Mar 31, 2014
The financial statements are prepared to comply in all material aspects
with the applicable accounting principles in India, the accounting
standards notified under sub-section (3C) of Section 211 of the
Companies Act, 1956 of India (the ''Act'') and the relevant provisions of
the Act and the regulations of Reserve Bank of India to the extent
applicable. The significant accounting policies are as follows:
a. Basis of preparation of Financial Statements
The financial statements are prepared in accordance with the historical
cost convention.
b. Fixed Assets and Depreciation/ Amortisation
Fixed Assets are stated at Cost less Depreciation. The Company
capitalises all cost relating to acquisition and installation of Fixed
Assets.
Depreciation is provided on Straight Line Method, pro rata for the
period of use, at the rates specified in Schedule XIV to the Act or
based on rates as per useful life of asset, whichever is higher.
Assets costing Rs. 5,000 or less are fully depreciated in the year of
acquisition.
c. Investments
Investments are classified as long term or current based on
management''s intention at the time of purchase. Investments which are
intended to be held for one year or more are classified as long term
investments and investments which are intended to be held for less than
one year are classified as current investments.
Long term investments are recorded at cost as on the date of
transaction and any decline in the carrying value other than temporary
in nature is provided for. Current investments are valued at cost or
market/fair value, whichever is lower.
d. Revenue Recognition
i. Interest income is accounted on accrual basis.
ii. Dividend income is recognised when the right to receive dividend
is established.
iii. Realised gains and losses in respect of equity securities and
units of mutual funds are calculated as the difference between the net
sales proceeds and their cost. Cost in respect of equity shares and
units of mutual funds are computed using first in first out (FIFO)
method.
e. Use of Estimates
The preparation of financial statements are 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 recognised in the
period in which the results are known /materialised.
f. Equity Index / Stock Futures.
i) Margin Deposits representing margin paid for entering into a
contract for equity index/stock futures which are released on final
settlement/squaring up of the underlying contract, are disclosed under
Loans and advances.
ii) 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 prices of index/stock futures
till the Balance Sheet date.
iii) As on the Balance Sheet date profit/loss on open positions in
equity index/stock futures in accounted for as follows:
* Credit balance in the "Mark-to-Market Margin-Equity Index/Stock
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 Account", being the anticipated loss is adjusted in the Profit
and Loss Account.
iv) 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
recognised in the Profit and Loss Account.
g. Equity Index / Stock Options
i) "Equity Index/Stock option premium account" represents premium paid
or received for buying or selling the options, respectively.
ii) Margin deposits representing margin paid for entering into contract
for equity index /stock options which are released on final
settlement/squaring up of the underlying contracts are disclosed under
Loans and Advances.
iii) As at the Balance Sheet date in the case of long positions
provision is made for the amount by which the premium paid for those
options exceeds the premium prevailing on the balance sheet date, and
in the case of short positions for the amount by which the premium
prevailing on the balance sheet date exceeds the premium received for
those options and is reflected in "Provision for loss on equity
Index/Stock Options Account."
iv) When the option contracts are squared up before the expiry of the
options the premium prevailing on that date is recognised in the Profit
and Loss Account.
On the expiry of the contracts and on exercising the options the
difference between the final settlement price and the strike price is
transferred to the Profit and Loss Account.
In both the cases, the premium paid or received for buying or selling
the option as the case may be is recognized in the profit and loss
account for the squared-up/settled contracts.
h. Taxes on Income
Provision for current tax is made on the assessable income at the tax
rate applicable to the relevant assessment year. Minimum Alternate Tax
(MAT) eligible for set off in subsequent years, (as per tax laws) is
recognized as an asset by way of credit to the Profit and Loss Account
only if there is convincing evidence of its realisation. At each
balance sheet date, the carrying amount of MAT Credit Entitlement
receivable is reviewed to reassure realisation.
Deferred tax is recognised, subject to the consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. Deferred tax assets are recognised mainly on account of
unabsorbed depreciation and carry forward of losses to the extent that
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets can be realised.
I. Inventories
Inventory consists of shares and securities purchased for trading
purposes. These are valued at lower of cost or net realizable value.
Cost is computed on FIFO basis. For the purpose of determining net
realizable value, the last quoted closing prices at the Bombay Stock
Exchange Limited (''BSE'') are considered.
j. Employee Benefits
Defined Contribution Plans such as Provident Fund etc. are charged to
the Profit & Loss Account as incurred.
Defined Benefit Plans - The present value of the obligation under such
plan was determined based on an actuarial valuation which was carried
out by an independent actuary. The actuarial valuation method used by
the independent actuary for measuring the liability was the Projected
Unit Credit Method. Actuarial gains and losses arising on such
valuation was recognized immediately in the Profit & Loss Account.
However during the year as there is only one employee, the company has
worked out the gratuity liability without actuarial valuation. The
liability for the same is provided in the accounts.
Other Long term Employee Benefits are recognized in the same manner as
Defined Benefit Plans. Termination benefits are recognized as and when
incurred.
k. Operating Lease
Lease payments for assets on operating lease are recognized as an
expense in Profit & Loss Account in accordance with Accounting Standard
19 - Leases.
l. Provisions and Contingent Liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resource is remote, no provision or disclosure is made.
m. Impairment of Assets
The Company follows the Prudential Norms for Assets Classification,
Income Recognition, Accounting Standards, Provision for non-performing
assets as prescribed by the Reserve Bank of India under Non-Banking
Financial (Non deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007. During the year, these norms have been
amended, mandating 0.25% provision against the outstanding standard
assets.
Mar 31, 2013
The financial statements are prepared to comply in all material aspects
with the applicable accounting principles in India, the accounting
standards notified under sub-section (3C) of Section 211 of the
Companies Act, 1956 of India (the''Act'') and the relevant provisions of
the Act and the regulations of Reserve Bank of India to the extent
applicable. The significant accounting policies are as follows:
a. Basis of preparation of Financial Statements
The financial statements are prepared in accordance with the historical
cost convention.
b. Fixed Assets and Depreciation/ Amortisation
Fixed Assets are stated at Cost less Depreciation. The Company
capitalises all cost relating to acquisition and installation of Fixed
Assets.
Depreciation is provided on Straight Line Method, pro rata for the
period of use, at the rates specified in Schedule XIV to the Act or
based on rates as per useful life of asset, whichever is higher. Air
conditioners and office equipment are depreciated over 7 years, which
is different from rates specified from Schedule XIV.
Leasehold improvements are depreciated on straight line basis over the
period of lease.
Assets costing Rs. 5,000 or less are fully depreciated in the year of
acquisition.
c. Investments
Investments are classified as long term or current based on
management''s intention at the time of purchase. Investments which are
intended to be held for one year or more are classified as long term
investments and investments which are intended to be held for less than
one year are classified as current investments.
Long term investments are recorded at cost as on the date of
transaction and any decline in the carrying value other than temporary
in nature is provided for. Current investments are valued at cost or
market/fair value, whichever is lower.
d. Revenue Recognition
i. Interest income is accounted on accrual basis.
ii. Dividend income is recognised when the right to receive dividend
is established.
iii. Realised gains and losses in respect of equity securities and
units of mutual funds are calculated as the difference between the net
sales proceeds and their cost. Cost in respect of equity shares and
units of mutual funds are computed using first in first out (FIFO)
method.
e. 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 recognised in the period in which the results
are known /materialised.
f. Equity Index/Stock Futures.
i) Margin Deposits representing margin paid for entering into a
contract for equity index/stock futures which are released on final
settlement/squaring up of the underlying contract, are disclosed under
Loans and advances.
ii) 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 prices of index/stock futures
till the Balance Sheet date.
iii) As on the Balance Sheet date profit/loss on open positions in
equity index/stock futures in accounted for as follows:
Credit balance in the "Mark-to-Market Margin-Equity Index/Stock
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
Account", being the anticipated loss is adjusted in the Profit and
Loss Account.
iv) 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
recognised in the Profit and Loss Account.
g. Equity Index/Stock Options
i) "Equity Index/Stock option premium account" represents premium
paid or received for buying or selling the options, respectively.
ii) Margin deposits representing margin paid for entering into contract
for equity index /stock options which are released on final
settlement/squaring up of the underlying contracts are disclosed under
Loans and Advances.
iii) As at the Balance Sheet date in the case of long positions
provision is made for the amount by which the premium paid for those
options exceeds the premium prevailing on the balance sheet date, and
in the case of short positions for the amount by which the premium
prevailing on the balance sheet date exceeds the premium received for
those options and is reflected in "Provision for loss on equity
Index/Stock Options Account."
iv) When the option contracts are squared up before the expiry of the
options the premium prevailing on that date is recognised in the Profit
and Loss Account.
On the expiry of the contracts and on exercising the options the
difference between the final settlement price and the strike price is
transferred to the Profit and Loss Account.
In both the cases, the premium paid or received for buying or selling
the option as the case may be is recognized in the profit and loss
account for the squared-up/settled contracts.
h. Taxes on Income
Provision for current tax is made on the assessable income at the tax
rate applicable to the relevant assessment year. Minimum Alternate Tax
(MAT) eligible for set off in subsequent years, (as per tax laws) is
recognized as an asset by way of credit to the Profit and Loss Account
only if there is convincing evidence of its realisation. At each
balance sheet date, the carrying amount of MAT Credit Entitlement
receivable is reviewed to reassure realisation.
Deferred tax is recognised, subject to the consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. Deferred tax assets are recognised mainly on account of
unabsorbed depreciation and carry forward of losses to the extent that
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets can be realised.
I. Inventories
Inventory consists of shares and securities purchased for trading
purposes. These are valued at lower of cost or net realizable value.
Cost is computed on FIFO basis. For the purpose of determining net
realizable value, the last quoted closing prices at the Bombay Stock
Exchange Limited (''BSE'') are considered.
j. Employee Benefits
Defined Contribution Plans such as Provident Fund etc. are charged to
the Profit & Loss Account as incurred.
Defined Benefit Plans - The present value of the obligation under such
plan was determined based on an actuarial valuation which was carried
out by an independent actuary. The actuarial valuation method used by
the independent actuary for measuring the liability was the Projected
Unit Credit Method. Actuarial gains and losses arising on such
valuation was recognized immediately in the Profit & Loss Account.
However during the year as there is only one employee, the company has
worked out the gratuity liability without actuarial valuation. The
liability for the same is provided in the accounts.
Other Long term Employee Benefits are recognized in the same manner as
Defined Benefit Plans. Termination benefits are recognized as and when
incurred.
k. Operating Lease
Lease payments for assets on operating lease are recognized as an
expense in Profit & Loss Account in accordance with Accounting Standard
19 - Leases.
I. Provisions and Contingent Liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. Adisclosu re for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resource is remote, no provision or disclosure is made.
m. Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that asset may be impaired. If any such indication exists,
the Company estimates the recoverable amount of the asset. If such
recoverable amount of the asset or the recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
Profit and Loss Account.
n. The Company follows the Prudential Norms for Assets Classification,
Income Recognition, Accounting Standards, Provision for non-performing
assets as prescribed by the Reserve Bank of India under Non-Banking
Financial (Non deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007. During the year, these norms have been
amended, mandating 0.25% provision against the outstanding standard
assets.
Mar 31, 2012
The financial statements are prepared to comply in all material aspects
with the applicable accounting principles in India, the accounting
standards notified under sub-section (3C) of Section 211 of the
Companies Act, 1956 of India (the 'Act') and the relevant provisions of
the Act and the regulations of Reserve Bank of India to the extent
applicable. The significant accounting policies are as follows:
a. Basis of preparation of Financial Statements
The financial statements are prepared in accordance with the historical
cost convention.
b. Fixed Assets and Depreciation/Amortisation
Fixed Assets are stated at Cost less Depreciation. The Company
capitalises all cost relating to acquisition and installation of Fixed
Assets.
Depreciation is provided on Straight Line Method, pro rata for the
period of use, at the rates specified in Schedule XIV to the Act or
based on rates as per useful life of asset, whichever is higher. Air
conditioners and office equipment are depreciated over 7 years, which
is different from rates specified from Schedule XIV.
Leasehold improvements are depreciated on straight line basis over the
period of lease.
Assets costing Rs. 5,000 or less are fully depreciated in the year of
acquisition.
c. Investments
Investments are classified as long term or current based on management
intention at the time of purchase. Investments which are intended to be
held for one year or more are classified as long term investments and
investments which are intended to be held for less than one year are
classified as current investments.
Long term investments are recorded at cost as on the date of
transaction and any decline in the carrying value other than temporary
in nature is provided for. Current investments are valued at cost or
market/fair value, whichever is lower.
d. Revenue Recognition
i. Interest income is accounted on an accrual basis.
ii. Dividend income is recognised when the right to receive dividend
is established.
iii. Realised gains and losses in respect of equity securities and
units of mutual funds are calculated as the difference between the net
sales proceeds and their cost. Cost in respect of equity shares and
units of mutual funds is computed using the first in first out (FIFO)
method.
e. 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 recognised in the period in which the results
are known/materialised.
f. Equity Index/Stock Futures.
i) Margin Deposits representing margin paid for entering into a
contract for equity index/stock futures which are released on final
settlement/squaring up of the underlying contract, are disclosed under
Loans and advances.
ii) 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 prices of index/stock futures
till the Balance Sheet date.
iii) As on the Balance Sheet date profit/loss on open positions in
equity index/stock futures in accounted for as follows:
- Credit balance in the "Mark-to-Market Margin-Equity Index/Stock
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 Account", being the anticipated loss is adjusted in the Profit
and Loss Account.
iv) 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 in recognised in the
Profit and Loss Account.
g. Equity Index/Stock Options
i) "Equity Index/Stock option premium account" represents premium paid
or received for buying or selling the options, respectively.
ii) Margin deposits representing margin paid for entering into contract
for equity index/stock options which are released on final
settlement/squaring up of the underlying contracts are disclosed under
Loans and Advances.
iii) As at the Balance Sheet date in the case of long positions
provision is made for the amount by which the premium paid for those
options exceeds the premium prevailing on the balance sheet date, and
in the case of short positions for the amount by which the premium
prevailing on the balance sheet date exceeds the premium received for
those options and is reflected in "Provision for loss on equity
Index/Stock Options Account.
iv) When the option contracts are squared up before the expiry of the
options the premium prevailing on that date is recognised in the Profit
and Loss Account.
On the expiry of the contracts and on exercising the options the
difference between the final settlement price and the strike price is
transferred to the Profit and Loss Account.
In both the cases, the premium paid or received for buying or selling
the option as the case may be is recognized in the profit and loss
account for the squared- up/settled contracts.
h. Taxes on Income
Provision for current tax is made on the assessable income at the tax
rate applicable to the relevant assessment year. Minimum Alternate Tax
(MAT) eligible for set off in subsequent years, (as per tax laws) is
recognized as an asset by way of credit to the Profit and Loss Account
only if there is convincing evidence of its realisation. At each
balance sheet date, the carrying amount of MAT Credit Entitlement
receivable is reviewed to reassure realisation.
Deferred tax is recognised, subject to the consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. Deferred tax assets are recognised mainly on account of
unabsorbed depreciation and carry forward of losses to the extent that
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets can be realised.
i. Inventories
Inventory consists of shares and securities purchased for trading
purposes. These are valued at lower of cost or net realizable value.
Cost is computed on FIFO basis. For the purpose of determining net
realizable value, the last quoted closing prices at the BSE Limited
('BSE') is considered.
j. Employee Benefits
Defined Contribution Plans such as Provident Fund etc. are charged to
the Profit & Loss Account as incurred.
Defined Benefit Plans - The present value of the obligation under such
plan is determined based on an actuarial valuation which is carried out
by an independent actuary. The actuarial valuation method used by the
independent actuary for measuring the liability is the Projected Unit
Credit Method. Actuarial gains and losses arising on such valuation are
recognized immediately in the Profit & Loss Account.
Other Long term Employee Benefits are recognized in the same manner as
Defined Benefit Plans. Termination benefits are recognized as and when
incurred.
k. Operating Lease
Lease payments for assets on operating lease are recognized as an
expenses in Profit & Loss Account in accordance with Accounting
Standard 19 - Leases.
l. Provisions and Contingent Liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resource is remote, no provision or disclosure is made.
m. Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that asset may be impaired. If any such indication exists,
the Company estimates the recoverable amount of the asset. If such
recoverable amount of the asset or the recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
Profit and Loss Account.
n. The Company follows the Prudential Norms for Assets Classification,
Income Recognition, Accounting Standards, Provision for non-performing
assets as prescribed by the Reserve Bank of India under Non-Banking
Financial (Non deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007. During the year, these norms have been
amended, mandating 0.25% provision against the outstanding standard
assets.
Mar 31, 2011
The financial statements are prepared to comply in all material aspects
with the applicable accounting principles in India, the accounting
standards notified under sub-section (3C) of Section 211 of the
Companies Act, 1956 of India (the ÃAct') and the relevant provisions of
the Act and the regulations of Reserve Bank of India to the extent
applicable. The significant accounting policies are as follows:
a. Basis of preparation of Financial Statements
The financial statements are prepared in accordance with the historical
cost convention.
b. Fixed Assets and Depreciation/ Amortisation
Fixed Assets are stated at Cost less Depreciation. The Company
capitalises all cost relating to acquisition and installation of Fixed
Assets.
Depreciation is provided on Straight Line Method, pro rata for the
period of use, at the rates specified in Schedule XIV to the Act or
based on rates as per useful life of asset, whichever is higher. Air
conditioners and office equipment are depreciated over 7 years, which
is different from rates specified from Schedule XIV.
Leasehold improvements are depreciated on straight line basis over the
period of lease.
Assets costing Rs. 5,000 or less are fully depreciated in the year of
acquisition.
c. Investments
Investments are classified as long term or current based on management
intention at the time of purchase. Investments which are intended to be
held for one year or more are classified as long term investments and
investments which are intended to be held for less than one year are
classified as current investments.
Long term investments are recorded at cost as on the date of
transaction and any decline in the carrying value other than temporary
in nature is provided for. Current investments are valued at cost or
market/fair value, whichever is lower.
d. Revenue Recognition
i. Interest income is accounted on an accrual basis.
ii. Dividend income is recognised when the right to receive dividend
is established.
iii. Realised gains and losses in respect of equity securities and
units of mutual funds are calculated as the difference between the net
sales proceeds and their cost. Cost in respect of equity shares and
units of mutual funds is computed using the first in first out (FIFO)
method.
e. 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 recognised in the period in which the results
are known /materialised.
f. Equity Index / Stock Futures.
i) Margin Deposits representing margin paid for entering into a
contract for equity index/stock futures which are released on final
settlement/squaring up of the underlying contract, are disclosed under
Loans and advances.
ii) 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 prices of index/stock futures
till the Balance Sheet date.
iii) As on the Balance Sheet date profit/loss on open positions in
equity index/stock futures in accounted for as follows:
- Credit balance in the "Mark-to-Market Margin-Equity Index/Stock
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 MarginÃEquity Index/Stock
Futures Account", being the anticipated loss is adjusted in the Profit
and Loss Account.
iv) 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 à Equity Index/stock Futures
Account", after adjustment of the provision for anticipated losses in
recognised in the Profit and Loss Account.
g. Equity Index / Stock Options
i) "Equity Index/Stock option premium account" represents premium paid
or received for buying or selling the options, respectively.
ii) Margin deposits representing margin paid for entering into contract
for equity index /stock options which are released on final
settlement/squaring up of the underlying contracts are disclosed under
Loans and Advances.
iii) As at the Balance Sheet date in the case of long positions
provision is made for the amount by which the premium paid for those
options exceeds the premium prevailing on the balance sheet date, and
in the case of short positions for the amount by which the premium
prevailing on the balance sheet date exceeds the premium received for
those options and is reflected in "Provision for loss on equity
Index/Stock Options Account."
iv) When the option contracts are squared up before the expiry of the
options the premium prevailing on that date is recognised in the Profit
and Loss Account.
On the expiry of the contracts and on exercising the options the
difference between the final settlement price and the strike price is
transferred to the Profit and Loss Account.
In both the cases, the premium paid or received for buying or selling
the option as the case may be is recognized in the profit and loss
account for the squaredÃup/settled contracts.
h. Taxes on Income
Provision for current tax is made on the assessable income at the tax
rate applicable to the relevant assessment year. Minimum Alternate Tax
(MAT) eligible for set off in subsequent years, (as per tax laws) is
recognized as an asset by way of credit to the Profit and Loss Account
only if there is convincing evidence of its realisation. At each
balance sheet date, the carrying amount of MAT Credit Entitlement
receivable is reviewed to reassure realisation.
Deferred tax is recognised, subject to the consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. Deferred tax assets are recognised mainly on account of
unabsorbed depreciation and carry forward of losses to the extent that
there is virtual certainty that sufficient future taxable income will
be available against which such deferred tax assets can be realised.
i. Stock-in-Trade
Stock-in-Trade consists of shares and securities purchased for trading
purposes. These are valued at lower of cost and net realizable value.
Cost is computed on FIFO basis. For the purpose of determining net
realizable value, the last quoted closing prices at the Bombay Stock
Exchange Limited (ÃBSE') is considered.
j. Employee Benefits
Defined Contribution Plans such as Provident Fund etc. are charged to
the Profit & Loss Accounts as incurred.
Defined Benefit Plans - The present value of the obligation under such
plan is determined based on an actuarial valuation which is carried out
by an independent actuary. The actuarial valuation method used by the
independent actuary for measuring the liability is the Projected Unit
Credit Method. Actuarial gains and losses arising on such valuation
are recognized immediately in the Profit & Loss Account.
Other Long term Employee Benefits are recognized in the same manner as
Defined Benefit Plans. Termination benefits are recognized as and when
incurred.
k. Operating Lease
Lease payments for assets on operating lease are recognized as an
expenses in Profit & Loss Account in accordance with Accounting
Standard 19 Ã Leases.
l. Provisions and Contingent Liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resource is remote, no provision or disclosure is made.
m. Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that asset may be impaired. If any such indication exists,
the Company estimates the recoverable amount of the asset. If such
recoverable amount of the asset or the recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment loss and is recognised in the
Profit and Loss Account.
n. The Company follows the Prudential Norms for Assets Classification,
Income Recognition, Accounting Standards, Provision for non-performing
assets as prescribed by the Reserve Bank of India under Non-Banking
Financial (Non deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007. During the year, these norms have been
amended, mandating 0.25% provision against the outstanding standard
assets.
Mar 31, 2010
The financial statements are prepared to comply in all material aspects
with the applicable accounting principles in India, the accounting
standards notified under sub-section (3C) of Section 211 of the
Companies Act, 1956 of India (the Act) and the relevant provisions of
the Act. The significant accounting policies are as follows:
a. Basis of preparation of Financial Statements
The financial statements are prepared in accordance with the historical
cost convention.
b. Fixed Assets and Depreciation/ Amortisation
Fixed Assets are stated at Cost less Depreciation. The Company
capitalises all cost relating to acquisition and installation of Fixed
Assets.
Depreciation is provided on Straight Line Method pro rata for the
period of use, at the rates specified in Schedule XIV to the Act.
Assets costing Rs. 5,000 or less are fully depreciated in the year of
acquisition.
c. Investments
Investments are classified as long term or current based on management
intention at the time of purchase. Investments which are intended to be
held for one year or more are classified as long term investments and
investments which are intended to be held for less than one year are
classified as current investments.
Long term investments are recorded at cost as on the date of
transaction and any decline in the carrying value other than temporary
in nature is provided for. Current investments are valued at cost or
market/fair value,.whichever is lower.
d. Revenue Recognition
i. Interest income is accounted on an accrual basis.
ii. Dividend income is recognised when the right to receive dividend
is established.
iii. Realised gains and losses in respect of equity securities and
units of mutual funds are calculated as the difference between the net
sales proceeds and their cost. Cost in respect of equity shares and
units of mutual funds is computed using the first in first out (FIFO)
method.
e. Equity Index / Stock Futures.
i) Margin Deposits representing margin paid for entering into a
contract for equityindex/stock futures which are released on final
settlement/squaring up of the underlying contract, are disclosed under
Loans and advances.
Schedule forming part of the Balance Sheet as at March 31, 2010 and the
Profit and Loss Account for the year ended March 31, 2010
ii) 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 prices of index/stock futures till the
Balance Sheet date.
iii) As on the Balance Sheet date profit/loss on open positions in
equity index/stock futures in accounted for as follows:
- Credit balance in the "Mark-to-Market Margin-Equity Index/Stock
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 Account", being the anticipated loss is adjusted in the Profit
and Loss Account.
iv) 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 in
recognised in the Profit and Loss Account.
f. Equity Index / Stock Options
i) Margin deposits representing margin paid for entering into contract
for equity index /stock options which are released on final settlement/
squaring up of the underlying contracts are disclosed under Loans and
Advances.
ii) Equity Index/Stock Option Premium Account represents the premium
paid or received for buying or selling the options respectively.
iii) As at the Balance Sheet date in the case of long positions
provision is made for those options exceeds the premium prevailing on
the balance sheet date, and in the case of short positions for the
amount by which the premium prevailing on the balance sheet date
exceeds the premium received for those options and is reflected in
"Provision for loss on equity Index/Stock Options Account."
iv) When the option contracts are squared up before the expiry of the
options the premium prevailing on that date is recognised in the Profit
and Loss Account.
On the expiry of the contracts and on exercising the options the
difference between the final settlement price and the strike price is
transferred to the Profit and Loss Account.
In both the cases, the premium paid or received for buying or selling
the option as the case may be is recognized in the profit and loss
account for the squared-up/settled contracts.
g. Taxes on Income
Provision for tax for the year is made on the assessable income at the
tax rate applicable to the relevant year.
Deferred tax is recognised, subject to the consideration of prudence in
respect of deferred tax assets, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. Deferred tax assets are recognised for unabsorbed depreciation
and carry forward of losses to the extent that there is virtual
certainty that sufficient future taxable income will be available
against which such deferred tax assets can be realised.
h. Stoek-in-Trade
Stock-in-Trade consists of shares and securities purchased for trading
purposes. These are valued at lower of cost and market price. For the
purpose of determining market value, the last quoted closing prices at
the Stock Exchange, Mumbai CBSET is considered.
The Company assesses at each Balance Sheet date whether there is any
indication that asset may be impaired. If any such indication exists,
the Company estimates the recoverable amount of the asset. If such
recoverable amount of the asset or the recoverable amount of the cash
generating unit to which the asset belongs is less than its carrying
amount, the carrying amount is reduced to its recoverable amount. The
reduction is treated as an impairment Ioss and is recognised in the
Profit and Loss Account.
i. The Company follows the Prudential Norms for Assets Classification,
Income Recognition, Accounting Standards, Provision for non-performing
assets as prescribed by the Reserve Bank of India under Non-Banking
Financial (Non deposit Accepting or Holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article