Mar 31, 2010
(a) Basis of Preparation of Financial Statements - The financial statements have been prepared under the historical cost convention, in accordance with the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956 as adopted consistently by the company.
(b) Fixed Assets - Fixed assets are stated at cost of aquisition or construction including incidental expenses related to the acquisition or construction of the asset. Fixed assets are shown net of accumulated depreciation.
(c) Depreciation - Depreciation is provided on straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.
(d) Investments - Long Term Investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of investments.
(e) Revenue & Expenditure - All income and expenditure having a material bearing on the financial statements are recognised on accrual basis.
(f) For Futures & Options transactions -
- On transactions squared up during the year, profit realised or loss incurred is accounted as profit or loss for the year.
- On open transactions in Futures, difference between the commitment price and market value as on balance sheet date is taken as Marked to Market Margin and is shown under Current Assets or Current Liabilities as the case may be.
- On open transactions in options, premium received on sale of options is included in Other Liabilities under Current Liabilities and premium paid on buying options under Current Assets.