Mar 31, 2015
(A) Nature of operations:
The main business of the Company is Trading and Investment in Financial
Instruments and financing activities.
(i) System of Accounting
The Financial Statements are prepared under the historical cost
convention on accrual basis of accounting, in accordance with Generally
Accepted Accounting Principles in India, including the Accounting
Standards notified under the relevant provisions of the Companies Act,
2013.
(ii) Use of Estimates
The Preparation of Financial Statements in conformity with Generally
Accepted Accounting Principles (GAAP) in India requires management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities and the disclosures of contingent liabilities on
the date of financial statements and reported amounts of income and
expenses during the period.
(iii) Applicability of RBI Regulations
The Company is a RBI registered Non-Banking Financial Company and it
has followed guidelines issued by the RBI relating to Income
Recognisation , Assets Clarification and provisioning for NBFC
Companies.
(C) Revenue Recognition :
i) Sales comprise sale of financial instruments. Revenue from sale is
recognized:
a) when all the significant risks and rewards of ownership are
transferred to the buyer which coincides with delivery and are recorded
net of expenses incurred in this behalf or the contract for the same is
executed through recognized stock exchanges.
b) no significant uncertainty exists regarding the amount of the
consideration that will be derived from the sale.
ii) Income from Investments is taken into account when the same are
sold and the certainty of transaction is confirmed.
iii) Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable.
iv) Dividend income is recognized on receipt basis.
(D) Fixed Assets and Depreciation :
All fixed assets are stated at cost, comprising of purchase price,
duty, levies and direct attributable cost of bringing the assets to
their working condition for the intended use. Depreciation on fixed
asset is provided using the straight line method based on rates
specified in Schedule II of the Companies Act, 2013.
Till the year ended March 31, 2014, Schedule XIV to the Companies Act,
1956, prescribed requirement concerning depreciation of Fixed Asset.
From the current year, Schedule XIV has been replaced by Schedule II to
the Companies Act, 2013.
(E) Investments:
Long Term Investments are stated at cost. The company provides for
diminution, other than temporary, in the value of long term
investments. Current Investments, if any are valued at cost or fair
market value whichever is lower.
(F) Retirement Benefits:
Contribution of Provident Fund, Gratuity and Leave encashment benefits
wherever applicable is being accounted on actual liability basis as and
when arises. However, the above referred provisions are not applicable
to the company as it does not fall within the purview of the same in
the year under review.
(G) Inventories:
Inventories are valued at cost arrived at FIFO basis or net realizable
value whichever is lower.
(H) Earning Per Share:
The Basic and Diluted Earning Per Share ("EPS") is computed by dividing
the net profit after tax for the year by weighted average number of
equity shares outstanding during the year.
(I) Provisions for Taxation:
The expenses comprises of current tax (i.e. amount of tax for the
period determined in accordance with the Income Tax Act, 1961) and
deferred tax charges or credit (reflecting the tax effects of timing
difference between accounting income and taxable income for the
period).
The deferred tax charge or credit and the corresponding deferred tax
liabilities or 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 assets can be realized in future;
however. where there is unabsorbed depreciation or carry forward loss
under taxation laws, deferred tax assets are recognized only if there
is a virtual certainty of realization of such assets. Deferred tax
assets are reviewed as at each Balance Sheet date to reassess
realization.
(J) Provisions and Contingencies :
i) Provision is recognized (for liabilities that can be measured by
using a substantial degree of estimation) when:
a) The Company has a present obligation as a result of a past event.
b) A probable outflow of resources embodying economic benefits is
expected to settle the obligation; and
c) The amount of the obligation can be reliably estimated.
ii) 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 possible obligation
or a present obligation in respect of which likelihood of outflow of
resources is remote, no provision or disclosure is made.
iii) Provision against Standard Assets has been made as per RBI
guidelines.
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