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Accounting Policies of Wall Street Finance Ltd. Company

Mar 31, 2015

A) Basis of Preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, to comply, in all material aspects, with all the applicable accounting principles in India, the applicable accounting standards notified u/s 133 of the Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 and guidelines issued by the RBI as applicable to Non-Banking Financial Companies.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

The financial statements are presented in Indian rupees and rounded off to nearest Lacs, unless otherwise stated.

b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c) Fixed Assets, Depreciation and Amortisation

I. Fixed assets are stated at cost of acquisition including incidental expenses. All costs directly attributable to bringing the asset to the working condition for its intended use including financing costs are also capitalized.

II. Depreciation is provided on Straight Line Method on the basis useful life under Schedule II to the Companies Act, 2013. In respect of Computer Software, the cost is amortized over a period of three years from the date of first use, as this is the economic useful life as estimated by the management.

III. Asset costing 5,000 or less have been depreciated over a period of one year. f d) Inventories

Inventories are valued at lower of Weighted Average Cost and Net Realisable Value as on the last day of Financial Year.

e) Revenue Recognition

k I. Income from money changing business is arrived at after deducting cost of sales from sales and related income.

II. Income from money transfer services is accounted on completion of transaction with the end customer.

III. Income from consultancy and commission is recognised on completion of relevant activity based on agreed terms of the contract.

IV. Receipts in respect of assignment of debts are accounted as per the terms of the agreement.

V. Loss on insurance claim is recognized on settlement of claim or earlier if the claim is not considered recoverable by the management.

VI. Dividend is recognized when the right to receive dividend is established and known.

VII. Interest, as and when applicable, on refunds from statutory authorities, is recognised when such interest becomes determinable, based on completed proceedings. Other interest income is recognised using time-proportion method, based on interest rates implicit in the transaction.

VIII. Recovery proceeds realized from debts written off as bad debts are accounted as income in the year of receipt.

IX. Profit / Loss on sale of fixed assets and investments are recognised on completion of transactions.

X. Service income is recognised as per the terms of the contract when the related services are rendered. It is stated net of service tax.

f) Foreign Currency Translation

i. Initial Recognition: Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency as on the date of the transaction.

ii. Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items, if any, which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate as on the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

iii. Exchange Differences: Exchange differences arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.

g) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as Non-current investments.

Non-current investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Current investments are classified into - (a) quoted and (b) unquoted. Current quoted investments are valued at lower of cost or market value.

Valuation norms for current unquoted investments are followed as under:

I. Equity shares (at lower of cost or breakup value or fair value)

II. Preference shares at lower of cost or face value

III. Government securities at carrying cost

h) Retirement and Other Employee Benefits (AS 15)

i. Provident Fund and ESIC: Company's contribution paid / payable during the year to Provident fund, and ESIC are recognized in Statement of Profit and Loss.

ii. Gratuity: The Company has made an arrangement with Max New York Life Insurance Co. Ltd. to administer its Gratuity scheme. The company's liability is determined on the basis of acturial valuation using Projected Unit Credit Method as at balance sheet date. Actuarial Gains/Losses are recognised immediately in the statement of Profit and Loss in the year in which they arise.

iii. Leave Encashment: Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method as at the reporting date. Actuarial gains / losses are immediately taken to the Statement of Profit and Loss Account and are not deferred.

i) Income Taxes

Tax expense for the year, comprising current tax and deferred tax is considered while determining the net profit or loss for the year. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. Deferred Tax Assets are not recognized unless, there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax is reviewed at each Balance Sheet date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account.

j) Provisions and Contingencies

A provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

k) Prudential Norms

The Company continues to be registered as a Non Banking Financial Company (NBFC) classified £ as a Loan Company and is therefore required to follow the Non-Banking Financial (Non-Deposit

Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 for its NBFC activities.

Non-performing assets are provided for as per management estimates, subject to the minimum provision as per Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 in case of money transfer activities. Provision on standard assets is made as per the notification DNBS.PD.CC.No.2007/03.02.2002/2010-11 issued by Reserve Bank of India.

The Company is registered as NBFC with RBI. The continuance of this status is under correspondence with the RBI.

l) Extraordinary Items

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events / transaction is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

m) Operating Lease

Some of the lease agreements for hiring the premises are in fact in the nature of leave and license not falling under operating lease classfication. Any subsequent renewal / new agreements shall be entered on leave and license basis.

n) Impairment of Assets

At each Balance Sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its estimated recoverable amount and the amount of such impairment loss is charged to the Statement of Profit and Loss. If, at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.


Mar 31, 2014

A) Basis of Preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, to comply, in all material aspects, with all the applicable accounting principles in India, the applicable accounting standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956 and guidelines issued by the RBI as applicable to Non-Banking Financial Companies.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

The financial statements are presented in Indian rupees and rounded off to nearest lacs, unless otherwise stated.

b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

c) Fixed Assets, Depreciation and Amortisation

I. Fixed Assets are stated at cost of acquisition including incidental expenses. All costs directly attributable to bringing the asset to the working condition for its intended use including financing costs are also capitalized.

II. Depreciation is provided on Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956. In respect of Computer Software, the cost is amortized over a period of three years from the date of first use, as this is the economic useful life as estimated by the management.

III. Asset costing 5,000 or less have been depreciated over a period of one year.

d) Inventories

Inventories are valued at lower of Weighted Average Cost and Net Realisable Value as on the last day of Financial Year.

e) Revenue Recognition

I. Income from money changing business is arrived at after deducting cost of sales from sales and related income.

II. Income from money transfer services is accounted on completion of transaction with the end customer

III. Income from consultancy and commission is recognised on completion of relevant activity based on agreed terms of the contract.

IV. Receipts in respect of assignment of debts are accounted as per the terms of the agreement.

V. Loss on insurance claim is recognized on settlement of claim or earlier if the claim is not considered recoverable by the management.

VI. Dividend is recognized when the right to receive dividend is established and known.

VII. Interest, as and when applicable, on refunds from statutory authorities, is recognised when such interest becomes determinable, based on completed proceedings. Other interest income is recognised using time-proportion method, based on interest rates implicit in the transaction.

VIII. Recovery proceeds realized from debts written off as bad debts are accounted as income in the year of receipt.

IX. Profit / Loss on sale of fixed assets and investments are recognised on completion of transactions.

X. Service income is recognised as per the terms of the contract when the related services are rendered. It is stated net of service tax.

f) Foieign Currency Translation

i. Initial Recognition: Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency as on the date of the transaction.

ii. Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items, if any, which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate as on the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

iii. Exchange Differences: Exchange differences arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.

g) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as non-current investments.

Non-current investments are carried at cost. However, provision for diminution in value is made to recognise a decline other than temporary in the value of the investments.

Current investments are carried at lower of cost and fair value determined on an individual investment basis. Current investments are classified into - (a) quoted and (b) unquoted. Current quoted investments are valued at lower of cost or market value.

Valuation norms for current unquoted investments are followed as under:

I. Equity shares (at lower of cost or breakup value or fair value)

II. Re 1/- for the entire block of holding if the balance sheet of the investee company is not available for the last two years

III. Preference shares at lower of cost or face value

IV. Government securities at carrying cost

h) Retirement and Other Employee Benefits (AS 15)

i. Provident Fund and ESIC: Company''s contribution paid / payable during the year to Provident Fund, and ESIC are recognized in Statement of Profit and Loss.

ii. Gratuity: The Company has made an arrangement with Max New York Life Insurance Co. Ltd. to administer its Gratuity scheme. The Company''s liability is determined on the basis of acturial valuation using Projected Unit Credit Method as at balance sheet date. Actuarial Gains / Losses are recognised immediately in the statement of Profit and Loss in the year in which they arise.

iii. Leave Encashment: Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method as at the reporting date. Actuarial gains / losses are immediately taken to the Statement of Profit and Loss Account and are not deferred.

i) Income Taxes

Tax expense for the year, comprising current tax and deferred tax is considered while determining the net profit or loss for the year. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the balance sheet date. Deferred tax assets are not recognized unless, there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax is reviewed at each balance sheet date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account.

j) Provisions and Contingencies

A provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

k) Prudential Norms

The Company continues to be registered as a Non-Banking Financial Company (NBFC) classified as a Loan Company and is therefore required to follow the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 for its NBFC activities.

Non-performing assets are provided for as per management estimates, subject to the minimum provision as per Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 in case of money transfer activities. Provision on standard assets is made as per the notification DNBS.PD.CC.No.2007/03.02.2002/2010-11 issued by Reserve Bank of India.

l) Extraordinary Items

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events / transaction is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

m) Operating Lease

Some of the lease agreements for hiring the premises are in fact in the nature of leave and license not falling under operating lease classfication. Any subsequent renewal / new agreements shall be entered on leave and license basis.

n) Impairment of Assets

At each balance sheet date, the Company assesses whether there is any indication that any asset may be impaired. If any such indication exists, the carrying value of such assets is reduced to its estimated recoverable amount and the amount of such impairment loss is charged to the Statement of Profit and Loss. If, at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.


Mar 31, 2013

A) Basis of Preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, to comply, in all material aspects, with all the applicable accounting principles in India, the applicable accounting standards notified u/s 211 (3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956 and guidelines issued by the RBI as applicable to Non-Banking Financial Companies.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

The financial statements are presented in Indian rupees and rounded off to nearest Lacs, unless otherwise stated.

b) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

c) Fixed Assets and Depreciation

I. Fixed assets are stated at cost of acquisition including incidental expenses. All costs directly'' attributable to bringing the asset to the working condition for its intended use including financing costs are also capitalized.

II. Depreciation is provided on Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956. In respect of Computer Software, the cost is amortized over a period of three years from the date of first use, as this is the economic useful life as estimated by the management.

III. Asset costing 5,000 or less have been depreciated over a period of one year.

d) Inventories

Inventories include stock of foreign currencies valued at the rates prevailing on 31st March, 2013 in accordance with AS 11 -The Effects of Changes in Foreign Exchange Rates.

e) Revenue Recognition

I. Income from money changing business is arrived at after deducting cost of sales from sales and related income.

II. Income from money transfer services is accounted on completion of transaction with the end customer.

III. Income from consultancy and commission is recognized on completion of relevant activity based on agreed terms of the contract.

IV. Receipts in respect of assignment of debts are accounted as per the terms of the agreement.

V. Loss on insurance claim is recognized on settlement of claim or earlier if the claim is not considered recoverable by the management.

VI. Dividend is recognized when the right to receive dividend is established and known.

VII. Interest, as and when applicable, on refunds from statutory authorities, is recognized when such interest becomes determinable, based on completed proceedings. Other interest income is recognized using time-proportion method, based on interest rates implicit in the transaction.

¦VIII.Recovery proceeds realized from debts written off as bad debts are accounted as income in the year of receipt.

IX. Profit/Loss on sale of fixed assets and investments are recognized on completion of transactions.

X. Service income is recognized as per the terms of the contract when the related services are rendered. It is stated net of service tax.

f) Foreign Currency Translation

i. Initial Recognition: Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency as on the date of the transaction.

ii. Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items, if any, which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate as on the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

iii. Exchange Differences: Exchange differences arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise.

g) Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as Non-current investments.

Non-current investments are carried at cost. However, provision for diminution in value is recognized only for permanent and irreversible decline in the value of investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Current investments are classified into - (a) quoted and (b) unquoted. Current quoted investments are valued at lower of cost or market value.

Valuation norms for current unquoted investments are followed as under:

I. Equity shares (at lower of cost or breakup value or fair value)

II. Re 1/- for the entire block of holding if the balance sheet of the investee company is not available for the last two years

III. Preference shares at lower of cost or face value

IV. Government securities at carrying cost

h) Retirement and Other Employee Benefits (AS 15)

i. Provident Fund and ESIC: Company''s contribution paid / payable during the year to Provident Funcf, and ESIC are recognized in Statement of Profit and Loss.

ii. Gratuity: The Company has made an arrangement with Life Insurance Corporation of India to administer its Gratuity scheme and any premiums paid / payable as determined based on actuarial valuation carried out by Life Insurance Corporation of India is debited to the statement of Profit and Loss Account on an accrual basis.

iii. Leave Encashment: Short term compensated absences are provided for based on estimates. Long term compensated absences are provided for based on actuarial valuation. The actuarial valuation is done as per projected unit credit method as at the reporting date. Actuarial gains/losses are immediately taken to the Statement of Profit and Loss Account and are not deferred.

i) Income Taxes

Tax expense for the year, comprising current tax and deferred tax is considered while determining the net profit or loss for the year. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. Deferred Tax Assets are not recognized unless, there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax is reviewed at each Balance Sheet date.

Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account.

j) Provisions and Contingencies

A provision is recognized when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

k) Prudential Norms

The Company continues to be registered as a Non Banking Financial Company (NBFC) classified as a Loan Company and is therefore required to follow the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 for its NBFC activities.

Ndn-performing assets are provided for as per management estimates, subject to the minimum provision as per Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 in case of money transfer activities. Provision on standard assets is made as per the notification DNBS.PD.CC.No.2007/03.02.2002/2010-11 issued by Reserve Bank of India.

I) Extraordinary Items

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events / transaction is made in the financial''statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

m) Operating Lease

Some of the lease agreements for hiring the premises are in fact in the nature of leave and license not falling under operating lease classfication. Any subsequent renewal/new agreements shall be entered on leave and license basis.

n) Impairment of Assets

At each Balance Sheet date, the Company assesses whether there is any indication that any asset; may be impaired. If any such indication exists, the carrying value of such assets is reduced to its'' estimated recoverable amount and the amount of such impairment loss is charged to the Statement of Profit and Loss. If, at the Balance Sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.


Mar 31, 2011

1. Basis of Preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, to comply, in all material aspects, with all the applicable accounting principles in India, the applicable accounting standards notified u/s 211(3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956 and guidelines issued by the RBI as applicable to Non-Banking Financial Companies.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

3. Fixed Assets and Depreciation

a) Fixed assets are stated at cost of acquisition including incidental expenses. All costs including financing costs till the assets are ready to be put to use are also capitalized.

b) Depreciation is provided on Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956. In respect of Computer Software, the cost is amortized over a period of three years from the date of first use, as this is the economic useful life as estimated by the management.

4. Inventories

Inventories include stock of foreign currency valued at the rates prevailing on 31st March, 2011 in accordance with AS 11.

5. Revenue Recognition

a) Income from money changing business is arrived at after deducting cost of sales from sales and related income.

b) Income from money transfer services is accounted on completion of transaction with the end customer.

c) Income from consultancy and commission is recognised on completion of relevant activity based on agreed terms of the contract.

d) Receipts in respect of assignment of debts are accounted as per the terms of the agreement.

e) Loss on insurance claim is recognized on settlement of claim or earlier if the claim is not considered recoverable by the management.

f) Dividend is recognized when the right to receive dividend is established and known.

g) Interest, as and when applicable, on refunds from statutory authorities, is recognised when such interest becomes determinable, based on completed proceedings. Other interest income is recognised using time-proportion method, based on interest rates implicit in the transaction.

h) Recovery proceeds realized from debts written off as bad debts are accounted as income in the year of receipt.

i) Profit on sale of fixed assets and investments are recognised on completion of transactions.

6. Foreign Currency Translation

a) Initial recognition: Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b) Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items, if any, which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

c) Exchange Differences: Exchange differences arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.

7. Investments

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is recognized only for permanent and irreversible decline in the value of investments.

8. Retirement and Other Employee Benefits (AS 15)

a) Retirement benefit in the form of Provident Fund is a defined contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds becomes due.

b) Company's contribution to Employee's State Insurance Fund is charged to revenue every year.

c) Liability for Gratuity and leave encashment are defined benefit obligations and are provided for on the basis of an actuarial valuation.

9. Income Taxes

Tax expense for the year, comprising current tax and deferred tax is considered while determining the net profit or loss for the year. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. Deferred Tax Assets are not recognized unless, there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax is reviewed at each Balance Sheet date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account.

10. Provisions and Contingencies

A provision is recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

11 . Prudential Norms

The Company continues to be registered as a Non Banking Financial Company (NBFC) classifi ed as a Loan Company and is therefore required to follow the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 for its NBFC activities.

The Company recognizes Financial (including consultancy & allied services) and Forex & Remittance business as the two main business activities. Forex activities include Money Transfer activities which have been considered as NBFC activities. For the purpose of identifying Non Performing Assets (NPA) or otherwise, the Company continues to follow generally accepted accounting principles in case of its money changing business and follows the Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 in case of financial and money transfer activities.


Mar 31, 2010

1. Basis of Preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, to comply, in all material aspects, with all the applicable accounting principles in India, the applicable accounting standards notifed u/s 211(3C) ofithe CompaniesAct, 1956 and the relevant provisions of the Companies Act, 1956 and guidelines issued by the RBI as applicable to Non-Banking Financial Companies.

2. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date ofithe financial statements and the results of operations during the reporting period end. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates.

3. Fixed Assets and Depreciation

a) Fixed assets are stated at cost of acquisition including incidental expenses. All costs including fnancing costs till the assets are ready to be put to use are also capitalized.

b) Depreciation is provided on Straight Line Method at the rates prescribed under Schedule XIV to the Companies Act, 1956. In respect of Computer Sofitware, the cost is amortized over a period of three years from the date of frst use, as this is the economic useful life as estimated by the management.

4. Inventories

Inventories include stock of foreign currency valued at the rates prevailing on 31st March, 2010 in accordance with AS 11.

5. Revenue Recognition

a) Income from money changing business is arrived at afiter deducting cost of sales from sales and related income.

b) Income from money transfer services is accounted on completion of transaction with the end customer.

c) Income from consultancy and commission is recognised on completion of relevant activity based on agreed terms of the contract.

d) Receipts in respect of assignment of debts are accounted as per the terms of the agreement.

e) Loss on insurance claim is recognized on settlement of claim or earlier if the claim is not considered recoverable by the management.

f) Dividend is recognized when the right to receive dividend is established and known.

g) Interest, as and when applicable, on refunds from statutory authorities, is recognised when such interest becomes determinable, based on completed proceedings. Other interest income is recognised using time-proportion method, based on interest rates implicit in the transaction.

h) Recovery proceeds realized from debts written off as bad debts are accounted as income in the year of receipt.

i) Profit on sale of fixed assets and investments are recognised on completion of transactions.

6. Foreign Currency Translation

a) Initial recognition: Foreign currency transactions are recorded in the reporting currency by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction.

b) Conversion: Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

c) Exchange Differences: Exchange differences arising on the settlement of monetary items or on reporting monetary items of company at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.

7. Investments

Investments that are readily realizable and intended to be held for not more than a year are classifed as current investments. All other investments are classifed as long-term investments. Current investments are carried at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is recognized only for permanent and irreversible decline in the value of investments.

8. Retirement and Other Employee Benefits (AS 15)

a) Retirement benefit in the form of Provident Fund is a defned contribution scheme and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds becomes due.

b) Companys contribution to Employees State Insurance Fund is charged to revenue every year.

c) Liability for gratuity and leave encashment are defned benefit obligations and are provided for on the basis of an actuarial valuation.

9. Segment Accounting

The segment accounting policy is in accordance with AS 17, the basis of reporting is as follows: -

a) Revenue and expenses distinctly identifable to a segment are recognised in that segment. Identifed expenses include employee cost, administrative overheads and depreciation on Fixed Assets. Expenses that are identifable with or allocable to segments have been considered for determining segment results.

b) Unallocated expenses and income are those which are not attributable or allocable to any of the specifc business segment.

c) Assets and liabilities which arise as a result of operating activities of the segment are recognised in that segment. Fixed Assets which are exclusively used by the segment or allocated on a reasonable basis are also included.

d) Unallocated assets and liabilities are those which are not attributable or allocable to any of the specifc business segments.

10. Income Taxes

Tax expense for the year, comprising current tax, deferred tax and fringe benefit tax is considered while determining the net profit or loss for the year. Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act.

Deferred tax assets and liabilities are recognized for future tax consequences attributable to the timing differences between taxable income and accounting income that are capable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. Deferred Tax Assets are not recognized unless, there is virtual certainty that suffcient future taxable income will be available against which such deferred tax assets can be realized. The carrying amount of deferred tax is reviewed at each Balance Sheet date.

Minimum Alternate Tax (MAT) credit is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specifed period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the profit and loss account.

11. Provisions and Contingencies

A provision is recognised when there is a present obligation as a result of a past event and it is probable that an outfow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that probably will not require an outfow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outfow of resources is remote, no provision or disclosure is made.

12. Prudential Norms

The Company continues to be registered as a Non Banking Financial Company (NBFC) classifed as a Loan Company and is therefore required to follow the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 for its NBFC activities.

The Company recognizes Financial (including consultancy & allied services) and Forex & Remittance business as the two main business activities. Forex activities include Money Transfer activities which have been considered as NBFC activities. For the purpose of identifying Non Performing Assets (NPA) or otherwise, the Company continues to follow generally accepted accounting principles in case of its money changing business and follows the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 in case of financial and money transfer activities.

 
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