i) Provision for current tax is made on the basis of estimated taxable

income for the current accounting year in accordance with the Income-tax Act, 1961.

(ii) Deferred tax on timing difference between taxable income and accounting income is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets are recognized for unabsorbed depreciation and carry forward losses to the extent there is virtual certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

l. Employee Benefits

(i) Gratuity to employees is provided as per AS 15 and liability as on Balance Sheet date has been determined on the basis of actuarial valuation. The liability is not funded.

(ii) Leave encashment benefits payable to employees of the Company with respect to accumulated leave outstanding at the year-end are accounted for on the basis of an actuarial valuation as at the Balance Sheet date.

(iii)Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and ESIC are charged to Statement of Profit and Loss.

m. Derivative Transactions:

Gain /losses on futures transactions pertaining to Equity &Currency Futures are recognised on continuous basis. Gain / losses on options contracts are recognised on squaring off /settlement day.

n. Earning per Share

In determining the earning per share, the Company considers the net profit after tax and includes the post tax effect of any extra ordinary/ exceptional items and also after reducing dividend on cumulative preference shares for the period ( irrespective a whether dividend paid to not). The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earning per shares comprises the weighted average shares considered for deriving the basic earning per share and also weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for any stock split and bonus shares issued.

o. Provisions for Contingent Liabilities and Contingent Assets

A provision is recognized for a present obligation as result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. Provisions are determined based on net estimate of the amount required to settle the obligation at the Balance sheet date. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2011

A. Accounting Concepts

The accounts have been prepared on accrual basis, in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, which have been prescribed by the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956, to the extent applicable. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard or a more appropriate presentation of the financial statements requires a change in the accounting policy hitherto in use.

b. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

c. Revenue Recognition

(i) Income from broking activities and depository services are recognized only when it is reasonably certain that the ultimate collection will be made.

(ii) Income from trading in securities and Derivatives comprises of profit or loss on sale of securities held as stock in trade and profit or loss on Derivative instruments is accounted for based on the " Guidance note on accounting for Equity Index and Equity Stock Futures and Options" issued be the Institute of Chartered Accountants of India.

(iii) Interest income is recognized on time proportionate basis.

(iv) Dividend income is recognized as and when payment is received.

(v) Income from investing activities are recognized only when it is reasonably certain that the ultimate collection will be made

d. Fixed Assets

All the fixed assets are accounted at cost of acquisition less accumulated depreciation.

e. Impairment of Fixed Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

f. Depreciation

Depreciation on Fixed Assets is provided on prorata basis in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956 under Straight Line Method.

g. Amortisation

Good will shall be amortized over a period of Twenty years.

h. Investments

Securities, which are bought with an intention of keeping for long term, are classified under Investments and are valued at cost plus brokerage and stamp charges. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

i. Stock In Trade

Shares and Debentures are valued at cost or market price whichever is lower, whereby the cost of each script is compared vis-à-vis its market value and the resultant shortfall if any, is charged to revenue.

j. Taxation

(i) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income-tax Act, 1961.

(ii) Deferred tax on timing difference between taxable income and accounting income is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets are recognized for unabsorbed depreciation and carry forward losses to the extent there is virtual certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

k. Employee Benefits

(i) Gratuity to employees is provided as per AS 15 and liability as on Balance Sheet date has been determined on the basis of actuarial valuation. The liability is not funded.

(ii) Leave encashment benefits payable to employees of the Company with respect to accumulated leave outstanding at the year-end are accounted for on the basis of an actuarial valuation as at the Balance Sheet date.

(iii) Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and ESIC are charged to Profit and Loss account.

(iv) Other employee benefits are accounted on accrual basis.

I. Earning per Share

In determining the earning per share, the Company considers the net profit after tax and includes the post tax effect of any extra ordinary/ exceptional items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earning per shares comprises the weighted average shares considered for deriving the basic earning per share and also weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for any stock split and bonus shares issued.

m. Leased Assets:

Assets taken on lease under which the lessor effectively retains all the risk and rewards of ownership are classified as operating lease. Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreement.

n. Provisions for Contingent Liabilities and Contingent Assets

A provision is recognized for a present obligation as result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. Provisions are determined based on net estimate of the amount required to settle the obligation at the Balance sheet date. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2010

A. Accounting Concepts

The accounts have been prepared on accrual basis, in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956, which have been prescribed by the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956, to the extent applicable. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to the existing accounting standard or a more appropriate presentation of the financial statements requires a change in the accounting policy hitherto in use.

b. Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

c. Revenue Recognition

(i) Income from broking activities and depository services are recognized only when it is reasonably certain that the ultimate collection will be made.

(ii) Income from trading in securities and Derivatives comprises of profit or loss on sale of securities held as stock in trade and profit or loss on Derivative instruments is accounted for based on the "Guidance note on accounting for Equity Index and Equity Stock Futures and Options" issued be the Institute of Chartered Accountants of India.

(iii) Interest income is recognized on time proportionate basis.

(iv) Dividend income is recognized as and when payment is received.

(v) Income from investing activities are recognized only when it is reasonably certain that the ultimate collection will be made

d. Fixed Assets

All the fixed assets are accounted at cost of acquisition less accumulated depreciation.

e. Impairment of Fixed Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and

Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been achangeinthe estimate of recoverable amount.

f. Depreciation

Depreciation on Fixed Assets is provided on prorata basis in accordance with the rates prescribed under Schedule XIV of the Companies Act, 1956 under Straight Line Method.

g. Investments

Securities, which are bought with an intention of keeping for long term, are classified under Investments and are valued at cost plus brokerage and stamp charges. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary in the opinion of the management.

h. Amortisation

Goodwill shall be amortized over a period of Twenty years.

i. Stock In Trade

Shares and Debentures are valued at cost or market price whichever is lower, whereby the cost of each script is compared vis-a-vis its market value and the resultant shortfall if any, is charged to revenue.

j. Taxation

(i) Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income-tax Act, 1961.

(ii) Deferred tax on timing difference between taxable income and accounting income is accounted for, using the tax rates and the tax laws enacted or substantially enacted as on the balance sheet date. Deferred tax assets are recognized for unabsorbed depreciation and carry forward losses to the extent there is virtual certainty that sufficient future taxable income will be available against which deferred tax assets can be realized.

k. Employee benefits

(i) Gratuity to employees is provided as per AS 15 and liability as on Balance Sheet date has been determined on the basis of actuarial valuation. The liability is not funded.

(ii) Leave encashment benefits payable to employees of the Company with respect to accumulated leave outstanding at the year-end are accounted for on the basis of an actuarial valuation as at the Balance Sheet date.

(iii) Contributions payable by the Company to the concerned government authorities in respect of provident fund, family pension fund and ESIC are charged to Profit and Loss account.

(iv) Other employee benefits are accounted on accrual basis.

I. Earning per Share

In determining the earning per share, the Company considers the net profit after tax and includes the post tax effect of any extra ordinary/ exceptional items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earning per shares comprises the weighted average shares considered for deriving the basic earning per share and also weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. The diluted potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. The number of shares and potentially dilutive equity shares are adjusted for any stock split and bonus shares issued.

m. Leased Assets:

Assets taken on lease under which the lessor effectively retains all the risk and rewards of ownership are classified as operating lease. Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreement.

n. Provisions for Contingent liabilities and Contingent assets

A provision is recognized for a present obligation as result of past events if it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimates can be made. Provisions are determined based on net estimate of the amount required to settle the obligation at the Balance sheet date. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

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