Mar 31, 2015
BASIS OF PREPARATION OF FINANCIAL STATEMENTS
These statements have been prepared to comply in all material aspects
with applicable accounting principles in India, the applicable
Accounting Standards prescribed under Section 133 of the Companies Act,
2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014,
the provisions of the Act (to the extent ) and other counting
principles generally accepted in India, to the extent applicable.
All assets and liabilities have been as current or non-current as per
the Company's normal operating cycle and other criteria set out in the
Schedule III to the Companies Act, 2013. Based on the nature of
products and the time between of assets for processing and their
realisation in cash and cash , the Company has ascertained its
operating cycle as 12 months for the purpose of current/non-current of
assets and liabilities.
USE OF ESTIMATES
The preparation of the statements in conformity with the generally
accepted principles the management to make estimates and assumptions
that effect the reported amount of assets, liabilities, revenues and
expenses and disclosure of contingent assets and liabilities. The
estimates and assumptions used in the accompanying statements are based
upon management's evaluation of the relevant facts and circumstances as
of the date of the statements. Actual results may differ from that
estimates and assumptions used in preparing the accompanying
statements. Any differences of actual results to such estimates are
recognized in the period in which the results are known / materialized.
CASH FLOW STATEMENT
Cash statement has been prepared in accordance with the "indirect
method" as explained in the AS-3 issued by the Institute of Chartered
Accountants of India.
FIXED ASSETS & DEPRECIATION ON TANGIBLE ASSETS
Tangible assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. expenditures related to an item
of tangible asset are added to its book value only if they increase the
future from the existing asset beyond its previously assessed standard
of performance.
Items of assets that have been retired from active use and are held for
disposal are stated at the lower of their book value and net realisable
value and are shown separately in the statements under Other Current
Assets. Losses arising from the retirement of, and gains or losses
arising from disposal of assets which are carried at cost are
recognised in the and loss account.
Depreciation is provided on a pro-rata basis using Straight Line Method
using the estimated life as prescribed under Schedule II to the
Companies Act, 2013 with the exception of the following:
(ii) assets costing ' 5,000 or less are fully depreciated in the year
of purchase.
INTANGIBLE ASSETS & AMORTISATION
Intangibles assets are stated at cost less accumulated amortisation.
These are being amortised over the estimated useful life, as determined
by the management. Leasehold land is amortised over the primary period
of the lease.
REVENUE RECOGNITION
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. The following specific recognition criteria must also be met
before revenue is recognized.
b) Income is recognized on accrual basis from brokerage earned on
secondary market operations on trade date.
c) Income from arbitrage comprises profit / loss on sale of securities
held as stock-in-trade and profit / loss on equity derivative
instruments is accounted as per following:
i. Profit / loss on sale of securities is determined based on the FIFO
cost of the securities sold.
ii. Profit / loss on Commodity transactions is accounted for as
explained below:
Initial and additional margin paid over and above initial margin for
entering into contracts for Equity Index / Stock Futures / Commodity
Spot Trading/ Currency Futures and or Equity Index / Stock Options /
Currency Options, which are released on final settlement / squaring-up
of underlying contracts are disclosed under "Other current assets".
Mark-to-market margin-Equity Index / Stock Futures / Currency Futures
representing the amounts paid in respect of mark to market margin is
disclosed under "Other current assets".
"Equity Index / Stock Option / Currency Option Premium Account"
represents premium paid or received for buying or selling the Options,
respectively.
On final settlement or squaring up of contracts for Equity Index /
Stock Futures / Currency Future, the realized profit or loss after
adjusting the unrealized loss already accounted, if any, is recognized
in the Statement of Profit and Loss. On settlement or squaring up of
Equity Index / Stock Options / Currency Option, before expiry, the
premium prevailing in "Equity Index / Stock Option / Currency Option
Premium Account" on that date is recognized in the Statement of Profit
and Loss.
As at the Balance Sheet date, the Mark to Market / Unrealised Profit /
(Loss) on all outstanding arbitrage portfolio comprising of Securities
and Equity / Currency Derivatives positions is determined on scrip
basis with net unrealized losses on scrip basis being recognized in the
Statement of Profit and Loss and the net unrealized gains on scrip
basis are ignored.
OTHER INCOME RECOGNITION
Interest on investments is booked on a time proportion basis taking
into account the amounts invested and the rate of interest.
Dividend income on investments is accounted for when the right to
receive the payment is established.
PURCHASES
Purchase is recognized on passing of ownership in share based on
broker's purchase note.
EXPENDITURE
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities.
INVESTMENTS
Current investments are stated at the lower of cost and fair value.
Long-term investments are stated at cost. A provision for diminution is
made to recognise a decline, other than temporary, in the value of
long-term investments. Investments are classified into current and
long-term investments.
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as non-current investments.
CASH & CASH EQUIVALENTS
The Company considers all highly liquid financial instruments, which
are readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
IMPAIRMENT OF ASSETS
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting period is reversed if there is a change in the estimated
recoverable value.
TAXES ON INCOME
Provision for current Income Tax is made on the taxable income using
the applicable tax rates and tax laws. Deferred tax assets or
liabilities arising on account of timing differences between book and
tax profits, which are capable of reversal in one or more subsequent
years is recognized using tax rate and tax laws that have been enacted
or subsequently enacted. Deferred tax asset in respect of unabsorbed
depreciation and carry forward losses are not recognized unless there
is sufficient assurance that there will be sufficient future taxable
income available to realize such losses.
EARNINGS PER SHARE
Basic earning per share is calculated by dividing the net profit for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the
period and for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares that
have changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating
diluted earnings per share, the net profit for the period attributable
to equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
STOCK IN TRADE
Shares are valued at cost or market value, whichever is lower. The
comparison of Cost and Market value is done separately for each
category of Shares.
Units of Mutual Funds are valued at cost or market value whichever is
lower. Net asset value of units declared by mutual funds is considered
as market value for non-exchange traded Mutual Funds.
CONTINGENT LIABILITIES & PROVISIONS
A provision is recognised when there is a present obligation as a
result of a past event, it is probable that an outflow of resources
will be required to settle the obligation and in respect of which
reliable estimate can be made. Provision is not discounted to its
present value and is determined based on the best estimate required to
settle the obligation at the yearend date.
These are reviewed at each year end date and adjusted to reflect the
best current estimate.
Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non occurrence of one or more
uncertain future events not wholly within the control of the Company or
a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
OTHER NOTES & ADDITIONAL INFORMATION FORMING PART OF FINANCIAL
STATEMENTS
In the opinion of the management, current assets, loans and advances
and other receivables have realizable value of at least the amounts at
which they are stated in the accounts.
Mar 31, 2014
Basis of Preparation of Financial Statements
The accounts have been prepared to comply in all material aspects with
applicable accounting principles in India, the applicable Accounting
Standards notified under Section 211(3c) of the Companies Act, 1956 and
the relevant provisions thereof.
All assets and liabilities have been classified as current or
non-current as per the Company''s normal operating cycle and other
criteria set out in Revised Schedule VI to the Companies Act, 1956.
Based on the nature of products and the time between acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 12
months for the purpose of current / non-current classification of
assets and liabilities.
Use of Estimates
The preparation of the financial statements in conformity with the
generally accepted principles requires the management to make estimates
and assumptions that effect 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 that 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.
Fixed Assets & Depreciation
Fixed Assets are stated at cost less accumulated depreciation thereon.
Subsequent expenditures related to an item of fixed 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.
Items of fixed assets that have been retired from active use and are
held for disposal are stated at the lower of their book value and net
realisable value and are shown separately in the financial statements
under Other Current Assets. Losses arising from the retirement of, and
gains or losses arising from disposal of fixed assets which are carried
at cost are recognised in the profit and loss account.
The cost of fixed assets comprises purchase price and any attributable
cost of bringing the assets to its working condition for its intended
use. The Company provides pro-rata depreciation from the date on which
assets is acquired / put to use. Depreciation is provided on the
Writtrn Down value method over the estimated useful lives of the assets
or the rates prescribed under Schedule XIV of the Companies Act, 1956,
whichever is higher. In respect of assets sold, prorata depreciation is
provided upto the date on which assets is sold. On all assets
depreciation has been provided using the Written Down Value method at
the rates specified in Schedule XIV to the Companies Act, 1956.
Intangible Assets & Amortisation
Intangibles assets are stated at cost less accumulated amortisation.
These are being amortised over the estimated useful life, as determined
by the management. Leasehold land is amortised over the primary period
of the lease.
Revenue Recognition
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. The following specific recognition criteria must also be met
before revenue is recognized.
a) Income is recognized on accrual basis from brokerage earned on
secondary market operations on trade date.
b) Income from arbitrage comprises profit / loss on sale of securities
held as stock- in-trade and profit / loss on equity derivative
instruments is accounted as per following;
i) Profit / loss on sale of securities is determined based on the FIFO
cost of the securities sold.
ii) Profit / loss on arbitrage transactions is accounted for as
explained below:
Initial and additional margin paid over and above initial margin for
entering into contracts for Equity Index / Stock Futures / Currency
Futures and or Equity Index / Stock Options / Currency Options, which
are released on final settlement / squaring-up of underlying contracts
are disclosed under "Other current assets". Mark-to-market
margin-Equity Index / Stock Futures / Currency Futures representing the
amounts paid in respect of mark to market margin is disclosed under
"Other current assets".
"Equity Index / Stock Option / Currency Option Premium Account""
represents premium paid or received for buying or selling the Options,
respectively.
On final settlement or squaring up of contracts for Equity Index /
Stock Futures / Currency Future, the realized profit or loss after
adjusting the unrealized loss already accounted, if any, is recognized
in the Statement of Profit and Loss. On settlement or squaring up of
Equity Index / Stock Options / Currency Option, before expiry, the
premium prevailing in ""Equity Index / Stock Option / Currency Option
Premium Account"" on that date is recognized in the Statement of Profit
and Loss.
As at the Balance Sheet date, the Mark to Market / Unrealised Profit /
(Loss) on all outstanding arbitrage portfolio comprising of Securities
and Equity / Currency Derivatives positions is determined on scrip
basis with net unrealized losses on scrip basis being recognized in the
Statement of Profit and Loss and the net unrealized gains on scrip
basis are ignored.
Other Income Recognition
Interest on investments is booked on a time proportion basis taking
into account the amounts invested and the rate of interest.
Dividend income on investments is accounted for when the right to
receive the payment is established.
Purchase
Purchase is recognized on passing of ownership in share based on
broker''s
purchase note Expenditure
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities.
Investments
Current investments are stated at the lower of cost and fair value.
Long-term investments are stated at cost. A provision for diminution is
made to recognise a decline, other than temporary, in the value of
long-term investments. Investments are classified into current and
long-term investments.
Investments that are readily realisable and are intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as non current investments.
Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting period is reversed if there is a change in the estimated
recoverable value.
Borrowing Costs
Borrowing cost attributable to acquisition, construction and production
of qualifying assets is capitalized as part of cost of such assets.
Qualifying assets are the assets which takes substantial period of time
to become ready for intended use or sale. All other borrowing costs are
charged to statement of Profit & loss.
Taxation
Provision for current Income Tax is made on the taxable income using
the applicable tax rates and tax laws. Deferred tax assets or
liabilities arising on account of timing differences between book and
tax profits, which are capable of reversal in one or more subsequent
years is recognized using tax rate and tax laws that have been enacted
or subsequently enacted. Deferred tax asset in respect of unabsorbed
depreciation and carry forward losses are not recognized unless there
is sufficient assurance that there will be sufficient future taxable
income available to realize such losses.
Lease
The company bifurcate its lease contract into Operating and Finance
lease, as per AS - 19. Operating Lease is a agreement in which a
significant portion of the risks and rewards of ownership are retained
by the lessor. In finance lease significant portion of the risks and
rewards are transferred to leasee. Lease Rentals in respect of
operating lease arrangements are charged to the Statement of Profit &
Loss.
Earnings per Share
Basic earning per share is calculated by dividing the net profit for
the period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period.
The weighted average number of equity shares outstanding during the
period and for all periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential equity shares,
that have changed the number of equity shares outstanding, without a
corresponding change in resources. For the purpose of calculating
diluted earnings per share, the net profit for the period attributable
to equity shareholders and the weighted average number of shares
outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
Stock in Trade
Shares are valued at cost or market value, whichever is lower. The
comparison of Cost and Market value is done separately for each
category of Shares.
Units of Mutual Funds are valued at cost or market value whichever is
lower. Net asset value of units declared by mutual funds is considered
as market value for non-exchange traded Mutual Funds.
Contingent Liabilities & Provisions
A provision is recognised when there is a present obligation as a
result of a past event, it is probable that an outflow of resources
will be required to settle the obligation and in respect of which
reliable estimate can be made. Provision is not discounted to its
present value and is determined based on the best estimate required to
settle the obligation at the year end date.
These are reviewed at each year end date and adjusted to reflect the
best current estimate.
Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which will be
confirmed only by the occurrence or non occurrence of one or more
uncertain future events not wholly within the control of the Company or
a present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made.
Segment reporting
The company operates in capital market which is only identifiable
reporting segment under AS-17 Segment Reporting issued by the Institute
of Chartered Accountants of India
Foreign Currency Transactions
Foreign currency transactions are accounted for at the exchange rates
prevailing at the date of the transaction. The year end balances in the
payable/receivable account are reported on the basis of closing
exchange rate of respective currency. Gains and losses resulting from
the settlement of such transactions in foreign currencies are
recognised in the profit and loss account on realization date. Forward
exchange contracts outstanding as at the year end on account of firm
commitment transactions are marked to market and the losses, if any are
recognized in the profit and loss account and gains are ignored in
accordance with the Announcement of the Institute of Chartered
Accountants of India on ''Accounting for Derivatives'' issued in March
2008.
Mar 31, 2013
The significant accounting policies followed by the company are as
stated below :
a. Inventories
Stock-in-trade has been valued at cost or market price whichever is
lower
b. Revenue Recognition
Items of Income and Expenditure are recognized on accrual and prudent
basis
c. Fixed Assets and Depreciation
Fixed Assets have been capitalized at cost inclusive of all expenses
incidental to acquisition of such assets. Depreciation on fixed assets
have been provided for on w. d. v. method as per the rates prescribed
under schedule XIV of the said Act.
d. Taxes on Income
Provision for Current Income Tax is made on the taxable income using
the applicable tax rates and tax laws. Deferred tax assets or
liabilities arising on account of liming differences which are capable
of reversal in one or more subsequent years is recognized using the tax
rates and tax laws that have been enacted or subsequently enacted
Deferred tax assets in respect of unabsorbed depreciation and carry
forward losses are not recognized unless there is sufficieni assurance
that there will be sufficient future taxable income available to
realize such losses
e Retirement Benefits
As none of the employees have completed the minimum length of service
as provided in the Payment of Gratuity Act. 1972 no provision for
gratuity is required to be made
f. Miscellaneous Expenditure
Miscellaneous Expenditure not written off is amortized over a period
having due regard to its nature and benefits derived thereon
g. Investments are valued at cost
h. Expenditure in foreign currency during the year - Nil
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