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Accounting Policies of Ajcon Global Services Ltd. Company

Mar 31, 2015

A) Basis of Preparation of Financial Statements:

These financial statements have been prepared to comply with the Accounting Standards specified under 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. The financial statements have been prepared under the historical cost convention and on accrual basis, unless otherwise expressly mentioned in the notes.

b) Use of Estimates :

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. The estimates and assumptions used in the accompanying financial statements are based on management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognised in the period in which the results are known / materialised.

c) Fixed Assets :

Tangible Assets : Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Intangible Assets: Intangible Assets are stated at cost of acquisition net of recoverable taxes, trade discounts and rebates less accumulated depreciation and impairment loss, if any. The cost of intangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

d) Depreciation & Amortization :

Tangible Assets: Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line Method (SLM). Depreciation is provided based on useful life of the assets as prescribed in Schedule II of Companies Act, 2013. Depreciation on additions to assets or on sale/disposal of assets is calculated, based on the above principle, from the date of such additions, or up to the date of sale/disposal, as the case may be.

Intangible Assets: Intangible assets are amortized based on its useful life without considering its scrap value.

Impairment of Assets: Impairment of Assets, if any, is recognized in accordance with AS-28.

e) Non-Current Investments:

Non-Current Investments are treated as strategic long-term investments and the same are stated at the cost without considering any increase or erosion in the value.

f) Inventories:

Inventories are consisting of stocks and securities and the same are accounted at cost and any decline in the carrying value other than temporary in nature is provided for.

g) Equity Index/Stock Futures/Currency Futures:

i. "Initial Margin- Equity Derivative Instrument", representing the initial margin paid for entering into contracts for Equity Index/Stock Futures/Currency Futures which are released on final settlement/squaring-up of underlying contracts is classified under Loans and Advances.

ii. Equity index/Stock Futures/Currency Futures for arbitrage purposes are Marked-to-Market on a daily basis. Debit or credit balance disclosed under Loans and Advances or Current Liabilities, respectively, in the "Mark-to-Market Margin- Equity Index/Stock Futures/Currency Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index/Stock Futures/Currency Futures till the Balance Sheet date.

iii. As on the Balance Sheet date, profit/loss on open positions in Equity index/Stock Futures/Currency Futures are accounted for as follows:

a) Credit balance in the "Mark-to-Market Margin- Equity index/Stock Futures/Currency Futures Account, being the anticipated profit, is ignored and no credit for the same is taken in the statement of Profit and Loss Account.

b) Debit balance in the "Mark-to-Market Margin- Equity index/Stock Futures/Currency Futures", being anticipated loss, is adjusted in the statement of Profit and Loss Account.

iv. On final settlement or squaring-up of contracts for Equity index/Stock Futures/Currency Futures, the profit or loss is calculated as the difference between the settlement/squaring-up price and the contract price. Accordingly, debit or credit balance pertaining to the settled/squared-up contract in "Mark-to-Market Margin- Equity index/Stock Futures/Currency Futures Account" after adjustment of provision for anticipated losses is recognized in the statement of Profit and Loss Account.

v. When more than one contract in respect of the relevant series of Equity index/Stock Futures/Currency Futures contract to which the squared-up contract pertains is outstanding at the time of the squaring-up of the contract, the contract price of the contract so squared-up is determined using the weighted average cost method for calculating the profit/loss on squaring-up.

h) Revenue Recognition:

i. Revenue is recognized where there is reasonable certainty of its ultimate realization.

ii. Consultancy and Advisory fees are accounted on accrual basis depending on the progress of the assignment.

iii. Brokerage on stock market operations is recognized on completion of settlement period of respective segments & Stock Exchanges,

iv. Dividend income, if any, is recognised on the basis of actual receipt irrespective of the right to received is established,

v. The Annual Maintenance charges in respect of depository account holders are accounted at the time of opening the account or on completion of the year irrespective of the period they pertain to.

vi. Interest income is recognized on time proportionate basis taking into account the amount outstanding and the rate applicable,

vii. Income other than above is accounted on accrual basis,

viii. Service tax is accounted on the basis of services provided and in line with the Point of Taxation Rules, 2011 (as amended) under service tax law.

i) Employee Benefits:

Short term Employee Benefits: The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employee render the services. These benefits include performance incentive and compensated absences.

Post-employment Benefits: Contributions to defined contribution retirement benefit schemes are recognised as expense when employees have rendered services entitling them to such benefits.

The Company's contribution towards Provident Fund is charged against revenue on actual basis. The Provisions for liability on account of other benefits including Gratuity & Leave encashment are made on accrual basis.

I) Borrowing Cost:

Borrowing cost that are attributable to the acquisition of qualifying assets are capitalised as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit & Loss in the period in which they are incurred.

k) Segment Reporting:

The Company operates in single business segment i.e. financial services and therefore segment information as per Accounting Standard 17 is not required to be disclosed.

I) Earnings Per Share (E.P.S.):

The Company reports Basic and Diluted Earnings per Share in accordance with Accounting Standard 20 issued by The Institute of Chartered Accountants of India.

The basic earnings per share are computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of Equity Shares outstanding during the reporting year. Diluted earning per share is computed using the weighted average number of equity share and dilute potential equity share outstanding during the period.

m) Provision for Taxation:

Current Tax: Provision for current year taxation is determined as the tax payable in respect of taxable income for the year and is computed in accordance with provisions of Income Tax Act, 1961. Advance taxes and provisions for current income taxes are presented in the balance sheet without off-setting advance tax paid and income tax provision. The same are netted off only after completion of the assessment of the relevant year. Short or excess provision of earlier years are charged/ transferred to Statement of Profit & Loss after completion of the assessment, if any.

Deferred Tax: The Company provides for deferred tax liability in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India and Companies (Accounting Standard) Rules, 2006. In accordance with transition provision of AS-22, the Company has adjusted the opening deferred tax liability against opening revenue reserves.

Deferred tax resulting from timing difference between accounting income and taxable income is accounted for at the current tax rate/substantively enacted tax rate, as applicable, to the extent that the timing differences are expected to crystallize. The Company offsets deferred tax assets and deferred tax liabilities as it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation law.

n) Provisions, Contingent Liabilities and Contingent Assets.

A provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best management estimate required to settle the obligation as on the date of balance sheet. These are reviewed at each balance sheet date and adjusted to reflect the current best management estimates.


Mar 31, 2014

A) Basis of Accounting:

The financial statements have been prepared as a going concern basis under historical cost convention; on an accrual basis and in accordance with the Accounting Standards notified under Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. Accounting policies, not stated explicitly otherwise, are consistent with generally accepted accounting principles.

b) 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 assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based on management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known materialized.

c) Fixed Assets :

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates and include amounts added on revaluation, less accumulated depreciation and impairment loss, if any. The cost of tangible assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.

Subsequent expenditures related to an item of tangible asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

d) Depreciation:

Depreciation on all fixed assets is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

Depreciation on additions to assets or on sale/disposal of assets is calculated on pro-rata from the date of such additions, or up to the date of sale/disposal, as the case may be.

e) Non Current Investments:

Non Current Investments are treated as strategic long-term investments and the same are stated at the cost without considering any increase or erosion in the value.

f) Inventories/Current Investments:

Inventories/Current Investments are consisting of stocks and securities and the same are accounted at cost and any decline in the carrying value other than temporary in nature is provided for.

g) Equity Index/Stock Futures/Currency Futures:

i. "Initial Margin- Equity Derivative Instrument", representing the initial margin paid for entering into contracts for Equity Index/Stock Futures/Currency Futures which are released on final settlement/squaring-up of underlying contracts, are disclosed under Loans and Advances.

ii. Equity index/Stock Futures/Currency Futures for arbitrage purposes are Marked-to-Market on a daily basis. Debit or credit balance disclosed under Loans and Advances or Current Liabilities, respectively, in the "Mark-to-Market Margin- Equity Index/Stock Futures/Currency Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index/Stock Futures/Currency Futures till the Balance Sheet date.

iii. As on the Balance Sheet date, profit/loss on open positions in Equity index/Stock Futures/Currency Futures are accounted for as follows:

a) Credit balance in the "Mark-to Market Margin- Equity index/Stock Futures/Currency Futures Account, being the anticipated profit, is ignored and no credit for the same is taken in the statement of Profit and Loss Account.

b) Debit balance in the "Mark-to-Market Margin- Equity index/Stock Futures/Currency Futures", being anticipated loss, is adjusted in the statement of Profit and Loss Account.

iv. On final settlement or squaring-up of contracts for Equity index/Stock Futures/Currency Futures, the profit or loss is calculated as the difference between the settlement/squaring-up price and the contract price. Accordingly, debit or credit balance pertaining to the settled/squared-up contract in "Mark-to- Market Margin- Equity index/Stock Futures/Currency Futures Account" after adjustment of provision for anticipated losses is recognized in the statement of Profit and Loss Account.

v. When more than one contract in respect of the relevant series of Equity index/Stock Futures/Currency Futures contract to which the squared-up contact pertains is outstanding at the time of the squaring-up of the contract, the contract price of the contract so squared-up is determined using the weighted average cost method for calculating the profit/loss on squaring-up.

h) Revenue Recognition:

i. Revenue is recognized where there is reasonable certainty of its ultimate realization.

ii. Consultancy and Advisory fees are accounted on accrual basis depending on the progress of the assignment.

iii. Brokerage on stock market operations is recognized on completion of settlement period of respective segments & Stock Exchanges.

iv. Dividend income has been treated as stipulated in AS-13 issued by ICAI. The same has not been treated as exempted income for the purpose of calculating taxable income. v. The Annual Maintenance charges in respect of depository account holders are accounted at the time of opening the account or on completion of the year irrespective of the period they pertain to.

vi. Interest income is recognized on time proportionate basis taking into account the amount outstanding and the rate applicable.

vii. Income other than above is accounted on accrual basis.

viii. Service tax is accounted on the basis of services provided and in line with the point of taxation rules 2012 under service tax law.

i) Retirement Benefits:

The Company''s contribution towards Provident Fund is charged against revenue on actual basis. The Provisions for liability on account of other benefits including Gratuity & Leave encashment are made on accrual basis.

j) Segment Reporting:

The Company operates in single business segment i.e. financial services and therefore segment information as per Accounting Standard 17 is not required to be disclosed.

k) Earnings Per Share (E.P.S.):

The Company reports Basic and Diluted Earnings per Share in accordance with Accounting Standard 20 issued by The Institute of Chartered Accountants of India.

The basic earnings per share are computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of Equity Shares outstanding during the reporting year. Diluted earning per share is computed using the weighted average number of equity share and dilute potential equity share outstanding during the period.

l) Provision for Taxation:

- Current Tax

Provision for current year taxation is determined as the tax payable in respect of taxable income for the year and is computed in accordance with provisions of Income Tax Act, 1961.

- Deferred Tax

The Company provides for deferred tax liability in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India and Companies (Accounting Standard) Rules, 2006. In accordance with transition provision of AS-22, the Company has adjusted the opening deferred tax liability against opening revenue reserves.

Deferred tax resulting from timing difference between book profit and tax profit is accounted for at the current tax rate/substantively enacted tax rate, as applicable, to the extent that the timing differences are expected to crystallize.

m) Impairment of Assets.

Impairment of Assets, if any, is recognized in accordance with AS-28.

n) Provisions, Contingent Liabilities and Contingent Assets.

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best management estimate required to settle the obligation as on the date of balance sheet. These are reviewed at each balance sheet date and adjusted to reflect the current best management estimates.


Mar 31, 2013

A) Basis of Accounting:

The financial statements are prepared as a going concern under historical cost convention on an accrual basis and in accordance with the Companies Act, 1956. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

b) 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 assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in preparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known materialized.

c) Fixed Assets :

Fixed Assets are stated at cost less accumulated depreciation and impairment loss.

d) Depreciation:

Depreciation on all fixed assets is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

Depreciation on additions to assets or on sale/disposal of assets is calculated on pro-rata from the date of such additions, or upto the date of sale/disposal, as the case may be.

e) Non Current Investments:

Non Current Investments are treated as strategic long-term investments and the same are stated at the cost, without considering any increase or erosion in the value.

f) Inventories/Current Investments:

Inventories/Current Investments are consisting of stocks and securities and the same are accounted at cost and any decline in the carrying value other than temporary in nature is provided for.

g) Equity Index/Stock Futures/Currency Futures:

i. "Initial Margin- Equity Derivative Instrument", representing the initial margin paid for entering into contracts for Equity Index/Stock Futures/Currency Futures which are released on final settlement/squaring-up of underlying contracts, are disclosed under Loans and Advances.

ii. Equity index/Stock Futures/Currency Futures for arbitrage purposes are Marked-to-Market on a daily basis. Debit or credit balance disclosed under Loans and Advances or Current Liabilities, respectively, in the "Mark-to-Market Margin- Equity Index/Stock Futures/Currency Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index/Stock Futures/Currency Futures till the Balance Sheet date.

iii. As on the Balance Sheet date, profit/loss on open positions in Equity index/Stock Futures/Currency Futures are accounted for as follows:

- Credit balance in the "Mark-to Market Margin- Equity index/Stock Futures/Currency Futures Account, being the anticipated profit, is ignored and no credit for the same is taken in the statement of Profit and Loss Account.

- Debit balance in the "Mark-to-Market Margin- Equity index/Stock Futures/Currency Futures", being anticipated loss, is adjusted in the statement of Profit and Loss Account.

iv. On final settlement or squaring-up of contracts for Equity index/Stock Futures/Currency Futures, the profit or loss is calculated as the difference between the settlement/squaring-up price and the contract price. Accordingly, debit or credit balance pertaining to the settled/squared-up contract in "Mark-to-Market Margin- Equity index/Stock Futures/Currency Futures Account" after adjustment of provision for anticipated losses is recognized in the statement of Profit and Loss Account.

v. When more than one contract in respect of the relevant series of Equity index/Stock Futures/Currency Futures contract to which the squared-up contact pertains is outstanding at the time of the squaring-up of the contract, the contract price of the contract so squared-up is determined using the weighted average cost method for calculating the profit/loss on squaring-up.

h) Revenue Recognition:

i. Revenue is recognized where there is reasonable certainty of its ultimate realization.

ii. Consultancy and Advisory fees are accounted on accrual basis depending on the progress of the assignment.

iii. Brokerage on stock market operations is recognized on completion of settlement period of respective segments & Stock Exchanges.

iv. Dividend income has been treated as stipulated in AS-13 issued by ICAI. The same has not been treated as exempted income for the purpose of calculating taxable income.

v. The Annual Maintenance charges in respect of depository account holders are accounted at the time of opening the account or on completion of the year irrespective of the period they pertain to.

vi. Interest income is recognized on time proportionate basis taking into account the amount outstanding and the rate applicable.

vii. Income other than above is accounted on accrual basis.

i) Retirement Benefits:

The Company''s contribution towards Provident Fund is charged against revenue on actual basis. The Provisions for liability on account of other benefits including Gratuity & Leave encashment are made on accrual basis.

j) Segment Reporting:

The Company operates in single business segment i.e. financial services and therefore segment information as per Accounting Standard 17 is not required to be disclosed.

k) Earnings Per Share (E.P.S):

The Company reports Basic and Diluted Earnings per Share in accordance with Accounting Standard 20 issued by The Institute of Chartered Accountants of India.

The basic earning per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of Equity Shares outstanding during the reporting year. Diluted earning per share is computed using the weighted average number of equity share and dilute potential equity share outstanding during the period.

l) Provision for Taxation:

- Current Tax

Provision for current year taxation is determined as the tax payable in respect of taxable income for the year and is computed in accordance with provisions of Income Tax Act, 1961.

- Deferred Tax

The Company provides for deferred tax liability in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India and Companies (Accounting Standard) Rules, 2006. In accordance with transition provision of AS-22, the Company has adjusted the opening deferred tax liability against opening revenue reserves.

Deferred tax resulting from timing difference between book profit and tax profit is accounted for at the current tax rate/substantively enacted tax rate, as applicable, to the extent that the timing differences are expected to crystallize.

m) Impairment of Assets.

Impairment of Assets, if any, is recognized in accordance with AS-28. n) Provisions, Contingent Liabilities and Contingent Assets.

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best management estimate required to settle the obligation as on the date of balance sheet. These are reviewed at each balance sheet date and adjusted to reflect the current best management estimates.


Mar 31, 2012

A) Basis of Accounting:

The financial statements are prepared as a going concern under historical cost convention on an accrual basis and in accordance with the Companies Act, 1956. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

b) Use of Estimates :

The presentation of financial statements in conformity with generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statement and the reported amount of revenue and expenses during the year. Difference between actual results and estimates are recognized in the year in which the results are known / materialized.

c) Fixed Assets :

Fixed Assets are stated at cost less accumulated depreciation and impairment loss.

d) Depreciation:

Depreciation on all fixed assets is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

Depreciation on additions to assets or on sale/disposal of assets is calculated on pro-rata from the date of such additions, or upto the date of sale/disposal, as the case may be.

e) Non Current Investments:

Non Current Investments are treated as strategic long-term investments and the same are stated at the cost, without considering any increase or erosion in the value.

f) Inventories/Current Investments:

Inventories/Current Investments are consisting of stocks and securities and the same are accounted at cost and any decline in the carrying value other than temporary in nature is provided for.

g) Equity Index/Stock Futures/Currency Futures:

i. "Initial Margin- Equity Derivative Instrument", representing the initial margin paid for entering into contracts for Equity Index/Stock Futures/Currency Futures which are released on final settlement/squaring-up of underlying contracts, are disclosed under Loans ad Advances.

ii. Equity index/Stock Futures/Currency Futures for arbitrage purposes are Marked-to-Market on a daily basis. Debit or credit balance disclosed under Loans and Advances or Current Liabilities, respectively, in the "Mark-to-Market Margin- Equity Index/Stock Futures/Currency Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index/Stock Futures/Currency Futures till the Balance Sheet date.

iii. As on the Balance Sheet date, profit/loss on open positions in Equity index/Stock Futures/Currency Futures are accounted for as follows:

- Credit balance in the "Mark-to Market Margin- Equity index/Stock Futures/Currency Futures Account, being the anticipated profit, is ignored and no credit for the same is taken in the statement of Profit and Loss Account.

- Debit balance in the "Mark-to-Market Margin- Equity index/Stock Futures/Currency Futures", being anticipated loss, is adjusted in the statement of Profit and Loss Account.

iv. On final settlement or squaring-up of contracts for Equity index/Stock Futures/Currency Futures, the profit or loss is calculated as the difference between the settlement/squaring-up price and the contract price. Accordingly, debit or credit balance pertaining to the settled/squared-up contract in "Mark-to-Market Margin- Equity index/Stock Futures/Currency Futures Account" after adjustment of provision for anticipated losses is recognized in the statement of Profit and Loss Account.

v. When more than one contract in respect of the relevant series of Equity index/Stock Futures/Currency Futures contract to which the squared-up contact pertains is outstanding at the time of the squaring-up of the contract, the contract price of the contract so squared-up is determined using the weighted average cost method for calculating the profit/loss on squaring-up.

h) Revenue Recognition:

i. Revenue is recognized where there is reasonable certainty of its ultimate realization.

ii. Consultancy and Advisory fees are accounted on accrual basis depended on the progress of assignment.

iii. Brokerage on stock market operations is recognized on completion of settlement period of respective segments & Stock Exchanges.

iv. Dividend income has been accounted on receipt basis.

v. The Annual Maintenance charges in respect of depository account holders are accounted at the time of opening the account or on completion of the year irrespective of the period they pertain to.

vi. Interest income is recognized on time proportionate basis taking into account the amount outstanding and the rate applicable.

vii. Income other than above is accounted on accrual basis.

i) Retirement Benefits:

The Company's contribution towards Provident Fund is charged against revenue on actual basis. The Provisions for liability on account of other benefits including Gratuity & Leave encashment are made on accrual basis.

j) Segment Reporting;

The Company operates in single business segment i.e. financial services and therefore segment information as per Accounting Standard 17 is not required to be disclosed.

k) Earnings Per Share (E.P.S):

The Company reports Basic and Diluted Earnings per Share in accordance with Accounting Standard 20 issued by The Institute of Chartered Accountants of India.

The basic earning per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of Equity Shares outstanding during the reporting year. Diluted earning per share is computed using the weighted average number of equity share and dilute potential equity share outstanding during the period.

l) Provision for Taxation:

- Current Tax

Provision for current year taxation is determined as the tax payable in respect of taxable income for the year and is computed in accordance with provisions of Income Tax Act, 1961.

- Deferred Tax

The Company provides for deferred tax liability in accordance with Accounting Standard 22 - "Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India. In accordance with transition provision of AS-22, the Company has adjusted the opening deferred tax liability against opening revenue reserves.

Deferred tax resulting from timing difference between book profit and tax profit is accounted for at the current tax rate/substantively enacted tax rate, as applicable, to the extent that the timing differences are expected to crystallize.

- Security Transaction Tax (STT)

The STT on Proprietary trades are treated as expenses for determining the Profit /Loss from such activity. m) Impairment of Assets.

Impairment of Assets, if any, is recognized in accordance with AS-28.

n) Provisions, Contingent Liabilities and Contingent Assets.

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are determined based on best management estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best management estimates.


Mar 31, 2011

A) Basis of Accounting:

The financial statements are prepared as a going concern under historical cost convention on an accrual basis and in accordance with the Companies Act, 1956. Accounting policies not stated explicitly otherwise are consistent with generally accepted accounting principles.

b) Use of Estimates:

The presentation of financial statements in conformity with generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of financial statement and the reported amount of revenue and expenses during the year. Difference between actual results and estimates are recognized in the year in which the results are known / materialized.

c) Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation and impairment loss except Stock Exchange Card which has been stated at acquisition cost.

d) Depreciation:

No depreciation is provided on the acquisition of Stock Exchange Card. Depreciation on all other assets is provided on Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act1956. Depreciation on additions to assets or on sale/ disposal of assets is calculated pro-rata from the date of such additions, or up to the date of sale/ disposal, as the case may be.

e) Investments:

Investments are treated as strategic long-term investments and the same are stated at the cost, without considering any increase or erosion in the value.

f) Inventories:

Inventories consisting of stocks and securities are stated at cost without considering any increase or erosion in value there of, as per the practice followed by the Company right since the beginning.

g) Revenue Recognition:

i. Revenue is recognized where there is reasonable certainty of its ultimate realization.

ii. Consultancy and Advisory fees are accounted on accrual basis depended on the progress of assignment.

iii. Brokerage on stock market operations is recognized on completion of settlement period.

iv. Dividend income has been accounted on receipt basis.

v. The Annual Maintenance charges in respect of depository account holders are accounted at the time of opening the account or on completion of the year irrespective of the period they pertain to.

vi. Interest income is recognized on time proportionate basis taking into account the amount outstanding and the rate applicable.

vii. Income other than above is accounted on accrual basis.

h) Retirement Benefits:

The Company's contribution towards Provident Fund is charged against revenue on actual basis. The Provisions for liability on account of other benefits including Gratuity & Leave encashment are made on accrual basis.

i) Segment Reporting:

The Company operates in single business segment i.e. financial services.

j) Earnings Per Share (E.P.S):

The Company reports Basic and Diluted Earnings per Share in accordance with Accounting Standard 20 issued by The Institute of Chartered Accountants of india.

The basic Earnings Per Share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of Equity Shares outstanding during the reporting year. Diluted Earnings Per Share is computed using the weighted average number of Equity Shares and dilute potential Equity Shares outstanding during the period.

k) Provision for Taxation:

- Current Tax

Provision for current year taxation is determined as the tax payable in respect of taxable income for the year and is computed in accordance with provision of relevant statute.

- DeferredTax

The Company provides for deferred tax liability in accordance with Accounting Standard 22-"Accounting for Taxes on Income" issued by The Institute of Chartered Accountants of India. In accordance with transition provision of AS- 22,theCompanyhasadjustedtheopeningdeferred tax liability against opening revenue reserves.

Deferred tax resulting from timing difference between book profit and tax profit is accounted for at the current tax rate/substantively enacted tax rate, as applicable, to the extent that the timing differences are expected to crystallize.

- Security Transaction Tax(STT)

The STT on Proprietary trades are treated as expenses for determining the Profit/Loss from such activity.

 
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