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Accounting Policies of Vertex Securities Ltd. Company

Mar 31, 2015

A) Basis of Presentation of Financial Statements:

These Financial Statements are prepared in accordance with Indian Generally Accepted Accounting Principles under the historical cost convention, on an accrual basis of accounting. Generally Accepted Accounting Principles comprises of mandatory Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts Rules), 2014 and provisions of the Act to the extent notified.

b) Use of estimates

The preparation of financial statements in conformity with the Indian Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment, if any.

ii) The Company provides depreciation on straight-line method (SLM) on useful life of assets as prescribed under Part C of Schedule II of the Companies Act, 2013.

iii) Depreciation on additions and deletions to fixed assets is provided on pro-rata basis from the date of addition or till deletion respectively.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licences. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years. Computer software is amortized over a period of 3 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established.

g) Employee Benefits:

Long Term Employee Benefits

i. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Statement of Profit and Loss for the period to which they are related.

ii. Defined Benefit Plan

The company makes contributions to Employees' Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the Projected Unit Credit Method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Statement of Profit and Loss for the period in which they occur.

iii. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Company's liability as at the Balance Sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Credit Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the Statement of Profit and Loss as income or expense.

iv. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current management estimates.

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

l) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

Leases are accounted for and disclosure made as per the requirements of Accounting Standard 19 - Leases, issued by the Institute of Chartered Accountants of India.


Mar 31, 2014

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on an accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956

b) Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The company provides Depreciation on straight line method (SLM) at the rate specified in Schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licenses. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software is amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/ agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

Long Term Employee Benefits

i. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Statement of Profit & Loss for the period to which they are related.

ii. Defined Benefit Plan

The company makes contributions to "Employees'' Group Gratuity-cum-Life Assurance Scheme" of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Statement of Profit & Loss for the period in which they occur.

iii. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Company''s liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done

by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the Statement of Profit & Loss as income or expense.

iv. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current management estimates.

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

l) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

(i) The Company has taken various offices under leave and license agreements. These are generally non-cancelable and range between 11 months and 5 years and are renewable by mutual consent on mutually agreeable terms.

(ii) Lease payments are recognized in the Statement of Profit & Loss under ''Rent''.


Mar 31, 2013

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on an accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956

b) Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The company provides Depreciation on straight line method (SLM) at the rate specified in Schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licenses. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software is amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/ agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

Long Term Employee Benefits

i. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Statement of Profit & Loss for the period to which they are related.

ii. Defined Benefit Plan

The company makes contributions to Employees'' Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Statement of Profit & Loss for the period in which they occur.

iii. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Company''s liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the Statement of Profit & Loss as income or expense.

iv. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income Tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current management estimates

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

i) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

(i) The Company has taken various offices under leave and license agreements. These are generally non- cancelable and range between 11 months and 5 years and are renewable by mutual consent on mutually agreeable terms.

(ii) Lease payments are recognized in the Statement of Profit & Loss under "Rent".


Mar 31, 2012

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on an accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The company provides Depreciation on straight line method (SLM) at the rate specified in schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licenses. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software is amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

Long Term Employee Benefits

i. Defined Contribution plan -

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Profit & Loss Account for the period to which they are related.

ii. Defined Benefit Plan

The company makes contributions to Employees' Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

iii. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Company's liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the profit & loss account as income or expense.

iv. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current management estimates.

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

1) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

(i) The Company has taken various offices under leave and license agreements. These are generally non- cancelable and range between 11 months and 5 years and are renewable by mutual consent on mutually agreeable terms. -

(ii) Lease payments are recognized in the Profit & Loss account under "Rent".


Mar 31, 2011

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The Company provides depreciation on straight-line method (SLM) at the rate specified in Schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of Stock Exchanges, Computer software and Software licences. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software is amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

i. Long Term Employee Benefits

a. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Profit & Loss Account for the period to which they are related.

b. Defined Benefit Plan

The company makes contributions to Employees Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

c. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Companys liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the profit & loss account as income or expense.

d. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax

Income tax is accounted in accordance with Accounting Standard on Accounting for Taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current management estimates.

k) Earnings Per Share

Basic and diluted earnings per share is computed by dividing the net profit attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

l) Leases

Disclosures as required by Accounting Standard 19, "Leases" issued by the Institute of Chartered Accountants of India, are given below:

(i) The Company has taken various offices under leave and license agreements. These are generally non- cancelable and range between 11 months and 5 years and are renewable by mutual consent on mutually agreeable terms.

(ii) Lease payments are recognized in the Profit & Loss account under "Rent".


Mar 31, 2010

A) Basis of Presentation of Financial Statements:

The Financial Statements are prepared under historical cost convention, on accrual basis of accounting in conformity with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in section 211 (3C) of the Companies Act, 1956.

b) Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

c) Fixed Assets and Depreciation:

i) Fixed assets are stated at cost less accumulated depreciation and adjusted for impairment if any.

ii) The Company provides depreciation on straight-line method (SLM) at the rate specified in Schedule XIV of the Companies Act, 1956.

iii) Depreciation on additions to fixed assets is provided on pro-rata basis from the date of addition.

d) Intangible Assets:

Intangible assets comprise of Membership rights of stock exchanges, Computer software and Software licences. The Stock Exchange rights and Software Licenses are amortized over a period of 10 years and the Computer software are amortized over a period of 5 years on Straight Line basis.

e) Inventories - Shares:

The shares are valued at lower of cost or net realizable value.

f) Income:

Brokerage income is recognized on the date of the transaction, upon confirmation of the trade by client. Interest on Suit filed debtors are accounted on receipt basis since there is significant uncertainty in collection. Dividend income is recognised when right to receive the same is established. Service income is recognised as per the terms of the contract/agreement entered into with the customers when the related services are performed.

g) Employee Benefits:

i. Long Term Employee Benefits

a. Defined Contribution plan

The company has defined contribution plans for employees comprising of Provident Fund and Employees State Insurance. The contributions paid/payable to these plans are charged to Profit & Loss Account for the period to which they are related.

b. Defined Benefit Plan

The company makes contributions to Employees Group Gratuity-cum-Life Assurance Scheme of Life Insurance Corporation of India. The net present value of the obligation for gratuity benefits as determined on actuarial valuation, conducted annually using the projected unit credit method, as adjusted for unrecognized past service cost if any and as reduced by fair value of plan assets, is recognized in the accounts. Actuarial gains and losses are recognized in full in the Profit & Loss Account for the period in which they occur.

c. Other Long term Employee Benefits

The company has a scheme of Leave Encashment for eligible employees. Companys liability as at the balance sheet date for such benefits is provided for on the basis of actuarial valuation under Projected Unit Cost Method, done by an independent actuary. Actuarial gains and losses comprise experience adjustments and effects of changes in actuarial assumptions and are recognized in the profit & loss account as income or expense.

d. Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits and recognised in the period in which the employee renders the related service.

h) Income tax:

Income tax is accounted in accordance with Accounting Standard on Accounting for taxes on Income (AS 22), which includes current taxes and deferred taxes. Deferred tax assets/liabilities representing timing differences between accounting income and taxable income are recognised to the extent considered capable of being reversed in subsequent years. Deferred tax assets are recognised only to the extent there is reasonable certainty that sufficient future taxable income will be available, except that deferred tax assets arising due to unabsorbed depreciation and losses are recognised if there is a virtual certainty that sufficient future taxable income will be available to realise the same.

i) Investments:

Long term investments are stated at cost less provision for permanent diminution in their values, if any. Current investments are stated at lower of cost and net realisable value.

j) Provisions and Contingent liabilities

Provisions are recognised when the company has a present obligation as a result of past events, for which it is probable that a cash outflow will be required and reliable estimate can be made of the amount of obligation. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect current management estimates.

k) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by weighted average number of equity shares outstanding during the period .The weighted average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus element in a rights issue to the existing shareholders; share split; and reverse share split (consolidation of shares).

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

 
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