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Accounting Policies of RGF Capital Markets Ltd. Company

Mar 31, 2015

Basis of Accounting :

The financial statements are prepared under historical cost convention, on an accrual basis and in accordance with relevant presentational requirements of the Companies Act, 2013 and the applicable mandatory Accounting Standards as prescribed under section 133 of Companies Act, 2013 read with rule 7 of the Companies (Accounts) Rules, 2014.

Inventories:

Inventories of shares are valued at cost computed on FIFO Basis or fair value, whichever is lower.

Recognition of Income and Expenditure :

Income and expenditure are accounted for on accrual basis. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable. Dividend income is recognized when the shareholder's right to receive payment is established by the balance sheet date.

Depreciation on Fixed Assets:

Depreciation on Fixed Assets has been provided based on useful life assigned to each asset prescribed in accordance with Part - "C" of Schedule-II of the Companies Act, 2013.

Fixed Assets:

Fixed Assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

Impairment of Assets:

I. The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset's net selling price and value in use. In assessing the value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.

II. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

Investment :

Investments that are readily realizable and intended to be held for not more than a year are classified as Current Investments. All other Investments are classified as Non Current Investments. Current Investments are stated at lower of cost and market rate on an individual investment basis. Non Current Investments are considered 'at cost' on individual investment basis, unless there is a decline other than temporary in the value, in which case adequate provision is made against such diminution in the value of investments.

Earnings per share:

- Earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders, by the weighted average number of equity shares outstanding during the year.

- For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.

Provision and Deferred Tax :

The Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from "timings difference" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

Contingencies:

These are disclosed by way of notes on the Balance sheet. Provisions is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end , till the finalization of accounts and material effect on the position stated in the Balance Sheet .

PROVISIONING FOR STANDARD ASSETS :

The Reserve Bank Of India vide Notification No DNBS 223/CGM (US) 2011 DATED 17 JANUARY, 2011 has issued direction to all NBFCs to make provision of 0.25% on STANDARD ASSETS with immediate effect. Accordingly the Company has made provision @ 0.25%.

i Based on the information / documents available with the Company, no creditor is covered under Micro, Small and Medium

Enterprise Development Act, 2006. As a result, no interest provision/payments have been made by the Company to such creditors for the year ended 31st March 2015.

ii Loans & advances balances are subject to confirmation by the respective parties .

iii Segment Report :

The Company is engaged in the business of Non-Banking Financial Services and there are no separate reportable segments as per Accounting Standard 17.

Related Party Disclosure : iv

KEY MANAGEMENT PERSONNEL ( KMP )

1. Sagar Mal Nahata - Managing Director

2. Vivek Khandelwal - Company Secretary

RELATIVES OF (KMP) AND ENTERPRISE IN WHICH TRANSACTION HAS TAKEN PLACE:

1. S.M. NAHATA & CO.

2. S.M. NAHATA FOUNDATION

3. SHARP INVESTMENTS LIMITED


Mar 31, 2014

01 ACCOUNTING CONVENTIONS

The Financial Statements are prepared on Historical Com Convention Financial Statements are prepared in accordance will) relevant presentational requirements of the Companies Act. 1956 and applicable mandatory} Accounting Standards.

02 INVESTMENTS

Investments arc long-term investments, hence valued at cost.

03 RECOGNITION Ol-INCOME £ EM'ENDIU RE

Income & Expenditures are accounted lor on accrual basis, except div fund those arc accounted tor on Receipt Bastes.

04 PRELIMINARY EXPENSES

Preliminary Expense is amortized over a period ol" I've years.

05 TAXES ON INCOME

Current Tax is deveined as the amount ol" tax payable in respect of taxable income for the year.

Deferred fax is recognized, subject to consideration of prudence, in respect of deferred ' assets ' liabilities on timing difference. being the difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods.

06 CONTINGENCIES:

These are disclosed by way of notes on the Balance sheet. Provisions is made in the accounts in respect of lilacs contingencies which are likely to materialize into liabilities alter the year end. till the finalizations of accounts and material effect on the position stated in the Balance Sheet

07 PROVISIONING FOR STANIUKI) ASSETS :

The Reserve Bank Of India vide Notification No DNBS 223 / 0GM 11 S iOI I DATED 17 JAM ARV , 2011 has issued direction to all NBEf's to make provision ol (1.25% on STANDARD ASSETS with incredible elves Accordingly the Company has made provision a 0.25% on Standard Assets in accordance therewith .

08 PROVISIONING FOR DEFFERED TAXES :

The Provision for current tax is made after taking in consideration benefits admissible under the provisions of the income Deferred Tax resulting from " timings difference " between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantial!; enacted as on the Balance Sheet cite . The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certain that the a-ices will be realized in future -

09 EARNING PER SHAKE

Earnings per share is calculated by dividing the nil profit or loss lord the year line table out it shareholders, by the weighted average number of equity shares outstanding during the year For the purpose of calculating diluted earnings |x:r share. late net profit or loss lord the year aid (billable in equity shareholders and weighted average number of shares outstanding during the year are adjusted tor there are of all dilutive potential equity shares


Mar 31, 2013

01 ACCOUNTING CONVENTIONS

The Financial Statements are prepared on Historical Cost Convention. Financial Statements are (prepared in accordance with relevant presentational requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards.

02 INVESTMENTS

Investments are long-term investments, hence valued at cost.

03 RECOGNITION OF INCOME a EXPENDITURE

Income & Expenditures are accounted for on accrual basis, except dividend those are accounted for on Receipt Basis,

04 PRELIMINARY EXPENSES

Preliminary Expense is amortized over a period of Five years.

05 TAXES ON INCOME

Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred Tax is recognized, subject to consideration of prudence, in respect of deferred tax assets / liabilities on timing difference, being the difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods,

06 CONTINGENCIES :

These! are disclosed by way of notes on the Balance sheet. Provisions is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end, till the finalization of accounts and material effect on the position stated in the Balance Sheet

07 PROVISIONING FOR STANDARD ASSETS :

The Reserve Bank Of India vide Notification No DNBS 223 / CGM ( US ) 2011 DATED 17 JANUARY , 2011 has issued direction to all NBFCs to make provision of 0.25% on STANDARD ASSETS with immediate effect. Accordingly the Company has made provision @ 0.25% on Standard Assets in accordance therewith.

08 PROVISIONING FOR DEFERRED TAXES :

The Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

Deferred Tax resulting from " timings difference " between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date . The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

09 EARNING PER SHARE

Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders, by the weighted average number of equity shares outstanding during the year For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares


Mar 31, 2012

01 ACCOUNTING CONVENTIONS

The Financial Statements are prepared on Historical Cost Convention. Financial Statements are prepared in accordance with relevant presentational requirements of the Companies Act, 1956 and applicable mandatory Accounting Standards.

02 INVESTMENTS

Investments are long-term investments, hence valued at cost

03 RECOGNITION OF INCOME & EXPENDITURE

Income & Expenditures are accounted for on accrual basis, except dividend those are accounted for on Receipt Basis.

04 PRELIMINARY EXPENSES

Preliminary Expense is amortized over a period of Five years,

05 TAXES ON INCOME

Current Tax is determined as the amount of tax payable in respect of taxable income for the year.

Deferred Tax is recognized, subject to consideration of prudence, in respect of deferred tax assets / liabilities on timing difference, being the difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods.

06 CONTINGENCIES;

These are disclosed by way of notes on the Balance sheet. Provisions is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end, till the finalization of accounts and material effect on the position stated in the Balance Sheet

07 PROVISIONING FOR STANDARD ASSETS :

The Reserve Bank Of India vide Notification No DNBS 223 / CGM ( US ) 2011 DATED 17 JANUARY, 2011 has issued direction to all NBFCs to make provision of 0.25% on STANDARD ASSETS with immediate effect. Accordingly the Company has made provision @ 0.25% on Standard Assets in accordance therewith.

08 PROVISIONING FOR DEFERRED TAXES :

The Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Deferred Tax resulting from " timings difference " between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the Balance Sheet date. The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be realized in future.

09 EARNING PER SHARE

Earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders, by the weighted average number of equity shares outstanding during the year For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares


Mar 31, 2011

(a) Basis of preparation of financial statements

The financial statements are prepared under Historical Cost convention, in accordance with Generally Accepted Accounting.

Principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956.

(b) Recognition of Income and Expenditure

Items of Income and Expenditure are recognised on accrual and prudent basis. Income is not reckoned unless there is certainity of the amount and its collectivity .

c) Provision for Current and Deferred Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "Timing Differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable/virtual certainty that the asset will be realized in future.

(d) Investment

Long Term Investments are valued at cost. Temporary diminution, if any, in the value of such investments is 'not recognized.

(e) Retirement Benefit

i) Gratuity :- The provision of payment of Gratuity Act 1972 are not applicable to the company as yet. ii) Leave Encashment:-The Company does not permit encashment of accumulated leave.

(f) Preliminary Expenses

Preliminary Expenses are amortized equally over a period of five Financial Years.

(g) Contingent Liabilities

These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts in respect of those contingencies which are likely to materialize into liabilities after the year end . till the finalization of accounts and have material effect on the position stated in the Balance Sheet.

 
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