Mar 31, 2015
A. Accounting Concepts
The Financial statements of the Company have been prepared on accrual
basis under historical cost convention, in accordance with Generally
Accepted Accounting principles in India (Indian GAAP) to comply with
the Accounting Standards specified in Section 133 of the Companies Act,
2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and the
relevant provisions of the Companies Act, 2013. Accounting policies
have been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to the existing accounting
standard or a more appropriate presentation of the financial statements
requires a change in the accounting policy hitherto in use.
b. Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
c. Revenue Recognition
(i) Income from broking activities and depository services are
recognized only when it is reasonably certain that the ultimate
collection will be made.
(ii) Income from trading in securities and Derivatives comprises of
profit or loss on sale of securities held as stock in trade and profit
or loss on Derivative instruments is accounted for based on the
"Guidance note on accounting for Equity Index and Equity Stock Futures
and Options".
(iii) Interest income is recognized on time proportionate basis.
d. Fixed Assets
Tangible & Intangible Assets
All the fixed assets are accounted at cost of acquisition less
accumulated depreciation.
e. Leased Assets
Operating Lease
Assets taken on lease under which the lessor effectively retains all
the risk and rewards of ownership are classified as operating lease.
Lease payments under operating leases are recognized as expenses on
accrual basis in accordance with the respective lease agreement.
Finance lease
Leased assets acquired on which significant risk and rewards of
ownership is effectively transferred to the company are capitalized at
lower of fair value or the amount paid under such lease arrangements.
f. Depreciation /Amortization
Depreciation on Fixed Assets is provided over the useful life of assets
as specified under Schedule II of the Companies Act, 2013 under
Straight Line Method. Goodwill is amortized over a period of Twenty
years. Assets acquired under Finance lease are amortized over the
period of lease or estimated useful life of Asset whichever is lower.
Assets below Rs.5,000/-each are fully charged to Profit and loss.
Application software is capitalized as Intangible Asset amortized over
estimated useful life or before obsolescence,whichever is earlier.
g. Impairment of Fixed Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
h. Investments
Securities, which are bought with an intention of keeping for long
term, are classified under Investments and are valued at cost plus
brokerage and stamp charges. Provision for diminution in the value of
long-term investments is made only if such a decline is other than
temporary in the opinion of the management.
i. Stock In Trade
Shares and Debentures held as inventory are valued at cost or market
price whichever is lower, whereby the cost of each script is compared
visa-vis its market value and the resultant shortfall if any, is
charged to revenue.
j. Taxation
(i) Provision for current tax is made on the basis of estimated taxable
income for the current accounting year in accordance with the
Income-tax Act, 1961.
(ii) Deferred tax on timing difference between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets are recognized for unabsorbed depreciation and
carry forward losses to the extent there is virtual certainty that
sufficient future taxable income will be available against which
deferred tax assets can be realized.
(iii) Minimum Alternate Tax (MAT) Credit: MAT 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 MAT credit becomes eligible to the recognized as an asset
in accordance with the recommendations contained in the Guidance Note
issued by the ICAI, the said asset is created by way of credit to the
Statement of Profit & Loss and is shown as MAT Credit Entitlement. The
Company reviews the same at each Balance Sheet date and writes down the
carrying amount of MAT Credit Entitlement to the extent there is no
longer convicting evidence to the effect that Company will pay normal
Income Tax during the specified period.
k. Employee benefits
(i) Gratuity to employees is provided as per AS 15 and liability as on
Balance Sheet date has been determined on the basis of actuarial
valuation. The liability is not funded.
(ii) Leave encashment benefits payable to employees of the Company with
respect to accumulated leave outstanding at the year-end are accounted
for on the basis of an actuarial valuation as at the Balance Sheet date
applying projected unit Credit Method done by an Independent Actuary
(iii) Contributions payable by the Company to the concerned government
authorities in respect of provident fund, family pension fund and ESIC
are charged to Statement of Profit and Loss on accrual basis.
l. Derivative Transactions
Gain /losses on transactions pertaining to Equity & Currency Futures
are recognized on continuous basis. Gain / losses on options contracts
are recognized on squaring off /settlement day.
m. Earnings per Share
In determining the earning per share, the Company considers the net
profit after tax and includes the post tax effect of any extra
ordinary/ exceptional items and also after reducing dividend on
cumulative preference shares for the period ( irrespective whether
dividend is paid or not). The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing diluted
earnings per shares comprises the weighted average shares considered
for deriving the basic earnings per share and also weighted average
number of equity shares that could have been issued on the conversion
of all dilutive potential equity shares. The diluted potential equity
shares are deemed converted as of the beginning of the period, unless
issued at a later date. The number of shares and potentially dilutive
equity shares are adjusted for any stock split and bonus shares issued.
n. Provisions for Contingent liabilities and Contingent assets
A provision is recognized for a present obligation as result of past
events if it is probable that an outflow of resources will be required
to settle the obligation and in respect of which reliable estimates can
be made. Provisions are determined based on net estimate of the amount
required to settle the obligation at the Balance sheet date. Contingent
liabilities are not recognized but are disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2014
A. Accounting Concepts
The accounts have been prepared on accrual basis, in accordance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standards) Rules, 2006 and the provisions of the Companies
Act, 1956, read with the General Circular 15/2013 dated 13th September,
2013 of the Ministry of Corporate Affairs in respect of Section 133 of
the Companies Act, 2013, to the extent applicable. Accounting policies
have been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to the existing accounting
standard or a more appropriate presentation of the financial statements
requires a change in the accounting policy hitherto in use.
b. Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods.
Difference between the actual results and estimates are recognized in
the period in which the results are known / materialized.
c. Revenue Recognition
(i) Income from broking activities and depository services are
recognized only when it is reasonably certain that the ultimate
collection will be made.
(ii) Income from trading in securities and Derivatives comprises of
profit or loss on sale of securities held as stock in trade and profit
or loss on Derivative instruments is accounted for based on the
ÂGuidance note on accounting for Equity Index and Equity Stock Futures
and Options".
(iii) Interest income is recognized on time proportionate basis.
(iv) Dividend income is recognized on receipt basis.
d. Fixed Assets
Tangible & Intangible Assets
All the fixed assets are accounted at cost of acquisition less
accumulated depreciation.
e. Leased Assets:
Operating Lease
Assets taken on lease under which the lessor effectively retains all
the risk and rewards of ownership are classified as operating lease.
Lease payments under operating leases are recognized as expenses on
accrual basis in accordance with the respective lease agreement.
Finance lease:
Leased assets acquired on which significant risk and rewards of
ownership is effectively transferred to the company are capitalized at
lower of fair value or the amount paid under such lease arrangements.
f. Depreciation /Amortization
Depreciation on Fixed Assets is provided on prorata basis in accordance
with the rates prescribed under Schedule XIV of the Companies Act, 1956
under Straight Line Method. Goodwill is amortized over a period of
Twenty years. Assets acquired under Finance lease are amortized over
the period of lease or estimated useful life of Asset whichever is
lower.
g. Impairment of Fixed Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
h. Investments
Securities, which are bought with an intention of keeping for long
term, are classified under Investments and are valued at cost plus
brokerage and stamp charges. Provision for diminution in the value of
long-term investments is made only if such a decline is other than
temporary in the opinion of the management.
i. Stock In Trade
Shares and Debentures are valued at cost or market price whichever is
lower, whereby the cost of each script is compared vis-Ã -vis its market
value and the resultant shortfall if any, is charged to revenue.
j. Taxation
(i) Provision for current tax is made on the basis of estimated taxable
income for the current accounting year in accordance with the Income-
tax Act, 1961.
(ii) Deferred tax on timing difference between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets are recognized for unabsorbed depreciation and
carry forward losses to the extent there is virtual certainty that
sufficient future taxable income will be available against which
deferred tax assets can be realized.
k. Employee benefits
(i) Gratuity to employees is provided as per AS 15 and liability as on
Balance Sheet date has been determined on the basis of actuarial
valuation. The liability is not funded.
(ii) Leave encashment benefits payable to employees of the Company with
respect to accumulated leave outstanding at the year-end are accounted
for on the basis of an actuarial valuation as at the Balance Sheet
date.
(iii) Contributions payable by the Company to the concerned government
authorities in respect of provident fund, family pension fund and ESIC
are charged to Statement of Profit and Loss on accrual/ payment basis.
l. Derivative Transactions:
Gain /losses on transactions pertaining to Equity & Currency Futures
are recognised on continuous basis. Gain / losses on options contracts
are recognised on squaring off /settlement day.
m. Earning per Share
In determining the earning per share, the Company considers the net
profit after tax and includes the post tax effect of any extra
ordinary/ exceptional items and also after reducing dividend on
cumulative preference shares for the period ( irrespective whether
dividend is paid or not). The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing diluted
earning per shares comprises the weighted average shares considered for
deriving the basic earning per share and also weighted average number
of equity shares that could have been issued on the conversion of all
dilutive potential equity shares. The diluted potential equity shares
are deemed converted as of the beginning of the period, unless issued
at a later date. The number of shares and potentially dilutive equity
shares are adjusted for any stock split and bonus shares issued.
n. Provisions for Contingent liabilities and Contingent assets
A provision is recognized for a present obligation as result of past
events if it is probable that an outflow of resources will be required
to settle the obligation and in respect of which reliable estimates can
be made. Provisions are determined based on net estimate of the amount
required to settle the obligation at the Balance sheet date. Contingent
liabilities are not recognized but are disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2012
A. Accounting Concepts
The accounts have been prepared on accrual basis, in accordance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standards) Rules, 2006 and the provisions of the Companies
Act, 1956, to the extent applicable. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to the existing accounting standard or
a more appropriate presentation of the financial statements requires a
change in the accounting policy hitherto in use.
b. Presentation in Revised Schedule VI:
For the year 31.03.2012 revised Schedule VI notified under the
companies act 1956, has become applicable to the company, for
preparation & presentation of its financial statements. The adoption of
revised schedule VI does not impact recognition & measurement principal
followed for preparation of financial statements. However it has
significant impact on presentation & disclosure made in the financial
statements. The company has also reclassified the previous year figures
in accordance with the requirement applicable in current year.
c. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
d. Revenue Recognition
(i) Income from broking activities and depository services are
recognized only when it is reasonably certain that the ultimate
collection will be made.
(ii) Income from trading in securities and Derivatives comprises of
profit or loss on sale of securities held as stock in trade and profit
or loss on Derivative instruments is accounted for based on the
"Guidance note on accounting for Equity Index and Equity Stock Futures
and Options".
(iii) Interest income is recognized on time proportionate basis.
(iv) Dividend income is recognized when right to receive is
established.
e. Fixed Assets Tangible & Intangible Assets
All the fixed assets are accounted at cost of acquisition less
accumulated depreciation.
f. Leased Assets:
Operating Lease
Assets taken on lease under which the lessor effectively retains all
the risk and rewards of ownership are classified as operating lease.
Lease payments under operating leases are recognized as expenses on
accrual basis in accordance with the respective lease agreement.
Finance Lease:
Leased assets acquired on which significant risk and rewards of
ownership is effectively transferred to the company are capitalized at
lower of fair value or the amount paid under such lease arrangements.
g. Depreciation /Amortisation
Depreciation on Fixed Assets is provided on prorata basis in accordance
with the rates prescribed under Schedule XIV of the Companies Act, 1956
under Straight Line Method. Goodwill shall be amortized over a period
of Twenty years. Assets acquired under Finance lease are amortised over
the period of lease or estimated useful life of Asset whichever is
lower.
h. Impairment of Fixed Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. The impairment loss recognized in prior
accounting periods is reversed if there has been a change in the
estimate of recoverable amount.
i. Investments
Securities, which are bought with an intention of keeping for long
term, are classified under Investments and are valued at cost plus
brokerage and stamp charges. Provision for diminution in the value of
long-term investments is made only if such a decline is other than
temporary in the opinion of the management.
j. Stock In Trade
Shares and Debentures are valued at cost or market price whichever is
lower, whereby the cost of each script is compared vis-a-vis its market
value and the resultant shortfall if any, is charged to revenue.
k. Taxation
(i) Provision for current tax is made on the basis of estimated taxable
income for the current accounting year in accordance with the
Income-tax Act, 1961.
(ii) Deferred tax on timing difference between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets are recognized for unabsorbed depreciation and
carry forward losses to the extent there is virtual certainty that
sufficient future taxable income will be available against which
deferred tax assets can be realized.
l. Employee Benefits
(i) Gratuity to employees is provided as per AS 15 and liability as on
Balance Sheet date has been determined on the basis of actuarial
valuation. The liability is not funded.
(ii) Leave encashment benefits payable to employees of the Company with
respect to accumulated leave outstanding at the year-end are accounted
for on the basis of an actuarial valuation as at the Balance Sheet
date.
(iii)Contributions payable by the Company to the concerned government
authorities in respect of provident fund, family pension fund and ESIC
are charged to Statement of Profit and Loss.
m. Derivative Transactions:
Gain /losses on futures transactions pertaining to Equity &Currency
Futures are recognised on continuous basis. Gain / losses on options
contracts are recognised on squaring off /settlement day.
n. Earning per Share
In determining the earning per share, the Company considers the net
profit after tax and includes the post tax effect of any extra
ordinary/ exceptional items and also after reducing dividend on
cumulative preference shares for the period ( irrespective a whether
dividend paid to not). The number of shares used in computing basic
earnings per share is the weighted average number of shares outstanding
during the period. The number of shares used in computing diluted
earning per shares comprises the weighted average shares considered for
deriving the basic earning per share and also weighted average number
of equity shares that could have been issued on the conversion of all
dilutive potential equity shares. The diluted potential equity shares
are deemed converted as of the beginning of the period, unless issued
at a later date. The number of shares and potentially dilutive equity
shares are adjusted for any stock split and bonus shares issued.
o. Provisions for Contingent Liabilities and Contingent Assets
A provision is recognized for a present obligation as result of past
events if it is probable that an outflow of resources will be required
to settle the obligation and in respect of which reliable estimates can
be made. Provisions are determined based on net estimate of the amount
required to settle the obligation at the Balance sheet date. Contingent
liabilities are not recognized but are disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2011
A. Accounting Concepts
The accounts have been prepared on accrual basis, in accordance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standards) Rules, 2006 and the provisions of the Companies
Act, 1956, to the extent applicable. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to the existing accounting standard or
a more appropriate presentation of the financial statements requires a
change in the accounting policy hitherto in use.
b. Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
c. Revenue Recognition
(i) Income from broking activities and depository services are
recognized only when it is reasonably certain that the ultimate
collection will be made.
(ii) Income from trading in securities and Derivatives comprises of
profit or loss on sale of securities held as stock in trade and profit
or loss on Derivative instruments is accounted for based on the "
Guidance note on accounting for Equity Index and Equity Stock Futures
and Options" issued be the Institute of Chartered Accountants of India.
(iii) Interest income is recognized on time proportionate basis.
(iv) Dividend income is recognized as and when payment is received.
(v) Income from investing activities are recognized only when it is
reasonably certain that the ultimate collection will be made
d. Fixed Assets
All the fixed assets are accounted at cost of acquisition less
accumulated depreciation.
e. Impairment of Fixed Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss account in the year in which an asset is identified as impaired.
The impairment loss recognized in prior accounting periods is reversed
if there has been a change in the estimate of recoverable amount.
f. Depreciation
Depreciation on Fixed Assets is provided on prorata basis in accordance
with the rates prescribed under Schedule XIV of the Companies Act, 1956
under Straight Line Method.
g. Amortisation
Good will shall be amortized over a period of Twenty years.
h. Investments
Securities, which are bought with an intention of keeping for long
term, are classified under Investments and are valued at cost plus
brokerage and stamp charges. Provision for diminution in the value of
long-term investments is made only if such a decline is other than
temporary in the opinion of the management.
i. Stock In Trade
Shares and Debentures are valued at cost or market price whichever is
lower, whereby the cost of each script is compared vis-ÃÂ -vis its market
value and the resultant shortfall if any, is charged to revenue.
j. Taxation
(i) Provision for current tax is made on the basis of estimated taxable
income for the current accounting year in accordance with the
Income-tax Act, 1961.
(ii) Deferred tax on timing difference between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets are recognized for unabsorbed depreciation and
carry forward losses to the extent there is virtual certainty that
sufficient future taxable income will be available against which
deferred tax assets can be realized.
k. Employee Benefits
(i) Gratuity to employees is provided as per AS 15 and liability as on
Balance Sheet date has been determined on the basis of actuarial
valuation. The liability is not funded.
(ii) Leave encashment benefits payable to employees of the Company with
respect to accumulated leave outstanding at the year-end are accounted
for on the basis of an actuarial valuation as at the Balance Sheet
date.
(iii) Contributions payable by the Company to the concerned government
authorities in respect of provident fund, family pension fund and ESIC
are charged to Profit and Loss account.
(iv) Other employee benefits are accounted on accrual basis.
I. Earning per Share
In determining the earning per share, the Company considers the net
profit after tax and includes the post tax effect of any extra
ordinary/ exceptional items. The number of shares used in computing
basic earnings per share is the weighted average number of shares
outstanding during the period. The number of shares used in computing
diluted earning per shares comprises the weighted average shares
considered for deriving the basic earning per share and also weighted
average number of equity shares that could have been issued on the
conversion of all dilutive potential equity shares. The diluted
potential equity shares are deemed converted as of the beginning of the
period, unless issued at a later date. The number of shares and
potentially dilutive equity shares are adjusted for any stock split and
bonus shares issued.
m. Leased Assets:
Assets taken on lease under which the lessor effectively retains all
the risk and rewards of ownership are classified as operating lease.
Lease payments under operating leases are recognized as expenses on
accrual basis in accordance with the respective lease agreement.
n. Provisions for Contingent Liabilities and Contingent Assets
A provision is recognized for a present obligation as result of past
events if it is probable that an outflow of resources will be required
to settle the obligation and in respect of which reliable estimates can
be made. Provisions are determined based on net estimate of the amount
required to settle the obligation at the Balance sheet date. Contingent
liabilities are not recognized but are disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.
Mar 31, 2010
A. Accounting Concepts
The accounts have been prepared on accrual basis, in accordance with
the Accounting Standards referred to in Section 211 (3C) of the
Companies Act, 1956, which have been prescribed by the Companies
(Accounting Standards) Rules, 2006 and the provisions of the Companies
Act, 1956, to the extent applicable. Accounting policies have been
consistently applied except where a newly issued accounting standard is
initially adopted or a revision to the existing accounting standard or
a more appropriate presentation of the financial statements requires a
change in the accounting policy hitherto in use.
b. Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statement and the reported
amount of revenue and expenses during the reporting periods. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
c. Revenue Recognition
(i) Income from broking activities and depository services are
recognized only when it is reasonably certain that the ultimate
collection will be made.
(ii) Income from trading in securities and Derivatives comprises of
profit or loss on sale of securities held as stock in trade and profit
or loss on Derivative instruments is accounted for based on the
"Guidance note on accounting for Equity Index and Equity Stock Futures
and Options" issued be the Institute of Chartered Accountants of India.
(iii) Interest income is recognized on time proportionate basis.
(iv) Dividend income is recognized as and when payment is received.
(v) Income from investing activities are recognized only when it is
reasonably certain that the ultimate collection will be made
d. Fixed Assets
All the fixed assets are accounted at cost of acquisition less
accumulated depreciation.
e. Impairment of Fixed Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and
Loss account in the year in which an asset is identified as impaired.
The impairment loss recognized in prior accounting periods is reversed
if there has been achangeinthe estimate of recoverable amount.
f. Depreciation
Depreciation on Fixed Assets is provided on prorata basis in accordance
with the rates prescribed under Schedule XIV of the Companies Act, 1956
under Straight Line Method.
g. Investments
Securities, which are bought with an intention of keeping for long
term, are classified under Investments and are valued at cost plus
brokerage and stamp charges. Provision for diminution in the value of
long-term investments is made only if such a decline is other than
temporary in the opinion of the management.
h. Amortisation
Goodwill shall be amortized over a period of Twenty years.
i. Stock In Trade
Shares and Debentures are valued at cost or market price whichever is
lower, whereby the cost of each script is compared vis-a-vis its market
value and the resultant shortfall if any, is charged to revenue.
j. Taxation
(i) Provision for current tax is made on the basis of estimated taxable
income for the current accounting year in accordance with the
Income-tax Act, 1961.
(ii) Deferred tax on timing difference between taxable income and
accounting income is accounted for, using the tax rates and the tax
laws enacted or substantially enacted as on the balance sheet date.
Deferred tax assets are recognized for unabsorbed depreciation and
carry forward losses to the extent there is virtual certainty that
sufficient future taxable income will be available against which
deferred tax assets can be realized.
k. Employee benefits
(i) Gratuity to employees is provided as per AS 15 and liability as on
Balance Sheet date has been determined on the basis of actuarial
valuation. The liability is not funded.
(ii) Leave encashment benefits payable to employees of the Company with
respect to accumulated leave outstanding at the year-end are accounted
for on the basis of an actuarial valuation as at the Balance Sheet
date.
(iii) Contributions payable by the Company to the concerned government
authorities in respect of provident fund, family pension fund and ESIC
are charged to Profit and Loss account.
(iv) Other employee benefits are accounted on accrual basis.
I. Earning per Share
In determining the earning per share, the Company considers the net
profit after tax and includes the post tax effect of any extra
ordinary/ exceptional items. The number of shares used in computing
basic earnings per share is the weighted average number of shares
outstanding during the period. The number of shares used in computing
diluted earning per shares comprises the weighted average shares
considered for deriving the basic earning per share and also weighted
average number of equity shares that could have been issued on the
conversion of all dilutive potential equity shares. The diluted
potential equity shares are deemed converted as of the beginning of the
period, unless issued at a later date. The number of shares and
potentially dilutive equity shares are adjusted for any stock split and
bonus shares issued.
m. Leased Assets:
Assets taken on lease under which the lessor effectively retains all
the risk and rewards of ownership are classified as operating lease.
Lease payments under operating leases are recognized as expenses on
accrual basis in accordance with the respective lease agreement.
n. Provisions for Contingent liabilities and Contingent assets
A provision is recognized for a present obligation as result of past
events if it is probable that an outflow of resources will be required
to settle the obligation and in respect of which reliable estimates can
be made. Provisions are determined based on net estimate of the amount
required to settle the obligation at the Balance sheet date. Contingent
liabilities are not recognized but are disclosed in the notes.
Contingent assets are neither recognized nor disclosed in the financial
statements.