Mar 31, 2013
(i) Revenue Recognition
(a) Revenue from issue management services, loan syndication, financial advisory services etc., is recognized based on the stage of completion of assignments and terms of agreement with the client.
(b) Gains and losses on dealing with securities & derivatives are recognized on trade date.
(ii) Stock-in-trade (i.e. Inventories)
(a) The securities acquired with the intention of holding for short-term are classified as investment and securities acquired for trading are classified as stock- in-trade.
(b) The securities held as stock-in-trade are valued at lower of cost arrived at on weighted average basis or market/ fair value, computed category-wise. In case of investments transferred to stock-in-trade, carrying amount on the date of transfer is considered as cost. Commission earned in respect of securities acquired upon devolvement is reduced from the cost of acquisition. Fair value of unquoted shares is taken at break-up value of shares as per the latest audited Balance Sheet of the concerned company. In case of debt instruments, fair value is worked out on the basis of yield to maturity rate selected considering quotes where available and credit profile of the issuer and market related spreads over the government securities
(c) Discounted instruments like Commercial paper/treasury bills/zero coupon instruments are valued at carrying cost. The difference between the acquisition cost and the redemption value of discounted instruments is apportioned on a straight line basis for the period of holding and recognized as Interest income.
(d) Units of mutual fund are valued at lower of cost and net asset value.
The securities acquired with the intention of holding till maturity or for a longer period are classified as investments, (b) Investments are carried at cost arrived at on weighted average basis. Commissions earned in respect of securities acquired upon devolvement are reduced from the cost of acquisition. Appropriate provision is made for other than temporary diminution in the value of investments.
(iv) Fixed Assets and Depreciation
(a) Fixed assets are stated at historical cost less accumulated depreciation and impairment loss, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for intended use.
(b) Depreciation on fixed assets is provided on WDM Method at the rate and in the manner prescribed in Schedule XIV of the Companies Act, 1956. But no depreciation for the year ended on 31.03.2013 has been charged as there is no fixed assets of the company.
(v) Deferred Tax
No provisions made as Depreciation has not been charged by the company during the year.
(vi) Derivatives Transactions
(a) All open positions are marked to market.
(b) Gains are recognized only on settlement/expiry of the derivative instruments except for Interest Rate derivatives where even mark to-market gains are recognized.
(c) Receivables/ payables on open position are disclosed as current assets/current liabilities, as the case may be.
(vii) Earning Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.