Mar 31, 2015
(i) Basis of Preparation of Financial Statements:
These financial statements have been prepared to comply with the
Generally Accepted Accounting Principles in India (Indian GAAP),
including the Accounting Standards notified under relevant provisions
of the Companies Act, 2013.
The financial statements are prepared on accrual basis under the
historical cost convention; the financial statements are presented in
Indian rupees.
ii. Use of Estimates:
The preparation of financial statements in conformity with India GAAP
requires judgments, estimates and assumption to be made that affect the
reported amount of assets and liabilities, disclosure of contingent
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognized in the period
in which the results are known /materialized.
iii. Fixed Assets & Depreciation
Fixed Assets are stated at cost less accumulated depreciation thereon.
The cost of fixed assets comprises purchase price and any attributable
cost of bringing the asset to its working condition for its intended
use. The Company provides pro-rata depreciation from the date on which
asset is acquired/ put to use. In respect of assets sold, pro-rata
depreciation is provided up to the date on which the asset is sold. On
all assets, except as mentioned below, depreciation has been provided
on Straight Line method over the useful lives and residuals values of
assets as prescribed under Part C of Schedule II of Companies Act,
2013.
a) Assets costing R 5,000/- or less are fully depreciated in the year
of purchase.
b) Improvements to leased Assets are depreciated over the initial
period of lease. Expenditure which are attributable to Construction of
a project are included as part of the cost of the construction project
during construction period and Included under capital work in progress
which is allocated to the respective fixed assets on the completion of
the Construction period.
c) There are no intangible assets during the year.
d) There no fixed assets operating under lease during the year.
e) Interest and other costs in connection with the borrowing of the
funds to the extent related/ attributed to the acquisition/
construction of qualifying fixed assets are capitalized up to the date
when such assets are ready for its intended use and other borrowing
costs are charged to Profit & Loss account.
iv. Investments:
Investments are classified into long-term investments and current
investments. Investments that are intended to be held for one year or
more are classified as long-term investments and investments that are
intended to be held for less than one year are classified as current
investments. Long term investments are valued at cost. Provision for
diminution in value of long term investments is made if in the opinion
of management such a decline is other than temporary. Current
investments are valued at cost or market/fair value, whichever is
lower.
Units of Mutual Funds (Non - Exchange traded funds) are valued at cost
or market value whichever is lower. Net asset value of units declared
by mutual funds is considered as market value for non-exchange traded
Mutual Funds.
v. Revenue Recognition:
a) Interest Income is recognized on the time proportionate basis
starting from the date of disbursement of loan. In case of Non
Performing Assets, interest income is recognized on receipt basis, as
per NBFC Prudential norms. Dividend income is recognized when the right
to receive payment is established.
b) Income from investment in Private Equity Funds ("the fund"), is
booked as and when the same is distributed by the Fund Return of
capital contribution is reduced from the original cost of investment.
c) Income from arbitrage and trading in securities and derivatives
comprises profit/loss on sale of securities/currency held as
stock-in-trade and profit/loss on related derivative instruments.
d) Profit/loss on sale of securities is determined based on the
Weighted Average cost of the securities sold.
e) The company has designated the securities as financial assets at
"fair value through Statement of Profit or loss". Such designations are
f) Considered by the Company to eliminate/ significantly reduce
measurement / recognition inconsistency that would otherwise arise.
These instruments are measured at fair value and changes therein are
recognized in the Statement of Profit or Loss.
vi. Stock In Trade:
a) Shares are valued at cost price. Cost is considered on Weighted
Average Basis.
b) Units of Mutual Funds (Exchange traded funds) are valued at cost or
market value whichever is lower.
vii. Retirement Benefits
None of the employees is covered under the provisions of the provident
Fund, Family Pension Fund, or the Payment of Gratuity Act, during the
year.
viii. Taxation:
Tax expense companies of current tax and deferred tax. Current tax is
measured at the amount expected to be paid to the tax authorities,
using the applicable tax rates. Deferred income tax reflect the current
period timing differences between taxable income and accounting income
for the period and reversal of timing differences of earlier
years/period. Deferred tax assets are recognized only the extent that
there is a reasonable certainty that sufficient future income will be
available excepted that deferred tax assets, In case there are
unabsorbed depreciation or losses, are recognized if there is virtual
certainty that sufficient future taxable income will be available to
the release the same.
Deferred tax assets and liabilities are measured using the tax rates
and tax law that have been enacted or substantively enacted by the
Balance Sheet date.
ix. Provisions and Contingencies:
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognized in the financial statements.
However, contingent assets are assessed continually and if it is
virtually certain that an economic benefit will arise, the asset and
related income are recognized in the period in which the change occurs.
x. Impairment of Assets:
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit which the asset belongs to, is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Statement of Profit and Loss. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost.
xi. Earnings per share
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. The weighted
average numbers of equity shares outstanding during the year are
adjusted for events of bonus issue to existing shareholders & share
split. For the purpose of calculating diluted earnings per share, the
net profits attributable to equity shareholders and the weighted
average number of share outstanding are adjusted for the effect of all
dilutive potential equity shares from the exercise of options on
unissued share capital. The number of equity shares is the aggregate
of the weighted average number of equity shares and the weighted
average number of equity shares, which would be issued on the
conversion of all dilutive potential equity shares into equity shares.
Options on unissued equity shares are deemed to have been converted
into equity shares.
xii. Derivative Financial Instruments
As per the institute of Chartered Accountants of India(ICAI)
announcement , accounting for derivative contracts , if any, other than
those covered under AS 11 , are marked to market on a portfolio basis,
and the loss is charged to income statement. Net gains are ignored.
xiii. Operating Cycle
All assets and liabilities have been classified as current or
non-current as per each Company''s normal operating cycle & other
criteria set out in the Revised Sch.VI to Act.
xiv. Sundry Debtors/Loans and Advances
Sundry Debtors and Loans and advances are stated after making adequate
provisions for doubtful balances.
xv. Expenditure
Expenses are accounted on accrual basis and provision is made for all
known losses and liabilities.
Mar 31, 2014
I. Basis of Preparation of Financial Statements:
The accompanying financial statements are consistently prepared under
the historical cost convention, on the accrual basis of accounting and
comply with the accounting standards as notified under the Companies
Act, 1956, read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of the corporate affairs in respect of section 133
of the companies act,2013 and in accordance with the generally accepted
accounting principles, the provisions of the Companies Act and
regulations of RBI India to the extent applicable.
ii. 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
assets and liabilities. The estimates and assumptions used in the
accompanying financial statements are based upon management''s
evaluation of the relevant facts and circumstances as of the date of
the financial statements. Actual results may differ from the estimates
and assumptions used in preparing the accompanying financial
statements. Any differences of actual results to such estimates are
recognized in the period in which the results are known/materialized.
iii. Fixed Assets & Depreciation
Fixed Assets are stated at cost less accumulated depreciation thereon.
The cost of fixed assets comprises purchase price and any attributable
cost of bringing the asset to its working condition for its intended
use. The Company provides pro-rata depreciation from the date on which
asset is acquired/put to use. In respect of assets sold, pro-rata
depreciation is provided up to the date on which the asset is sold. On
all assets, except as mentioned below, depreciation has been provided
using the Straight Line method at the rates specified in Schedule XIV
to the Companies Act, 1956.
a) Assets costing Rs. 5,000/- or less are fully depreciated in the year
of purchase.
b) Improvements to leased Assets are depreciated over the initial
period of lease. Expenditure which are attributable to Construction of
a project are included as part of the cost of the construction project
during construction period and Included under capital work in progress
which is allocated to the respective fixed assets on the completion of
the Construction period.
iv. Borrowing Cost:
Interest and other costs in connection with the borrowing of the funds
to the extent related/ attributed to the acquisition/ construction of
qualifying fixed assets are capitalized up to the date when such assets
are ready for its intended use and other borrowing costs are charged to
Profit & Loss account.
v. Investments:
Investments are classified into long-term investments and current
investments. Investments that are intended to be held for one year or
more are classified as long-term investments and investments that are
intended to be held for less than one year are classified as current
investments. Long term investments are valued at cost. Provision for
diminution in value of long term investments is made if in the opinion
of management such a decline is other than temporary. Current
investments are valued at cost or market/fair value, whichever is
lower.
Units of Mutual Funds (Non-Exchange traded funds) are valued at cost or
market value whichever is lower. Net asset value of units declared by
mutual funds is considered as market value for non-exchange traded
Mutual Funds.
vi. Revenue Recognition:
a) Interest Income is recognized on the time proportionate basis
starting from the date of disbursement of loan. In case of Non
Performing Assets, interest income is recognized on receipt basis, as
per NBFC Prudential norms. Dividend income is recognized when the right
to receive payment is established.
b) Income from investment in Private Equity Funds ("the fund"), is
booked as and when the same is distributed by the Fund Return of
capital contribution is reduced from the original cost of investment.
c) Income from arbitrage and trading in securities and derivatives
comprises profit/loss on sale of securities/currency held as
stock-in-trade and profit/loss on related derivative instruments.
d) Profit/loss on sale of securities is determined based on the
Weighted Average cost of the securities sold.
e) The company has designated the securities as financial assets at
"fair value through Statement of Profit or loss". Such designations are
considered by the Company to eliminate/significantly reduce
measurement/recognition inconsistency that would otherwise arise.
These instruments are measured at fair value and changes therein are
recognised in the Statement of Profit or Loss.
vii. Stock In Trade:
a) Shares are valued at cost price. Cost is considered on Weighted
Average Basis.
b) Units of Mutual Funds (Exchange traded funds) are valued at cost or
market value whichever is lower.
viii. Retiremenet Benefits
None of the employees is covered under the provisions of the provident
Fund, Family Pension Fund,or the Payment of Gratuity Act, during year.
ix. Taxation:
Income-tax expense comprises current tax (i.e. amt. of tax for the
period determined in accordance with IT Law), deferred tax charge or
credit (reflecting the tax effect of timing differences between
accounting income and taxable income for the period).
Current Tax: Provision for current tax is made on the basis of
estimated taxable income for the accounting year in accordance with
I.T. Act, 1961.
Deferred taxation: The deferred tax charge or credit and the
corresponding deferred tax liabilities and assets are recognized using
the tax rates that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognized only to the
extent there is reasonable certainty that the asset can be realised 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 realisation 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
reasonable/virtually certain to be realised.
Minimum Alternate Tax: In case the company is liable to pay income tax
u/s 115 JB of the Income Tax Act, 1961, the amount of tax paid in
excess of normal income tax is recognized as asset (MAT credit
Entitlement) only if there is convincing evidence for realization of
such asset during the specified period. MAT credit entitlement is
reviewed at each Balance Sheet date.
x. Provisions and Contingencies:
The Company creates a provision when there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Provisions are reviewed at each balance sheet date and adjusted to
reflect the current best estimate. If it is no longer probable that the
outflow of resources would be required to settle the obligation, the
provision is reversed.
Contingent assets are not recognized in the financial statements.
However, contingent assets are assessed continually and if it is
virtually certain that an economic benefit will arise, the asset and
related income are recognized in the period in which the change occurs.
xi. Impairment of Assets:
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the asset. If
such recoverable amount of the asset or the recoverable amount of the
cash generating unit which the asset belongs to, is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the Statement of Profit and Loss. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost.
xii. Earnings per share
Basic earnings per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. The weighted
average numbers of equity shares outstanding during the year are
adjusted for events of bonus issue to existing shareholders & share
split. For the purpose of calculating diluted earnings per share, the
net profits attributable to equity shareholders and the weighted
average number of share outstanding are adjusted for the effect of all
dilutive potential equity shares from the exercise of options on
unissued share capital. The number of equity shares is the aggregate of
the weighted average number of equity shares and the weighted average
number of equity shares, which would be issued on the conversion of all
dilutive potential equity shares into equity shares. Options on
unissued equity shares are deemed to have been converted into equity
shares.
xiii. Derivative Financial Instruments
As per the institute of Chartered Accountants of India(ICAI)
announcement, accounting for derivative contracts, if any, other than
those covered under AS 11, are marked to market on a portfolio basis,
and the loss is charged to income statement. Net gains are ignored.
xiv. Operating Cycle
All assets and liabilities have been classified as current or
non-current as per each Company''s normal operating cycle & other
criteria set out in the Revised Sch. VI to Act.
xv. Sundry Debtors/Loans and Advances
Sundry Debtors and Loans and advances are stated after making adequate
provisions for doubtful balances
xvi. Expenditure
Expenses are accounted on accrual basis and provision is made for all
known losses and liabilities.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article