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Accounting Policies of Swastika Investmart Ltd. Company

Mar 31, 2015

1.1. a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standard notified under the relevant provisions of the Companies Act, 2013.

b) USE OF ESTIMATES:

The Preparation of Financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known.

1.2. EMPLOYEE BENEFITS:

(a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, bonus, incentives, etc. are recognized in the period in which the employee renders the related services.

(b) Post- Employment Benefits

(i) Defined Contribution Plans: The Company's contribution paid/payable under the Provident Fund Scheme is recognized as expense in the Statement of profit and loss during the period in which the employee renders the related service.

(ii) Defined Benefit Plans: The Company has taken Group Gratuity Cash Accumulation Policy issued by the Life Insurance Corporation of India (LIC). The present value of the obligation under such defined benefit plans is determined based on actuarial valuation as advised by LIC, using the Projected Unit Credit method, which recognizes 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 plans, are as advised by LIC. The Actuarial gains or losses are recognized immediately in the Statement of Profit 8t Loss.

1.3. PROVISION FOR CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving a substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.4. REVENUE RECOGNITION

a) Brokerage from secondary market is recognized as per contracted rates on the execution of transactions on behalf of the clients on the trade date and is exclusive of Service Tax and Securities Transaction Tax(STT) wherever applicable.

b) Income from Sale of Shares and Securities is recognized on the date of billing of the relevant transactions.

c) Income from Depository operations is accounted on accrual basis.

d) Equity Index / Stock Future/Currency Futures

i) Equity Index / Stock Futures/ Currency Futures are marked to market on a daily basis. Debit or Credit balance disclosed under Loans and Advances or Current Liabilities, respectively, in the Mark to Market Margin Equity Index / Stock Futures/Currency Account, represents the net amount paid or received on the basis of movement in the process of Index / Stock futures /Currency Futures till the balance sheet date.

ii) As on the Balance Sheet Date, Profit / Loss on open position in Equity Index /Stock Futures/Currency Futures is accounted as follows:

- Credit balance in the Mark-to-Market Margin Equity Index/ Stock Futures /Currency Futures Account being the anticipated profit is ignored and no credit for the same is taken in the Statement of Profit and Loss.

- Debit balance in the Mark-to-Market Margin Equity Index/ Stock Futures/Currency Futures Account, being the anticipated loss, is provided in the Statement of Profit and Loss.

iii) On final settlement or squaring up of contracts for Equity Index/ Stock Futures/ Currency Futures, the Profit or Loss is calculated as the difference between the settlement / squaring up price and the contract price. Accordingly, debit or credit balance pertaining to the settled /squared - up contract in Mark to Market Margin - Equity Index/ Stock Futures /Currency Futures Account after adjustment of the provision for anticipated losses is recognized in the statement of Profit and Loss. When more than one contract in respect of the relevant series of Equity Index/ Stock Futures /Currency Futures contract to which the squared up contract pertains is outstanding at the time of the squaring up of the contract, the contract price of the contract so squared up is determined using the weighted average cost method for calculating the Profit / Loss on Squaring up.

e) Option Contracts

i) At the time of final settlement Premium paid/ received is recognized as an expense/ income on exercise of Option. Further, difference between the final settlement price as on the exercise/ expiry date and the strike price is recognized as Income / Loss.

ii) At the time of squaring off difference between the premium paid and received on squared off transaction is treated as Profit or Loss.

f) Income from Delay Pay in Charges and Interest is recognized on a time proportion basis.

g) Dividend income is recognized only when the right to receive is established.

h) Advisory fees and other income are accounted on accrual basis, net of service tax.

1.5 FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost of acquisition including incidental expenses related to such acquisition and installation less accumulated depreciation.

b) Depreciation is provided under the Straight Line Method (SLM) based on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

c) Membership Rights in Stock Exchanges are amortized on straight- line basis over a period of 20 years according to the Management decision on the basis of its useful life.

d) Other Intangible assets are stated at cost and are amortized on straight-line basis over the period of 6 years on the basis of useful life determined as per the economic benefit of the asset.

1.6 INVESTMENTS

Investments are stated at cost of acquisition since they are long term in nature.

1.7 STOCK-IN-TRADE

Stock in- trade of shares St securities are valued at lower of the cost or market value on individual scrip by scrip basis.

1.8 TAXES ON INCOME

a) Tax on income for the current period is determined on the basis of estimated taxable income in accordance with the provisions of the IncomeTaxAct, 1961.

b) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes St accounting income that originate in one period and are capable of reversal in one or more subsequent period.

c) Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.9 IMPAIRMENT OF ASSETS

At each balance sheet date, the management reviews the carrying amount of all the assets to determine whether there is any indication that those assets were impaired . If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. And the impairment loss, if any, is debited to the Statement of Profit and Loss.


Mar 31, 2014

1.1. a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standard referred to in section 211 (3C) and other requirements of the Companies Act, 1956.

b) USE OF ESTIMATES:

The Preparation of Financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known.

1.2. EMPLOYEE BENEFITS:

(a) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, bonus, incentives, etc. are recognized in the period in which the employee renders the related services.

(b) Post- Employment Benefits

(i) Defined Contribution Plans: The Company''s contribution paid/payable under the Provident Fund Scheme is recognized as expense in the Statement of profit and loss during the period in which the employee renders the related service.

(ii) Defined Benefit Plans: The Company has taken Group Gratuity Cash Accumulation Policy issued by the Life Insurance Corporation of India (LIC). The present value of the obligation under such defined benefit plans is determined based on actuarial valuation as advised by LIC, using the Projected Unit Credit method, which recognizes 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 plans, are as advised by LIC. The Actuarial gains or losses are recognized immediately in the Statement of Profit & Loss.

1.3. PROVISION FOR CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving a substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

1.4. REVENUE RECOGNITION

a) Brokerage from secondary market is recognized as per contracted rates on the execution of transactions on behalf of the clients on the trade date and is exclusive of Service Tax and Securities Transaction Tax(stt) wherever applicable.

b) Income from Sale of Shares and Securities is recognized on the date of billing of the relevant transactions.

c) Income from Depository operations is accounted on accrual basis.

d) Equity Index / Stock Future/Currency Futures

- Equity Index / Stock Futures/ Currency Futures are marked to market on a daily basis. Debit or Credit balance disclosed under Loans and Advances or Current Liabilities, respectively, in the Mark to Market Margin Equity Index / Stock Futures/Currency Account, represents the net amount paid or received on the basis of movement in the process of Index / Stock futures /Currency Futures till the balance sheet date.

- As on the Balance Sheet, Profit / Loss on open position in Equity Index /Stock Futures/Currency Futures is accounted as follows:

- Credit balance in the Mark-to-Market Margin Equity Index/ Stock Futures /Currency Futures Account, being the anticipated Profit, is ignored and no Credit for the same is taken in the Profit and Loss Account.

- Debit balance in the Mark-to-Market Margin Equity Index/ Stock Futures//Currency Futures Account, being the anticipated loss, is provided in the Profit and Loss Account.

- On final settlement or squaring up of contracts for Equity Index/ Stock Futures/ Currency Futures, the Profit or Loss is calculated as the difference between the settlement / squaring up price and the contract price. Accordingly, debit or credit balance pertaining to the settled /squared - up contract in Mark to Market Margin - Equity Index/ Stock Futures /Currency Futures Account after adjustment of the provision for anticipated losses is recognized in the Profit and Loss Account. When more than one contract in respect of the relevant series of Equity Index/ Stock Futures /Currency Futures contract to which the squared up contract pertains is outstanding at the time of the squaring up of the contract, the contract price of the contract so squared up is determined using the weighted average cost method for calculating the Profit / Loss on Squaring up.

e) Option Contracts

- At the time of final settlement Premium paid/ received is recognized as an expense/ income on exercise of Option Further, difference between the final settlement price as on the exercise/ expiry date and the strike price is recognized as Income / Loss.

At the time of squaring off difference between the premium paid and received on squared off transaction is treated as Profit or Loss.

f) Income from Delay Pay in Charges and Interest is recognized on a time proportion basis.

g) Dividend income is recognized only when the right to receive is established.

h) Advisory fees and other income are accounted on accrual basis, net of service tax.

1.5 FIXED ASSETS AND DEPRECIATION

a) Fixed Assets are stated at cost of acquisition including incidental expenses related to such acquisition and installation less accumulated depreciation.

b) Depreciation is provided under the straight-line method at the rates specified in Schedule XIV of the Companies Act 1956. In cases where the useful lives are estimated to be lower than those considered in determining the rates specified in that Schedule, depreciation is provided under the straight-line method over the useful lives of the assets. V-SAT is depreciated @ 10% p.a. on Straight Line Basis.

c) Membership Rights in Stock Exchanges are amortized on straight- line basis over a period of 20 years according to the Management decision on the basis of its useful life.

d) Other Intangible assets are stated at cost and are amortized on straight-line basis over the period of 6 years on the basis of useful life determined as per the economic benefit of the asset.

1.6 INVESTMENTS

Investments are stated at cost of acquisition since they are long term in nature.

1.7 STOCK-IN-TRADE

Stock in- trade of shares & securities are valued at lower of the cost or market value on individual scrip by scrip basis.

1.8 TAXES ON INCOME

a) Tax on income for the current period is determined on the basis of estimated taxable income in accordance with the provisions of the Income Tax Act, 1961.

b) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes & accounting income that originate in one period and are capable of reversal in one or more subsequent period.

c) Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.9 IMPAIRMENT OF ASSETS

At each balance sheet date, the management reviews the carrying amount of all the assets to determine whether there is any indication that those assets were impaired . If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. And the impairment loss, if any, is debited to the Statement of Profit and Loss.


Mar 31, 2013

1. A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standard referredtoinsection211 (3C) and other requirements of the Companies Act, 1956.

B) USE OF ESTIMATES:

The Preparation of Financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known.

2. EMPLOYEE BENEFITS:

A) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, bonus, incentives, etc. are recognized in the period in which the employee renders the related services.

B) Post-Employment Benefits

i) Defined Contribution Plans:

The Company''s contribution paid/payable under the Provident Fund Scheme is recognized as expense in the Statement of profit and loss during the period in which the employee renders the related service.

ii) Defined Benefit Plans:

The Company has taken Group Gratuity Cash Accumulation Policy issued by the Life Insurance Corporation of India (LIC). The present value of the obligation under such defined benefit plans is determined based on actuarial valuation as advised by LIC, using the Projected Unit Credit method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build upthefinal 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 plans, are as advised by LIC. The Actuarial gains or losses are recognized immediately in the Statement of Profit & Loss.

3. PROVISION FOR CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving a substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the Financial Statements. Contingent Assets are neither recognized or disclosed in the financial statements.

4. REVENUE RECOGNITION

i) Brokerage from secondary market is recognized as per contracted rates on the execution of transactions on behalf of the clients on the trade date and is exclusive of Service Tax and Securities Transaction Tax(stt) wherever applicable.

ii) Income from Sale of Shares and Securities is recognized on the date of billing of the relevant transactions.

iii) Income from Depository operations is accounted on accrual basis.

iv) Equitylndex/StockFuture/CurrencyFutures

- Equity Index / Stock Futures/ Currency Futures are marked to market on a daily basis. Debit or Credit balance disclosed under Loans and Advances or Current Liabilities, respectively, in the Mark to Market Margin Equity Index / Stock Futures/Currency Account, represents the net amount paid or received on the basis of movement in the process of Index/Stockfutures/CurrencyFutures till the balance sheetdate.

- As on the Balance Sheet, Profit / Loss on open position in Equity Index /Stock Futures/Currency Futures is accounted as follows:

a) Credit balance in the Mark-to-Market Margin Equity Index/ Stock Futures /Currency Futures Account, being the anticipated Profit, is ignored and no Creditfor the same is taken in the Profit and Loss Account.

b) Debit balance in the Mark-to-Market Margin Equity Index/ Stock Futures//Currency Futures Account, being the anticipated loss, is provided in the Profit and Loss Account.

- On final settlement or squaring up of contracts for Equity Index/ Stock Futures/ Currency Futures, the Profit or Loss is calculated as the difference between the settlement / squaring up price and the contract price. Accordingly, debit or credit balance pertaining to the settled /squared - up contract in Mark to Market Margin - Equity Index/StockFutures/CurrencyFuturesAccountafteradjustmentof the provision for anticipated losses is recognized in the Profit and Loss Account. When more than one contract in respect of the relevant series of Equity Index/Stock Futures/Currency Futures contracttowhich the squared up contract pertains isoutstanding atthe time of the squaring up of the contract, the contract price ofthe contract so squared up is determined using the weighted average cost method for calculating the Profit/Losson Squaring up.

v) Option Contracts

- At the time of final settlement Premium paid/ received is recognized as an expense/ income on exercise of Option .Further, difference between the final settlement price as on the exercise/ expiry date and the strike price is recognized as Income/Loss.

- At the time of squaring off difference between the premium paid and received on squared off transaction is treated as Profit or Loss.

vi) Income from Delay Pay in Charges and Interest is recognized on a time proportion basis.

vii) Dividend income is recognized only when the right to receive is established.

viii) Advisory fees and other income are accounted on accrual basis, net of service tax.

5. FIXED ASSETS AND DEPRECIATION

i) Fixed Assets are stated at cost of acquisition including incidental expenses related to such acquisition and installation less accumulated depreciation.

ii) Depreciation is provided under the straight-line method atthe rates specified in Schedule XIV of the Companies Act 1956. In cases where the useful lives are estimated to be lower than those considered in determining the rates specified in that Schedule, depreciation is provided under the straight-line method over the useful lives of the assets. V-SAT is depreciated @ 10% p.a. on Straight Line Basis.

iii) Membership Rights in Stock Exchanges are amortized on straight- line basis over a period of 20 years according to the Management decision on the basis of its useful life.

iv) Other Intangible assets are stated at cost and are amortized on straight-line basis over the period of 6 years on the basis of useful life determined as per the economic benefit ofthe asset.

6. INVESTMENTS

Investments are stated at cost of acquisition since they are long term in nature.

7. STOCK-IN-TRADE

Stock in- trade of shares & securities are valued at lower of the cost or market value on individual scrip by scrip basis.

8. TAXES ON INCOME

i) Tax on income for the current period is determined on the basis of estimated taxable income as per the Minimum Alternate Tax provisions and tax credits computed in accordance with the provisions ofthe Income TaxAct, 1961, and based on expected outcome of assessment/appeals.

ii) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes & accounting income that originate in one period and are capable of reversal in one or more subsequent period.

iii) Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred taxassets can be realized.

9. IMPAIRMENT OF ASSETS

At each balance sheet date, the management reviews the carrying amount of all the assets to determine whether there is any indication that those assets were impaired .If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. And the impairment loss, if any, is debited to the Profit and Loss Account.


Mar 31, 2012

1. A) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standard referred to in section 211 (3C) and other requirements of the Companies Act, 1956.

B) USE OF ESTIMATES:

The Preparation of Financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known.

2. EMPLOYEE BENEFITS:

A) Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, bonus, incentives, etc. are recognized in the period in which the employee renders the related services.

B) Post-Employment Benefits

i) Defined Contribution Plans:

The Company's contribution paid/payable under the Provided Fund Scheme is recognized as expense in the Statement of profit and loss during the period in which the employee renders the related service.

ii) Defined Benefit Plans:

The Company has taken Group Gratuity Cash Accumulation Policy issued by the Life Insurance Corporation of India (LIC). The present value of the obligation under such defined benefit plans is determined based on actuarial valuation as advised by LIC, using the Projected Unit Credit method, which recognizes 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 plans, are as advised by LIC. The Actuarial gains or losses are recognized immediately in the Statement of Profit & Loss.

3. PROVISION FOR CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving a substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the Financial Statements. Contingent Assets are neither recognized Nor disclosed in the financial statements.

4. REVENUE RECOGNITION

i) Brokerage from secondary market is recognized as per contracted rates on the execution of transactions on behalf of the clients on the trade date and is exclusive of Service Tax and Securities Transaction Tax(stt) wherever applicable.

ii) Income from Sale of Shares and Securities is recognized on the date of billing of the relevant transactions.

iii) Income from Depository operations is accounted on accrual basis.

iv) Equity Index/Stock Future/Currency Futures

- Equity Index / Stock Futures/ Currency Futures are marked to market on a daily basis. Debit or Credit balance disclosed under Loans and Advances or Current Liabilities, respectively, in the Mark to Market Margin Equity Index/Stock Futures/Currency Account, represents the net amount paid or received on the basis of movement in the process of Index/Stock futures /Currency Futures till the balance sheet date.

- As on the Balance Sheet, Profit / Loss on open position in Equity Index /Stock Futures/Currency Futures is accounted as follows:

a) Credit balance in the Mark-to-Market Margin Equity Index/ Stock Futures/Currency Futures Account, being the anticipated Profit, is ignored and no Credit for the same is taken in the Profit and Loss Account.

b) Debit balance in the Mark-to-Market Margin Equity Index/ Stock Futures//Currency Futures Account, being the anticipated loss, is provided in the Profit and Loss Account.

- On final settlement or squaring up of contracts for Equity Index/ Stock Futures/ Currency Futures, the Profit or Loss is calculated as the difference between the settlement / squaring up price and the contract price. Accordingly, debit or credit balance pertaining to the settled /squared - up contract in Mark to Market Margin - Equity Index/Stock Futures /Currency Futures Account after adjustment of the provision for anticipated losses is recognized in the Profit and Loss Account. When more than one contract in respect of the relevant series of Equity Index/ Stock Futures/Currency Futures contract to which the squared up contract pertains is outstanding at the time of the squaring up of the contract, the contract price of the contract so squared up is determined using the weighted average cost method for calculating the Profit / Loss on Squaring up.

v) Option Contracts

- At the time of final settlement Premium paid/ received is recognized as an expense / income on exercise of Option. Further, difference between the final settlement price as on the exercise/ expiry date and the strike price is recognized as Income /Loss.

- At the time of squaring off difference between the premium paid and received on squared off transaction is treated as Profit or Loss.

vi) Income from Delay Pay in Charges and Interest is recognized on a time proportion basis.

vii) Dividend income is recognized only when the right to receive is established.

viii) Advisory fees and other income are accounted on accrual basis, net of service tax.

5. FIXED ASSETS AND DEPRECIATION

i) Fixed Assets are stated at cost of acquisition including incidental expenses related to such acquisition and installation less accumulated depreciation.

ii) Depreciation is provided under the straight-line method at the rates specified in Schedule XIV of the Companies Act 1956. In cases where the useful lives are estimated to be lower than those considered in determining the rates specified in that Schedule, depreciation is provided under the straight-line method over the useful lives of the assets. V-SAT is depreciated @ 10% p.a. on Straight Line Basis.

iii) Membership Rights in Stock Exchanges are amortized on straight- line basis over a period of 20 years according to the Management decision on the basis of its useful life.

iv) Other Intangible assets are stated at cost and are amortized on straight-line basis over the period of 6 years o n the basis of useful life determined as per the economic benefit of the asset.

6. INVESTMENTS

Investments are stated at cost of acquisition since they are long term in nature.

7. STOCK-IN-TRADE

Stock in- trade of shares and securities are valued at lower of the cost or market value on individual scrip by scrip basis.

8. TAXES ON INCOME

i) Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessment/appeals.

ii) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent period.

iii) Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

9. IMPAIRMENT OF ASSETS

At each balance sheet date, the management reviews the carrying amount of all the assets to determine whether there is any indication that those assets were impaired .If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. And the impairment loss, if any, is debited to the Profit and Loss Account.


Mar 31, 2010

1. a) BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standard referred to in section 211 (3C) and other requirements of the companies Act, 1956.

b) USE OF ESTIMATES:

The Preparation of Financial Statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognized in the period in which the results are known.

2. EMPLOYEE BENEFITS:

a) Short term employee benefits are recognized as an expense at the undiscounted amount in the Profit and Loss Account of the year in which the related service is rendered;

b) The present value of the obligation under defined benefit plans is determined based on an actuarial valuation using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognized immediately in the Profit and Loss Account.

c) Long term compensated absences are provided on the basis on an actuarial valuation.

d) Termination benefits are recognized as an expense in the Profit and Loss Account of the year in which they are incurred.

3. PROVISION FOR CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provision involving a substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the Financial Statements. Contingent Assets are neither recognized nor disclosed in the financial statements.

4. REVENUE RECOGNITION

a) Brokerage of secondary market is recognized at the end of each settlement period when bills are raised on clients.

b) Income from Depository operations is accounted on accrual basis net of discount.

c) Equity Index/Stock Future

- Equity Index / Stock Futures are marked to market on a daily basis. Debit or Credit balance disclosed under Loans and Advances or Current Liabilities, respectively, in the Mark to Market Margin Equity Index / Stock Futures Account, represents the net amount paid or received on the basis of movement in the process of Index / Stock futures till the balance sheet date.

- As on the Balance Sheet, Profit / Loss on open position in Equity Index /Stock Futures is accounted as follows:

- Credit balance in the Mark-to-Market Margin Equity Index/ Stock Futures Account, being the anticipated Profit, is ignored and no Credit forthe same is taken in the Profit and Loss Account.

- Debit balance in the Mark-to-Market Margin Equity Index/Stock Futures Account, being the anticipated loss, is provided in the Profit and Loss Account.

- On final settlement or squaring up of contracts for Equity Index/ Stock Futures, the Profit or Loss is calculated as the difference between the settlement / squaring up price and the contract price. Accordingly, debit or credit balance pertaining to the settled /squared - up contract in Mark to Market Margin - Equity Index/ Stock Futures Account after adjustment of the provision for anticipated losses is recognized in the Profit and Loss Account. When more than one contract in respect of the relevant series of Equity Index/ Stock Futures contract to which the squared up contract pertains is outstanding at the time of the squaring up of the contract, the contract price of the contract so squared up is determined using the weighted average cost method for calculating the Profit / Loss on Squaring up.

d) Option Contracts

- At the time of final settlement Premium paid/ received is recognized as an expense/ income on exercise of Option .Further, difference between the final settlement price as on the exercise/ expiry date and the strike price is recognized as Income / Loss.

- At the time of squaring off difference between the premium paid and received on squared off transaction is treated as Profit or Loss.

e) Interest income is recognized on a time proportion basis.

f) Dividend income is recognized only when the right to receive is established.

g) Brokerage income is recognized on trade date basis and is exclusive of service tax and Securities Transaction Tax (STT) wherever applicable.

h) Advisory fees and other income are accounted on accrual basis, net of service tax.

5. FIXED ASSETS

Fixed assets are stated at cost including all expenses attributable to such acquisition and installation less accumulated depreciation.

Depreciation

a) Depreciation is provided under the straight-line method at the rates specified in Schedule XIV of the Companies Act 1956. In cases where the useful lives are estimated to be lower than those considered in determining the rates specified in that Schedule, depreciation is provided under the straight-line method over the useful lives of the assets.

b) BSE Membership card is amortized on straight line basis over a period of 20 years starting from 2005-06.

c) Other Intangible Assets are amortized on straight line basis over a period of 4 years from the date of purchase.

6. INVESTMENTS

Investments are stated at cost of acquisition since they are long term in nature. Provision for diminution, if any, in the value of each Long term investment is made to recognize a decline, other than of a temporary nature.

7. STOCK-IN-TRADE

Stock -in- trade of shares & securities are valued at lower of the cost or market value.

8. MISCELLANEOUS EXPENDITURE

Miscellaneous expenditure comprising expenses related to increase in Authorised Share capital are amortized over a period of five years.

9. TAXES ON INCOME

a) Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961, and based on expected outcome of assessment/appeals.

b) Deferred Tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable incomes & accounting income that originate in one period and are capable of reversal in one or more subsequent period.

c) Deferred Tax assets are recognized and carried forward only to the extent that there is a reasonable certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized.

10. IMPAIRMENT OF ASSETS

At each balance sheet date, the management reviews the carrying amount of all the assets to determine whether there is any indication that those assets were impaired .If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of impairment loss. And the impairment loss, if any, is debited to the Profit and Loss Account.

 
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