Accounting Policies of Mehta Integrated Finance Ltd. Company

Aug 31, 2014

1. Accounting convention: The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3C) of the Companies Act, 1956 ("the 1956 Act") (which continue to be applicable in respect of Section 133 of the Companies Act, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated 13 September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act / 2013 Act, as applicable unless otherwise stated herein. 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.

a) The accounts are prepared under the historical cost convention and on the accrual basis of accounting

b) Fixed assets are stated at cost less accumulated depreciation and depreciation has been provided on straight line basis as per the rate prescribed in Schedule II or more than the rate prescribed in Schedule II of the Companies Act, 2013.

c) Long-term investments are stated at average cost except where there is a diminution in value which is other than temporary, for which provision is made. Current investments are stated at the lower of cost and fair value, considered category wise.

d) Use of Estimates: The preparation of financial statements in confirmation with GAAP which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent amount as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized in the periods in which the results are known /materialized.

e) As the Company''s business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

2. Contingent Liabilities: Contingent Liabilities are determined of the basis of available information and are disclosed by way of note to the accounts.

3. Income and Expenditure:

a) Income and Expenditure are accounted on accrual basis.

b) Merchant Banking and corporate advisory Services income is accounted on accrual basis.

c) Underwriting income are accounted on completion of the issue.

d) Income from securities operations is accounted after considering the acquisition cost.

e) Provision for current tax is made on basis on the assessable income under the Income tax Act, 1961.

f) Deferred tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income which originate in one period and are capable of reversal in one or more subsequent periods (adjusted for reversal except during tax holiday period). The tax effect is calculated on accumulated timing differences at the year end based on tax rates & laws enacted or substantially enacted as of the Balance Sheet date.

4. Fixed Assets and Depreciation:

a) Fixed Assets are stated at historical cost in the books of accounts. Cost include all cost incurred to bring the assets to their present location and condition.

b) Depreciation on Fixed Assets is provided on Straight Line Method in the manner and at the rates specified in Schedule II or more than the rate prescribed in schedule II of the Companies Act, 2013.

5. Investments:

Investments are stated at their acquisition cost. Investments of the Company have been considered to be of long term nature. As they are long term investments, are valued at cost of acquisition. In respect of quoted investments where the market value is lower than the acquisition cost, provision for diminution in the value of such investments is made. Investments where there is permanent diminution is written off.

Investments that are intended to be held for not more than one year from the date of acquisition are classified as current investments.

6. Amortization of Miscellaneous Expenditure: Miscellaneous Expenditure are amortized over a period of ten years.

7. Earnings Per Share: The Company reports Basic Earnings Per Share (EPS) in accordance with Accounting Standard (20), 0.92 Earnings Per Share. Basis EPS is computed by dividing the net profit for the year by weighted average number of share outstanding during the year.

8. Related Party Transactions: Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and/or operating decisions.

9. Provisions, Contingent Liabilities and Contingent Assets: Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

10. Impairment of Assets: As per requirement of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India, at each balance sheet date, assessment is made of whether there is any objective evidence of impairment of financial assets. If there is evidence then the recoverable amount is estimated and impairment loss is recognized in accordance with Accounting Standard 28.

11. Prior Period Adjustments: Material items pertaining to prior period are accounted through "Prior Period Adjustment Account".

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Aug 31, 2012

1. A. Accounting convention:

The financial statements are prepared under the historical cost convention, on accrual basis of accounting in accordance with the Companies Act, 1956 and in accordance with generally accepted accounting principles (Indian ‘GAAP'') are in compliance with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).

B. Significant Accounting Policies:

(i) The accounts are prepared under the historical cost convention and on the accrual basis of accounting.

(ii) Fixed assets are stated at cost less accumulated depreciation and depreciation has been provided on straight line basis as per the rate prescribed in Schedule XIV of the Companies Act.

(iii) Long-term investments are stated at average cost except where there is a diminution other than temporary, for which provision is made. Current investments are stated at the lower of cost and fair value, considered category wise.

(iv) Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent amount as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized in the periods in which the results are known / materialized.

2. As the Company''s business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

3. Contingent Liabilities :- Contingent Liabilities are determined of the basis of available information and are disclosed by way of note to the accounts.

4. Income and Expenditure :-

4.1 Income and Expenditure are accounted on accrual basis.

4.2 Merchant Banking and corporate advisory Services income is accounted on accrual basis.

4.3 Underwriting income are accounted on completion of the issue.

4.4 Income from securities operations is accounted after considering the acquisition cost.

4.5 Provision for current tax is made on basis on the assessable income under the Income tax Act, 1961.

4.6 Deferred tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income which originate in one period and are capable of reversal in one or more subsequent periods (adjusted for reversal except during tax holiday period). The tax effect is calculated on accumulated timing differences at the yearend based on tax rates & laws enacted or substantially enacted as of the Balance Sheet date.

5. Fixed Assets and Depreciation:

i) Fixed Assets are stated at historical cost in the books of accounts. Cost include all cost incurred to bring the assets to their present location and condition.

ii) Depreciation on Fixed Assets is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956.

6. Investment :-

Investments are stated at their acquisition cost. Investment of the Company have been considered to be of long term nature. As they are long term investments, are valued at cost of acquisition. In respect of quoted investments where the market value is lower than the acquisition cost, provision for diminution in the value of such investments is made. Investments where there is permanent diminution is written off.

7. Amortization of Miscellaneous Expenditure :-

Miscellaneous Expenditure are amortized over a period of ten years.

8. Earnings Per Share: The Company reports Basic Earnings Per Share (EPS) in accordance with Accounting Standard (20) 0.71 Earnings Per Share. Basis EPS is computed by dividing the net profit for the year by weighted average number of share outstanding during the year.

9. Related Party Transactions: Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and/or operating decisions.

10. Provisions, Contingent Liabilities and Contingent Assets: Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Impairment of Assets: As per requirement of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India, at each balance sheet date, assessment is made of whether there is any objective evidence of impairment of financial assets. If there is evidence then the recoverable amount is estimated and impairment loss is recognized in accordance with Accounting Standard 28.

12. Prior Period Adjustments:

Material items pertaining to prior period are accounted through "Prior Period Adjustment Account".

13. Preliminary Expenses:

Preliminary expenses are written off equally over a period of ten years.

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Aug 31, 2011

1. A. Accounting convention:

The financial statements are prepared under the historical cost convention, on accrual basis of accounting in accordance with the Companies Act, 1956 and in accordance with generally accepted accounting principles (Indian 'GAAP') are in compliance with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).

(i) The accounts are prepared under the historical cost convention and on the accrual basis of accounting.

(ii) Fixed assets are stated at cost less accumulated depreciation and depreciation has been provided on straight line basis as per the rate prescribed in Schedule XIV of the Companies Act. .

(iii) Long-term investments are stated at average cost except where there is a dimunition other than temporary, for which provision is made.

Current investments are stated at the lower of cost and fair value, considered category wise.

(iv) Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent amount as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized in the periods in which the results are known / materialized.

2. As the Company's business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

3. Contingent Liabilities

Contingent Liabilities are determined of the basis of available information and arc disclosed by way of note to the accounts.

4. Income and Expenditure :-

4.1 Income and Expenditure are accounted on accrual basis.

4.2 Merchant Banking and corporate advisory Services income is accounted on accrual basis.

4.3 Underwriting income are accounted on completion of the issue.

4.4 Income from securities operations is accounted after considering the acquisition cost.

4.5 Provision for current tax is made on basis on the assessable income under the Income tax Act, 1961.

4.6 Deferred tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income which originate in one period and are capable of reversal in one or more subsequent periods (adjusted for reversal except during tax holiday period). The tax effect is calculated on accumulated timing differences at the year end based on tax rates & laws enacted or substantially enacted as of the Balance Sheet date.

5. Fixed Assets and Depreciation:

i) Fixed Assets are stated at historical cost in the books of accounts. Cost include all cost incurred to bring the assets to their present location and condition.

ii) Depreciation on Fixed Assets is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956.

6. Investment :-

Investments are stated at their acquisition cost. Investment of the Company have been considered to be of long term nature. As they are long term investments, are valued at cost of acquisition. In respect of quoted investments v/here the market value is lower than the acquisition cost, provision for diminition in the value of such investments is made. Investments where there is permanent diminition is written off.

7. Amortization of Miscellaneous Expenditure :-

Miscellaneous Expenditure are amortized over a period of ten years.

8. Earnings Per Share:

The Company reports Basic Earnings Per Share (EPS) in accordance with Accounting Standard (20) 0.71 Earnings Per Share. Basis EPS is computed by dividing the net profit for the year by weighted average number of share outstanding during the year.

9. Related Party Transactions:

Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and/or operating decisions.

10. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Impairment of Assets:

As per requirement of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India, at each balance sheet date, assessment is made of whether there is any objective evidence of impairment of financial assets. If there is evidence then the recoverable amount is estimated and impairment loss is recognized in accordance with Accounting Standard 28.

12. Prior Period Adjustments:

Material items pertaining to prior period are accounted through "Prior Period Adjustment Account".

13. Preliminary Expenses:

Preliminary expenses are written off equally over a period of ten years.

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Aug 31, 2010

A Accounting convention:

The financial statements are prepared under the historical cost convention, on accrual basis of accounting in accordance with the Companies Act, 1956 and in accordance with generally accepted accounting principles (Indian 'GAAP') are in compliance with the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI).

(i) The accounts are prepared under the historical cost convention and on the accrual basis of accounting.

(ii) Fixed assets are stated at cost less accumulated depreciation and depreciation has been provided on straight line basis as per the rate prescribed in Schedule XIV ofthe Companies Act.

(iii) Long-term investments are stated at average cost except where there is a diminition other than temporary, for which provision is made.

Current investments are stated at the lower of cost and fair value, considered category wise.

(iv) Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent amount as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to the accounting estimates is recognized in the periods in which the results are known / materialized.

1. As the Company's business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

2. As the Company's business activity falls within a single primary business segment viz. Merchant Banking, Investment, etc., the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

3. Contingent Liabilities :-

Contingent Liabilities are determined of the basis of available information and are disclosed by way of note to the accounts.

4. Income and Expenditure :-

4.1 Income and Expenditure are accounted on accrual basis.

4.2 Merchant Banking and corporate advisory Services income is accounted on accrual basis.

4.3 Underwriting income are accounted on completion of the issue.

4.4 Income from securities operations is accounted after considering the acquisition cost.

4.5 Provision for current tax is made on basis on the assessable income under the Income tax Act, 1961.

4.6 Deferred tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income which originate in one period and are capable of reversal in one or more subsequent periods (adjusted for reversal except during tax holiday period). The tax effect is calculated on accumulated timing differences at the year end based on tax rates & laws enacted or substantially enacted as of the Balance Sheet date.

5. Fixed Assets and Depreciation:

i) Fixed Assets are stated at historical cost in the books of accounts. Cost include all cost incurred to bring the assets to their present location and condition.

ii) Depreciation on Fixed Assets is provided on Straight Line Method in the manner and at the rates specified in Schedule XIV of the Companies Act, 1956.

6. Investment :-

Investments are stated at their acquisition cost. Investment of the Company have been considered to be of long term nature. As they are long term investments, are valued at cost of acquisition. In respect of quoted investments where the market value is lower than the acquisition cost, provision for diminition in the value of such investments is made. Investments where there is permanent diminition is written off.

7. Amortization of Miscellaneous Expenditure :-

Miscellaneous Expenditure are amortized over a period often years.

8. Earnings Per Share:

The Company reports Basic Earnings Per Share (EPS) in accordance with Accounting Standard (20) 0.71 Earnings Per Share. Basis EPS is computed by dividing the net profit for the year by weighted average number of share outstanding during the year.

9. Related Party Transactions:

Parties are considered to be related if at any time during the year, one party has the ability to control the other party or to exercise significant influence over the other party in making financial and/or operating decisions.

10. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized in the financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

11. Impairment of Assets:

As per requirement of Accounting Standard 28 on Impairment of Assets issued by the Institute of Chartered Accountants of India, at each balance sheet date, assessment is made of whether there is any objective evidence of impairment of financial assets. If there is evidence then the recoverable amount is estimated and impairment loss is recognized in accordance with Accounting Standard 28.

12. Prior Period Adjustments:

Material items pertaining to prior period are accounted through "Prior Period Adjustment Account".

13. Preliminary Expenses:

Preliminary expenses are written off equally over a period often years.