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Accounting Policies of Glance Finance Ltd. Company

Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

These financial statements of the company have been prepared in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with the Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and underthe historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1.2 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 revenue, 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.

1.3 RECOGNITION OF INCOME AND EXPENDITURE

Revenue is recognized to the extent that is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria are met before revenue is recognized.

a) Income from Professional Services

Income from Professional Services are accounted for as and when the relevant services are rendered and revenue is recognized using completed service contract method except where the recovery is uncertain in which case it is accounted for on receipt.

b) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "Revenue from operation" in the statement of profit and loss. Delayed Payment charges, Penal Interest, Other Penal Charges, etc, are in accordance with the guidelines issued by the Reserve Bank of India for Non-Banking Finance Companies, income on business assets classified as Non-performing Assets, is also recognised on receipt basis.

c) Dividend

Dividend Income is recognized when the Company's Right to Receive dividend is established by the reporting date.

d) Profit / Loss on sale of Investments / Inventories

Profit / Loss on the sale of Investments / inventories is dealt with at the time of actual sale/ redemption.

1.4 INVENTORIES:

The Securities acquired with the intention of trading are considered as stock in trade and disclosed as current assets. The Securities held as Stock in Trade under current asset and are valued at lower of Cost or Market value, whichever is less on FIFO Basis.

1.5 TANGIBLE FIXED ASSETS:

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to it's working condition for it's intended use.

1.6 DEPRECIATION ON TANGIBLE FIXED ASSETS:

Consequent to the enactment of the Companies Act, 2013 (the Act) and its applicability for accounting periods commencing on or after April 1, 2014, the Company has re-worked depreciation with reference to the useful lives of fixed assets prescribed by PART 'C of Schedule II to the Act or the useful lives of assets as estimated by the Company, whichever is lower. Where the remaining useful life of an asset is Nil, the carrying amount of the asset after retaining the residual value (net of deferred tax), as atApril 1,2014 has been adjusted to the Retained Earnings. In other cases, the carrying values have been depreciated over the remaining useful lives of the assets using Straight Line Method and the same is recognised in the Statement of Profit and Loss.

1.7 FOREIGN CURRENCYTRANSACTIONS

a) Initial recognition

Foreign Currency Transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the statement of Profit & loss.

b) Conversion

Monetary assets and liabilities denominated in the foreign currencies as at the Balance Sheet date are translated at the closing exchange rates on that date. The exchange differences, if any, are recognised in the Statement of profit & loss account and related assets and liabilities are accordingly restated in the Balance Sheet.

1.8 INVESTMENTS:

Investments, which are readily realizable and 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 long term investments.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. 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. In the case of Mutual funds, the net asset value of units declared by the Mutual funds is considered as the fairvalue.

On disposal of investments, the difference between into carrying amount and the net disposal proceeds is charged or credited to the statement of profit & loss.

1.9 FUTURESAND OPTION CONTRACT

a) Equity Index/ Stock Futures are marked-to-market on a daily basis. Debit or credit balances, if any, disclosed under Loans and Advances or Current Liabilities respectively, in the "Mark-to-Market Margin - Index/ Stock Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index/ Stock Futures till the Balance Sheet date.

b) As at the Balance Sheet date, the profit / loss on open positions, if any, in Equity Index/Stock Futures are accounted for as follows:

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

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

c) On final settlement or squaring-up of contracts for Equity Index/Stock Futures, the profit or loss is calculated as difference between settlement/ squaring-up price and contract price. Accordingly, debit or credit balance pertaining to the settled/ squared-up contract in "Mark-to-Market Margin - Equity Index/ Stock Futures Account" is recognized in the Statement of Profit and Loss upon expiry of the contracts. When more than one contract in respect of the relevant series of Equity Index/ Stock 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 First In First Out Method for calculating profit/ loss on squaring-up.

1.10 RETIREMENT BENEFITS:

The Company has adopted Revised Accounting Standard 15- Employee Benefits. The policy followed by the Company in respect of its employee benefit scheme is set out below:

a) Gratuity

The Company provides for the gratuity, a defined benefit retirement plan covering all employees. The plan provides for lump sum payments to employees at retirement, death while in employment or on termination of employment. The liability for gratuity are provided for in accordance with actuarial valuation.

b) Leave Encashment

Provision for Leave encashment is made on accrual basis on estimates as at the year end and is charged to the Statement of Profit and Loss.

1.11 SEGMENT REPORTING POLICIES

Identification of segments:

The Company's operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

Unallocated Items:

Unallocated items include income and expenses which are not allocated to any business segment.

Segment Policies:

The company prepares its segment information in conformity with the accounting policies for preparing and presenting the financial statements of the company as a whole.

1.12 EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earning pershare.

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The Weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of 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 or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity share.

1.13 PROVISION FOR CURRENT TAX AND DEFERRED TAX

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decision of appellate authorities.

b) The deferred tax charge or benefit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed depreciation or carried forward loss undertaxation laws, deferred tax assets are recognized only if there is a virtual certainty of realisation of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realised.

1.14 IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

1.15 CONTINGENT LIABILITY:

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the occurency 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 cannot be recognized because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognized in the financial statements. However contingent assets as assessed continually and if it is virtually certain that an economic benefit will rise, asset and related income are recognized in the period in which the change occurs.

1.16 PROVISIONS:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amounts 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. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

1.17 CASH & CASH EQUIVALENTS:

Cash and Cash Equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less, as per Accounting Standard 3 "Cash Flows".


Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India (''RBI'') as applicable to a Non Banking Finance Company. The financial statements have been prepared on an accrual basis and underthe historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1.2 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 revenue, 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.

1.3 RECOGNITION OF INCOME AND EXPENDITURE

Revenue is recognized to the extent that is probable that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria are met before revenue is recognized.

a) Income from Professional Services

Income from Professional Services are accounted for as and when the relevant services are rendered and revenue is recognized using completed service contract method except where the recovery is uncertain in which case it is accounted for on receipt.

b) Interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included underthe head "Revenue from operation" in the statement of profit and loss.

c) Dividend

Dividend Income is recognized when the Company''s Right to Receive dividend is established by the reporting date.

d) Profit / Loss on sale of Investments / Inventories

Profit / Loss on the sale of Investments / inventories is dealt with at the time of actual sale/redemption.

1.4 INVENTORIES:

The Securities acquired with the intention of trading are considered as stock in trade and disclosed as current assets. The Securities held as Stock in Trade undercurrent asset and are valued at lower of Cost or Market value, whichever is less on FIFO Basis.

1.5 TANGIBLE FIXED ASSETS :

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to it''s working condition for it''s intended use.

1.6 DEPRECIATION ON TANGIBLE FIXED ASSETS:

Depreciation on tangible fixed assets is provided on a Straight Line Method. In respect of assets sold, depreciation is provided upto the date of disposal. Depreciation is charged at the rates prescribed in the Schedule XIV to the Companies Act, 1956.

1.7 FOREIGN CURRENCYTRANSACTIONS

a) Initial recognition

Foreign Currency Transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognised in the statement of Profit & loss.

b) Conversion

Monetary assets and liabilities denominated in the foreign currencies as at the Balance Sheet date are translated at the closing exchange rates on that date. The exchange differences, if any, are recognised in the Statement of profit & loss account and related assets and liabilities are accordingly restated in the Balance Sheet.

1.8 INVESTMENTS:

Investments, which are readily realizable and 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 long term investments.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. 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. In the case of Mutual funds, the net asset value of units declared by the Mutual funds is considered as the fair value.

In accordance with the Revised Schedule VI to the Companies Act, 1956, the portion of the Long Term Investments classified above, and expected to be realised within 12 months of the reporting date, have been classified as current investments.

On disposal of investments, the difference between into carrying amount and the net disposal proceeds is charged or credited to the statement of profit & loss.

1.9 FUTURESAND OPTION CONTRACT

a) Equity Index/ Stock Futures are marked-to-market on a daily basis. Debit or credit balances, if any, disclosed under Loans and Advances or Current Liabilities respectively, in the "Mark-to-Market Margin - Index/ Stock Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index/ Stock Futures till the Balance Sheet date.

b) As at the Balance Sheet date, the profit / loss on open positions, if any, in Equity Index/ Stock Futures are accounted for as follows:

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

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

On final settlement or squaring-up of contracts for Equity Index/ Stock Futures, the profit or loss is calculated as difference between settlement/ squaring-up price and contract price. Accordingly, debit or credit balance pertaining to the settled/ squared-up contract in "Mark to-Market Margin - Equity Index/ Stock Futures Account" is recognized in the Statement of Profit and Loss upon expiry of the contracts. When more than one contract in respect of the relevant series of Equity Index/ Stock 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 First In First Out Method for calculating profit/ loss on squaring-up.

1.10 RETIREMENT BENEFITS:

The Company has adopted Revised Accounting Standard 15- Employee Benefits. The policy followed by the Company in respect of its employee benefit scheme is set out below:

a) Gratuity

The Company provides for the gratuity, a defined benefit retirement plan covering all employees. The plan provides for lump sum payments to employees at retirement, death while in employment or on termination of employment. The liability for gratuity are provided for in accordance with actuarial valuation.

b) Leave Encashment

Provision for Leave encashment is made on accrual basis on estimates as at the year end and is charged to the Statement of Profit and Loss.

1.11 SEGMENT REPORTING POLICIES

Identification of segments:

The Company''s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

Unallocated Items:

Unallocated items include income and expenses which are not allocated to any business segment.

Segment Policies:

The company prepares its segment information in conformity with the accounting policies for preparing and presenting the financial statements of the company as a whole.

1.12 EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earning per share prescribed by the Companies (Accounting Standards) Rules, 2006.

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as fraction of an equity share to the extent that they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The Weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share spilit, and reverse share split (consolidation of 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 or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity share.

1.13 PROVISION FORCURRENTTAXAND DEFERRED TAX

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions ofthe Income Tax Act, 1961 and considering assessment orders and decision of appellate authorities.

b) The deferred tax charge or benefit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantially enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realised in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realisation ofthe assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonable / virtually certain (as the case may be) to be realised.

1.14 IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

After impairment, depreciation is provided on the revised carrying amount ofthe asset over its remaining useful life. A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

1.15 CONTINGENT LIABILITY:

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the occurency 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 cannot be recognized because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognized in the financial statements. However contingent assets as assessed continually and if it is virtually certain that an economic benefit will rise, asset and related income are recognized in the period in which the change occurs.

1.16 PROVISIONS:

The company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amounts 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. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed.

1.17 CASH & CASH EQUIVALENTS:

Cash and Cash Equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less, as per Accounting Standard 3 "Cash Flows".


Mar 31, 2013

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The financial statements of the company have been prepared m accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the a ceo tinting standards notified under ihe Companies (Accounting Standards) Rules 2006, (as amended) and the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India (RBI) as applicable to a Non Banking Finance Company The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1.2 USE OF ESTIMATES:

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect Ihe reported amounts of revenue, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on Ihe 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 m future periods.

1.3 RECOGNITION OF INCOME AND EXPENDITURE

Revenue is recognized to the extent that is probable lhat the economic benefits will flow to the company and the revenue can be reliably measured. The following specific recognition criteria are met before revenue is recognized

a) Income from Professional Services

Income from Professional Services are accounted for as and when the relevant services are rendered and revenue is recognized using completed service contract method except where the recovery is uncertain in which case it is accounted for on receipt.

b i interest

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate Interest income is included under the head "Revenue from operation* in the statement of profit and loss.

c) Dividend

Dividend Income is recognized when Ihe Company''s Right to Receive dividend is established by the reporting dace.

d) Profit/ Loss on sale of In vestments / Inventories

Profit / Loss on the sale of Investments / inventories is dealt with at the time of actual sale/redemption.

1.4 INVENTORIES:

The Securities acquired with the intention of trading are considered as stock in trade and disclosed as current assets. The Securities haid as Slock in Trade under currant asset and are valued at lower of Cost or Market value, whichever is less or FIFO Basis.

1.5 TANGIBLE FIXED ASSETS ;

Tangible Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets comprises purchase price end any attributable cost of hringing the asset to it''s working condition for it''s intended use.

1.6 DEPRECIATION ON TANGIBLE FIXED ASSETS:

Depredation on tangible Fixed assets is provided on a Straight Line Method in respect of assets sold, depreciation Is provided uplo the date of disposal. Depreciation is charged at the rales prescribed in the Schedule XIV to the Companies Act, f956.

1.7 FOREIGNCURRENCY TFtANSACTIONS

a] Initial recognition

Foreign Currency Transactions are recorded in Ihe reporting currency, by applying to the Foreign currency amount the exchange rate between the reporting currency and the foreign currency at the dale of the transaction. Exchange differences, if any, arising out of transactions settled during the year are recognized in the statement of Profits. Loss.

b) Conversion

Monetary assets and liabilities denominated in the foreign currencies as at the Balance Sheet date are translated at the dosing exchange rates on that date. The exchange differences, if any. are recognized in the statement of profit & toss account and related assets and liabilities are accordingly restated in the Balance Sheet.

1.B INVESTMENTS:

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

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment basis. Long term Investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of (he investments. In the case of Mutual funds. Ihe net asset value of untls declared by the Mutual funds is considered as the fair value. 1 In accordance with the Revised Schedule VI to the Companies Act, 1956, Ihe portion of the Long Term Investments classified above, and expected to be realised within 12 months of the reporting date, have been classified as current investments.

On disposal of investments, the difference between Into carrying amount and the net disposal proceeds is charged or credited to the statement of profit & loss.

1,9 FUTURES AND OPTION CONTRACT

a) Equity Index I Slock Futures are marked-to-market on a daity basis. Debit or credit balances, "if any, disclosed under Loans and Advances or Current Liabilities respectively, in the "Mark-to-Market Margin - Index / Stock Futures Account", represents the net amount paid or received on the basis of movement in the prices of Index / Stock Futures till the Balance Sheet date. As at the Balance Sheet date, the profit i loss on open positions. If any, in Equity Index / Stock Futures are accounted for as follows:

Credit balance in frte "Marfc-lo-Market Equity Index t Stock Futures Account", being anticipated profit, is ignored and no credit is taken in the statement of Profit and Loss.

Debit balance in the "Ma rk-to-Market Equity Index I Slock Futures Account", being antici pated toss Js recogn ized in Ihe stalemen t of Profit and Loss.

c) On final settlement or squaring-up or contracts for Equity Index /Stock Futures, the profit or loss is calculated as difference between settlement / squaring-up price and contract price. Accordingly, debit or credit balance pertaining to the settled t squared-up contract In "Mark lo-Markel Margin - Equity Index ! Slock Futures Account" is recognized in the Statement of Profit and Loss upon expiry of the contracts. When more lhan one contract in respect of Ihe relevant series of Equity Index / Stock Futures contract to which the squared-up contract pertains is outstanding at the time of the squaring up of the contract, the contract pnce of the contract so squared up Is determined using First In First Out Method far calculating profit/ lass an squaring-up.

1.10 RETIREMENT BENEFITS:

The Company has adopted Revised Accounling Standard 15- Employee Benefils. The policy foilowed by the Company in respect of its employee benefit scheme is set out below:

a) Gratuity

The Company provides for the gratuity, a defined benefit retirement plan covenng all employees The plan provides for lump sum payments to employees at retirement, death while in employment or on termination of employment. The liability for gratuity are provided for in accordance wilh actuarial valuation.

b) Leave Encashment

Provision for Leave encashment is made on accrual basis on estimates as at the year end an d is cha rged to I he State ment of Pf ofil and Loss.

1.11 SEGMENT REPORTING POLICIES

Identification of segments:

The Company''s operating businesses are organized and menaced separately according lo the nature of products and services provided, with each segment representing a strategic business unit that offers different products and serves different markets.

Unallocated Items:

Unallocated items include income and expenses which are not allocated to any business segment.

Segment Policies:

The company prepares its segment information in conformity with the accounting polices for preparing and presenting the financial statements of the company as a whole,

1.12 EARNINGS PER SHARE

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earning per share prescribed by the Companies (Accounting Standards) Rules, 2006

Basic earnings per share are calculated by dividing the net profit or loss far the period attributable lo equity shareholders (after deducting preferences dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as fraction of an equity share the extent [hat they are entitled to participate in dividends relative to a fully paid equity share during the reporting period. The Weighted average number of equity shares outstanding during the period is adjusted far events such as bonus issue, bonus element in a nghls issue, share spill, and reverse share split (consolidation of 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 or loss for ine period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity share

1.13 PROVISION FOR CURRENT TAX AND DEFERRED TAX

a) Provision for current lax Is made and retained in the accounts on the hasis of estimated tan liability as per applicable provisions of the Income Tax Act. 1961 and considering assessment orders and decision of appellate authorities,

b) The deferred tax change or benefit and the corresponding deferred lax liabilities and assets are recognized using the tax rales that have been enaclad or substantially enacted as at the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty lhat the asset can be realised in Future; however, where there is unabsorbed depreciation or earned forward loss under taxation laws, deferred lax assets are recognized only if there is a virtual certainly of realisation of the assets. Deferred tax assets are reviewed as at each balance sheet dale and written down or written up io reflect the amount that is reasonable / virtually certain (as the case may be) to be realised.

1.14 IMPAIRMENT OF ASSETS:

The carrying amount of assets is reviewed at each balance sheet date if there is any indication of impairment based on internal / external factors. An impairment loss Is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets, net selling price and value in use In assessing value in use, the estimated future cash Hows a re discounted to their present value at the weighted average cost of capital

After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However Ihe carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

1.15 CONTINGENT LIABILITY:

A contingent liability is a possible obligation that arise from past events whose existence will be confirmed by the occurency or nan 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 cannot be recognized because it cannot be measured reliably. The company does not recognise a contingent liability but discloses its existence in the financial statements

Contingent assets are not recogmzed m the financial statements. However contingent assets as assessed continually and if it is virtually certain that an economic benefit will rise, asset and related Income are recognized m the period in which the change occurs.

1.16 PROVISIONS:

The company creates a provision when Ihere is present obligation as a result of a past event thai probably requires an outflow of resources and a reliable estimate can be made of the amounts of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle Ihe obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current besl estimates. If it is no longer probable thai the outflow of resources would be required to settle the obligation, the provision is reversed.

1.17 CASH & CASH EQUIVALENTS .

Cash and Cash Equivalents for the purposes of cash flow statement compnse cash at bank and in hand and short term investments with an original maturity of three months or less, as per Accounting Standard 3 "Cash Flows".


Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared and presented under the historical cost convention, on accrual basis, in accordance with the Indian Generally Accepted Accounting Principles (GAAP), the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. USE OF ESTIMATES

The preparation of financial statemensts (in conformity with generally accepted accounting principles) requires the management to make estimations and assumptions that affect (i) the reported amount of assets and liabilities, (ii) the result of operations during and at the end of the reporting period, and (iii) the disclosures of contingent liabilites at the date of the financial statements. As these estimates are based on the management's best knowledge of events and actions at the relevant period of time, the actual results could differ from these estimates.

3. RECOGNITION OF INCOME & EXPENDITURE:

Items of Income & Expenditure are recognized on accrual basis, as they are earned or incurred.

4. FIXED ASSETS AND DEPRECIATION:

a) Fixed assets are stated at cost of acquisition less accumulated depreciation.

b) Depreciation on fixed assets has been provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

c) Impairment of Assets :

The Company identifies impairable assets at the year-end in terms of para-5 to 13 of AS - 28 issued by ICAI for the purpose of arriving at impairment loss thereon; being the difference between the book value and recoverable value and impairment loss is recognised.

5. INVESTMENT:

The Long Term Investment has been valued at cost and the short Term Investment has been valued at cost or Market Price whichever is lower. Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.

6. Stock in Trade:

Stock in trades are valued at cost or market value whichever is lower on FIFO basis in case of quoted securities and at cost in case of unquoted securities.

7. Futures and Option Contract

a) Equity Index/Stock Futures are marked-to-market on a daily basis. Debit or credit balance, if any, disclosed under Loans and Advances or Current Liabilities respectively, in the "Mark-to-Market Margin-Index/ Stock Futures Account," represents the net amount paid or received on the basis of movement in the prices on Index/Stock Futures till the Balance Sheet date.

b) As at the Balance Sheet date, the profit/loss on open positions, if any, in Equity Index/Stock Futures are accounted for as follows :

- Credit balance in the "Mark-to-Market Equity Index / Stock Futures Account," being anticipated profit, is ignored and no credit is taken in the Profit and Loss Account.

- Debit balance in the "Mark-to-Market Equity Index / Stock Futures Accounts," being anticipated loss, is recognized in the Profit and Loss Account.

c) On final settlement or squaring-up of contracts for Equity Index/Stock Futures, the profit or loss is calculated as difference between settlement/ squaring-up price and contract price. Accordingly, debit or credit balance pertaining to the settled/squared-up contract in "Mark-to- Market Margin-Equity Index/Stock Futures Account" is recognized in the Profit and Loss Account upon expiry of the contracts. When more than one contract in respect of the relevant series of Equity Index / Stock 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 determinded using First In First Out Method for calculating profit/loss on squaring-up.

8. Provision for Current tax and Deferred tax :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decision of appellate authorities.

b) Deferred tax is recognized subject to the consideration of prudence, on time difference being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods in due cognizance of AS - 22 issued by ICAI.

9. Earning per share :

The earnings considered in ascertaining the Company's EPS comprises the Net Profit after Tax and includes the Post Tax effect of any extraordinary items. The Number of Shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

10. Exchange Fluctuation :

Foreign currency assets / liabilities are translated in rupees at the rate ruling at the year end and the exchange difference arising on such transactions is dealt with in the Profit & Loss Account.

11. Retirement Benefits:

i) Gratuity :

The liability for gratuity are provided for in accordance with actuarial valuation.

ii) Leave Encashment :

Provision for Leave encashment is made on accrual basis on estimates as at the year end and is charged to Profit & Loss Account.

12. Contingent Liability :

Contingent Liabilities are not provided for in the accounts, but are disclosed in the Notes, if any.


Mar 31, 2010

1. Basis of Accounting :

The financial statements are prepared and presented under the historical cost convention, on accrual basis, in accordance with the Indian Generally Accepted Accounting Principles (GAAP), the accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

2. Recognition of Income & Expenditure:

Items of Income & Expenditure are recognized on accrual basis, as they are earned or incurred.

3. Use of Estimates :

The preparation of financial statements (in conformity with generally accepted accounting principles) requires the management to make estimations and assumptions that affect (i) the reported amount of assets and liabilities, (ii) the result of operations during and at the end of the reporting period, and (iii) the disclosures of contingent liabilities at the date of the financial statements. As these estimates are based on the managements best knowledge of events and actions at the relevant period of time, the actual results could differ from these estimates.

4. Fixed Assets and Depreciation:

a) Fixed assets are stated at cost of acquisition less accumulated depreciation.

b) Depreciation on fixed assets has been provided on Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956.

c) Impairment of Assets :

The Company identifies impairable assets at the year-end in terms of para-5 to 13 of AS - 28 issued by ICAI for the purpose of arriving at impairment loss thereon; being the difference between the book value and recoverable value and impairment loss is recognised.

5. Investment:

The Long Term Investment has been valued at cost and the short Term Investment has been valued at cost or Market Price whichever is lower. Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.

6. Stock in Trade:

Stock in trades are valued at cost or market value whichever is lower on FIFO basis in case of listed securities and at cost in case of non-listed securities.

7. Futures and Option Contract

In respect of futures and option contracts gain/losses on settlement are recognized on settlement dates for the completed contracts. In respect of open contracts of futures and options at the end of the year, the losses are provided in the books at the end of the year, but profit is booked on realization by following global approach. (as per the terms of Guidance Note of the Institute of Chartered Accountants of India.)

8. Provision for Current tax and Deferred tax :

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per applicable provisions of the Income Tax Act, 1961 and considering assessment orders and decision of appellate authorities.

b) Deferred tax is recognized subject to the consideration of prudence, on time difference being the difference between taxable income and accounting income that originate in one period and capable of reversal in one or more subsequent periods in due cognizance of AS - 22 issued by ICA1.

9. Earning per share :

The earning considered in ascertaining the Companys EPS comprises the Net Profit after Tax and includes the Post Tax effect of any extraordinary items. The Number of Shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

10. Exchange Fluctuation :

Foreign currency assets / liabilities are translated in rupees at the rate ruling at the year end and the exchange difference arising on such transactions is dealt with in the Profit & Loss Account.

11. Retirement Benefits: i) Gratuity :

The liability for gratuity are provided for in accordance with actuarial valuation. ii) Leave Encashment :

Provision for Leave encashment is made on accrual basis on estimates as at the year end and is charged to Profit & Loss Account.

12. Contingent Liability :

Contingent Liabilities are not provided for in the accounts, but are disclosed in the Notes, if any.

 
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