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Accounting Policies of Mefcom Capital Markets Ltd. Company

Mar 31, 2015

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable mandatory Accounting Standards as per the Companies (Accounting Standards) Rules, 2014 prescribed by the Central Government of India and relevant presentational requirements of the Companies Act, 2013.

b) FIXED ASSETS

Fixed Assets have been valued at cost less accumulated depreciation.

C) DEPRECIATION AND AMORTISATION

i) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head 'Leased Premises Development' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on pro- rata basis.

ii) Depreciation on other fixed assets has been provided on the written down value method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 on pro-rata basis.

d) INVESTMENTS

i) Investments in shares, debentures and other securities are classified into 'Current Investments' and 'Non-Current Investments'.

ii) Non-Current Investments are valued at cost. Adequate provision is made for a decline, other than temporary, in the value of Non-Current Investments.

ill) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available, the investments are valued at rupee one per company. Shortfall in the book value as compared to market value of investments is charged to the Statement of Profit & Loss.

iv) Cost is arrived at on Weighted Average cost basis.

e) SHARES & OTHER SECURITIES HELD AS STOCK-IN-TRADE

Shares and other securities held as stock-in-trade are valued at lower of cost or market price. Where no market quotes are available value is taken at rupee one per company. Cost is arrived on Weighted Average cost basis. Cost of Bonus Shares acquired is taken as nil.

In case of units of mutual fund held as Stock-In-Trade, net assets value is considered as fair value.

f) INCOME RECOGNITION

* Income from Merchant Banking Operations is accounted on accrual basis, when the right to receive is established in terms of the agreements with respective clients.

* Dividend income is recognised when the right to receive payment is established.

* Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

g) RETIREMENT BENEFITS

i. Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii. Gratuity is accounted for on cash basis.

h) PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS

A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of economic resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised but disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

I) EARNINGS PER SHARE

In determining earnings per share, the Company considers net profit after tax. Basic earnings per share is computed using the weighted average number of equity shares outstanding during the year. There are no dilutive equity shares.

J) TAXES ON INCOME

A provision is made for income tax, based on the tax liability computed, after considering tax allowances and exemptions.

Deferred tax assets are recognised for all deductible timing differences and carried forward to the extent there is reasonable certainty that sufficient future taxable profit will be available against which such deferred tax assets can be realised. Deferred tax assets to the extent they pertain to brought forward losses and unabsorbed depreciation, are recognised only if there is virtual certainty of realisation, based on expected profitability in the future as estimated by the Company.

Deferred tax assets and liabilities are measured at the tax rates that have been enacted or substantively enacted by the balance sheet date.

Minimum alternative tax (MAT) is paid in accordance with the provisions of Income Tax Act, 1961. MAT credit is recognised as an asset only when and to the extent there is convincing evidence that the Company will pay the normal income tax during the specified period.


Mar 31, 2014

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable mandatory Accounting Standards as per the Companies (Accounting Standards) Rules, 2006 prescribed by the Central Government of India and relevant presentational requirements of the Companies Act, 1956 (to the extent applicable) and the Companies Act, 2013 (to the extent notified).

b) FIXED ASSETS

Fixed Assets have been valued at cost less accumulated depreciation.

c) DEPRECIATION

i) Softwares are amortised on straight line basis in three years on prorata basis.

ii) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head ''Leased Premises Development'' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on prorata basis.

iii) Assets costing upto five thousand rupees are fully depreciated in the year of purchase.

iv) Depreciation on other assets has been provided on the written down value basis at rates provided by Schedule XIV to the Companies Act, 1956 on pro-rata basis.

d) INVESTMENTS

i) Investments in shares, debentures and other securities are classified into ''Current Investments'' and ''Non-Current Investments''.

ii) Non-Current Investments are valued at cost. Adequate provision is made for a decline, other than temporary, in the value of Non-Current Investments.

iii) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available, the investments are valued at rupee one per company. Shortfall in the book value as compared to market value of investments is charged to the Statement of Profit & Loss.

iv) Cost is arrived at on Weighted Average cost basis.

e) SHARES & OTHER SECURITIES HELD AS STOCK- IN-TRADE

Shares and other securities held as stock-in-trade are valued at lower of cost or market price. Where no market quotes are available value is taken at rupee one per company. Cost is arrived on Weighted Average cost basis. Cost of Bonus Shares acquired is taken as nil.

In case of units of mutual fund held as Stock-in-Trade, net assets value is considered as fair value.

f) INCOME RECOGNITION

Income from Merchant Banking Operations is accounted on accrual basis, when the right to receive is established in terms of the agreements with respective clients.

Dividend income is recognised when the right to receive payment is established.

Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

g) RETIREMENTBENEFITS

i. Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii. Gratuity is accounted for on cash basis.


Mar 31, 2013

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable Accounting Standards and the provisions of the Companies Act, 1956 and Guidelines issued by the Reserve Bank of India.

b) FIXED ASSETS

Fixed Assets have been valued at cost less accumulated depreciation.

c) DEPRECIATION

i) Softwares are amortised on straight line basis in three years on pro-rata basis.

ii) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head ''Leased Premises Development'' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on pro-rata basis.

iii) Assets costing upto five thousand rupees are fully depreciated in the year of purchase.

iv) Depreciation on other assets has been provided on the written down value basis at rates provided by Schedule XIV to the Companies Act, 1956 on pro-rata basis.

d) INVESTMENTS

i) Investments in shares, debentures and other securities are classified into ''Current Investments'' and ''Non-Current Investments''.

ii) Non-Current Investments are valued at cost. Adequate provision is made for a decline, other than temporary, in the value of Non-Current Investments.

iii) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available the investments are valued at rupee one per company. Shortfall in the book value as compared to market value of investments is charged to Profit & Loss Account.

iv) Cost is arrived at on Weighted Average cost basis.

e) SHARES & OTHER SECURITIES HELD AS STOCK-IN-TRADE

Shares and other securities held as stock-in-trade are valued at lower of cost or market price. Where no market quotes are available value is taken at rupee one per company. Cost is arrived on Weighted Average cost basis. Cost of Bonus Shares acquired are taken as Nil.

In case of units of mutual fund held as Stock-in-Trade, net assets value is considered as fair value.

f) PROVISION FOR NON-PERFORMING ADVANCES

Provision for Non-performing advances i.e. Sub-Standard and Doubtful Advances is based on the management assessment of the degree of impairment of the loan assets and the level of provisioning required as per the prudential norms prescribed by Reserve Bank of India.

g) INCOME RECOGNITION

Income from Merchant Banking Operations is accounted on accrual basis, when the right to receive is established in terms of the agreements with respective clients.

In accordance with the prudential norms prescribed by the Reserve Bank of India, interest on loans and advances are not recognised on non-performing assets unless the same are actually realised.

h) RETIREMENT BENEFITS

i. Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii Accrued liability in respect of gratuity is provided on the basis of actuarial valuation.

Actuarial gain / loss are recognized immediately in the Profit and Loss Account.


Mar 31, 2012

A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable Accounting Standards and the provisions of the Companies Act, 1956 and Guidelines issued by the Reserve Bank of India.

b) FIXED ASSETS

Fixed Assets have been valued at cost less accumulated depreciation.

c) DEPRECIATION

i) Softwares are amortised on straight line basis in three years on pro-rata basis.

ii) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head ''Leased Premises Development'' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on pro-rata basts.

iii) Assets costing upto five thousand rupees are fully depreciated in the year of purchase.

iv) Depreciation on other assets has been provided on the written down value basis at rates provided by Schedule XIV to the Companies Act, 1956 on pro-rata basis,

d) INVESTMENTS

i) Investments in shares, debentures and other securities are classified into ''Current Investments'' and ''Non-Current Investments''.

ii) Non-Current Investments are valued at cost. Adequate provision is made for a decline, other than temporary, In the vatue of Non-Current Investments.

iii) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available the Investments are valued at rupee one per company. Shortfall in the book value as compared to market value of Investments is charged to Profit & Loss Account.

iv) Cost is arrived at on Weighted Average cost basis.

e) PROVISION FOR ADVANCES

Provision for Standard, Sub-Standard (NPA) and Doubtful Advances (NPA) has been made In accordance with the prudential norms prescribed by Reserve Bank of India.

f) INCOME RECOGNITION

- Income from Merchant Banking Operations is accounted on accrual basis, when the right (o receive is established in terms of the agreements with respective clients.

- In accordance with the prudential norms prescribed by the Reserve Bank of India, the Hire Purchase Income, Leasing Income and Interest on loans and advances are not recognised on non-performing assets (NPA) unless the same are actually realised.

g) RETIREMENT BENEFITS

i. Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii. Gratuity Is accounted for on cash basis.


Mar 31, 2011

A) Basis of Preparation of Financial Statements :

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the applicable Accounting Standards and the provisions of the Companies Act, 1956 and Guidelines issued by the Reserve Bank of India.

b) Fixed Assets :

Fixed Assets have been valued at cost less accumulated depreciation.

c) Depreciation :

i) Software's are amortised on straight line basis in three years on pro-rata basis.

ii) Amount spent on renovation including extensions on office premises, taken on rent, is capitalised under the head 'Leased Premises Development' and amortised on straight line basis in nine years (being reasonably expected lease tenure) on pro-rata basis.

iii) Assets costing up to five thousand rupees are fully depreciated in the year of purchase.

iv) Depreciation on other assets has been provided on the written down value basis at rates provided by Schedule XIV to the Companies Act, 1956 on pro-rata basis.

d) Investments :

i) Investments in shares, debentures and other securities are classified into 'Current Investments' and 'Long Term Investments'.

ii) Long Term Investments are valued at cost. Adequate provision is made for a decline, other than temporary, in the value of Long Term Investments.

iii) Current Investments i.e. the investments, which are not intended to be held for more than one year, are carried at lower of cost or market price. Where no market quotes are available the investments are valued at rupee one per company. Shortfall in the book value as compared to market value of investments is charged to Profit & Loss Account.

iv) Cost is arrived at on Weighted Average cost basis.

e) Income Recognition :

i) Income from Merchant Banking Operations is accounted on accrual basis, when the right to receive is established in terms of the agreements with respective clients.

ii) In accordance with the prudential norms prescribed by the Reserve Bank of India, the Hire Purchase Income, Leasing Income and interest on loans and advances are not recognised on non-performing assets (NPA) unless the same are actually realised.

f) Retirement Benefits :

i) Contribution to Provident Fund and Family Pension Fund are provided for on accrual basis and deposited in the Employees Provident Fund Account(s) administrated by the Central Government.

ii) Gratuity is accounted for on cash basis.

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