Accounting Policies of Shardul Securities Ltd. Company
Mar 31, 2023
Note 1 - Background
Shardul Securities Limited (âthe Companyâ) is registered as Non-Banking Financial Company (NBFC) as defined under Section 45-IA of the Reserve Bank of India Act, 1934 (RBI). Itâs a Non-Systemically Important Non-Deposit taking NBFC Company. These standalone financial statement of the Company for the year ended March 31, 2023 were authorised for issue by the board of directors on May 29, 2023. Pursuant to the provision of the Companies Act, 2013 (the âActâ) the Central Government, Income tax authorities, Securities and Exchange Board of India, other statutory regulatory body and under section 131 of the Act, the board of directors of the Company have powers to amend / re-open the standalone financial statements approved by the board / adopted by the members of the Company.
The Company is Public Limited Company listed on recognised stock exchange in India. The registered office of the Company is located at G-12, Tulsiani Chambers, Nariman Point, Mumbai - 400021.
Note 2 - Significant Accounting Policies
The principal accounting policies applied in the preparation of these Standalone Ind AS financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
(A) Basis of preparation of Standalone Financial Statements:
(i) Compliance with Ind AS
1) The Standalone Ind AS financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the âActâ) [Companies (Indian Accounting Standards) Rules, 2015 (as amended)] and other relevant provisions of the Act.
2) These standalone financial statements are presented in âIndian Rupeesâ, which is also the Companyâs functional currency and all amounts, are rounded to the nearest Rupees in Lakh, unless otherwise stated.
3) The standalone financial statements have been prepared in accordance with the requirements of the information and disclosures mandated by Schedule III to the Act, applicable Ind AS, other applicable pronouncements and regulations and Master Direction - Non-Banking Financial Company - Non-Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 issued by RBI.
4) The standalone Ind AS financial statements have been prepared on a going concern basis.
(ii) Historical cost convention
The Standalone Ind AS financial statements have been prepared on a historical cost basis, except for the following:
1) Certain financial assets and liabilities (including derivatives instruments) are measured at fair value.
2) Defined benefit plans - plan assets measured at fair value.
(B) Investment in subsidiaries, associates and joint ventures
Investments in subsidiary companies, associate companies and joint venture company are carried at cost and fair value (deemed cost) as per Ind AS -101 and 109 less accumulated impairment losses, if any. Where an indication of impairment exists, the carrying amount of the investment is assessed and written down immediately to its recoverable amount. On disposal of investments in subsidiary companies, associate company and joint venture company, the difference between net disposal proceeds and the carrying amounts are recognised in the Statement of Profit and Loss.
When the Company ceases to control the investment in subsidiary or associate the said investment is carried at fair value through profit and loss in accordance with Ind AS 109 "Financial Instruments".
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. Regular way purchases and sales of financial assets are recognised on trade-date, the date on which the Company commits to purchase or sell the asset.
At initial recognition, the Company measures a financial asset or financial liability at its fair value plus or minus, in the case of a financial asset or financial liability not at fair value through statement of profit and loss, transaction costs that are incremental and directly attributable to the acquisition or issue of the financial asset or financial liability, such as fees and commissions.
Transaction costs of financial assets and financial liabilities carried at fair value through profit or loss are expensed in profit or loss. Immediately after initial recognition, an expected credit loss allowance (ECL) is recognised for financial assets measured at amortised cost and investments in debt instruments measured at fair value through statement of profit and loss, which results in an accounting loss being recognised in statement of profit and loss.
When the fair value of financial assets and liabilities differs from the transaction price on initial recognition, the entity recognizes the difference as follows:
1) When the fair value is evidenced by a quoted price in an active market for an identical asset or liability (i.e. a Level 1 input) or based on a valuation technique that uses only data from observable markets, the difference is recognised as a gain or loss.
2) In all other cases, the difference is deferred and the timing of recognition of deferred day one profit or loss is determined individually. It is either amortised over the life of the instrument, deferred until the instrumentâs fair value can be determined using market observable inputs, or realised through settlement.
When the Company revises the estimates of future cash flows, the carrying amount of the respective financial assets or financial liability is adjusted to reflect the new estimate discounted using the original effective interest rate. Any changes are recognised in statement of profit and loss.
Financial assets include cash, or an equity instrument of another entity, or a contractual right to receive cash or another financial asset from another entity. Few examples of financial assets are loan receivables, investment in equity and debt instruments, trade receivables and cash and cash equivalents.
1) Classification and subsequent measurement
a The Company has applied Ind AS 109 and classifies its financial assets in the following measurement categories:
- Fair value through profit or loss (FVPL);
- Fair value through other comprehensive income (FVOCI); or
- Amortised cost.
b Fair value through profit or loss: Assets that do not meet the criteria for amortised cost or FVOCI are measured at fair value through profit or loss. A gain or loss on a debt investment that is subsequently measured at fair value through profit or loss and is not part of a hedging relationship is recognised in Statement of Profit and Loss in the period in which it arises, unless it arises from debt instruments that were designated at fair value or which are not held for trading. Interest income from these financial assets is included in âInterest incomeâ using the effective interest rate method.
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c Fair value through other comprehensive income: Financial assets that are held for collection of contractual cash flows and for selling the assets, where the assetsâ cash flows represent solely payments of principal and interest, and that are not designated at FVPL, are measured at fair value through other comprehensive income. Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses on the instrumentâs amortised cost which are recognised in profit or loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to profit or loss. Interest income from these financial assets is included in âInterest incomeâ using the effective interest rate method.
d Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest (âSPPIâ), and that are not designated at FVPL, are measured at amortised cost. The carrying amount of these assets is adjusted by any expected credit loss allowance recognised and measured. Interest income from these financial assets is recognised using the effective interest rate method. e Fair value option for financial assets: The Company may also irrevocably designate financial assets at fair value through profit or loss if doing so significantly reduces or eliminates an accounting mismatch created by assets and liabilities being measured on different bases. f Interest income
Interest income is calculated by applying the effective interest rate to the gross carrying amount of financial assets, except for:
a) Purchased or originated credit impaired (POCI) financial assets, for which the original credit-adjusted effective interest rate is applied to the amortised cost of the financial asset.
b) Financial assets that are not âPOCIâ but have subsequently become credit-impaired (or âstage 3â), for which interest revenue is calculated by applying the effective interest rate to their amortised cost (i.e. net of the expected credit loss provision).
The effective interest rate is the rate that exactly discounts estimated future cash payments or receipts through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset (i.e. its amortised cost before any impairment allowance) or to the amortised cost of a financial liability. The calculation does not consider expected credit losses and includes transaction costs, premiums or discounts and fees and points paid or received that are integral to the effective interest rate, such as origination fees. For FVOCI financial assets - assets that are credit-impaired at initial recognition - the Company calculates the credit-adjusted effective interest rate, which is calculated based on the amortised cost of the financial asset instead of its gross carrying amount and incorporates the impact of expected credit losses in estimated future cash flows.
i) Equity instruments are instruments that meet the definition of equity from the issuerâs perspective; that is, instruments that do not contain a contractual obligation to pay and that evidence a residual interest in the issuerâs net assets.
ii) The Company subsequently measures all equity investments at fair value. Where the companyâs management has elected to present fair value gains and losses on equity investments in other comprehensive income, there is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment.
iii) Changes in the fair value of financial assets at fair value through profit or loss are recognised in net gain/loss on fair value changes in the Statement of Profit and Loss. Impairment losses (and reversal of impairment losses) on equity investments measured at FVOCI are not reported separately from other changes in fair value.
iv) Gains and losses on equity investments at FVPL are included in the statement of profit and loss.
v) Equity instruments at FVOCI are not subject to an impairment assessment.
The Company assesses on a forward looking basis the expected credit losses (ECL) associated with its debt instruments carried at amortised cost and with the exposure arising from loan commitments and financial guarantee contracts. The Company recognizes a loss allowance for such losses at each reporting date.
The measurement of ECL reflects:
- An unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
- The time value of money; and
- Reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.
The measurement of the ECL allowance is an area that requires the use of complex models and significant assumptions about future economic conditions and credit behavior (e.g. the likelihood of customers defaulting and the resulting losses).
The Company writes off financial assets, in whole or in part, when it has exhausted all practical recovery efforts and has concluded there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of recovery include (i) ceasing enforcement activity and (ii) where the Companyâs recovery method is foreclosing on collateral and the value of the collateral is such that there is no reasonable expectation of recovering in full.
4) Derecognition other than on a modification
Financial assets, or a portion thereof, are derecognised when the contractual rights to receive the cash flows from the assets have expired, or when they have been transferred and either (i) the Company transfers substantially all the risks and rewards of ownership, or (ii) the Company neither transfers nor retains substantially all the risks and rewards of ownership and the Company has not retained control. The Company directly reduces the gross carrying amount of a financial asset when there is no reasonable expectation of recovering a financial asset in its entirety or a portion thereof.
5) Loans: Advances are classified into performing advances and non-performing advances (âNPAsâ) as per the RBI guidelines and are stated net of specific provision made towards NPAs. Further, NPAs are classified into substandard, doubtful and loss assets based on the criteria stipulated by the RBI. Provisions for NPAs are made at rates as prescribed by the RBI.
Financial liabilities include liabilities that represent a contractual obligation to deliver cash or another financial assets to another entity, or a contract that may or will be settled in the entities own equity instruments. Few examples of financial liabilities are trade payables, debt securities and other borrowings.
1) Classification and subsequent measurement
All financial liabilities are recognised initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.
After initial recognition, all financial liabilities are subsequently measured at amortised cost using the EIR. Any gains or losses arising on derecognition of liabilities are recognised in the Statement of Profit and Loss.
Financial liabilities are derecognised when they are extinguished i.e. when the obligation specified in the contract is discharged, cancelled or expires).
3) Offsetting Financial Instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
(G) Financial guarantee obligation
1) Financial guarantee obligation are obligation that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payments when due, in accordance with the terms of a debt instrument. Such financial guarantees are given to banks, financial institutions and others on behalf of customers to secure loans, overdrafts and other banking facilities.
2) For financial guarantee obligation, the loss allowance is recognised as a provision, if any.
Repossessed collateral represents financial and non-financial assets acquired by the Company in settlement of overdue loans. The assets are initially recognised at book value when acquired and included in premises and equipment, other financial assets, investment properties or inventories within other assets depending on their nature and the Companyâs intention in respect of recovery of these assets, and are subsequently remeasured and accounted for in accordance with the accounting policies for these categories of assets.
(I) Derivatives and hedging activities
1) Derivatives are initially recognised at fair value on the date on which the derivative contract is entered into and are subsequently remeasured at fair value. All derivatives are carried as assets when fair value is positive and as liabilities when fair value is negative.
2) The method of recognising the resulting fair value gain or loss depends on whether the derivative is designated and qualifies as a hedging instrument, and if so, the nature of the item being hedged.
Derivatives that are not designated as hedges
The Company may enters into certain derivative contracts to hedge risks which are not designated as hedges. Such contracts are accounted for at fair value through profit or loss and are included in statement of profit and loss.
1) Revenue is measured at fair value of the consideration received or receivable. Revenue is recognised when (or as) the Company satisfies a performance obligation by transferring a promised good or service to a customer.
2) When (or as) a performance obligation is satisfied, the Company recognizes as revenue the amount of the transaction price (excluding estimates of variable consideration) that is allocated to that performance obligation.
i) Interest income
Interest income is recognised using the effective interest rate.
ii) Dividend income
Dividend income is recognised when the right to receive payment is established.
iii) Income from investments
Profit / (Loss) earned from sale of securities is recognised on trade date basis. The cost of securities is computed based on First in First out (FIFO) method.
iv) Discount on investments
The difference between the acquisition cost and face value of debt instruments is recognised as interest income over the tenor of the instrument on straight-line basis.
v) Redemption premium on investments
Redemption premium on investments is recognised as income over the tenor of the investment.
vi) Management fee income and/or Advisory Fees and Services
Management fee income towards support services and/or income from Advisory Fees and Services is accounted as and when services are rendered and it becomes due on contractual terms with the parties.
vii) Rental income
Lease rental income is recognized in the Statement of Profit and Loss on a straight-line basis over the lease term.
i) Current Taxes
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, in accordance with the Income Tax Act, 1961 and the Income Computation and Disclosure Standards (ICDS) prescribed therein. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.
Current tax relating to items recognised outside profit or loss is recognised in correlation to the underlying transaction either in OCI or directly in other equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax is provided using the Balance Sheet approach on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences and deferred tax assets are recognised for deductible temporary differences to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets, if any, are reassessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
Deferred tax relating to items recognised outside profit or loss is recognised either in OCI or in other equity.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
i) As a Lessor
Leases for which the Company is a lessor is classified as finance lease or operating lease. Whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee, the lease contract is classified as finance lease. All other leases is classified as operating lease.
For Operating Lease, lease rentals are recognised on a straight line basis over the term of lease.
Effective April 1, 2019, the Company adopted Ind AS 116 âLeasesâ and applied the standard to all lease contracts existing on April 1, 2019 using the retrospective with cumulative effect method of initially applying the standard recognized at the date of initial application without any adjustment to opening balance of retained earnings. The Company did not have any material impact on the standalone financial statements on application of the above standard.
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
(N) Property, Plant & Equipment
The Company had applied for the one time transition exemption of considering the carrying cost on the transition date i.e. April 01,2018 as deemed cost under Ind As. Hence, regarded thereafter as historical cost.
Property, plant and equipment are carried at historical cost of acquisition less accumulated depreciation and impairment losses, consistent with the criteria specified in Ind AS 16 âProperty, Plant and Equipmentâ.
The cost of an item of property, plant and equipment comprises its purchase price, including import duties and nonrefundable purchase taxes, after deducting trade discounts and rebates, any directly attributable costs of bringing the asset to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the item and restoring the site on which it is located.
Subsequent costs are included in the assetâs carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are charged to profit or loss during the reporting period in which they are incurred.
Depreciation methods, estimated useful lives & residual value
Depreciation is provided on a pro-rata basis for all tangible assets on straight line method over the useful life of assets as prescribed in Schedule II to the Companies Act, 2013 to allocate their cost, net of their residual values, over their estimated useful lives as follows:
The estimated useful lives for the different types of assets are :
(i) Furniture and Fixtures -10 years
(ii) Office equipments - 5 years
(iii) Computers - 3 years
(iv) Vehicles - 8 years
(v) Buildings - 60 years
The Company provides pro-rata depreciation from the day the asset is put to use and for any asset sold, till the date of sale. The assetsâ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
An assetâs carrying amount is written down immediately to its recoverable amount if the assetâs carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognised in the statement of profit and loss.
The Company had applied for the one time transition exemption of considering the carrying cost on the transition date i.e. April 01,2018 as deemed cost under Ind As. Hence, regarded thereafter as historical cost.
Intangible assets are recognised where it is probable that the future economic benefit attributable to the assets will flow to the Company and its cost can be reliably measured. Intangible assets are stated at cost of acquisition less accumulated amortisation.
Intangible Assets are amortised on straight-line basis over the useful life of the asset up to a maximum of 5 years commencing from the month in which such asset is first installed.
The Company provides pro-rata amortization from the day the asset is put to use and for any asset sold, till the date of sale.
The Company had applied for the one time transition exemption of considering the carrying cost on the transition date i.e. April 01,2018 as deemed cost under Ind As. Hence, regarded thereafter as historical cost.
An investment property is accounted for in accordance with cost model. The cost of any shares in a co-operative society or a company, the holding of which is directly related to the right to hold the investment property, is added to the carrying amount of the investment property.
Depreciation on investment property is provided in accordance with the provisions of Schedule II of the Companies Act, 2013. Tangible assets are depreciated on straight line basis method over the useful life of assets, as prescribed in Part C of Schedule II of the Companies Act, 2013.
Borrowing costs, which are directly attributable to the acquisition / construction of property plant and equipment, till the time such assets are ready for intended use, are capitalised as part of the cost of the assets. Other borrowing costs are recognised as an expense in the year in which they are incurred. Brokerage costs directly attributable to a borrowing are expensed over the tenure of the borrowing.
(R) Impairment of non-financial assets
An assessment is done at each Balance Sheet date to ascertain whether there is any indication that an asset may be impaired. If any such indication exists, an estimate of the recoverable amount of asset is determined. If the carrying value of relevant asset is higher than the recoverable amount, the carrying value is written down accordingly.
(S) Provisions, contingent liabilities and contingent assets
The Company creates a provision when there is a present obligation as a result of past events and it is probable that there will be outflow of resources and a reliable estimate of the obligation can be made of the amount of the obligation. Contingent liabilities are not recognised but are disclosed in the notes to the Standalone Ind AS financial statements. 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 recognised nor disclosed in the Standalone Ind AS financial statements.
(T) Foreign currency translation
The Companyâs financial statements are presented in Indian Rupee, which is also the Companyâs functional currency.
Initial recognition: Transactions denominated in foreign currencies are recorded at the exchange rate prevailing at the time of the transaction.
Conversion: Monetary assets and liabilities denominated in foreign currencies at the year end are restated at year end rates.
Exchange differences: All exchange differences are accounted in the Statement of Profit and Loss.
(U) Employee benefits
1) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employeesâ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
2) Post-employment obligations
i) Defined benefit plans Gratuity:
The Companyâs gratuity benefit scheme is a defined benefit plan. The Companyâs net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets, if any, is deducted.
The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Accrued Benefit Method (same as Projected Unit Credit Method), which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.
The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.
Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Actuarial gains and losses are recognised immediately in the Statement of Profit and Loss.
ii) Defined contribution plans Provident fund:
Companyâs contributions to the recognised provident fund, which is a defined contribution scheme, are charged to the Statement of Profit and Loss.
(V) Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.
(W) Earnings per share
1) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus element in equity shares issued during the year, if any.
2) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
(X) Rounding of Amounts
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakh upto two decimal points as per the requirements of Schedule III, unless otherwise stated.
(Y) Critical estimates and judgments
The Company makes estimates and assumptions that affect the amounts recognised in the Standalone Ind AS financial statements, and the carrying amounts of assets and liabilities within the next financial year. Estimates and judgments are continually evaluated and are based on managementâs experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Management also makes certain judgments, apart from those involving estimations, in the process of applying the accounting policies. Judgments that have the most significant effect on the amounts recognised in the Standalone Ind AS financial statements and estimates that can cause a significant adjustment to the carrying amount of assets and liabilities within the next financial year include the following:
1) Estimation of fair value of unlisted investments
The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgment to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period. For details of the key assumptions used and the impact of changes to these assumptions.
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. For the purpose of preparing Income Tax working, the Company has opted for the new taxation rates u/s 115BAA of the Income Tax Act, 1961.
3) Estimation of fair value of investments property
The Company has carried out the valuation activity to assess fair value of its Investment in land and property. Accordingly, fair value estimates for investment in land and property is classified as level 3.
The Company has obtained a Valuation Report from valuer to assess fair value of its Investment of property.
Mar 31, 2018
(A) Basis of preparation of Standalone Financial Statements:
1) The Standalone Financial Statements are prepared on accrual basis under the historical cost convention, in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) and the relevant provisions of the Companies Act, 2013, as adopted consistently by the Company. The financial statements are presented in Indian rupees rounded off to the nearest rupees in lakh.
2 All items of income and expenditure having a material bearing on the financial statements are recognised on accrual basis.
(B) Use of Estimates:
The preparation of Financial Statements in confirmity with Indian GAAP requires management to make judgements, estimates and assumptions that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. The difference between the actual results and estimates are recognised in the period in which the results are known or materialised.
(C) Revenue Recognition:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Interest income is accounted on accrual basis except in the case of non-performing loans where it is recognised upon realisation, as per the prescribed by RBI.
Revenue is recognised on accrual basis and no significant uncertainty exists as to its realization or collection except dividend income which is accounted in the year in which it is received.
(D) Property Plant & Equipment
The Property Plant & Equipment are stated at Cost less accumulated depreciation and after taking into consideration the lease adjustment account. All cost including financing costs relating to the borrowings attributable to the Property Plant & Equipment are capitalised till the asset is put to use.
(E) Depreciation:
Depreciation on Property Plant & Equipment is provided as per Straigth Line Method (SLM) based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. Intangible assets (Computer Software) are amortized over a period of 5 years.
(F) Lease Transactions:
In respect of the leases prior to 1.4.2001, transactions have been accounted / restated as per the guidance note issued by the Institute of Chartered Accountants of India on Accounting for leases and in respect of leases after 1.4.2001 the transactions have been accounted as per the (AS) 19 Leases issued by The Institute of Chartered Accountants of India.
(G) Foreign Currency Transactions:
1) Transactions denominated in foreign currencies are recorded at the exchange rate prevailing on the date of the transaction.
2) Monetary items denominated in foreign currencies, if any at the year end are restated at year end rates.
3) Non monetary foreign currency items are carried at cost.
4) Any income or expense on account of exchange difference either on settlement or on translation is recognised in the Statement of Profit and Loss.
(H) Borrowing Costs:
Borrowing Costs which are directly attributable to the acquisition / construction of qualifying assets, till the time such assets are ready for intended use, are capitalised as part of the assets. Other borrowing costs are recognised as an expense in the year in which they are incurred.
(I) Miscellaneous Expenditure:
Preliminary expenses and deferred revenue expenditure are written off over a period of five years.
(J) Investments:
1) Investments are classified into current investments and long term investments.
2) Current Investments are valued, scrip wise, at cost or market price/quoted value whichever is lower.
3) Long term investments are valued at cost. Provision for diminution is made scrip wise to recognise a decline, only if such decline is other than temporary.
(K) Stock-in Trade:
Stock-in-trade is valued item wise, at cost or market price/quoted value whichever is lower. Cost is arrived at using First in First out (FIFO) method.
(L) Loans:
Advances are classified into performing advances and non-performing advances (âNPAsâ) as per the RBI guidelines and are stated net of specific provision made towards NPAs. Further, NPAs are classified into substandard, doubtful and loss assets based on the criteria stipulated by the RBI. Provisions for NPAs are made at rates as prescribed by the RBI.
(M) Impairment of Assets:
An asset is treated as impaired when the carrying cost of an assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which assets is identified as impaired. The impairment loss recognised in the prior accounting year is reversed if there has been a change in estimates of recoverable amount.
(N) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent liabilities, if material, are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.
(O) 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 âtiming differenceâ 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.
(P) Employee Benefits:
1) Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.
2) Post employment and other long- term employee benefits are recognised as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long- term benefits are charged to the Statement of Profit and Loss.
(Q) Derivative Trading:
1) Loss or Profit on settlement of Futures during the year is charged / credited to Statement of Profit and Loss.
2) Loss arising on account of Mark to Market of the un-expired Futures at the year end is charged to Statement of Profit and Loss.
Mar 31, 2016
(A) Basis of preparation of Financial Statements:
1) The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act 2013, as adopted consistently by the Company.
2) All items of income and expenditure having a material bearing on the financial statements are recognized on accrual basis.
(B) Use of Estimates:
The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenue and expenses during the reporting period. The difference between the actual results and estimates are recognized in the period in which the results are known or materialized.
(C) Revenue Recognition:
Revenue is recognized on accrual basis except dividend income which is accounted in the year in which it is received.
(D) Fixed Assets:
The Fixed Assets are stated at Cost less accumulated depreciation and after taking into consideration the lease adjustment account. All cost including financing costs relating to the borrowings attributable to the Fixed Assets are capitalized till the asset is put to use. Intangible assets are amortized over a period of 5 years.
(E) Depreciation:
Depreciation is provided based on useful lives of the assets as prescribed in Schedule II to the Companies Act, 2013.
(F) Lease Transactions:
In respect of the leases prior to 1.4.2001, transactions have been accounted / restated as per the guidance note issued by the Institute of Chartered Accountants of India on Accounting for leases and in respect of leases after 1.4.2001 the transactions have been accounted as per the (AS) 19 Leases issued by The Institute of Chartered Accountants of India.
(G) Foreign Currency Transactions:
Income and Expenditures transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.
(H) Borrowing Costs:
Borrowing Costs which are directly attributable to the acquisition / construction of fixed assets, till the time such assets are ready for intended use, are capitalized as part of the assets. Other borrowing costs are recognized as an expense in the year in which they are incurred.
(I) Miscellaneous Expenditure:
Preliminary expenses and deferred revenue expenditure are written off over a period of five years.
(J) Investments:
Investments are valued as follows:
i) Investments are classified into current investments and long term investments.
ii) Current Investments are valued, scrip wise, at cost or market price whichever is lower.
iii) Long term investments are valued at cost. Provision for diminution is made scrip wise to recognize a decline, other than temporary. (K) Stock-in Trade:
Stock-in-trade is valued item wise, at cost or market price whichever is lower. Cost is arrived at using First in First out (FIFO) method.
(L) Impairment of Assets:
An asset is treated as impaired when the carrying cost of an assets exceeds its recoverable value and impairment loss is charged to Statement of Profit and Loss in the year in which assets is identified as impaired. The impairment loss recognized in the prior accounting year is reversed if there has been a change in estimates of recoverable amount.
(M) 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 outflow of resources. Contingent liabilities, if material, are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.
(N) 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 âtiming differenceâ 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.
(O) Employee Benefits:
1. Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.
2. Post employment and other long- term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long- term benefits are charged to the Statement of Profit and Loss.
(P) Derivative Trading
1. Loss or Profit on settlement of Futures during the year is charged / credited to Statement of Profit and Loss.
2. Loss arising on account of Mark to Market of the un-expired Futures at the year end is charged to Statement of Profit and Loss.
The Company has followed the Reserve Bank of India Guidelines applicable to the Non Banking Financial Companies in respect o prudential norms for Income Recognition, Assets Classification and Capital Adequacy.
Mar 31, 2015
(A) Basis of preparation of Financial Statements:
1) The financial statements have been prepared under the historical
cost convention, in accordance with the generally accepted accounting
principles and the provisions of the Companies Act 2013, as adopted
consistently by the Company.
2) All items of income and expenditure having a material bearing on the
financial statements are recognised on accrual basis.
(B) Use of Estimates:
The preparation of financial statements requires estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. The difference
between the actual results and estimates are recognised in the period
in which the results are known or materialised.
(C) Revenue Recognition:
Revenue is recognised on accrual basis except dividend income which is
accounted in the year in which it is received.
(D) Fixed Assets :
The Fixed Assets are stated at Cost less accumulated depreciation and
after taking into consideration the lease adjustment account. All cost
including financing costs relating to the borrowings attributable to
the Fixed Assets are capitalised till the asset is put to use.
Intangible assets are amortized over a period of 5 years.
(E) Depreciation:
Depreciation is provided based on useful lives of the assets as
prescribed in Schedule II to the Companies Act, 2013.
(F) lease Transactions:
In respect of the leases prior to 1.4.2001, transactions have been
accounted / restated as per the guidance note issued by the Institute
of Chartered Accountants of India on Accounting for leases and in
respect of leases after 1.4.2001 the transactions have been accounted
as per the (AS) 19 Leases issued by The Institute of Chartered
Accountants of India.
(G) Foreign currency Transactions:
Income and Expenditures transactions denominated in foreign currencies
are normally recorded at the exchange rate prevailing at the time of
the transaction.
(H) Borrowing costs:
Borrowing Costs which are directly attributable to the acquisition /
construction of fixed assets, till the time such assets are ready for
intended use, are capitalised as part of the assets. Other borrowing
costs are recognised as an expense in the year in which they are
incurred.
(I) Miscellaneous Expenditure:
Preliminary expenses and deferred revenue expenditure are written off
over a period of five years.
(J) Investments:
Investments are valued as follows:
i) Investments are classified into current investments and long term
investments.
ii) Current Investments are valued, scrip wise, at cost or market price
whichever is lower.
iii) Long term investments are valued at cost. Provision for diminution
is made scrip wise to recognise a decline, other than temporary.
(K) Stock-in Trade:
Stock-in-trade is valued item, at cost or market price whichever is
lower. Cost is arrived at using First in First out (FIFO) method.
(L) Impairment of Assets:
An asset is treated as impaired when the carrying cost of an assets
exceeds its recoverable value and impairment loss is charged to
Statement of Profit and Loss in the year in which assets is identified
as impaired. The impairment loss recognised in the prior accounting
year is reversed if there has been a change in estimates of recoverable
amount.
(M) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement are
recognised when there is a present obligation as a result of past events
and it is probable that there will be outflow of resources. Contingent
liabilities, if material, are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
(N) 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 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.
(O ) Employee Benefits:
1. Short term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
2. Post employment and other long- term employee benefits are
recognised as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognised at the present value of the amounts payable determined using
actuarial valuation techniques. Actuarial gains and losses in respect
of post employment and other long- term benefits are charged to the
Statement of Profit and Loss.
(P) Derivative Trading
1. Loss or Profit on settlement of Futures during the year is charged
/ credited to Statement of Profit and Loss.
2. Loss arising on account of Mark to Market of the un-expired Futures
at the year end is charged to Statement of Profit and Loss.
Mar 31, 2014
(A) Basis of preparation of Financial Statements:
1) The financial statements have been prepared under the historical
cost convention, in accordance with the generally accepted accounting
principles and the provisions of the Companies Act 1956, as adopted
consistently by the Company.
2) All items of income and expenditure having a material bearing on the
financial statements are recognised on accrual basis.
(B) Use of Estimates:
The preparation of financial statements requires estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. The difference
between the actual results and estimates are recognised in the period
in which the results are known or materialised.
(C) Revenue Recognition:
Revenue is recognised on accrual basis except dividend income which is
accounted in the year in which it is received.
(D) Fixed Assets :
The Fixed Assets are stated at Cost less accumulated depreciation and
after taking into consideration the lease adjustment account. All cost
including financing costs relating to the borrowings attributable to
the Fixed Assets are capitalised till the asset is put to use.
Intangible assets are amortized over a period of 5 years.
(E) Depreciation:
Depreciation is provided on Straight Line Method at the rates and in
the manner specified in Schedule XIV to the Companies Act, 1956.
(F) Lease Transactions:
In respect of the leases prior to 1.4.2001, transactions have been
accounted / restated as per the guidance note issued by the Institute
of Chartered Accountants of India on Accounting for leases and in
respect of leases after 1.4.2001 the transactions have been accounted
as per the (AS) 19 Leases issued by The Institute of Chartered
Accountants of India.
(G) Foreign Currency Transactions:
Income and Expenditures transactions denominated in foreign currencies
are normally recorded at the exchange rate prevailing at the time of
the transaction.
(H) Borrowing Costs:
Borrowing Costs which are directly attributable to the acquisition /
construction of fixed assets, till the time such assets are ready for
intended use, are capitalised as part of the assets. Other borrowing
costs are recognised as an expense in the year in which they are
incurred.
(I) Miscellaneous Expenditure:
Preliminary expenses and deferred revenue expenditure are written off
over a period of five years. (J) Investments:
Investments are valued as follows:
i) Investments are classified into current investments and long term
investments.
ii) Current Investments are valued, scrip wise, at cost or market price
whichever is lower.
iii) Long term investments are valued at cost. Provision for diminution
is made scrip wise to recognise a decline, other than temporary. (K)
Stock-in Trade:
Stock-in-trade is valued scrip wise, at cost or market price whichever
is lower. Cost is arrived at using First in First out (FIFO) method.
(L) Impairment of Assets:
An asset is treated as impaired when the carrying cost of an assets
exceeds its recoverable value and impairment loss is charged to
Statement of Profit and Loss in the year in which assets is identified
as impaired. The impairment loss recognised in the prior accounting
year is reversed if there has been a change in estimates of recoverable
amount.
(M) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities, if material, are not recognised but are
disclosed in the notes. Contingent assets are neither recognised nor
disclosed in the financial statements.
(N) Provision for Current and Deferred Tax:
Provision for current tax is made aftertaking into consideration
benefits admissible underthe provisions ofthe IncomeTaxAct, 1961.
Deferred tax resulting from "timing 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.
(O ) Employee Benefits:
1. Short term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
2. Post employment and other long- term employee benefits are
recognised as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognised at the present value ofthe amounts payable determined using
actuarial valuation techniques. Actuarial gains and losses in respect
of post employment and other long- term benefits are charged to the
Statement of Profit and Loss.
(P) Derivative Trading
1. Loss or Profit on settlement of Futures during the year is charged
/ credited to Statement of Profit and Loss.
2. Loss arising on account of Mark to Market of the un-expired Futures
at the year end is charged to Statement of Profit and Loss.
Mar 31, 2013
(A) Basis of preparation of Financial Statements:
1) The financial statements have been prepared under the historical
cost convention, in accordance with the generally accepted accounting
principles and the provisions of the Companies Act 1956, as adopted
consistently by the Company.
2) All items of income and expenditure having a material bearing on the
financial statements are recognised on accrual basis.
(B) Use of Estimates:
The preparation of financial statements requires estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. The difference
between the actual results and estimates are recognised in the period
in which the results are known or materialised.
(C) Revenue Recognition:
Revenue is recognised on accrual basis except dividend income which is
accounted in the year in which it is received.
(D) Fixed Assets :
The Fixed Assets are stated at Cost less accumulated depreciation and
after taking into consideration the lease adjustment account. All cost
including financing costs relating to the borrowings attributable to
the Fixed Assets are capitalised till the asset is put to use.
Intangible assets are amortized over a period of 5 years.
(E) Depreciation:
Depreciation is provided on Straight Line Method at the rates and in
the manner specified in Schedule XIV to the Companies Act, 1956.
(F) Lease Transactions:
In respect of the leases prior to 1.4.2001, transactions have been
accounted / restated as per the guidance note issued by the Institute
of Chartered Accountants of India on Accounting for leases and in
respect of leases after 1.4.2001 the transactions have been accounted
as per the (AS) 19 Leases issued by The Institute of Chartered
Accountants of India.
(G) Foreign Currency Transactions:
Income and Expenditures transactions denominated in foreign currencies
are normally recorded at the exchange rate prevailing at the time of
the transaction.
(H) Borrowing Costs:
Borrowing Costs which are directly attributable to the acquisition /
construction of fixed assets, till the time such assets are ready for
intended use, are capitalised as part of the assets. Other borrowing
costs are recognised as an expense in the year in which they are
incurred.
(I) Miscellaneous Expenditures:
Preliminary expenses and deferred revenue expenditure are written off
over a period of five years.
(J) Investments:
Investments are valued as follows :
i) Investments are classified into current investments and long term
investments.
ii) Current Investments are valued, scrip wise, at cost or market price
whichever is lower.
iii) Long term investments are valued at cost. Provision for diminution
is made scrip wise to recognise a decline, other than temporary.
(K) Stock-in Trade:
Stock-in-trade is valued scrip wise, at cost or market price whichever
is lower. Cost is arrived at using First in First out (FIFO) method.
(L) Impairment of Assets:
An asset is treated as impaired when the carrying cost of an assets
exceeds its recoverable value and impairment loss is charged to
Statement Profit and Loss in the year in which assets is identified as
impaired. The impairment loss recognised in the prior accounting year
is reversed if there has been a change in estimates of recoverable
amount.
(M) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities, if material, are not recognised but are
disclosed in the notes. Contingent assets are neither recognised nor
disclosed in the financial statements.
(N) 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 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.
(O) Employee Benefits:
1. Short term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss for the year in
which the related service is rendered.
2. Post employment and other long- term employee benefits are
recognised as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognised at the present value of the amounts payable determined using
actuarial valuation techniques. Actuarial gains and losses in respect
of post employment and other long- term benefits are charged to the
Statement of Profit and Loss.
(P) Derivative Trading
1. Loss or Profit on settlement of Futures during the year is charged
/ credited to Statement of Profit and Loss.
2. Loss arising on account of Mark to Market of the un-expired Futures
at the year end is charged to Statement of Profit and Loss.
Mar 31, 2012
(A) Basis of preparation of Financial Statements:
i) The financial statements have been prepared under the historical
cost convention, in accordance with the generally accepted accounting
principles and the provisions of the Companies Act 1956, as adopted
consistently by the Company.
ii) All items of income and expenditure having a material bearing on
the financial statements are recognised on accrual basis.
(B) Use of Estimates:
The preparation of financial statements requires estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. The difference
between the actual results and estimates are recognised in the period
in which the results are known or materialised.
(C) Revenue Recognition:
Revenue is recognised on accrual basis except dividend income which is
accounted in the year in which it is received.
(D) Fixed Assets :
The Fixed Assets are stated at Cost less accumulated depreciation and
after taking into consideration the lease adjustment account. All cost
including financing costs relating to the borrowings attributable to
the Fixed Assets are capitalised till the asset is put to use.
Intangible assets are amortized over a period of 5 years.
(E) Depreciation:
Depreciation is provided on Straight Line Method at the rates and in
the manner specified in Schedule XIV to the Companies Act, 1956.
(F) Lease Transactions:
In respect of the leases prior to 1.4.2001, transactions have been
accounted / restated as per the guidance note issued by the Institute
of Chartered Accountants of India on Accounting for leases and in
respect of leases after 1.4.2001 the transactions have been accounted
as per the (AS) 19 Leases issued by The Institute of Chartered
Accountants of India.
(G) Foreign Currency Transactions:
Income and Expenditures transactions denominated in foreign currencies
are normally recorded at the exchange rate prevailing at the time of
the transaction.
(H) Borrowing Costs:
Borrowing Costs which are directly attributable to the acquisition /
construction of fixed assets, till the time such assets are ready for
intended use, are capitalised as part of the assets. Other borrowing
costs are recognised as an expense in the year in which they are
incurred.
(I) Miscellaneous Expenditures:
Preliminary expenses and deferred revenue expenditure are written off
over a period of five years.
(J) Investments:
Investments are valued as follows:
i) Investments are classified into current investments and long term
investments.
ii) Current Investments are valued, scrip wise, at cost or market price
whichever is lower.
iii) Long term investments are valued at cost. Provision for diminution
is made scrip wise to recognise a decline, other than temporary.
(K) Stock-in Trade:
Stock-in-trade is valued scrip wise, at cost or market price whichever
is lower. Cost is arrived at using First in First out (FIFO) method.
(L) Impairment of Assets:
An asset is treated as impaired when the carrying cost of an assets
exceeds its recoverable value and impairment loss is
charged to Profit and Loss Account in the year in which assets is
identified as impaired. The impairment loss recognised in the prior
accounting year is reversed if there has been a change in estimates of
recoverable amount.
(M) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities, if material, are not recognised but are
disclosed in the notes. Contingent assets are neither recognised nor
disclosed in the financial statements.
(N) 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 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.
(O ) Employee Benefits:
1. Short term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
2. Post employment and other long- term employee benefits are
recognised as an expense in the profit and loss account for the year in
which the employee has rendered services. The expense is recognised at
the present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long- term benefits are charged to the profit and
loss account.
(P) Derivative Trading
1. Loss or Profit on settlement of Futures during the year is charged
/ credited to Profit & Loss account.
2. Loss arising on account of Mark to Market of the un-expired Futures
at the year end is charged to Profit & Loss account.
Mar 31, 2011
(A) Basis of preparation of Financial Statements:
i) The financial statements have been prepared under the historical
cost convention, in accordance with the generally accepted accounting
principles and the provisions of the Companies Act 1956, as adopted
consistently by the Company.
ii) All items of income and expenditure having a material bearing on
the financial statements are recognised on accrual basis.
(B) Use of Estimates:
The presentation of financial statements requires estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. The difference
between the actual results and estimates are recognised in the period
in which the results are known or materialised.
(C) Revenue Recognition:
Revenue is recognised on accrual basis except dividend income which is
accounted in the year in which it is received.
(D) Fixed Assets :
The Fixed Assets are stated at Cost less accumulated depreciation and
after taking into consideration the lease adjustment account. All cost
including financing costs relating to the borrowings attributable to
the Fixed Assets are capitalised till the asset is put to use.
Intangible assets are amortized over a period of 5 years.
(E) Depreciation:
Depreciation is provided on Straight Line Method at the rates and in
the manner specified in Schedule XIV to the Companies Act, 1956.
(F) Lease Transactions:
In respect of the leases prior to 1.4.2001, transactions have been
accounted / restated as per the guidance note issued by the Institute
of Chartered Accountants of India on Accounting for leases and in
respect of leases after 1.4.2001 the transactions have been accounted
as per the (AS) 19 Leases issued by The Institute of Chartered
Accountants of India.
(G) Foreign Currency Transactions:
Income and Expenditures transactions denominated in foreign currencies
are normally recorded at the exchange rate prevailing at the time of
the transaction.
(H) Borrowing Costs:
Borrowing Costs which are directly attributable to the acquisition /
construction of fixed assets, till the time such assets are ready for
intended use, are capitalised as part of the assets. Other borrowing
costs are recognised as an expense in the year in which they are
incurred.
(I) Miscellaneous Expenditures:
Preliminary expenses and deferred revenue expenditure are written off
over a period of five years.
(J) Investments:
Investments are valued as follows:
i) Investments are classified into current investments and long term
investments.
ii) Current Investments are valued, scrip wise, at cost or market price
whichever is lower.
iii) Long term investments are valued at cost. Provision for diminution
is made scrip wise to recognise a decline, other than temporary.
(K) Stock-in Trade:
Stock-in-trade is valued scrip wise, at cost or market price whichever
is lower. Cost is arrived at using First in First out (FIFO) method.
(L) Impairment of Assets:
An asset is treated as impaired when the carrying cost of an assets
exceeds its recoverable value and impairment loss is charged to Profit
and Loss Account in the year in which assets is identified as impaired.
The impairment loss recognised in the prior accounting year is reversed
if there has been a change in estimates of recoverable amount.
(M) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities, if material, are not recognised but are
disclosed in the notes. Contingent assets are neither recognised nor
disclosed in the financial statements.
(N) 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 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.
(O) Employee Benefits:
Short term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Post employment and other long- term employee benefits are recognised
as an expense in the profit and loss account for the year in which the
employee has rendered services. The expense is recognised at the
present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long- term benefits are charged to the profit and
loss account.
(P) Derivative Trading
1. Loss or Profit on settlement of Futures during the year is charged
/ credited to Profit & Loss account.
2. Loss arising on account of Mark to Market of the un-expired Futures
at the year end is charged to Profit & Loss account.
Mar 31, 2010
(A) Basis of preparation of Financial Statements:
i) The financial statements have been prepared under the historical
cost convention, in accordance with the generally accepted accounting
principles and the provisions of the Companies Act 1956, as adopted
consistently by the Company.
ii) All items of income and expenditure having a material bearing on
the financial statements are recognised on accrual basis.
(B) Use of Estimates:
The presentation of financial statements requires estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. The difference
between the actual results and estimates are recognised in the period
in which the results are known or materialised.
(C) Revenue Recognition:
Revenue is recognised on accrual basis.
(D) Fixed Assets :
The Fixed Assets are stated at Cost less accumulated depreciation and
after taking into consideration the lease adjustment account. All cost
including financing costs relating to the borrowings attributable to
the Fixed Assets are capitalised till the asset is put to use.
Intangible assets are amortized over a period of 5 years.
(E) Depreciation:
Depreciation is provided on Straight Line Method at the rates and in
the manner specified in Schedule XIV to the Companies Act, 1956.
(F) Lease Transactions:
In respect of the leases prior to 1.4.2001, transactions have been
accounted / restated as per the guidance note issued by the Institute
of Chartered Accountants of India on Accounting for leases and in
respect of leases after 1.4.2001 the transactions have been accounted
as per the (AS) 19 Leases issued by The Institute of Chartered
Accountants of India.
(G) Foreign Currency Transactions:
Income and Expenditures transactions denominated in foreign currencies
are normally recorded at the exchange rate prevailing at the time of
the transaction.
(H) Borrowing Costs:
Borrowing Costs which are directly attributable to the acquisition /
construction of fixed assets, till the time such assets are ready for
intended use, are capitalised as part of the assets. Other borrowing
costs are recognised as an expense in the year in which they are
incurred.
(I) Miscellaneous Expenditures:
Preliminary expenses and deferred revenue expenditure are written off
over a period of five years.
(J) Investments:
Investments are valued as follows:
i) Investments are classified into current investments and long term
investments.
ii) Current Investments are valued, scripwise, at cost or market price
whichever is lower.
iii) Long term investments are valued at cost. Provision for diminution
is made scripwise to recognise a decline, other than temporary.
(K) Stock-in Trade:
Stock-in-trade is valued scripwise, at cost or market price whichever
is lower. Cost is arrived at using First in First out (FIFO) method.
(L) Impairment of Assets:
An asset is treated as impaired when the carrying cost of an assets
exceeds its recoverable value and impairment loss is charged to Profit
and Loss Account in the year in which assets is identified as impaired.
The impairment loss recognised in the prior accounting year is reversed
if there has been a change in estimates of recoverable amount.
(M) Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent liabilities, if material, are not recognised but are
disclosed in the notes. Contingent assets are neither recognised nor
disclosed in the financial statements.
(N) 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 Ãtiming differenceà 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.
(O ) Employee Benefits:
Short term employee benefits are recognised as an expense at the
undiscounted amount in the profit and loss account of the year in which
the related service is rendered.
Post employment and other long- term employee benefits are recognised
as an expense in the profit and loss account for the year in which the
employee has rendered services. The expense is recognised at the
present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long- term benefits are charged to the profit and
loss account.
(P) Derivative Trading
1. Loss or Profit on settlement of Futures during the year is charged
/ credited to Profit & Loss account.
2. Loss arising on account of Mark to Market of the un-expired Futures
at the year end is charged to Profit & Loss account.
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