Mar 31, 2015
1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS: -
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis. GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act,2013 ('Act') read with Rule7of the Companies (Accounts) Rules,2014
the provisions of the Act (to the extent notified),guidelines issued by
Reserve Bank of India and guidelines issued by the Securities and
Exchange Board of India (SEBI) . Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or are vision to an existing accounting standard
requires a change in the accounting policy hitherto in use.
1.2 USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
1.3 REVENUE RECOGNITION
1.3.1 All Income & Expenditure are accounted for on accrual basis.
1.3.2 Shares/Securities are capitalised at cost inclusive of brokerage,
Service Tax, Education Cess.
1.3.3 Provision for loss in respect of Open Equity Derivative
Instrument as at the Balance Sheet date is made Index-wise/Scrip-wise.
As a matter of prudence, any anticipated profit is ignored.
1.4 FIXED ASSETS
Fixed Assets are stated at cost less depreciation.
1.5 DEPRECIATION
Depreciation on tangible assets is provided on Straight Line method
over the useful life of assets in the manner specified in Schedule II
to the Companies Act, 2013.
1.6 INVESTMENTS
1.6.1 Investments are classified into Current Investments and Non
current/Long Term Investments.
1.6.2 Current Investments are valued at lower of cost or fair market
value on category wise basis. Non current/Long Term Investments are
valued at cost less other than temporary diminution, if any, on scrip
wise basis. Provision for reduction/diminution in the value of
Investments and reversal of such reduction/ diminution are included in
the Profit & Loss Account. For the purpose of disclosure and
presentation in the financial statements, and in compliance with the
Non-banking Financial (Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions 2007 as Superseded by
"Non-Systemically Important Non-Banking Financial (Non- Deposit
Accepting or Holding) Companies Prudential Norms (Reserve Bank)
Directions,2015: -
(a) on the assets side, investments are shown at cost;
(b) the diminution/depreciation is shown correspondingly under the head
"Provisions"(Short term/Long term) in the liabilities side in the
Balance Sheet without showing it as deduction from the value of
Investments.
1.6.3 Cost of investments is computed using the Weighted Average
Method.
1.7 EMPLOYEE BENEFITS
1.7.1 Employee Benefits are recognized/accounted for on the basis of
revised AS-15 detailed as under :-
1.7.2 Short Term Employee benefits are recognized as expense at the
undiscounted amount in the Statement of Profit & Loss of the year in
which they are incurred.
1.7.3 Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Statement of Profit & Loss. Contribution to Superannuation are
funded with Life Insurance Corporation of India.
1.7.4 Employee Benefits under defined benefit plans comprise of
gratuity and leave encashment which are accounted for as at the year
end based on actuarial valuation by following the Projected Unit Credit
(PUC) method. Liability for gratuity is funded with Life Insurance
Corporation of India.
1.7.5 Termination benefits are recognized as an Expense as and when
incurred.
1.7.6 The actuarial gains and losses arising during the year are
recognized in the Statement of Profit & Loss of the year without
resorting to any amortization.
1.8 TAXATION
Tax expenses for the year comprises of Current tax and deferred tax
charge or credit. The deferred Tax Asset and deferred Tax Liability is
calculated by applying tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred Tax assets
arising mainly on account of brought forward losses and unabsorbed
depreciation under tax law are recognised only if there is virtual
certainty of its realisation. Other deferred tax assets are recognised
only to the extent there is a reasonable certainty of realisation in
future. Deferred Tax Assets/Liabilities are reviewed at each balance
sheet date based on development during the year, further future
expectations and available case laws to reassess realisation/
liabilities.
1.9 IMPAIRMENT OF FIXED ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's Fixed Assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the assets in prior years.
1.10 CONTINGENCIES:
The company creates a provision when there is present obligation as
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. When there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Mar 31, 2014
1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS:-
The Financial Statements are prepared under the Historical Cost
Convention method in accordance with the generally accepted Accounting
Principles and the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956.
1.2 USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
1.3 REVENUE RECOGNITION
1.3.1 All Income & Expenditure are accounted for on accrual basis.
1.3.2 Shares/Securities are capitalised at cost inclusive of brokerage,
Service Tax, Education Cess.
1.3.3 Provision for loss in respect of Open Equity Derivative
Instrument as at the Balance Sheet date is made Index-wise/Scrip-wise.
As a matter of prudence, any anticipated profit is ignored.
1.4 FIXED ASSETS
Fixed Assets are stated at cost less depreciation.
1.5 DEPRECIATION
Depreciation is provided on Fixed Assets on Straight Line method at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956.
1.6 INVESTMENTS
1.6.1 Investments are classified into Current Investments and Non
current/ Long Term Investments.
1.6.2 Current Investments are valued at lower of cost or fair market
value on category wise basis. Non current/Long Term Investments are
val- ued at cost less other than temporary diminution, if any, on scrip
wise basis. Provision for reduction/diminution in the value of
Investments and reversal of such reduction/ diminution are included in
the Profit & Loss Account. For the purpose of disclosure and
presentation in the financial statements, and in compliance with the
Non-banking Finan- cial (Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions 2007: -
(a) on the assets side, investments are shown at cost;
(b) the diminution/depreciation is shown correspondingly under the head
"Provisions"(Short term/Long term) in the liabilities side in the
Balance Sheet without showing it as deduction from the value of
Investments.
1.6.3 Cost of investments is computed using the Weighted Average
Method.
1.7 EMPLOYEE BENEFITS
1.7.1 Employee Benefits are recognized/accounted for on the basis of
revised AS-15 detailed as under:-
1.7.2 Short Term Employee benefits are recognized as expense at the
undiscounted amount in the Statement of Profit & Loss of the year in
which they are incurred.
1.7.3 Employee benefits under defined contribution plans comprise of
con- tribution to Provident Fund and Superannuation. Contributions to
Provi- dent Fund are deposited with appropriate authorities and charged
to Statement of Profit & Loss. Contribution to Superannuation are
funded with Life Insurance Corporation of India.
1.7.4 Employee Benefits under defined benefit plans comprise of
gratuity and leave encashment which are accounted for as at the year
end based on actuarial valuation by following the Projected Unit Credit
(PUC) method. Liability for gratuity is funded with Life Insurance
Corporation of India.
1.7.5 Termination benefits are recognized as an Expense as and when
incurred.
1.7.6 The actuarial gains and losses arising during the year are
recognized in the Statement of Profit & Loss of the year without
resorting to any amortization.
1.8 TAXATION
Tax expenses for the year comprises of Current tax and deferred tax
charge or credit. The deferred Tax Asset and deferred Tax Liability is
calculated by applying tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred Tax assets
arising mainly on account of brought forward losses and unabsorbed
depreciation under tax law are recognised only if there is virtual
certainty of its realisation. Other deferred tax assets are recognised
only to the extent there is a reasonable certainty of realisation in
future. Deferred Tax Assets/Liabilities are reviewed at each balance
sheet date based on development during the year, further future
expectations and available case laws to reassess realisation/
liabilities.
1.9 IMPAIRMENT OF FIXED ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s Fixed Assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the assets in prior years.
1.10 CONTINGENCIES:
The company creates a provision when there is present obligation as
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contin- gent liability is made when there is a
possible obligation or a present obliga- tion that may, but probably
will not, requires an outflow of resources. When there is a possible
obligation or a present obligation in respect of which the likelihood
of outflow of resources is remote, no provision or disclosure is made.
Mar 31, 2013
1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS:-
The Financial Statements are prepared under the Historical Cost Conven-
tion method in accordance with the generally accepted Accounting Prin-
ciples and the Accounting Standards referred to in Section 211(3C) of
the Companies Act, 1956.
1.2 USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
1.3 REVENUE RECOGNITION
1.3.1 All Income & Expenditure are accounted for on accrual basis.
1.3.2 Shares/Securities are capitalised at cost inclusive of brokerage,
Ser- vice Tax, Education Cess.
1.3.3 Provision for loss in respect of Open Equity Derivative
Instrument as at the Balance Sheet date is made Index-wise/Scrip-wise.
As a mat- ter of prudence, any anticipated profit is ignored.
1.4 FIXED ASSETS
Fixed Assets are stated at cost less depreciation.
1.5 DEPRECIATION
Depreciation is provided on Fixed Assets on Straight Line method at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956.
1.6 INVESTMENTS
1.6.1 Investments are classified into Current Investments and Non
current/ Long Term Investments.
1.6.2 Current Investments are valued at lower of cost or fair market
value on category wise basis. Non current/Long Term Investments are
val- ued at cost less other than temporary diminution, if any, on scrip
wise basis. Provision for reduction/diminution in the value of
Investments and reversal of such reduction/ diminution are included in
the Profit & Loss Account. For the purpose of disclosure and
presentation in the financial statements, and in compliance with the
Non-banking Finan- cial (Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions 2007:
(a) on the assets side, investments are shown at cost;
(b) the diminution/depreciation is shown correspondingly under the head
"Provisions"(Short term/Long term) in the liabilities side in the
Balance Sheet without showing it as deduction from the value of
Investments.
1.6.3 Cost of investments is computed using the Weighted Average
Method.
1.7 EMPLOYEE BENEFITS
1.7.1 Employee Benefits are recognized/accounted for on the basis of
revised AS-15 detailed as under :- 1.7.2 Short Term Employee benefits
are recognized as expense at the undiscounted amount in the Statement
of Profit & Loss of the year in which they are incurred.
1.7.3 Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Statement of Profit & Loss. Contribution to Superannuation are
funded with Life Insurance Corporation of India.
1.7.4 Employee Benefits under defined benefit plans comprise of
gratuity and leave encashment which are accounted for as at the year
end based on actuarial valuation by following the Projected Unit Credit
(PUC) method. Liability for gratuity is funded with Life Insurance
Corporation of India.
1.7.5 Termination benefits are recognized as an Expense as and when
incurred.
1.7.6 The actuarial gains and losses arising during the year are
recognized in the Statement of Profit & Loss of the year without
resorting to any amortization.
1.8 TAXATION
Tax expenses for the year comprises of Current tax and deferred tax
charge or credit. The deferred Tax Asset and deferred Tax Liability is
calculated by applying tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred Tax assets
arising mainly on a ccount of brought forward losses and unabsorbed
depreciation under tax law are recognised only if there is virtual
certainty of its realisation. Other deferred tax assets are recognised
only to the extent there is a reasonable certainty of realisation in
future. Deferred Tax Assets/Liabilities are reviewed at each balance
sheet date based on development during the year, further future
expectations and available case laws to reassess
realisation/liabilities.
1.9 IMPAIRMENT OF FIXED ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company''s Fixed Assets. If any indication exists, an asset''s
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor. Reversal of impairment losses recognized in prior
years is recorded when there is an indication that the impairment
losses recognized for the asset no longer exist or have decreased.
However, the increase in carrying amount of an asset due to reversal of
an impairment loss is recognized to the extent it does not exceed the
carrying amount that would have been determined (net of depreciation)
had no impairment loss been recognized for the assets in prior years.
1.10 CONTINGENCIES:
The company creates a provision when there is present obligation as
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. When there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Mar 31, 2012
1.1 BASIS OF PREPRATION OF FINANCIAL STATEMENTS: -
The Financial Statements are prepared under the Historical Cost
Convention method in accordance with the generally accepted Accounting
Principles and the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956.
1.2 USE OF ESTIMATES
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosures of contingent liabilities on the
date of financial statements and reported amounts of revenue and
expenses for that year. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
1.3 REVENUE RECOGNITION
1.3.1 All Income & Expenditure are accounted for on accrual basis.
1.3.2 Shares/Securities are capitalised at cost inclusive of brokerage,
Service Tax, Education Cess.
1.3.3 Provision for loss in respect of Open Equity Derivative
Instrument as at the Balance Sheet date is made Index-wise/Scrip-wise.
As a matter of prudence, any anticipated profit is ignored.
1.4 FIXED ASSETS
Fixed Assets are stated at cost less depreciation.
1.5 DEPRECIATION
Depreciation is provided on Fixed Assets on Straight Line method at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956.
1.6 INVESTMENTS
1.6.1 Investments are classified into Current Investments and non
current/ Long Term Investments.
1.6.2 Current Investments are valued at lower of cost or fair market
value on category wise basis. Non current/Long Term Investments are
valued at cost less other than temporary diminution, if any, on scrip
wise basis. Provision for reduction/diminution in the value of
Investments and reversal of such reduction/ diminution are included in
the Profit & Loss Account. For the purpose of disclosure and
presentation in the financial statements, and in compliance with the
Non-banking Financial (Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions 2007:-
(a) on the assets side, investments are shown at cost;
(b) the diminution/depreciation is shown correspondingly under the head
"Provisions"(Short term/Long term) in the liabilities side in the
Balance Sheet without showing it as deduction from the value of
Investments.
1.6.3 Cost of investments is computed using the Weighted Average
Method.
1.7 EMPLOYEE BENEFITS
1.7.1 Employee Benefits are recognized/accounted for on the basis of
revised AS-15 detailed as under :-
1.7.2 Short Term Employee benefits are recognized as expense at the
undiscounted amount in the Profit & Loss account of the year in which
they are incurred.
1.7.3 Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Profit & Loss account. Contribution to Superannuation are funded
with Life Insurance Corporation of India.
1.7.4 Employee Benefits under defined benefit plans comprise of
gratuity and leave encashment which are accounted for as at the year
end based on actuarial valuation by following the Projected Unit Credit
(PUC) method. Liability for gratuity is funded with Life Insurance
Corporation of India.
1.7.5 Termination benefits are recognized as an Expense as and when
incurred.
1.7.6 The actuarial gains and losses arising during the year are
recognized in the Profit & Loss account of the year without resorting
to any amortization.
1.8 TAXATION
Tax expenses for the year comprises of Current tax and deferred tax
charge or credit. The deferred Tax Asset and deferred Tax Liability is
calculated by applying tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred Tax assets
arising mainly on account of brought forward losses and unabsorbed
depreciation under tax law are recognised only if there is virtual
certainty of its realisation. Other deferred tax assets are recognised
only to the extent there is a reasonable certainty of realisation in
future. Deferred Tax Assets/Liabilities are reviewed at each balance
sheet date based on development during the year, further future
expectations and available case laws to reassess realisation/
liabilities.
1.9 IMPAIRMENT OF FIXED ASSETS
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Company's Fixed Assets. If any indication exists, an asset's
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the assets in prior years.
1.10 CONTINGENCIES:
The company creates a provision when there is present obligation as
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. When there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
- Issued Share capital of the Company has only one class of shares
referred to as equity shares having Par value of Rs. 10/.Each holder of
Equity Shares is entitled to One vote per share.
- Reconcilation of the number of shares outstanding and Amount of Share
Capital as on 31st March, 2012 & 31st March, 2011 is as under:
- The dividend Proposed, if any,by the Board of Directors is subject to
approval of the Shareholders in the ensuing Annual General Meeting. No
dividend has been proposed for the current year or for the previous
year.
- In the event of the Liquidation of the company, the holder of equity
shares will be entitled to receive any of the remaining assets of the
company, after distribution of all Preferential amounts. The distribution
will be in proportion to the number of equity shares held by the
shareholders.
(*) Created by way of transfer of specified percentage of profits as
per section 45IC of Reserve Bank of India (Amendment)
Act,1997.Appropriation from Reserves shall be for the purposes as may
be specified by Reserve Bank of India.
(**) Created in earlier years out of Profit and Loss account as per
then prevailing provisions of Income tax act.
1.11 Shares Costing Rs. 14,81,57,552/- (Previous Year Rs. 26,65,73,268/-)
Were Lying Pledged/Given as Margin as at the Year end.
1.12 In the Opinion of the Management no Provision is required for
diminution amounting to Rs.32,15,92,108/-(Previous Year Rs.19,96,69,557/-)
in the Value of Long term/Non current Investment in DCM Shriram
Industries Ltd. as the same is considered to be temporary.
1.13 The Company's Investments in DCM Shriram Industries exceeds the
exposure norms as Specified in "Non-Banking (Non Deposit Accepting or
Holding ) Companies Prudential Norms (Reserve Bank) Directions
2007".The Reserve Bank of India has granted extension of time till
March 31,2013 for compliance with the exposure norms.
Year Loss Rs. 3,40,73,877/-) on Current Investments and Gain of Rs.
11,76,24,793/- (Previous Year Rs. 8,85,70,455/-) on Non current/Long Term
Investments.
Mar 31, 2011
A. BASIS OF PREPRATION OF FINANCIAL STATEMENTS: -
(1) The Financial Statements are prepared under the Historical Cost
Convention method in accordance with the generally accepted Accounting
Principles and the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956.
(2) Use of Estimates: The preparation of financial statements in
conformity with generally accepted accounting principles (GAAP)
requires Management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosures of
contingent liabilities on the date of financial statements and reported
amounts of revenue and expenses for that year. Actual results could
differ from these estimates. Any revision to accounting estimates is
recognized prospectively in current and future periods.
B. REVENUE RECOGNITION: -
(1) All Income & Expenditure are accounted for on accrual basis.
(2) Shares/Securities are capitalised at cost inclusive of brokerage,
Service Tax, Education Cess.
(3) Provision for loss in respect of Open Equity Derivative Instrument
as at the Balance Sheet date is made Index-wise/Scrip-wise. As a matter
of prudence, any anticipated profit is ignored.
C. FIXED ASSETS: -
Fixed Assets are stated at cost less depreciation.
D. DEPRECIATION: -
Depreciation is provided on Fixed Assets on Straight Line method at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956.
E. INVESTMENTS: -
i). Investments are classified into Current Investments and Long Term
Investments.
ii) Current Investments are valued at lower of cost or fair market
value on category wise basis. Long Term Investments are valued at cost
less permanent diminution, if any, on scrip wise basis. Provision for
reduction/diminution in the value of Investments and reversal of such
reduction/ diminution are included in the Profit & Loss Account. For
the purpose of disclosure and presentation in the financial statements
(refer note no. 6), and in compliance with the Non-banking Financial
(Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007: -
(a) on the assets side, investments are shown at cost;
(b) the diminution/depreciation is shown correspondingly under the head
"Provisionsà in the liabilities side in the Balance Sheet without
showing it as deduction from the value of Investments.
iii) Cost of investments is computed using the Weighted Average Method.
F. EMPLOYEE BENEFITS : - Employee Benefits are recognized/accounted
for on the basis of revised AS-15 detailed as under :- a) Short Term
Employee benefits are recognized as expense at the undiscounted
amount in the Profit & Loss account of the year in which they are
incurred.
b) Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Profit & Loss account. Contribution to Superannuation are funded
with Life Insurance Corporation of India.
c) Employee Benefits under defined benefit plans comprise of gratuity
and leave encashment which are accounted for as at the year end based
on actuarial valuation by following the Projected Unit Credit (PUC)
method. Liability for gratuity is funded with Life Insurance
Corporation of India.
d) Termination benefits are recognized as an Expense as and when
incurred.
e) The actuarial gains and losses arising during the year are
recognized in the Profit & Loss account of the year without resorting
to any amortization.
G. TAXATION: -
Tax expenses for the year comprises of Current Tax and Deferred Tax
charge or credit. The Deferred Tax Asset and Deferred Tax Liability is
calculated by applying tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date. Deferred Tax assets
arising mainly on account of brought forward losses and unabsorbed
depreciation under tax law are recognised only if there is virtual
certainty of its realisation. Other deferred tax assets are recognised
only to the extent there is a reasonable certainty of realisation in
future. Deferred Tax Assets/Liabilities are reviewed at each balance
sheet date based on development during the year, further future
expectations and available case laws to reassess realisation/
liabilities.
H IMPAIRMENT OF FIXED ASSETS :
Consideration is given at each balance sheet date to determine whether
there is any indication of impairment of the carrying amount of the
Companys Fixed Assets. If any indication exists, an assets
recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable
amount. The recoverable amount is the greater of the net selling price
and value in use. In assessing value in use, the estimated future cash
flows are discounted to their present value based on an appropriate
discount factor.
Reversal of impairment losses recognized in prior years is recorded
when there is an indication that the impairment losses recognized for
the asset no longer exist or have decreased. However, the increase in
carrying amount of an asset due to reversal of an impairment loss is
recognized to the extent it does not exceed the carrying amount that
would have been determined (net of depreciation) had no impairment loss
been recognized for the assets in prior years.
I. CONTINGENCIES:
The company creates a provision when there is present obligation as
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
requires an outflow of resources. When there is a possible obligation
or a present obligation in respect of which the likelihood of outflow
of resources is remote, no provision or disclosure is made.
Mar 31, 2010
A. BASIS OF PREPRATION OF FINANCIAL STATEMENTS: -
(1) The Financial Statements are prepared under the Historical Cost
Convention method in accordance with the generally accepted Accounting
Principles and the Accounting Standards referred to in Section 211(3C)
of the Companies Act, 1956.
(2) Use of Estimates : The preparation of financial statements in
conformity with generally accepted accounting principles ( GAAP )
requires Management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosures of
contingent liabilities on the date of financial statements and reported
amounts of revenue and expenses for that year. Actual results could
differ from these estimates. Any revision to accounting estimates is
recognized prospectively in current and future periods.
B. REVENUE RECOGNITION: -
(1) All Income & Expenditure are accounted for on accrual basis.
(2) Shares/Securities are capitalised at cost inclusive of brokerage,
Service Tax, Education Cess.
(3) Provision for loss in respect of Open Equity Derivative Instrument
as at the Balance Sheet date is made Index-wise/Scrip-wise. As a matter
of prudence, any anticipated profit is ignored.
C. FIXED ASSETS: Fixed Assets are stated at cost less depreciation.
D. DEPRECIATION: Depreciation is provided on Fixed Assets on Straight
Line method at the rates and in the manner specified in Schedule XIV to
the Companies Act, 1956.
E. INVESTMENTS: -
i) Investments are classified into Current Investments and Long Term
Investments.
ii) Current Investments are valued at lower of cost or fair market
value on category wise basis. Long Term Investments are valued at cost
less permanent diminution, if any, on scrip wise basis. Provision for
reduction/diminution in the value of Investments and reversal of such
reduction/ diminution are included in the Profit & Loss Account. For
the purpose of disclosure and presentation in the financial statements
(refer note no. 6), and in compliance with the Non-banking Financial
(Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions 2007 :- (a) on the assets side, investments are shown
at cost;
(b) the diminution/depreciation is shown correspondingly under the head
ÃProvisionsà in the liabilities side in the Balance Sheet without
showing it as deduction from the value of Investments.
iii) Cost of investments is computed using the Weighted Average Method.
F. EMPLOYEE BENEFITS : Employee Benefits are recognized/accounted for
on the basis of revised AS-15 detailed as under :- a) Short Term
Employee benefits are recognized as expense at the undiscounted amount
in the Profit & Loss account of the year in which they are incurred.
b) Employee benefits under defined contribution plans comprise of
contribution to Provident Fund and Superannuation. Contributions to
Provident Fund are deposited with appropriate authorities and charged
to Profit & Loss account. Contribution to Superannuation are funded
with Life Insurance Corporation of India.
c) Employee Benefits under defined benefit plans comprise of gratuity
and leave encashment which are accounted for as at the year end based
on actuarial valuation by following the Projected Unit Credit (PUC)
method. Liability for gratuity is funded with Life Insurance
Corporation of India.
d) Termination benefits are recognized as an Expense as and when
incurred.
e) The actuarial gains and losses arising during the year are
recognized in the Profit & Loss account of the year without resorting
to any amortization.
G. TAXATION: Tax expenses for the year comprises of Current Tax and
Deferred Tax charge or credit and fringe benefit tax. The Deferred Tax
Asset and Deferred Tax Liability is calculated by applying tax rates
and tax laws that have been enacted or substantially enacted by the
Balance Sheet date. Deferred Tax assets arising mainly on account of
brought forward losses and unabsorbed depreciation under tax law are
recognised only if there is virtual certainty of its realisation. Other
deferred tax assets are recognised only to the extent there is a
reasonable certainty of realisation in future. Deferred Tax Assets/
Liabilities are reviewed at each balance sheet date based on
development during the year, further future expectations and available
case laws to reassess realisation/ liabilities.
H IMPAIRMENT OF FIXED ASSETS : Consideration is given at each balance
sheet date to determine whether there is any indication of impairment
of the carrying amount of the CompanyÃs Fixed Assets. If any indication
exists, an assetÃs recoverable amount is estimated. An impairment loss
is recognized whenever the carrying amount of an asset exceeds its
recoverable amount. The recoverable amount is the greater of the net
selling price and value in use. In assessing value in use, the
estimated future cash flows are discounted to their present value based
on an appropriate discount factor. Reversal of impairment losses
recognized in prior years is recorded when there is an indication that
the impairment losses recognized for the asset no longer exist or have
decreased. However, the increase in carrying amount of an asset due to
reversal of an impairment loss is recognized to the extent it does not
exceed the carrying amount that would have been determined (net of
depreciation) had no impairment loss been recognized for the assets in
prior years.
I CONTINGENCIES :
The company creates a provision when there is present obligation as a
results of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosures for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
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