Accounting Policies of Asit C Mehta Financial Services Ltd. Company

Mar 31, 2014

1. The financial statements have been prepared under historical cost convention on an accrual basis, in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards (AS) as notified under the Companies (Accounting Standards) Rules, 2006, except for office premises which is stated as per the revalued amount.

2. The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognized in the period in which the results are known / materialize.

3. Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and deposits with banks. Cash equivalents (if any) are short-term balances that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value

4. Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

5. Depreciation/Amortisation:

Depreciation is provided on the straight-line method basis at the rates prescribed in Schedule XIV to the Companies Act, 1956. Intangible assets are amortized over a period of three to five years for which the Company expects the benefits to accrue.

6. Revenue recognition

Revenue is recognized on accrual basis as under:

a. Dividend is recognized when the right to receive the payment is established;

b. Interest income is recognized on time proportion basis;

c. Income from share trading activity is recognized on selling of shares;

d. Revenue from advisory and consultancy services is recognised on rendering of services / work performed;

e. Rental Income is accrued on time proportion basis relating to the period for which properties are let out.

7. Fixed Assets

a. Tangible Assets:

Fixed assets other than office premises are stated as cost less accumulated depreciation. Based on an independent valuation of an approved valuer, the office premises were revalued in the financial year 2010-11 and have been stated at the revalued figure as at 31.3.2011.

Intangible Assets:

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortisation/depletion.

Cost includes original cost of acquisition, including incidental expenses related to such acquisition.

8. Investments

Investments are classified into Long term and are carried at cost, less provision for diminution other than temporary in their value, determined separately for each individual investment basis and current investments which are carried at the lower of cost and fair value.

9. Employee Benefits

Company''s contribution to Provident Fund is charged to Statement of Profit and Loss. Gratuity benefits and Leave encashment payable to employees are provided on the basis of actuarial valuation on Balance sheet date.

10. Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are capitalized as part of such asset till such time as the asset is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

11. Earnings per share

Basic earnings per share are computed by dividing the profit /(loss) after tax by the weighted average number of equity shares outstanding during the year. There is no diluted earnings per share as there are no dilutive potential shares.

12. Taxes on Income

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

Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax / substantively enacted tax rates by the Balance Sheet date, to the extent that the timing differences are expected to crystallize. Deferred Tax Assets are recognized where realization is reasonably certain whereas in case of carried forward losses or unabsorbed depreciation, deferred tax assets are recognized only if there is a virtual certainty of realization backed by convincing evidence. Deferred Tax Assets are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

13. Impairment of assets

The company reviews at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that the previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

14. Provisions and contingencies

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimation. Contingent liabilities are disclosed in the notes separately.

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Mar 31, 2011

1. Basis of preparation of financial statements:

The financial statements have been prepared under historical cost convention on an accrual basis, in accordance with the Generally Accepted Accounting Principles in India, and the Accounting Standards (AS) as notified under the Companies (Accounting Standards) Rules, 2006, except for office premises which is stated as per the revalued amount.

2. Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition:

Revenue is recognized on accrual basis as under:

a. Dividend is recognized when the right to receive the payment is established.

b. Interest and Rent income is recognized on time proportion basis.

c. Income from shares trading activity is recognised on selling of shares.

d. Rental Income is accrued on time proportion basis for the period relating to let out of the properties.

4. Fixed Assets:

a. Tangible Assets:

Fixed assets other than office premises are stated as cost less accumulated depreciation. Based on an independent valuation of an approved valuer, the office premises were revalued during the year and have been stated at the revalued figure as at 31.3.2011.

b. Intangible Assets:

Intangible assets are stated at cost, less any accumulated amortization / impairment losses.

Cost includes original cost of acquisition, including incidental expenses related to such acquisition.

5. Inventory:

Inventories are valued at cost or net realizable value whichever is lower. Cost is arrived at using FIFO method.

6. Depreciation/ Amortisation:

Depreciation is provided on the straight-line method basis at the rates prescribed in Schedule XIV to the Companies Act, 1956.

7. Investments:

Investments are classified into Long term and Current Investments. Long-term investments are carried at cost, less provision for diminution other than temporary in their value, determined separately for each individual investment basis. Current investments are carried at the lower of cost and fair value.

8. Retirement Benefits:

9. Company's contribution to Provident Fund is charged to Profit and Loss account. Gratuity benefits payable to employees on retirement are provided on the basis of actuarial valuation on Balance sheet date and Leave Encashment, if any is provided on actual basis. Taxation:

Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations.

Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax / substantively enacted tax rates by the Balance Sheet date, to the extent that the timing differences are expected to crystallize.

Deferred Tax Assets are recognized where realization is reasonably certain whereas in case of carried forward losses or unabsorbed depreciation, deferred tax assets are recognized only if there is a virtual certainty of realization backed by convincing evidence. Deferred Tax Assets are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

10. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are capitalized as part of such asset till such time as the asset is ready for its intended use. All other borrowing costs are recognized as an expense in the period in which they are incurred.

11. Impairment of assets

The company assess at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit and Loss Account. If at the Balance Sheet date there is an indication that the previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is refected at the recoverable amount.

12. Provisions, Contingent liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outfow of resources embodying economic benefits would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and are adjusted to refect the current best estimation. A contingent liability is disclosed unless the possibility of an outflow of resources embodying the economic benefits is remote or a reliable estimate of the amount of obligation cannot be made.

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Mar 31, 2010

1. Basis of preparation of financial statements:

The financial statements have been prepared under historical cost convention on an accrual basis, in accordance with the Generally Accepted Accounting Principles in India, and the Accounting Standards (AS) as notified under the Companies (Accounting Standards) Rules, 2006, except for office premises acquired on amalgamation, which is stated as per the revalued amount.

2. Use of estimates:

The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between the actual results and the estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition:

Revenue is recognized on accrual basis as under:

a. Information Technology Enabled Services (ITES) and Software Services Fees: Income from services rendered of ITES is recognized on services rendered. Software services fees are accounted on its completion and acceptance by the customers.

b. Dividend is recognized when the right to receive the payment is established.

c. Interest and Rent income is recognized on time proportion basis.

4. Fixed Assets:

a. Tangible Assets:

Fixed assets other than office premises acquired on amalgamation are stated as cost less accumulated depreciation. Based on an independent valuation of an approved valuer, the office premise acquired on amalgamation, was revalued in the year 1996-97 and has been stated at the revalued figure.

b. Intangible Assets:

Intangible assets are stated at cost, less any accumulated amortization / impairment losses. Cost includes original cost of acquisition, including incidental expenses related to such acquisition.

5. Inventory:

Inventories are valued at cost or net realizable value whichever is lower. Cost is arrived at using FIFO method.

6. Depreciation/ Amortisation:

Depreciation is provided on the straight-line method basis, The rates of depreciation prescribed in Schedule XTV to the Companies Act, 1956 are considered as the minimum rates.

7. Investments:

Investments are classified into Long term and Current Investments. Long-term investments are carried at cost, less provision for diminution other than temporary in their value, determined separately for each individual investment basis. Current investments are carried at the lower of cost and fair value.

8. Retirement Benefits:

Companys contribution to Provident Fund is charged to Profit and Loss account. Gratuity benefits payable to employees on retirement are provided on the basis of actuarial valuation on Balance sheet date and Leave Encashment is provided on actual basis as against actuarial valuation in previous year.

9. Taxation:

Current tax is determined as the tax payable in respect of taxable income for the year and is computed in accordance with relevant tax regulations.

Deferred tax resulting from timing differences between book and tax profits is accounted for at the current rate of tax / substantively enacted tax rates by the Balance Sheet date, to the extent that the timing differences are expected to crystallize.

Deferred Tax Assets are recognized where realization is reasonably certain whereas in case of carried forward losses or unabsorbed depreciation, deferred tax assets are recognized only if there is a virtual certainty of realization backed by convincing evidence. Deferred Tax Assets are reviewed for the appropriateness of their respective carrying values at each Balance Sheet date.

Fringe Benefits Tax has been calculated in accordance with the provisions of the Income Tax Act, 1961.

10. Foreign Currency Transactions:

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the date of transaction. Monetary items denominated in foreign currency at the year end are translated at year end rates. In respect of monetary items which are covered by forward exchange contracts, the difference between the year end rate and the rate on the date of the contract is recognized as exchange difference and the premium on such forward contracts is recognized over the life of the forward contract. The exchange difference arising on settlement/ translation are recognized in the revenue accounts.

11. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of a qualifying asset are capitalized as part of such asset till such time as the asset is ready for its intended use. AH other borrowing costs are recognized as an expense in the period in which they are incurred.

12. Impairment of assets

The company assess at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Profit and Loss Account. If at the Balance Sheet date there is an indication that if previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount.

13. Provisions, Contingent liabilities and Contingent Assets

A provision is recognized when the Company has a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimates required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and are adjusted to reflect the current best estimation. A contingent liability is disclosed unless the possibility of an outflow of resources embodying the economic benefits is remote or a reliable estimate of the amount of obligation cannot be made.