Mar 31, 2015
(a) Basis of Preparation
The Financial Statements of the company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(GAAP) to comply with the Accounting Standard notified under the
Companies (Accounting Standard) Rules, 2006 (as amended) 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 the
previous year.
(b) Use of Estimates
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires the
management to make estimates that affect the reported amount of assets
& liabilities disclosure of contingent liabilities as at the date of
the financial statement and reported amounts of revenue and expenses
for the year. Actual results could differ from these estimates.
(c) Fixed Assets & Depreciation
(i) Fixed Assets are stated at their original cost of acquisition less
accumulated depreciation.
(ii) Depreciation on Tangible Fixed Assets has been provided on written
down value method. Depreciation is provided based on useful life of the
assets as prescribed in Schedule II to the Companies Act, 2013.
Depreciation on Tangible Fixed Assets added / disposed of during the
year is provided on prorata basis with reference to the date of
addition / disposal.
The unamortised carrying value is being depreciated over the revised /
remaining useful lives. The written down value of Tangible Fixed Assets
whose lives have expired as at 1st April 2014 have been adjusted in the
opening balance of Profit & Loss Statement.
(iii) Intangible assets have been amortized over the period of four
financial years.
(d) Cash Flow Statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions on non-cash nature and any deferrals or accrual
of past or future cash receipts or payments.
(e) Cash and Cash Equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amount of cash which are
subject to insignificant risk of changes in value.
(f) Inventories
Inventories are valued at lower of cost or market price. The costs of
the shares are determined on First in & First out Basis. Inventories of
unquoted shares are valued at cost as market value is not available for
the same.
(g) Investments
Long term Investments are stated at cost less provision for diminution,
other than temporary, in the value of Investments.
(h) Revenue Recognition:
(i) Brokerage income is recognized on the trade date of transaction
upon confirmation of transactions by the stock exchanges and clients.
Income from depository services and late payment charges are recognized
on the basis of agreement entered into with clients and when right to
receive the income is established. Commission income from financial
products distribution is recognized on the basis of agreement entered
with principal and when the right to receive the income is established.
(ii) Dividend income is accounted for when the right to receive the
income is established.
(iii) Interest Income is accounted on accrual basis.
(i) Retirement Benefit
(i) Defined Contribution Plan:
Company's contribution paid/payable during the year to the Provident
Fund is charged to Statement of Profit and Loss. The Company's
contribution to Employee's State Insurance Scheme is also charged to
Statement of Profit & Loss of the year to which the contributions
relate.
(ii) Defined Benefit Plan:
The Company has opted for a Group Gratuity-cum Life Assurance Scheme of
the Life Insurance Corporation of India (LIC), and contribution towards
gratuity liability as determined by LIC as required under AS-15
(Revised) i.e under Projected Unit Credit method is charged to the
Statement of Profit & Loss.
As far as company's liabilities towards leave encashment, company has
the policy of paying the leave encashment at the end of the financial
year.
(j) Derivative Market Trading
(i) In respect of Option Contract, premium for contract expiring beyond
the Balance Sheet date has been treated as current asset / current
liabilities.
(ii) In respect of Futures Contract for contract expiring beyond the
Balance Sheet date, net of Mark to Market Debit balance and Mark to
Market Credit balance has been treated as current assets / current
liabilities.
(k) Earnings Per Share
Basic and diluted earnings per share are computed in accordance with
Accounting Standard 20 "Earnings per Share".
Basic earnings per share is calculated by dividing the net profit or
loss after tax for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
Diluted earnings per share are computed using the weighted average
number of equity shares and dilutive potential equity shares
outstanding during the year except where the results are anti-dilutive.
(1) Taxation
Provision of current tax is made with reference to taxable income
computed for the accounting period for which the financial statements
are prepared by applying the tax rates as applicable. The deferred tax
charge is recognized using the enacted tax rate. Deferred Tax Assets
are recognized only to the extent that there is virtual certainty
supported by convincing evidence that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
At each balance sheet date the Company re- assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets/Liabilities are reviewed as at balance sheet date
based on the developments during the year and reassess
assets/liabilities in terms of AS-22 issued by ICAI.
Mar 31, 2014
(a) Basis of Preparation
The Financial Statements of the company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(GAAP) to comply with the Accounting Standard notified under the
Companies (Accounting Standard) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act 1956 read with the General
Circular 15/2013 dated 13.9.2013 of the Ministry of Corporate Affairs
in respect of Sec 133 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 the
previous year.
(b) Use of Estimates
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires the
management to make estimates that affect the reported amount of assets
& liabilities disclosure of contingent liabilities as at the date of
the financial statement and reported amounts of revenue and expenses
for the year. Actual results could differ from these estimates.
(c) Fixed Assets & Depreciation
(i) Fixed Assets are stated at their original cost of acquisition less
accumulated depreciation.
(ii) Depreciation on fixed assets has been provided under written down
value method on pro-rata basis as per rate prescribed under Schedule
XIV of the Companies Act, 1956.
(iii) Intangible assets have been amortized over the period of four
financial years.
(d) Cash Flow Statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions on non cash nature and any deferrals or accrual
of past or future cash receipts or payments.
(e) Cash and Cash Equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amount of cash which are
subject to insignificant risk of changes in value.
(f) Inventories
Inventories are valued at lower of cost or market price. The costs of
the shares are determined on First in & First out Basis. Inventories of
unquoted shares are valued at cost as market value is not available for
the same.
(g) Investments
Long term Investments are stated at cost less provision for diminution,
other than temporary, in the value of Investments.
(h) Revenue Recognition:
(i) Brokerage income is recognized on the trade date of transaction
upon confirmation of transactions by the stock exchanges and clients.
Income from depository services and late payment charges are recognized
on the basis of agreement entered into with clients and when right to
receive the income is established. Commission income from financial
products distribution is recognized on the basis of agreement entered
with principal and when the right to receive the income is established.
(ii) Dividend income is accounted for when the right to receive the
income is established.
(iii) Interest Income is accounted on accrual basis.
(g) Retirement Benefit
(i) Defined Contribution Plan:
Company''s contribution paid/payable during the year to the Provident
Fund is charged to Profit and Loss Account. The Company''s contribution
to Employee''s State Insurance Scheme is also charged to Profit & Loss
Account of the year to which the contributions relate.
(ii) Defined Benefit Plan:
The Company has opted for a Group Gratuity-cum Life Assurance Scheme of
the Life Insurance Corporation of India (LIC), and contribution towards
gratuity liability as
determined by LIC as required under AS-15 (Revised) i.e under Projected
Unit Credit method is charged to the Statement of Profit & Loss.
As far as company''s liabilities towards leave encashment, company has
the policy of paying the leave encashment at the end of the financial
year.
(h) Derivative Market Trading
1. In respect of Option Contract, premium paid for contract expiring
beyond the balance sheet date has been treated as current assets,
adjusted for loss, if any.
2. In respect of Futures Contract, Mark-to-Market debit balance has
been recognized in the Profit & Loss statement and Mark-to-Market
credit balance has been treated as current liabilities as per the
guidance note issued by ICAI on accounting of Future & Option contract.
(i) Taxation
Provision of current tax is made with reference to taxable income
computed for the accounting period for which the financial statements
are prepared by applying the tax rates as applicable. The deferred tax
charge is recognized using the enacted tax rate. Deferred Tax Assets
are recognized only to the extent that there is virtual certainty
supported by convincing evidence that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
At each balance sheet date the Company re- assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets/Liabilities are reviewed as at balance sheet date
based on the developments during the year and reassess
assets/liabilities in terms of AS-22 issued by ICAI.
(j) Foreign Currency Transaction
i) Initial Recognition
Transaction in foreign currencies entered into by the company are
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 transactions.
ii) Conversion
Foreign currency monetary items are reported using the closing rates.
iii) Exchange Difference
Exchange differences arising on the settlement of reporting company''s
monetary items at rates different from those at which they were
initially recorded during the period are recognized as income or
expense.
* Other Bank Balance represent
a) Bank Deposits valuing to Rs. 2,91,00,000/-(P.Y. T 12,74,50,000/-)given
as margin money to National Securities Clearing Corporation Limited
(NSCCL).
b) Bank Deposits valuing to Nil (P.Y. Rs.7,50,000/-) given as security
deposits to The Calcutta Stock Exchange Limited (CSE)
c) Bank Deposits valuing to Rs. 8,00,000 (P.Y. Rs.8,00,000/-) given as
margin money and security deposits to MCX Stock Exchange Limited
d) Bank Deposits valuing to T 50,00,000/- (P.Y. Rs. 4,97,50,000/-)pledge
with HDFC Bank for obtaining term loan (refer note no 5 (A) (1))
e) Bank Deposits valuing to Rs. 9,30,00,000/-(P.Y. Rs.6,57,65,500/-) pledge
with bank for obtaining bank guarantee . The said bank guarantee has
been given to the NSCCL and ICCL as margin money.
f) Bank Deposits includes deposits of Rs. 16,00,000 (2012-13:-
Rs.32,50,000/-) with maturity of more than 12 months.
*Interest Income includes Rs. 22,07,419.70 for the year 2013-2014
(2012-2013:- Rs. 23,75,836.27)received on account of Fixed Deposits made
from the Margin Money received from trading member & clients. The Fixed
Deposits were made on the instruction of trading member (on behalf of
its client) & clients. As the said margin money was received from
trading member and clients, the amount of interest received on the
fixed deposits (Margin Money) has been reimbursed to the trading member
and clients. Such reimbursement is shown under the head interest
expenses in Note No 24.
*Salary & Bonus include Rs.24,00,000/- for the year 2013-14 (2012-13 :- Rs.
24,00,000/-) payment to Director''s towards managerial remuneration
under section 198 of the Companies Act, 1956.
Mar 31, 2013
(a) Basis of Preparation
The Financial Statements of the company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(GAAP) to comply with the Ac- counting Standard notified under the
Companies (Accounting Standard) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act 1956. 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 con- sistent with those followed in the
previous year.
(b) Use of Estimates
The preparation of the financial statements in conformity with the
accounting stand- ards generally accepted in India requires, the
management to make estimates that af- fect the reported amount of
assets & liabilities disclosure of contingent liabilities as at the
date of the financial statement and reported amounts of revenue and
expenses for the year. Actual results could differ from these
estimates.
(c) Fixed Assets & Depreciation
(i) Fixed Assets are stated at their original cost of acquisition less
accumulated deprecia- tion.
(ii) Depreciation on fixed assets has been provided under written down
value method on pro-rata basis as per rate prescribed under Schedule
XIV of the Companies Act, 1956.
(iii) Intangible assets have been amortized over the period of four
financial years.
(d) Cash Flow Statement
Cash flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions on non cash nature and any deferrals or accrual
of past or future cash receipts or payments.
(e) Cash and Cash Equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amount of cash which are
subject to insignificant risk of changes in value.
(f) Inventories
Inventories are valued at lower of cost or market price. The costs of
the shares are de- termined on First in & First out Basis. Inventories
of unquoted shares are valued at cost as market value is not available
for the same.
(g) Investments
Long term Investments are stated at cost less provision for diminution,
other than tem- porary, in the value of Investments.
(h) Revenue Recognition:
(i) Brokerage income is recognized on the trade date of transaction
upon confirma- tion of transactions by the stock exchanges and clients.
Income from depository services and late payment charges are recognized
on the basis of agreement en- tered into with clients and when right to
receive the income is established. Com- mission income from financial
products distribution is recognized on the basis of agreement entered
with principal and when the right to receive the income is established.
(ii) Dividend income is accounted for when the right to receive the
income is estab-
lished.
(iii) Interest Income is accounted on accrual basis.
(i) Retirement Benefit
(i) Defined Contribution Plan:
Company''s contribution paid/payable during the year to the Provident
Fund is charged to Profit and Loss Account. The Company''s contribution
to Employee''s State Insurance Scheme is also charged to Profit & Loss
Account of the year to which the contributions relate.
(ii) Defined Benefit Plan:
The Company has opted for a Group Gratuity-cum Life Assurance Scheme of
the Life Insurance Corporation of India (LIC), and contribution towards
gratuity liabil- ity as determined by LIC as required under AS-15
(Revised) i.e under Projected Unit Credit method is charged to the
Statement of Profit & Loss
As far as company''s liabilities towards leave encashment, company has
the policy of paying the leave encashment at the end of the financial
year.
(j) Derivative Market Trading
1. In respect of Option Contract, premium paid for contract expiring
beyond the balance sheet date has been treated as current assets,
adjusted for loss, if any
2. In respect of Futures Contract, Mark-to-Market debit balance has
been recognized in the Profit & Loss statement and Mark-to-Market
credit balance has been treated as current liabilities as per the
guidance note issued by ICAI on accounting of
Future & Option contract.
(k) Taxation
Provision of current tax is made with reference to taxable income
computed for the accounting period for which the financial statements
are prepared by applying the tax rates as applicable. The deferred tax
charge is recognized using the enacted tax rate. Deferred Tax Assets
are recognized only to the extent that there is virtual certainty
supported by convincing evidence that sufficient future taxable income
will be availa- ble against which such deferred tax assets can be
realized.
At each balance sheet date the Company re- assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasona- bly certain or virtually
certain, as the case may be, that sufficient future taxable income will
be available against which such deferred tax assets can be realized.
Deferred Tax Assets/Liabilities are reviewed as at balance sheet date
based on the de- velopments during the year and reassess
assets/liabilities in terms of AS-22 issued by ICAI.
(l) Foreign Currency Transaction
i) Initial Recognition
Transaction in foreign currencies entered into by the company are
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 transactions.
ii) Conversion
Foreign currency monetary items are reported using the closing rates.
iii) Exchange Difference
Exchange differences arising on the settlement of reporting company''s
monetary items at rates different from those at which they were
initially recorded during the period are recognized as income or
expense.
Mar 31, 2012
(a) Basis of Preparation
The Financial Statements are prepared under the historical cost
convention, on an accrual basis and in accordance with the provision of
the Companies Act, 1956, and the Accounting Standards issued under the
Companies (Accounting Standards) Rules 2006.
(b) Use of Estimates
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires, the
management to make estimates that affect the reported amount of assets
& liabilities disclosure of contingent liabilities as at the date of
the financial statement and reported amounts of revenue and expenses
for the year. Actual results could differ from these estimates.
(c) Fixed Assets & Depreciation
(i) Fixed Assets are stated at their original cost of acquisition less
accumulated depreciation.
(ii) Depreciation on fixed assets has been provided under written down
value method on pro-rata basis as per rate prescribed under Schedule
XIV of the Companies Act, 1956.
(iii) Intangible assets have been amortized over the period of four
financial years.
(d) Inventories
Inventories are valued at lower of cost or market price. The costs of
the shares are determined on First In & First Out Basis. Inventories
of unquoted shares are valued at cost as market value is not available
for the same.
(e) Investments
Long term Investments are stated at cost less provision for diminution,
other than temporary, in the value of Investments.
(f) Revenue Recognition:
(i) Income from Brokerage is recognized on the trade date of
transaction.
(ii) Dividend income is recognized when the right to receive the income
is established.
(g) Retirement Benefit
(i) Defined Contribution Plan:
Company's contribution paid/payable during the year to the Provident
Fund is charged to Profit and Loss Account. The Company's
contribution to Employee's State Insurance Scheme are also charged to
Profit & Loss Account of the year to which the contributions relate.
(ii) Defined Benefit Plan:
The Company has opted for a Group Gratuity-cum Life Assurance Scheme of
the Life Insurance Corporation of India (LIC), and contribution towards
gratuity liability as determined by LIC as required under AS-15
(Revised) i.e under Projected Unit Credit method is charged to the
Profit & Loss Account. As far as company's liabilities towards leave
encashment, company has the policy of paying the leave encashment at
the end of the financial year.
(h) Derivative Market Trading
1. In respect of Option Contract, premium paid for contract expiring
beyond the balance sheet date has been treated as current assets,
adjusted for loss, if any
2. In respect of Futures Contract, Mark-to-Market debit balance has
been recognized in the Profit & Loss statement and Mark-to-Market
credit balance has been treated as current liabilities as per the
guidance note issued by ICAI on accounting of Future & Option contract.
(i) Taxation
Provision of current tax is made with reference to taxable income
computed for the accounting period for which the financial statements
are prepared by applying the tax rates as applicable. The deferred tax
charge is recognized using the enacted tax rate. Deferred Tax Assets
are recognized only to the extent that there is virtual certainty
supported by convincing evidence that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
At each balance sheet date the Company re- assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets/Liabilities are reviewed as at balance sheet date
based on the developments during the year and reassess
assets/liabilities in terms of AS-22 issued by ICAI
(j) Foreign Currency Transaction
a) Initial Recognition
Foreign currency monetary items are reported in the reporting currency,
by applying to the foreign currency amount, the exchange rate between
the reporting currency and the foreign currency at the date of
transaction.
b) Conversion
Foreign currency monetary items are reported using the closing rates.
c) Exchange Difference
Exchange differences arising on the settlement of reporting company's
monetary items at rates different from those at which they were
initially recorded during the period are recognized as income or
expense.
Mar 31, 2011
(a) Basis of Preparation
The Financial Statements are prepared under the historical cost
convention, on an accrual basis and in accordance with the provision of
the Companies Act, 1956, and the Accounting Standards issued under the
Companies (Accounting Standards) Rules 2006.
(b) Use of Estimates
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires, the
management to make estimates that affect the reported amount of assets
& liabilities disclosure of contingent liabilities as at the date of
the financial statement and reported amounts of revenue and expenses
for the year. Actual results could differ from these estimates.
c) Fixed Assets & Depreciation
(i) Fixed Assets are stated at their original cost of acquisition less
accumulated depreciation.
(ii) Depreciation on fixed assets has been provided under written down
value method on pro-rata basis as per rate prescribed under Schedule
XIV of the Companies Act, 1956.
(iii) Intangible assets have been amortized over the period of four
financial years.
(d) Inventory
Inventories are valued at lower of cost or market price. The costs of
the shares are determined on First In & First Out Basis.
(e) Investments
Long term Investments are stated at cost less provision for diminution,
other than temporary, in the value of Investments.
(f) Revenue Recognition :
(i) Income from Brokerage is recognized on the trade date of
transaction.
(ii) Dividend income is recognized when the right to receive the income
is established.
(g) Retirement Benefit
(i) Defined Contribution Plan :
Company's contribution paid/payable during the year to the Provident
Fund is charged to Profit and Loss Account.
The Company's contribution to Employee's State Insurance Scheme are
also charged to Profit & Loss Account of the year to which the
contributions relate.
(ii) Defined Benefit Plan :
The Company has opted for a Group Gratuity-cum Life Assurance Scheme of
the Life Insurance Corporation of India (LIC), and contribution towards
gratuity liability as determined by LIC as required under AS-15
(Revised) i.e under Projected Unit Credit method is charged to the
Profit & Loss Account. As far as company's liabilities towards leave
encashment, company has the policy of paying the leave encashment at
the end of the financial year.
(h) Derivative Market Trading
1. In respect of Option Contract, premium paid for contract expiring
beyond the balance sheet date has been treated as current assets,
adjusted for loss, if any
2. In respect of Futures Contract, Mark-to-Market debit balance has
been recognized in the Profit & Loss Account and Mark-to- Market credit
balance has been treated as current liabilities as per the guidance
note issued by ICAI on accounting of Future & Option contract.
(i) Taxation
Provision of current tax is made with reference to taxable income
computed for the accounting period for which the financial statements
are prepared by applying the tax rates as applicable. The deferred tax
charge is recognized using the enacted tax rate. Deferred Tax Assets
are recognized only to the extent that there is virtual certainty
supported by convincing evidence that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
At each balance sheet date the Company re- assesses unrecognized
deferred tax assets. It recognizes unrecognized deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets/Liabilities are reviewed as at balance sheet date
based on the developments during the year and reassess
assets/liabilities in terms of AS-22 issued by ICAI
(j) Foreign Currency Transaction
a) Initial Recognition
Foreign currency monetary items are reported in the reporting currency,
by applying to the foreign currency amount, the exchange rate between
the reporting currency and the foreign currency at the date of
transaction.
b) Conversion
Foreign currency monetary items are reported using the closing rates.
c) Exchange Difference
Exchange differences arising on the settlement of reporting company's
monetary items at rates different from Those at which they were
initially recorded during the period are recognized as income or
expense.
Mar 31, 2010
A) Basis of Preparation
The Financial Statements are prepared under the historical cost
convention, on an accrual basis and in accordance with the Companies
Act, 1956, and the Accounting Standards issued under the Companies
(Accounting Standards) Rules 2006.
b) Use of Estimates
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires, the
management to make estimates that affect the reported amount of assets
& liabilities disclosure of contingent liabilities as at the date of
the financial statement and reported amounts of revenue and expenses
for the year. Actual results could differ from these estimates.
c) Fixed Assets & Depreciation
i) Fixed Assets are stated at their original cost of acquisition less
accumulated depreciation.
ii) Depreciation on fixed assets has been provided under written down
value method on pro-rata basis as per rate prescribed under Schedule
XIV of the Companies Act, 1956.
iii) Intangible assets have been amortized over the period of four
years.
d) Inventory
Inventories are valued at lower of cost or market price. The costs of
the shares are determined on First In & First Out Basis.
e) Investments
Long term Investments are stated at cost less provision for diminution
,other than temporary, in the value of Investments.
f) Revenue Recognition:
i) Income from Brokerage is recognized on the trade date of
transaction..
ii) Dividend income is recognized when the right to receive the income
is established.
g) Retirement Benefit
i) Defined Contribution Plan:
CompanyÃs contribution paid/payable during the year to the Provident
Fund is charged to Profit and Loss Account. The CompanyÃs contribution
to EmployeeÃs State Insurance Scheme are also charged to Profit & Loss
Account of the year to which the contributions relate.
(ii) Defined Benefit Plan:
The Company has opted for a Group Gratuity-cum Life Assurance Scheme of
the Life Insurance Corporation of India (LIC), and contribution towards
gratuity liability as determined by LIC as required under AS-15
(Revised) i.e under Projected Unit Credit method is charged to the
Profit & Loss Account. As far as companyÃs liabilities towards leave
encashment, company has the policy of paying the leave encashment at
the end of the financial year.
h) Derivative Market Trading
1. In respect of Option Contract, premium paid for contract expiring
beyond the balance sheet date has been treated as current assets,
adjusted for loss, if any
2. In respect of Futures Contract, Mark-to-Market debit balance has
been recognized in the Profit & Loss Account and Mark-to-Market credit
balance has been treated as current liabilities as per the guidance
note issued by ICAI on accounting of Future & Option contract.
i) Taxation
Provision of current tax is made with reference to taxable income
computed for the accounting period for which the financial statements
are prepared by applying the tax rates as applicable. The deferred tax
charge is recognized using the enacted tax rate. Deferred Tax Assets
are recognized only to the extent that there is virtual certainty
supported by convincing evidence that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
At each balance sheet date the Company re- assesses unrecognized
deferred tax assets. It recognizes unrecog nized deferred tax assets to
the extent that it has become reasonably certain or virtually certain,
as the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
Deferred Tax Assets/Liabilities are reviewed as at balance sheet date
based on the developments during the year and reassess
assets/liabilities in terms of AS-22 issued by ICAI
j) Foreign Currency Transaction
a) Initial Recognition
Foreign currency monetary items are reported in the reporting currency,
by applying to the foreign currency amount, the exchange rate between
the reporting currency and the foreign currency at the date of
transaction.
b) Conversion
Foreign currency monetary items are reported using the closing rates.
c) Exchange Difference
Exchange differences arising on the settlement of reporting companyÃs
monetary items at rates different from those at which they were
initially recorded during the period are recognized as income or
expense.