Mar 31, 2015
Basis of preparation of consolidated financial statements
The financial statement of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
to comply with Accounting Standards specified under Section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules,
2014 and the relevant provisions of the Companies Act 2013. The
Financial Statements have been prepared on accrual basis under the
historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those
followed in previous year.
Use of estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contingent
liabilities on the date of the financial statements. Actual results
could differ from the estimates. Any revision to accounting estimates
is recognized prospectively in current and future periods.
Revenue recognition
Income from capital market operations (non-delivery based transactions)
is accounted for on sale of securities. Income from Merchant Banking
services, Brokerage and income from corporate advisory services are
accounted for as and when the relevant services are rendered except
where the recovery is uncertain in which case it is accounted for on
receipt. Interest income is accounted for on accrual basis except where
the recovery is uncertain, in which case it is accounted for on
receipt. Dividend income is accounted for when the right to receive
dividend is established.
Fixed assets (Tangible & Intangible) and depreciation/ Amortisation
Till the year ended March 31, 2014, Schedule XIV to the Companies Act,
1956, prescribed requirements concerning depreciation of fixed assets.
From the current year, Schedule XIV has been replaced by Schedule II to
the Companies Act, 2013. The applicability of Schedule II has resulted
in the following changes related to depreciation of fixed assets.
Unless stated otherwise, the impact mentioned for the current year is
likely to hold good for future years also.
Till the year ended March 31, 2014, depreciation rates prescribed under
Schedule XIV were treated as minimum rates and the company was not
allowed to charge depreciation at lower rates even if such lower rates
were justified by the estimated useful life of the asset. Schedule II
to the Companies Act 2013 prescribes useful lives for fixed assets
which, in many cases, are different from lives prescribed under the
erstwhile Schedule XIV However, Schedule II allows companies to use
higher/lower useful lives and residual values if such useful lives and
residual values can be technically supported and justification for
difference is disclosed in the financial statements.
Considering the applicability of Schedule II, the management has
re-estimated useful lives and residual values of all its fixed assets.
The management believes that depreciation rates currently used fairly
refl ect its estimate of the useful lives and residual values of fixed
assets, though these rates in certain cases are different from lives
prescribed under Schedule II. Hence, this change in accounting policy
did not have any material impact on financial statements of the
company.
Depreciation on tangible assets is calculated on a straight- line basis
using the rates arrived at based on the useful lives estimated by the
management, or those prescribed under the Schedule II to the Companies
Act, 2013, whichever is higher.
Intangible assets are amortized over their useful life. The management
follows a rebuttable assumption that the useful lives of the assets
would not exceed 6 years.
The company has used the following rates to provide depreciation on its
non-current assets.
Investments
Investments are classified into current investments and non- current
investments. Investments, which are intended to be held for one year or
more, are classified as non-current investments and investments, which
are intended to be held for less than one year, are classified as
current investments.
Non-current investments are carried at cost less provision for
diminution, other than temporary.
Current investments are carried at lower of cost or fair value. The
comparison of cost and fair value is done separately in respect of each
investment.
Inventories
Stock-in-trade is valued at lower of cost and market value. While
determining market value, due consideration has been given to shares
which have become ex-rights/ex-bonus at the year end for which
rights/bonus shares have been received subsequent to year end.
Foreign currency transactions
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of the transaction. Exchange differences, if any
arising out of transactions settled during the year are recognized in
the statement of profit and loss of the year.
Employee benefits
The accounting policy followed by the company in respect of its
employee benefit schemes in accordance with Accounting Standard 15
(Revised 2005), is set out below:
Provident fund
The Company contributes to a recognized provident fund, which is a defi
ned contribution scheme. The contributions are accounted for on an
accrual basis and recognized in the statement of profit and loss.
Gratuity
The Company's gratuity scheme is a defined benefit plan. The
Company's net obligation in respect of the gratuity benefit is
calculated by estimating the amount of future benefit that the
employees have earned in return for their service in the current and
prior periods, that benefit is discounted to determine its present
value, and the fair value of any plan assets, if any, is deducted. The
present value of the obligation under such benefit plan is determined
based on actuarial valuation. Actuarial gains and losses arising from
experience adjustments and change in actuarial assumptions are
recognized in the statement of profit and loss in the period in which
they arise.
Taxation
Tax expense comprises income tax (i.e. amount of tax for the year
determined in accordance with the Income Tax Act, 1961), deferred tax
charge or benefit (refl ecting the tax effect of timing differences
between accounting income and taxable income for the year)
Income tax
Provision for income tax is recognized based on estimated tax liability
computed after adjusting for allowances, disallowances and exemptions
in accordance with the Income Tax Act, 1961.
Deferred tax
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 realized 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 realization 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 reasonably/virtually certain, as the
case may be, to be realized.
Derivative Instruments
Initial / additional margin paid for futures / options is included
under the head current assets. Contracts are marked to market in
accordance with the prevalent regulations and the amount receivable or
payable is disclosed under the head current assets or current
liabilities, as the case may be. The profit or loss on settlement of
derivative contracts is recognized in
the Profit and Loss account. As on the balance sheet date, provision
for loss on futures contracts is made to the extent of mark to market
margins paid, while for open options, to the extent premium paid
exceeds premium prevailing on that date.
Provisions:
A provision is recognized when the company has a present obligation as
a result of past event, it is probable that an outfl ow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Cash & Cash Equivalents:
Cash and cash equivalents for the purposes of cash fl ow statement
comprise cash at bank and in hand and fixed deposits.
Current / Non Current Classification
An asset shall be classified as current when it satisfies any of the
following criteria:Â
(a) it is expected to be realised in, or is intended for sale or
consumption in, the company's normal operating cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is expected to be realised within twelve months after the
reporting date; or
(d) it is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the reporting date.
All other assets shall be classified as non-current.
A liability shall be classified as current when it satisfies any of
the following criteria:Â
(a) it is expected to be settled in the company's normal operating
cycle;
(b) it is held primarily for the purpose of being traded;
(c) it is due to be settled within twelve months after the reporting
date; or
(d) the company does not have an unconditional right to defer
settlement of the liability for at least twelve months after the
reporting date. Terms of a liability that could, at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.
All other liabilities shall be classified as non-current.
Mar 31, 2014
Basis of preparation of consolidated financial statements
The accompanying financial statements are prepared and presented under
the historical cost convention, on the accrual basis of accounting and
comply with the Accounting Standards prescribed by Companies
(Accounting Standards) Rules, 2006, the relevant provisions of the
Companies Act, 1956 (''the Act'') and the Revised Schedule VI to the
Act,.Figures of the previous year have been redrawn to conform to the
Revised Schedule VI classification. The financial statements are
presented in Indian rupees.
Use of estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contingent
liabilities on the date of the financial statements. Actual results
could differ from the estimates. Any revision to accounting estimates
is recognized prospectively in current and future periods.
Revenue recognition
Income from capital market operations (non-delivery based transactions)
is accounted for on sale of securities. Income from Merchant Banking
services, Brokerage and income from corporate advisory services are
accounted for as and when the relevant services are rendered except
where the recovery is uncertain in which case it is accounted for on
receipt. Interest income is accounted for on accrual basis except where
the recovery is uncertain, in which case it is accounted for on
receipt. Dividend income is accounted for when the right to receive
dividend is established.
Fixed assets and depreciation Tangible fixed assets
Fixed assets are stated at cost less accumulated depreciation. The
cost of fixed assets comprises of purchase price and any attributable
cost of bringing the asset to its working condition for its intended
use.
Depreciation is provided on the straight line method from the date the
asset is ready for its intended use or put to use, whichever is
earlier. In respect of assets sold, depreciation is provided up-to the
date of disposal.
Depreciation is charged at the rates prescribed in the Schedule XIV to
the Act, as given below:
All fixed assets individually costing less than '' 5,000 are fully
depreciated in the year of purchase.
Investments
Investments are classified into current investments and non- current
investments. Investments, which are intended to be held for one year or
more, are classified as non-current investments and investments, which
are intended to be held for less than one year, are classified as
current investments.
Non-current investments are carried at cost.
Current investments are carried at lower of cost or fair value. The
comparison of cost and fair value is done separately in respect of
eachinvestment.
Inventories
Stock-in-trade is valued at lower of cost and market value. While
determining market value, due consideration has been given to shares
which have become ex-rights/ex-bonus at the year end for which
rights/bonus shares have been received subsequent to year end.
Foreign currency transactions
Foreign currency transactions are recorded at the rates of exchange
prevailing on the date of the transaction. Exchange differences, if any
arising out of transactions settled during the year are recognized in
the statement of profit and loss of the year. Employee benefits
The accounting policy followed by the company in respect of its
employee benefit schemes in accordance with Accounting Standard 15
(Revised 2005), is set out below:
Provident fund
The Company contributes to a recognized provident fund, which is a
defined contribution scheme. The contributions are accounted for on an
accrual basis and recognized in the statement of profit and loss.
Gratuity
The Company''s gratuity scheme is a defined benefit plan. The Company''s
net obligation in respect of the gratuity benefit is calculated by
estimating the amount of future benefit that the employees have earned
in return for their service in the current and prior periods, that
benefit is discounted to determine its present value, and the fair
value of any plan assets, if any, is deducted. The present value of the
obligation under such benefit plan is determined based on actuarial
valuation.
Actuarial gains and losses arising from experience adjustments and
change in actuarial assumptions are recognized in the statement of
profit and loss in the period in which they arise. Taxation
Tax expense comprises income tax (i.e. amount of tax for the year
determined in accordance with the Income Tax Act, 1961), deferred tax
charge or benefit (reflecting the tax effect of timing differences
between accounting income and taxable income for the year)
Income tax
Provision for income tax is recognized based on estimated tax liability
computed after adjusting for allowances, disallowances and exemptions
in accordance with the Income Tax Act, 1961. Deferred tax
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 realized 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 realization 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 reasonably/virtually certain, as the case
may be, to be realized.
Derivative Instruments
Initial / additional margin paid for futures / options is included
under the head current assets. Contracts are marked to market in
accordance with the prevalent regulations and the amount receivable or
payable is disclosed under the head current assets or current
liabilities, as the case may be. The profit or loss on settlement of
derivative contracts is recognized in the Profit and Loss account. As
on the balance sheet date, provision for loss on futures contracts is
made to the extent of mark to market margins paid, while for open
options, to the extent premium paid exceeds premium prevailing on that
date.
Mar 31, 2012
Basis of Accounting
The Company follows the accrual basis accounting.
Accounting Convention
The financial statements are prepared under historical cost convention.
Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation.
Depreciation
Assets are depreciated on the Straight Line Method at the rates and in
the manner prescribed under Schedule XIV to the Companies Act, 1956.
Investments
Long-term investments are carried at cost. However, when there is a
decline, other than temporary, in the value of long- term investments,
the carrying amount is reduced to recognize the decline. In case of
diminution in the value of investment recorded in earlier years is no
longer necessary it is reversed and credited to Profit & Loss accounts.
Inventories
Stock-in-trade is valued at lower of cost and market value. While
determining market value, due consideration has been given to shares
which have become ex-rights/ex-bonus at the year end for which
rights/bonus shares have been received subsequent to year end.
Revenue recognition
Income from capital market operations (non-delivery based transactions)
is accounted for on sale of securities. Income from Merchant Banking
services, Brokerage and income from corporate advisory services are
accounted for as and when the relevant services are rendered except
where the recovery is uncertain in which case it is accounted for on
receipt. Interest income is accounted for on accrual basis except where
the recovery is uncertain, in which case it is accounted for on
receipt. Dividend income is accounted for when the right to receive
dividend is established.
Retirement benefits
Liability in respect of employees' gratuity is calculated on the
basis of Revised AS-15 on Accounting for Retirement Benefits in the
Financial Statements of Employers
Derivative Instruments
Initial / additional margin paid for futures / options is included
under the head current assets. Contracts are marked to market in
accordance with the prevalent regulations and the amount receivable or
payable is disclosed under the head current assets or current
liabilities, as the case may be. The profit or loss on settlement of
derivative contracts is recognized in the Profit and Loss account. As
on the balance sheet date, provision for loss on futures contracts is
made to the extent of mark to market margins paid, while for open
options, to the extent premium paid exceeds premium prevailing on that
date.
Foreign Currency Transactions
Foreign currency transactions are recorded at the rates prevailing on
the date of such transactions. Current assets and current liabilities
in foreign currency at the year-end are translated at the rates
prevailing on that date. Differences arising on settlement of such
transactions/year end restatements are charged to the Profit and Loss
Account.
Taxes on Income
Tax expense comprises both current and deferred taxes. Provision for
current tax has been provided after taking into the account
depreciation as per Income Tax Act, 1961. Deferred tax on timing
differences between taxable income and accounting income is accounted
for, using the tax rates and the tax laws enacted or substantially
enacted as on the balance sheet date. Deferred tax assets are
recognized only to the extent that there is a reasonable certainty of
realization.
The Company has issued Equity as well as Preference Share having a par
value of Rs. 10 per Share. Each holder of Equity / Preferance share is
entitled to one vote per Share. The Company Declares and pays dividend
in Indian Rupees.
Mar 31, 2011
Basis of Accounting
The Company follows the accrual basis accounting.
Accounting Convention
The financial statements are prepared under historical cost convention.
Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation.
Depreciation
Assets are depreciated on the Straight Line Method at the rates and in
the manner prescribed under Schedule XIV to the Companies Act, 1956.
Investments
Long-term investments are carried at cost. However, when there is a
decline, other than temporary, in the value of long-term investments,
the carrying amount is reduced to recognize the decline. In case of
diminution in the value of investment recorded in earlier years is no
longer necessary it is reversed and credited to Profit & Loss accounts.
Inventories
Stock-in-trade is valued at lower of cost and market value. While
determining market value, due consideration has been given to shares
which have become ex-rights/ex- bonus at the year end for which
rights/bonus shares have been received subsequent to year end.
Revenue recognition
Income from capital market operations (non-delivery based transactions)
is accounted for on sale of securities. Income from Merchant Banking
services, Brokerage and income from corporate advisory services are
accounted for as and when the relevant services are rendered except
where the recovery is uncertain in which case it is accounted for on
receipt. Interest income is accounted for on accrual basis except where
the recovery is uncertain, in which case it is accounted for on
receipt. Dividend income is accounted for when the right to receive
dividend is established.
Retirement benefits
Liability in respect of employees' gratuity is calculated on the basis
of Revised AS-15 on Accounting for Retirement Benefits in the Financial
Statements of Employers
Derivative Instruments
Initial / additional margin paid for futures / options is included
under the head current assets. Contracts are marked to market in
accordance with the prevalent regulations and the amount receivable
or payable is disclosed under the head current assets or current
liabilities, as the case may be. The profit or loss on settlement
of derivative contracts is recognized in the Profit and Loss account.
As on the balance sheet date, provision for loss on futures
contracts is made to the extent of mark to market margins paid, while
for open options, to the extent premium paid exceeds premium
prevailing on that date.
Foreign Currency Transactions
Foreign currency transactions are recorded at the rates prevailing on
the date of such transactions. Current assets and current liabilities
in foreign currency at the year- end are translated at the rates
prevailing on that date. Differences arising on settlement of such
transactions/ year end restatements are charged to the Profit and LossAccount.
Taxes on Income
Tax expense comprises both current and deferred taxes. Provision for
current tax has been provided after taking into the account
depreciation as per Income Tax Act, 1961. Deferred tax on timing
differences between taxable income and accounting income is accounted
for, using the tax rates and the tax laws enacted or substantially
enacted as on the balance sheet date. Deferred tax assets are
recognised only to the extent that there is a reasonable certainty of
realisation.
Mar 31, 2010
Accounting Convention
The financial statements are prepared under historical cost convention.
Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation.
Depreciation
Assets are depreciated on the Straight Line Method at the rates and in
the manner prescribed under Schedule XIV to the Companies Act, 1956.
Investments
Long-term investments are carried at cost. However, when there is a
decline, other than temporary, in the value of long-term investments,
the carrying amount is reduced to recognize the decline. In case of
diminution in the value of investment recorded in earlier years is no
longer necessary it is reversed and credited to Proft & Loss accounts.
Inventories
Stock-in-trade is valued at lower of cost and market value. While
determining market value, due consideration has been given to shares
which have become ex-rights/ex- bonus at the year end for which
rights/bonus shares have been received subsequent to year end.
Revenue recognition
Income from capital market operations (non-delivery based transactions)
is accounted for on sale of securities. Income from Merchant Banking
services, Brokerage and income from corporate advisory services are
accounted for as and when the relevant services are rendered except
where the recovery is uncertain in which case it is accounted for on
receipt. Interest income is accounted for on accrual basis except where
the recovery is uncertain, in which case it is accounted for on
receipt. Dividend income is accounted for when the right to receive
dividend is established.
Retirement benefits
Liability in respect of employees gratuity is calculated on the basis
of Revised AS-15 on Accounting for Retirement benefits in the Financial
Statements of Employers. Liability in respect of leave encashment is
provided for on the basis of total accumulated earned leave calculated
at year-end on an arithmetical basis.
Derivative Instruments
Initial / additional margin paid for futures / options is included
under the head current assets. Contracts are marked to market in
accordance with the prevalent regulations and the amount receivable or
payable is disclosed under the head current assets or current
liabilities, as the case may be. The proft or loss on settlement of
derivative contracts is recognized in the Proft and Loss account. As on
the balance sheet date, provision for loss on futures contracts is made
to the extent of mark to market margins paid, while for open options,
to the extent premium paid exceeds premium prevailing on that date.
Foreign Currency Transactions
Foreign currency transactions are recorded at the rates prevailing on
the date of such transactions. Current assets and current liabilities
in foreign currency at the year- end are translated at the rates
prevailing on that date. Differences arising on settlement of such
transactions/ year end restatements are charged to the Proft and Loss
Account.
Taxes on Income
Tax expense comprises both current and deferred taxes. Provision for
current tax has been provided after taking into the account
depreciation as per Income Tax Act, 1961. Deferred tax on timing
differences between taxable income and accounting income is accounted
for, using the tax rates and the tax laws enacted or substantially
enacted as on the balance sheet date. Deferred tax assets are
recognised only to the extent that there is a reasonable certainty of
realisation.
As at the balance sheet date Company is in arrears of Rs. 45.50 Lacs
towards stamp duty relating to the period October 2001 to August 2002.