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Accounting Policies of D B (International) Stock Brokers Ltd. Company

Mar 31, 2015

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

i. The company follows the mercantile system of accounting and recognizes Income and expenditure on an accrual basis.

ii. Financial statements are prepared under the historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

iii. These financial statements have been prepared in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013, of India. The accounting policies applied by the company are consistent with those used in previous year

b. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

c. FIXED ASSETS AND DEPRECIATION

i. FIXED ASSETS

Fixed Assets are stated at cost, less accumulated depreciation & impairment loss, if any. All costs till commencement of their use including pre-installation charge attributable to fixed assets are capitalized.

ii. DEPRECIATION & AMORTISATION

a) Depreciation has been provided on Written down Value Basis based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

b) Depreciation on addition is provided on pro rata basis from the date of such addition.

c) Depreciation on assets sold, discarded or demolished during the year is being provided at their rates up to the date on which such assets are sold, discarded or demolished.

d. INTANGIBLE ASSETS

Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets are carried at cost less accumulated depreciation /amortization and accumulated impairment losses.

Intangible assets are depreciated on a Written Down Value Basis.

Gains or losses arising from derecognition of an intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the assets is derecognized.

e. IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS

The company assesses at each reporting date whether there is an indication that an assets may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s net selling price and its value in use.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life. An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased, If such indication exists, the company estimates the asset''s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit and loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.

f. INVESTMENTS

Investments, which are readily realizable and intended to be held for not more than one year from the date on which investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment bases. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

g. CASH & CASH EQUIVALENTS

Cash and cash equivalents in the cash flow statement comprise cash at bank, cash in hand and fixed deposit with banks.

h. REVENUE RECOGNITION

The company recognizes income on accrual basis. Revenue is recognised to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

i. Interest Income, Brokerage Income, Income from Depository Participants is recognized as & when accrued.

ii. Dividend income is accounted forduring the year in which it is declared whereby a right to receive is established.

i. EMPLOYEES''BENEFIT

Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

All other payments related to employees'' benefit shall be made on due basis.

j. INCOME TAXES

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e, the period for which MAT credit is allowed to be carried forward in the which the company recognizes MAT credit as an asset in accordance with the guidance note on accounting for credit available in respect of minimum alternative tax under the income tax Act, 1961, and the asset is created by way of credit to the statement of profit and loss and shown as "Mat credit entitlement." The company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

k. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the number of equity shares outstanding during the period.

l. PROVISIONS

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

m. CONTINGENT LIABILITIES & CONTINGENT ASSETS

A Contingent liability is a possible obligation that arises from past event whose existence will be confirmed by the occurrence or non- occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that can not be recognized because it can not be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements

Contingent assets are neither recognized nor disclosed in the financial statements.

n. SEPARATE REPORTABLE SEGMENTS

There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the company relate to one segment viz. Share Broker.

o. FOREIGN CURRENCYTRANSACTIONS

There are no transactions denominated in foreign currency and/or income /expenses on account of difference either on settlement or on translation to be recognized in the statement of profit and loss as of even date.

p. LEASES

Operating lease payments are recognised as an expense in the Profit and Loss account on a straight line basis over the lease term.


Mar 31, 2014

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

i) The company folIows the mercantile system of accounting and recognizes in come and expend fture on an accrual basis.

ii) Financial statements are prepared under the historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

C. FIXED ASSETS AND DEPRECIATION

i) FIXED ASSETS

Fixed Assets are stated at cost, less accumulated depreciation & impairment loss, if any. All costs till commencement of their use including pre-installation charge attributable to fixed assets are capitalized.

il) DEPRECIATION &AMORTISATION

Depreciation on All assets has been provided on Written down Value Basis in accordance with the provisions of Section 205(2) (b}of the Companies Act, 1956, in the manners rates specified in schedule XIV of the said Act.

iii) Depreciation on addition is provided on pro rata basis from the date of such addition.

iv) Depreciation on assets sold, discarded or demolished during the year is being provided at their rates up to the date on which such assets are sold, discarded or demolished.

D. INTANGIBLE ASSETS

Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets are carried at cost less accumulated/depreciation amortization and accumulated impairment losses.

Intangible assets are depreciated on a Written Down Value Basis.

Gains or losses arising from derecognition of an intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the assets is derecognized.

E. IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS

The company assesses at each reporting date whether there is an indication that an assets may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset''s recoverable amount. An asset''s recoverable amount is the higher of an asset''s net selling price and its value in use.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life. An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased, If such indication exists, the company estimates the asset''s recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the assefs recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit and loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.

F. INVESTMENTS

Investments, which are readily realizable and Intended to be held for not more than one year from the date on which investments are made, are classified as current investments. All other Investments are classified as long-term investments.

On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment bases. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss,

0. CASH & CASH EQUIVALENTS

Cash and cash equivalents in the cash flow statement comprise cash at bank, cash in hand and fixed deposit with banks.

H. REVENUE RECOGNITION

The company recognizes income on accrual basis. Revenue is recognised to the extent it is probable that the economic benefits wi 11 fl ow to the com pa ny and the revenue can be re I i a bty measu red,

i) Interest Income, Brokerage Income, Income from Depository Participants is recognized as & when accrued. ii) Dividend income is accounted for during the year in which it is declared whereby a right to receive is established.

EMPLOYEES''BENEFrT

Retirernent benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

All other payments related to employees'' benefit shall be made on due basis.

INCOME TAXES

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable Income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e, the period for which MAT credit is allowed to be carried forward in the which the company recognizes MAT credit as an asset in accordance with the guidance note on accounting for credit available in respect of minimum alternative tax under the income tax Act, 1961 , and the asset is created by way of credit to the statement of profit and loss and shown as "Mat credit entitlement." The company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

K. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the number of equity shares outstanding during the period.

L. PROVISIONS

A provision is recognized when the company has a present obligation as a resutt of past event, il ia probable that an outflow of resources embodying economic benefits- will be required lo settle tha obligation and a reliable estimate can be made of the amount of the obligation. Provisions are nol discounted to their present value and are determined based on the best estimates required to settle the obligation at the reporting date. These- estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

CONTINGENT LIABILITIES & CONTlNGENT ASSETS

A Contingent liability is a possible obligation that arises from past event whose existence will be confirmed by the. occurrence or non- occurrence of ore or more uncertain future evants beyond the control of the company or a present obligation that is not recognized because it is not probable Dial an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that can not be recognized because it can not be measured reliaWy. The company doss not recognize a contingent liability but discloses its alienee in the financial statements

Contingent assets are neither recognized nor disclosed in |hs flna ncial slate menls.

N. SEPARATE REPORTABLE SEGMENTS

There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the company relate to one segment viz. Share Broker.

O. FOREIGN CURRENCY TRANSACTION$

There are no transactions denominated in foreign currency and/or income /expenses on account of difference either on settlement or on translation to be recognized in the statement of profit and loss as of even date.

R LEASES

Operating lease payments are recognised as an expense in the Profit and Loss account on a straight line basis o^er the lease term.

Terms/Rights Attached to Equity Shares

The company has only one class of equity shares having a par value of 7 2 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees.

During the year ended 31st March,2014 . no dividend is recognised as distributable to the equity shareholders < 31st March,20l3:Rs. 0.30)


Mar 31, 2013

A.BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(i) The company follows the mercantile system of accounting and recognizes and expenditure on an accrual basis.

(ii) Financial statements are prepared under the historical cost convention These cost are not adjusted to reflect the impact of changing value in the purchasing power of money.

B. USE OF ESTIMATES

The preparation of financial statement in conformity with Indian GAAP requires the management to make judgments estimates and assumptions that affect the reporting amounts of revenues assets and liabilities and the disclosure of contingent liabilities at the reporting periods.

C. FIXED ASSETS AND DEPRECIATION

(i) FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation & impairment loss if any All costs till commencements of their use including pre-installation charge attributable to fixed are capitalized.

(ii) DEPRECIATION & AMORTISATION

Depreciation an All assets has been provided on written Down value Basis in accordance with the provisions of section 205 (2) (b) of the companies Act,1956 in the manner & rates specified in schedule XIV of the said Act, There is change in the method of providing the depreciation during the year due to provision of depreciation on written down values in lieu of the depreciation provided at straight line method during the anteceding year,

D. INTANGIBLE ASSETS

Intangible assets acquired separate are measured on initial recognition at cost intangible assets are carried at cost less accumulated/depreciation amortization and accumulated impairment losses.

Gains or losses arising from deracination of an intangible assets mare measures as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the assets is derecognized.

E.IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS

The company assets at each reporting date whether there is an indication that an assets may be impaired if any indication exists or when annual impairment testing for an assets is required the company estimates the assets recoverable amount an assets recoverable amount is the higher of an net selling price and its value in use.

After impairment depreciation is provided on the revised carrying amount of the assets over its remaining useful life. An assessment is made at each reporting date as to whether is any indication that previously recognized impairment losses may no longer exist or may have decreased if each indication exists the company estimates the assets recoverable amount a previously recognized impairment loss is reversed only if there has been a change in the assumptions dues to determine the assets recoverable amount since the last impairment loss was recognized there valued amount in which case the reversal is treated as a revaluation increase.

F.INVESTMENTS

Investments which are readily realizable and intended to be held for not more than one year from than one year from the date on which investments are made are classified as current investments All other investment are classified as long term investments.

On disposal of an investment the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of the statement of profit and loss.

G.CASH & CASH EQUIVALENTS

Cash and cash equivalents in the cash flow statement companies cash at bank cash in hand and fixed deposit with banks.

H. REVENUE RECOGNITION

The company recognizes in come on accrual basis revenue is recognized to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured

(i) Invest income Brokerage income income from depository participants is recognized as & when accrued

(ii) Dividend income is accrued during the year in which it is declared whereby a right to receive is established.

I. EMPLOYEES BENEFIT

Retirement benefit in the form of provided fund is defined contribution scheme the contributions to the provided fund are changed to the stamen of profit and loss for the year when the contributions are due. The company has no obligation other than the contribution payable to the provident fund.

J.INCOME TAXES

Tax expense comprises current and deferred tax current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the income tax Act,1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates the text rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income origination during the current year and reversal of timing differences for the earlier years deferred tax is measured using the tax rates and the tax laws enacted or substantives enacted at time reporting date.

At each reporting date company re-assesses unrecognized deferred tax assets it recognizes unrecognized deferred tax assets to the extant that it has become reasonably certain or virtually certain as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liability and the deferred taxes related to the same taxable entity and the same taxable authority.

Minimum alternate tax (MAT) paid in a year is changed to the statement of profit and loss as current tax. The company recognizes MAT credit available as an assets only to the extent that there is convincing evidence that the company will pay nor med income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward credit to the statement of fruit and loss and shown as mat credit entitlement the company reviews the MAT credit entitlement assets at each repotting date and writes down the assets to the extent the company does not have convicting evidence that it will pay normal tax during the specified period.

K EARNINGS PER SHARE

Basis earnings per share are calculated by dividing the net profit or loss after tax the period attributable to equity shareholders by the number of equity shares outstanding during the period.

L. PROVISIONS

A provisions is recognized when the company has a present obligations as a result of past event it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation provisioned are not discounted to their present value and are determined based on the best estimates required to settle the oblivions are discount at the reporting date These estimates are reviewed at each reporting date and adjust to reflect the current best estimates

M. CONTINGENT LIABILITIES & CONTINGENT ASSETS

A Contingent liability is a possible obligation that arises from past event whose existence will be confirmed by the occurrence or non-occurrence one or more uncertain future events beyond the control of the company or a present obligation that is not recognize because it is not problem that an outflow of resources will be required to settle the because it cannot be measured reliability the company does not recognize a contingent liability but discloses its sentience in the financial statement.

N. SEPARATE REPORTABLE SEGMENTS

There are no separate reportable segments as per Accounting standard 17 as the entire operations of the company relate to one segment viz share brokers

P. LEASES

Operating lease payments are recognized as an expense in the profit and loss account on a straight line basis over the lease term.


Mar 31, 2012

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(i) The company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis.

(ii) Financial statements are prepared under the historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

B. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

C. FIXED ASSETS AND DEPRECIATION

(i) FIXED ASSETS

Fixed Assets are stated at cost net of cenvat/value added tax, less accumulated depreciation & impairment loss, f any. All costs till commencement of their use including pre-installation charge attributable to fixed assets are capitalized.

(ii) DEPRECIATION & AMORTISATION

Depreciation on All assets is provided on 'Straight Line Basis' in accordance with the provisions of Section 205(2) (b) of the Companies Act, 1956, in the manner & rates specified in schedule XIV of the said Act

(iii) Depreciation on addition is being provided on pro rata basis from the date of such addition.

(iv) Depreciation on assets sold, discarded or demolished during the year is being provided at their rates up to the date on which such assets are sold, discarded or demolished.

D. INTANGIBLE ASSETS

Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets are carried at cost less accumulated depreciation/amortization and accumulated impairment losses.

Intangible assets are depreciated on a straight line basis.

Gains or losses arising from derecognition of an intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the assets is derecognized.

E. IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS

The company assesses at each reporting date whether there is an indication that an assets may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's net selling price and its value in use.

After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased, If such indication exists, the company estimates the asset's recoverable amount. A previously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit and loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase.

F. INVESTMENTS

Investments, which are readily realizable and intended to be held for not more than one year from the date on which investments are made, are classified as current investments. All other investments are classified as long-term investments.

On initial recognition all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment bases. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss.

G. CASH & CASH EQUIVALENTS

Cash and cash equivalents in the cash flow statement comprise cash at bank, cash in hand and fixed deposit with banks.

H. REVENUE RECOGNITION

The company recognizes income on accrual basis. Revenue is recognised to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured as per the following :

(i) Interest Income, Brokerage Income, Income from Depository Participants is recognized as & when accrued.

(ii) Dividend income is accrued during the year in which it is declared whereby a right to receive is established.

I. EMPLOYEES' BENEFIT

Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund.

All other payments related to employees' benefit shall be made on due basis.

J. INCOME TAXES

Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e, the period for which MAT credit is allowed to be carried forward in the which the company recognizes MAT credit as an asset in accordance with the guidance note on accounting for credit available in respect of minimum alternative tax under the income tax Act,1961 the asset is created by way of credit to the statement of profit and loss and shown as "Mat credit entitlement." The company reviews the " MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period.

K. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the number of equity shares outstanding during the period.

L. PROVISIONS

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. This estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

M. CONTINGENT LIABILITIES & CONTINGENT ASSETS

A Contingent liability is a possible obligation that arises from past event whose existence will be confirmed by the occurrence or non- occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that can not be recognized because it can not be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements

Contingent assets are neither recognized nor disclosed in the financial statements.

N. SEPARATE REPORTABLE SEGMENTS

There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the company relate to one segment viz. Share Broker.

O. FOREIGN CURRENCY TRANSACTIONS

There are no transactions denominated in foreign currency and/or income /expenses on account of difference either on settlement or on translation to be recognized in the statement of profit and loss as of even date.

P. LEASES

Operating lease payments are recognised as an expense in the Profit and Loss account on a straight line basis over the lease term.


Mar 31, 2011

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

(i) The company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis.

(ii) Financial statements are prepared under the historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

B. REVENUE RECOGNITION

The company recognizes income on accrual basis. Revenue is recognised to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.

(i) Interest Income, Brokerage Income, Income from Depository Participants is recognized as & when accrued.

(ii) Dividend income is accrued during the year in which it is declared whereby a right to receive is established.

C. FIXED ASSETS AND DEPRECIATION

(i) FIXED ASSETS

Fixed Assets are stated at cost net of cenvat/value added tax, less accumulated depreciation & impairment loss, if any. All costs till commencement of their use including pre-installation charge attributable to fixed assets are capitalized.

(ii) DEPRECIATION & AMORTISATION

Depreciation on All assets is provided on 'Straight Line Basis' in accordance with the provisions of Section 205(2) (b) of the Companies Act, 1956, in the manner & rates specified in schedule XIV of the said Act

(i) Depreciation on addition is being provided on pro rata basis from the date of such addition.

(ii) Depreciation on assets sold, discarded or demolished during the year is being provided at their rates up to the date on which such assets are sold, discarded or demolished.

D. INTANGIBLE ASSETS

Intangible assets are stated at cost of acquisition less accumulated depreciation.

E. INVESTMENTS

Investment made by the company is intended to be held for long term. Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

F. SEPARATE REPORTABLE SEGMENTS

There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the company relate to one segment viz. Share Broker.

G. IMPAIRMENT OF ASSETS

An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value An impairment loss is charged to Profit & Loss Account in the year in which an asset is identified as impaired. The Indications as prescribed by AS-28 are not prevalent as on balance sheet date, hence there exist no impairment loss for the period under audit.

H. FOREIGN CURRENCY TRANSACTIONS

There are no transactions denominated in foreign currency and/or income /expenses on account of difference either on settlement or on translation to be recognized in the statement of profit and loss as of even date .

I. EMPLOYEES' BENEFIT

All payments related to employees' benefit shall be made on due basis.

J. CASH & CASH EQUIVALENTS

Cash and cash equivalents in the cash flow statement comprise cash at bank, cash in hand and fixed deposit with banks.

K. PROVISION FOR CURRENT TAX & DEFERRED TAX

(i) Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

(ii) As per the provisions of AS-22-"Accounting for Taxes on Income", deferred tax resulting from the "Timing differences" between the taxable income and accounting income is accounted for using the tax rate laws that are enacted or substantively enacted as on the balance sheet date. The deferred tax is recognized and carried forward only to the extent there is a virtual certainty supported with convincing evidences as per prudence limits prescribed by the AS-22.

L. PROVISION, CONTINGENT LIABILITY & CONTINGENT ASSETS

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

M. LEASES

Operating lease payments are recognised as an expense in the Profit and Loss account on a straight-line basis over the lease term.


Mar 31, 2010

(I) The Company follows the mercantile system of Accounting and recognizes Income and expenditure on an accrual basis.

(fi) Financial statements are prepared under the Historical cost Convention. These costs are not adjusted to reflect the Impact of changing value in the purchasing power of money.

B. REVENUE RECOGNITION:- |

The company recognizes Income on Accrual basis. Revenue is recognised to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(i) Interest Income, Brokerage Income, Income from depository Participants are recognized as & when accrued.

(ii) Dividend Income is accrued during the year in which it is declared whereby a right to receive is established.

C FIXED ASSETS AND DEPRECIATION:-

(A) FIXED ASSETS

Fixed Assets are stated at Cost Net of Cenvat/Value added Tax, less Accumulated Depreciation & Impairment loss, if any. All costs till commencement of their use including pre-installation charge attributable to Fixed Assets are capitalized.

(B) DEPRECIATION & AMORTISATION

Depreciation on all assets is provided on Straight Line Basis in accordance with the Provisions of Section 205(2) (b) of the Companies Act, 1956, in the manner & rates specified in schedule XIV of the said Act

(i) Depreciation on addition is being provided on Pro rata basis from the date of such addition.

(ii) Depreciation on assets sold, discarded or demolished during the year is being provided at their rates up to the date on which such assets are sold, discarded or demolished.

D. INTANGIBLE ASSETS:-

Intangible Assets are stated at cost of acquisition less accumulated depreciation.

E. INVESTMENTS:

Investment made by the company is intended to be held lor Long term & categorized as Unquoted. Long term Investments are stated at Cost. Provision for Diminution in the value of Long term Investments is made only if such a decline is other than temporary.

F SEPARATE REPORTABLE SEGMENTS;

There are no separate reportable segments as per Accounting Standard 17 as Ihe entire operations of the company relate to one segment viz- Share Broker.

G. IMPAIRMENT OF ASSETS:-

An asset is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment toss is charged to Profit & Loss Account in the year In which as asset is identified as impaired. The indications as prescribed by AS-28 are not prevalent as on Balance Sheet date, hence there exists no Impairment loss for the period under audit

H. FOREIGN CURRENCy TRANSACTIONS:-

There are no transactions denominated in foreign currency and/or Income /Expenses on account of difference either on settlement or on translation to be recognized in the Statement of Profit and Los3 as of even date.

I INVENTOR1ES:-

Items of Inventories are measured at the closing market rate prevailing as on the balance sheet date as per the statement of closing stock obtained from the exchange. The variation in the value of Inventories has been accounted for on the basis of stock lying at balance sheet date measured at market price.

J. EMPLOVEE BENEFIT--

No amount could be ascertained by the management In respect of the gratuity and other employees benefit and hence we are unable to comment on this point As given in the accounting policy of the company all payments shall be made on due basis.

K. CASH & CASH EQUIVALENTS:-

Cash and cash equivalents in the cash flow statement comprise cash at bank and in hand and short term investments with an original maturity period of three months or less.

L. PROVISION FOR CURRENT TAX & DEPERREDTAX

(i) Provision for Current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

(ii) As per the Provisions of AS-22-"Accounting for Taxes on Income", deferred tax resulting from the Timing differences* between the taxable income and accounting income is accounted for using the tax rate laws that are enacted or substantively enacted as on the balance sheet date. The Deferred Tax is recognized and carried forward only to the extent there is a virtual certainty supported with Convincing evidences as per prudence limits prescribed by the AS-22.

M. PROVISION. CONTINGENT LIABILITY & CONTINGENT ASSETS;.

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

N. LEASES:-

Operating lease payments are recognised as an expense In the Profit and Loss account on a straigh-Line basis over the lease term,