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.