Mar 31, 2018
1) Significant Accounting Policies
(a) Basis of accounting and preparation of Financial Statements
The Financial Statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (âIndian GAAPâ) to comply with the Accounting Standards, specified under Section 133 of the Companies Act, 2013 (the âCA 2013â). The Financial Statements have been prepared on accrual basis under the historical cost convention and going concern basis, which assumes that the Company will continue in operational existence for the foreseeable future. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in previous year except as otherwise stated
(b) Use of Estimates
The preparation of Financial Statements in conformity with Indian GAAP requires the Management to make certain estimates and assumptions considered in the reported amounts of Assets and Liabilities (including Contingent Liabilities) as on the date of the Financial Statements and the reported Income and Expenses during the reporting period. The Management believes that the estimates used in preparation of the Financial Statements are prudent and reasonable. Actual results could differ from these estimates. Any changes in such estimates are recognised prospectively
(c) Property, Plant and Equipment, Intangible Assets and Depreciation/Amortisation
Property, plant and equipment acquired by the Company are reported at acquisition cost, with deductions for accumulated depreciation and impairment losses, if any
The acquisition cost includes the purchase price (excluding refundable taxes) and expenses, directly attributable to bringing the asset to the site and in working condition for its intended use. Profit or Losses arising from disposal of fixed assets are measured as the difference between the net disposal proceeds and carrying amount of the asset and is recognized in the Statement of Profit and Loss when the asset is disposed
Intangible Assets are reported at acquisition value with deductions for accumulated amortisation and impairment losses, if any
Depreciation on asset is provided pro-rata from the date on which asset is ready to be put to use for its intended purpose on Straight-Line Method based on the estimated useful life of the assets, which are as follows :
As per CA 2013, depreciation of assets is required to be provided based on estimated useful life as per Schedule II of the CA 2013. However, there are certain categories of assets where the useful life of assets have been assessed as under, taking into consideration the nature of the asset, the estimated usage of the asset , the operating conditions of the asset, the past history of replacement, anticipated technological changes etc. Pursuant to the foregoing, it is proposed to continue with the existing policy of accelerated depreciation on following category of assets:
(i) Mobile Phones and Ipad / Tablets 100% depreciated during the year of capitalisation due to extensive usage and technological obsolescence
(ii) Vehicles as per the current policy of 4 years as against the useful life of 8 years provided in the CA 2013
(iii) Furniture and Fixtures as per current policy of 5 years as against the useful life of 10 years provided in the CA 2013
(iv) Office Equipment as per current policy of 4 years as against the useful life of 5 years provided in the CA 2013
(v) Data Processing Equipment - Servers & Networking as per current policy of 4 years as against the useful life of 6 years provided in the CA 2013
(vi) Assets provided to Employees as perquisites would be depreciated over a period of 3 years in line with the rules set in the Employee Hand Book
(vii) Individual assets costing Rs. 5,000 or less in the year of capitalisation shall be depreciated 100% for all the categories of assets
Residual value of all assets is retained at Rs. 1
(d) Impairment of Assets
The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss to the extent the amount was previously charged to the Statement of Profit and Loss, except in case of revalued assets
(e) Operating Leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership over the lease term are classified as operating lease. Lease rental expenses in respect of operating leases is equated over the lease period
(f) Investments
(i) Investments are recognised at actual cost including costs incidental to acquisition such as brokerage fees and duties
(ii) Investments are classified as non-current or current at the time of acquisition of such investments
(iii) Non current investments are individually valued at cost less provision for diminution, other than temporary
(iv) Current investments are valued at lower of cost or fair value, computed scrip-wise
(g) Foreign Currency Transactions and Translations
(i) Initial recognition
Foreign currency transactions are recorded at the rate prevailing on the date of transaction
Net investment in non-integral foreign operations is accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction
(ii) Measurement at the balance sheet date
Foreign currency monetary items outstanding as at the Balance Sheet date are restated at the closing rate
Non-Monetary items which are carried in terms of historical cost denominated in foreign currency at the Balance Sheet date are reported using the exchange rate at the date of the transaction
(iii) Treatment of exchange differences
Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss
(h) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured
(i) Management fee income from Private Equity Funds (PEF) under management and advisory fee income are recognised based on contractual arrangements
(ii) Income from Investment in Units of PEF is recognised on the basis of income distributed by the respective PEFs
(iii) Dividend income is recognised once the unconditional right to receive dividend is established
(iv) Interest income on fixed deposits / inter corporate deposits is accrued proportionately based on period for which the same is placed
(v) Profit or loss on sale of Mutual Fund Units is recognised as and when mutual funds units are redeemed
(i) Employee Benefits
(i) The Companyâs contribution to Provident Fund, Superannuation Fund are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees
(ii) The Company has taken a Group Gratuity cum life assurance scheme with Life Insurance Corporation of India for gratuity payable to the employees. Incremental liability based on actuarial valuation as per the projected unit credit method as at the reporting date, is charged as expenses in the Statement of Profit and Loss
(iii) The leave balance is classified as short term and long term based on the leave policy. The compensated absence liability for the expected leave to be encashed has been measured on actual components eligible for leave encashment and expected leave to be availed is valued based on the total cost to the Company. The short term and long term leave have been valued on actuarial basis as per the projected unit credit method as at the reporting date
(j) Taxation
Tax Expense comprises of Current Tax and net changes in Deferred Tax Assets or Liability during the year. Current Tax is the amount of tax payable on taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income tax Act, 1961 and other applicable tax laws
Deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognised only when there is reasonable certainty that the assets can be realised in future, however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised to the extent there is a virtual certainty of realisation of such 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
(k) Provisions, Contingent Liabilities and Contingent Assets
In accordance with the Accounting Standard on âProvisions, Contingent Liabilities and Contingent Assetsâ (AS-29), provisions comprise liabilities of uncertain timing or amount. A provision is recognised when the Company has a present legal or constructive obligation as a result of a past event and it is probable that the outflow of resources would be required to settle the obligation, and in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date
A Contingent Liability is disclosed unless the possibility of an outflow of resources embodying the economic benefits is remote. Contingent Assets are neither recognised nor disclosed in the financial statements
(l) Cash flow Statements
(i) Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information
(ii) Since the Company is in the business of asset management and other related services, the transactions related to advances and loans are shown under investing activities as required by provisions of Accounting Standard on âCash Flow Statementsâ (AS-3)
(iii) Cash comprises of cash on hand and demand deposits with banks which are subject to insignificant risk of changes in value as defined in Accounting Standard on âCash Flow Statementsâ (AS-3)
(m) Earnings Per Share
Earnings Per Share is computed in accordance with the Accounting Standard on âEarnings Per Shareâ (AS-20). In determining earnings per share, the Company considers the net profit after tax. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date
(n) Goods and Services Tax / Service Tax
Goods and Services Tax (âGSTâ) / Service tax is accounted for in the books in the period in which the underlying service received is accounted and when there is reasonable certainty in availing the credits
(o) Operating Cycle
Based on the nature of activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current
Mar 31, 2013
A) Basis for preparation of Financial Statements
The Financial Statements are prepared under the historical cost
convention in accordance with the Generally Accepted Accounting
Principles in India pursuant to the Companies (Accounting Standard)
Rules, 2006. All income and expenditure having material bearing on the
Financial Statements are recognized on an accrual basis
The preparation of Financial Statements requires the Management to make
certain estimates and assumptions considered in the reported amounts of
Assets and Liabilities (including Contingent Liabilities) as on the
date of the Financial Statements and the reported Income and Expenses
during the reporting period. The Management believes that the estimates
used in preparation of the Financial Statements are prudent and
reasonable. Actual results could differ from these estimates. Any
changes in such estimates are recognized prospectively
b) Fixed Assets (Tangible and Intangible) and Depreciation /
Amortisation
Fixed Assets have been capitalized at cost of acquisition and other
incidental expenses
Depreciation on fxed asset is provided pro-rata from the date on which
asset is ready to be put to use for its intended purpose on
Straight-Line Method based on the estimated useful life of the assets,
which are as follows :
All categories of assets costing Rs. 5,000/- or less each and mobile
phones, tablet devices and soft furnishing are written off in the year
of capitalization
c) Operating Leases
Leases where the lessor effectively retains substantially all the risks
and benefts of ownership over the lease term are classifed as operating
lease. Lease rental expenses in respect of operating leases is equated
over the lease period
d) Investments
i) Investments are recognized at actual cost including costs incidental
to acquisition
ii) Investments are classifed as long-term or current at the time of
acquisition of such investments
iii) Long term investments are individually valued at cost less
provision for diminution, other than temporary
iv) Current investments are valued at lower of cost or fair value,
computed scrip-wise
e) Foreign Currency Transactions
(i) Foreign currency transactions are recorded at the rate prevailing
on the date of transaction. Foreign currency monetary items outstanding
as at the Balance Sheet date are restated at the closing rate
(ii) Non-Monetary items which are carried in terms of historical cost
denominated in foreign currency at the Balance Sheet date are reported
using the exchange rate at the date of the transaction
f) Derivative Transactions
The Company enters into forward contracts to hedge its assets and
liabilities
The premium or discount arising at the inception of a Forward Contract
is amortised as income or expense over the life of such Contract
At the reporting date, Forward contracts are revalued and gains/losses
if any, are recognized in the Statement of Proft and Loss
g) Revenue Recognition
i) Income from Investment in Units of Private Equity Funds (PEF) is
recognized on the basis of income distributed by the respective PEFs
ii) Management fee income on PEF under management and advisory fee
income are recognized based on contractual arrangements
iii) Dividend income is recognized once the unconditional right to
receive dividend is established
iv) Interest income on fxed deposits is accrued proportionately based
on period for which the same is placed
h) Employee Benefts
i) Contributions to Provident Fund and Superannuation Fund are charged
as expenses in the Statement of Proft and Loss as per applicable
law/rules
ii) The Company has taken group gratuity cum life assurance scheme with
Life Insurance Corporation of India for gratuity payable to the
employees. Incremental liability based on actuarial valuation as per
the projected unit credit method as at the reporting date, is charged
as Expenses in the Statement of Proft and Loss
iii) The leave balance is classifed as short term and long term based
on the past trends. The leave encashment liability for the expected
leave to be encashed has been measured on actual components eligible
for leave encashment and expected leave to be availed is valued based
on the total cost to the Company. The Short term and Long term leave
have been valued on actuarial basis as per the projected unit credit
method
i) Placement Fees Expense
Placement Fees paid to the Arranger of PEF are recognized over period
of 5 years
j) Taxation
Tax Expense comprises of Current Tax and net changes in Deferred Tax
Assets or Liability during the year. Current Tax is measured at the
amount of tax payable in respect of taxable income for the year in
accordance with the Income tax Act, 1961 enacted in India
Deferred Tax Assets and Liabilities are recognised for the future tax
consequences of timing differences arising from differences in
accounting policies as per the accounts drawn up under the Companies
Act, 1956 and the Income tax Act, 1961. Deferred Tax Assets and
Liabilities other than on carry forward losses and unabsorbed
depreciation under tax laws are recognised when it is reasonably
certain that there will be future taxable income. Deferred Tax Asset on
carry forward losses and unabsorbed depreciation, if any, are
recognised when it is virtually certain that there will be future
taxable proft
Deferred Tax Assets and Liabilities are measured using substantively
enacted tax rates. The effect on deferred tax assets and liabilities of
a change in tax rates is recognised in the Proft and Loss statement in
the period of substantive enactment of the change
k) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present legal or
constructive obligation as a result of a past event and it is probable
that the outfow of resources would be required to settle the
obligation, and in respect of which a reliable estimate can be made.
Provisions are reviewed at each balance sheet date and are adjusted to
refect the current best estimates. A Contingent Liability is disclosed
unless the possibility of an outfow of resources embodying the economic
benefts is remote. Contingent Assets are neither recognized nor
disclosed in the fnancial statements
l) Cash fow Statements
i) Cash fows are reported using the indirect method, whereby
proft/(loss) before tax is adjusted for the effects of transactions of
non-cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash fows from operating, investing and
fnancing activities of the Company are segregated based on the
available information
ii) Cash comprises cash on hand. Cash Equivalents are cheque on hand,
balances in bank current account and EEFC account
m) Earnings Per Share
In determining earnings per share, the Company considers the net proft
after tax. The number of shares used in computing basic earnings per
share is the weighted average number of shares outstanding during the
year. The number of shares used in computing diluted earnings per share
comprises the weighted average shares considered for deriving basic
earnings per share, and also the weighted average number of equity
shares that could have been issued on the conversion of all dilutive
potential equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the year, unless issued at a later
date
f) Proposed Dividend
The Company has proposed dividend for the year ended March 31, 2013, on
Equity Shares @ Rs. 1.50 per share aggregating to Rs. 366,610,694/-
inclusive of dividend distribution tax of Rs. 53,254,829/- g) Forfeited
shares
During the fnancial year 1997-98 the Company had forfeited 10,000
equity shares of Rs. 2 each on which amount paid up was Rs. 20,000/-
Mar 31, 2012
A) Basis for preparation of Financial Statements
The Financial Statements are prepared in accordance with the applicable
Accounting Standards pursuant to the Companies (Accounting Standard)
Rules, 2006. All income and expenditure having material bearing on the
Financial Statements are recognized on an accrual basis
The preparation of Financial Statements requires the Management to make
certain estimates and assumptions considered in the reported amounts of
Assets and Liabilities (including Contingent Liabilities) as on the
date of the Financial Statements and the reported Income and Expenses
during the reporting period. The Management believes that the estimates
used in preparation of the Financial Statements are prudent and
reasonable. Actual results could differ from these estimates
b) Fixed Assets (Tangible and Intangible)
Fixed Assets have been capitalized at cost of acquisition and other
incidental expenses
Depreciation on fixed asset is provided pro-rata from the date on which
asset is ready to be put to use for its intended purpose on
Straight-Line Method based on the estimated useful life of the assets,
which are as follows :
c) Operating Leases
Leases where the less or effectively retains substantially all the risks
and benefits of ownership over the lease term are classified as
operating lease. Lease rental expenses in respect of operating leases
is recognized in accordance with the Accounting Standard on
"Leases'(AS 19)
d) Investments
i) Investments are capitalized at actual cost including costs
incidental to acquisition
ii) Investments are classified as long term or current at the time of
acquisition of such investments
iii) Long term investments are individually valued at cost less
provision for diminution, other than temporary
iv) Current investments are valued at lower of cost or fair value,
computed scrip-wise
e) Foreign Currency Transactions
(i) Foreign currency transactions are recorded at the rate prevailing
on the date of transaction. Foreign currency monetary items outstanding
as at the Balance Sheet date are restated at the closing rate
(ii) Non-Monetary items which are carried in terms of historical cost
denominated in foreign currency at the Balance Sheet date are reported
using the exchange rate at the date of the transaction
f) Derivative Transactions
The Company enters into forward contracts to hedge its assets and
liabilities
The premium or discount arising at the inception of a Forward Contract
is amortised as income or expense over the life of such Contract
At the reporting date, Forward contracts are marked-to-market and
gains/losses if any, are recognized in the Statement of Profit and Loss
g) Revenue Recognition
i) Management fee income on funds under management and advisory fee
income are recognized based on contractual arrangements
ii) Income from Investment in Units of Private Equity Funds (PEF) is
recognized on the basis of income distributed by the respective PEFs
iii) Dividend income is recognized once the unconditional right to
receive dividend is established
iv) Interest income on fixed deposits is accrued proportionately based
on period for which the same is placed
h) Employee Benefits
i) Contributions to Provident Fund and Superannuation Fund are charged
as Expenses in the Statement of Profit and Loss as per applicable
law/rules
ii) The Company has taken group gratuity cum life assurance scheme with
Life Insurance Corporation of India for gratuity payable to the
employees. Incremental liability based on actuarial valuation as per
the projected unit credit method as at the reporting date, is charged
as Expenses in the Statement of Profit and Loss
iii) The leave balance is classified as short term and long term based
on the past trends. The leave encashment liability for the expected
leave to be enchased has been measured on actual components eligible
for leave encashment and expected leave to be availed is valued based
on the total cost to the Company. The Short term and Long term leave
have been valued on actuarial basis as per the projected unit credit
method
i) Placement Fees Expense
Placement Fees paid to the Arranger of Fund are recognised over period
of 5 years
j) Taxation
Income tax comprises of Current Tax and net changes in Deferred Tax
Assets or Liability during the year. Current Tax is determined at the
amount of tax payable in respect of taxable income for the year as per
the Income tax Act, 1961
Deferred Tax Assets and Liabilities are recognized for the future tax
consequences of timing differences arising from differences in
accounting policies as per the accounts drawn up under the Companies
Act, 1956 and the Income tax Act, 1961. Deferred Tax Assets and
Liabilities other than on carry forward losses and unabsorbed
depreciation under tax laws are recognized when it is reasonably
certain that there will be future taxable income. Deferred Tax Asset on
carry forward losses and unabsorbed depreciation, if any, are
recognized when it is virtually certain that there will be future
taxable profit. Deferred tax assets and liabilities are measured using
substantively enacted tax rates. The effect on deferred tax assets and
liabilities of a change in tax rates is recognized in the Profit and
Loss Account in the period of substantive enactment of the change
k) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognized when the Company has a present legal or
constructive obligation as a result of a past event and it is probable
that the outflow of resources would be required to settle the
obligation, and in respect of which a reliable estimate can be made.
Provisions are reviewed at each balance sheet date and are adjusted to
reflect the current best estimates. A Contingent Liability is disclosed
unless the possibility of an outflow of resources embodying the
economic benefits is remote. Contingent Assets are neither recognized
nor disclosed in the financial statements
l) Cash flow Statements
i) Cash flows are reported using the indirect method, whereby
profit/(loss) before tax is adjusted for the effects of transactions of
non -cash nature and any deferrals or accruals of past or future cash
receipts or payments. The cash flows from operating , investing and
financing activities of the Company are segregated based on the
available information
ii) Cash comprises cash on hand. Cash Equivalents are cheque on hand,
balances in bank current account and EEFC account
m) Earnings Per Share
In determining earnings per share, the Company considers the net profit
after tax. The number of shares used in computing basic earnings per
share is the weighted average number of shares outstanding during the
year. The number of shares used in computing diluted earnings per share
comprises the weighted average shares considered for deriving basic
earnings per share, and also the weighted average number of equity
shares that could have been issued on the conversion of all dilutive
potential equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the year, unless issued at a later
date
d) Shares options granted and outstanding under the Company's Employee
Share Option Plans
As at March 31, 2012 , executives and senior employees held options of
1,361,000 equity shares of the Company, the range of exercise price for
Stock Option outstanding as at March 31, 2012 is Rs 13.60 to Rs 19.20 and
the weighted average remaining contractual life is 1.29 years. Share
options granted under the Company's employee share option plan carry no
rights to dividends and no voting rights
Mar 31, 2010
A) Basis for preparation of Financial Statements
The financial statements are prepared under the historical cost
convention in accordance with the applicable Accounting Standards
pursuant to Companies (Accounting Standard) Rules, 2006. All income and
expenditure having material bearing on the financial statements are
recognised on an accrual basis
The preparation of financial statements requires the Management to make
certain estimates and assumptions in the reported amounts of assets and
liabilities (including contingent liabilities) as on the date of the
financial statements and the reported income and expenses during the
reporting period. The Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Actual results could differ from these estimates
b) Revenue Recognition
i) Management fee income on funds under management and advisory fee
income are recognised based on contractual arrangements
ii) Income from Investment in Units of Private Equity Funds (PEF) is
recognised on the basis of income distributed by the respective PEFs
iii) Dividend income is recognised once the unconditional right to
receive dividend is established
iv) Interest income on fixed deposits is accrued proportionately based
on period for which the same is placed
c) Fixed Assets
FixedAssetsarestated at costof acquisition and other incidental
expenses
Depreciation on fixed asset is provided pro-rata from the date on which
asset is ready to be put to use for its intended purpose on
Straight-Line Method based on the estimated useful life of the assets,
which are as follows:
All categories of assets costing Rs 5,000/- or less each and mobile
phones are written off in the year of capitalisation
Intangible Assets include business know how, value of Management and
Advisory Contracts and related intangible assets acquired by the
Company. These Intangible Assets are amortised overthe estimated useful
life of 5 years on Straight-Line Method
d) Investments
i) Investments are capitalised at actual cost including costs
incidental to acquisition
ii) I nvestments are classified as long term or current at the time of
making such investments
iii) Long term investments are individually valued at cost less
provision fordiminution, otherthan temporary
iv)
Currentinvestmentsarevaluedatlowerofcostorfairvalue,computedscrip-wise
e) Foreign Currency Transactions
(i) Foreign currency transactions are recorded at the rate prevailing
on the date of transaction. Foreign currency monetary items outstanding
as at the Balance Sheet date are restated at the closing rate. The
premium or discount arising at the inception of a Forward Contract is
amortised as income or expense over the life of such Contract
(ii) Non-Monetary items which are carried in terms of historical cost
denominated in foreign currency at the Balance Sheet date are reported
using the exchange rate at the date of the transaction
f) Employee Benefits
i) Contributions to Provident Fund and Superannuation Fund are charged
to the Profit and Loss Account as per applicable law/rules
ii) The Company has taken group gratuity cum life assurance scheme with
Life Insurance Corporation of India for gratuity payable to the
employees. Incremental liability based on actuarial valuation as per
the projected unit credit method as at the reporting date, is charged
to the Profit and Loss Account
iii) The leave balance is classified as short term and long term based
on the best estimates after considering the past trends. The short term
leave encashment liability for the expected leave to be encashed has
been measured on actual components eligible for leave encashment and
expected short term leave to be availed is valued based on the total
cost to the Company and Long term leave have been valued on actuarial
basis
g) Taxation
Income tax comprises of Current Tax and net changes in Deferred Tax
Assets or Liability during the year. Current Tax
isdeterminedattheamountoftaxpayableinrespectof taxable income
fortheyearasperthe Income taxAct, 1961
Deferred Tax Assets and Liabilities are recognised for the future tax
consequences of timing differences arising from differences in
accounting policies as per the accounts drawn up under the Companies
Act and the Income tax Act. Deferred Tax Assets and Liabilities other
than on carryforward losses and unabsorbed depreciation under tax laws
are recognised when it is reasonably certain that there will be future
taxable income. Deferred Tax Asset on carry forward losses and
unabsorbed depreciation, if any, are recognised when it is virtually
certain that there will be future taxable profit. Deferred tax assets
and liabilities are measured using substantively enacted tax rates. The
effect on deferred tax assets and liabilities of a change in tax rates
is recognised in the Profit and Loss Account in the period of
substantive enactment of the change
h) Cash and Cash equivalent
Cash and Cash equivalent comprises cash on hand, demand deposits with
banks, short term, highly liquid investments that are readily
convertible into known amounts of cash and which are subject to an
insignificant risk of changes in value
i) Earnings PerShare
In determining earnings per share, the Company considers the net profit
after tax. The number of shares used in computing basic earnings per
share is the weighted average number of shares outstanding during the
year. The number of shares used in computing diluted earnings pershare
comprises the weighted average shares considered for deriving basic
earnings pershare, and also the weighted average number of equity
shares that could have been issued on the conversion of all dilutive
potential equity shares. Dilutive potential equity shares are deemed
converted as of the beginning of the year, unless issued at a laterdate
j) Provisions, Contingent Liabilities and Contingent Assets
A provision is recognised when the Company has a present obligation as
a result of a past event and it is probable that the outflow of
resources would be required to settle the obligation, and in respect of
which a reliable estimate can be made. Provisions are not discounted to
their present value and are determined based on the best estimates at
the balance sheet date required to settle the obligation. Provisions
are reviewed at each balance sheet date and are adjusted to reflect the
current best estimation. Acontingent liability is disclosed unless the
possibility of an outflow of resources embodying the economic benefits
is remote. Contingent Assets are neither recognised nor disclosed in
the financial statements
k) Placement Fees Expense
Placement Fees payable to the Arranger of Fund are recognized over the
life of the managed scheme
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