Mar 31, 2015
A) Basis of Preparation of Financial Statements:
These financial statements have been prepared to comply with the
Accounting Standards specified under 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. The financial
statements have been prepared under the historical cost convention and
on accrual basis, unless otherwise expressly mentioned in the notes.
b) Use of Estimates :
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expense during the year. The estimates
and assumptions used in the accompanying financial statements are based
on management's evaluation of the relevant facts and circumstances as
of the date of the financial statements. Future results could differ
due to changes in these estimates and the difference between the actual
result and the estimates are recognised in the period in which the
results are known / materialised.
c) Fixed Assets :
Tangible Assets : Tangible Assets are stated at cost net of recoverable
taxes, trade discounts and rebates and include amounts added on
revaluation, less accumulated depreciation and impairment loss, if any.
The cost of tangible assets comprises its purchase price, borrowing
cost and any cost directly attributable to bringing the asset to its
working condition for its intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the assets.
Subsequent expenditures related to an item of tangible asset are added
to its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
Intangible Assets: Intangible Assets are stated at cost of acquisition
net of recoverable taxes, trade discounts and rebates less accumulated
depreciation and impairment loss, if any. The cost of intangible assets
comprises its purchase price, borrowing cost and any cost directly
attributable to bringing the asset to its working condition for its
intended use and net charges on foreign exchange contracts and
adjustments arising from exchange rate variations attributable to the
assets.
d) Depreciation & Amortization :
Tangible Assets: Depreciation on Fixed Assets is provided to the extent
of depreciable amount on the Straight Line Method (SLM). Depreciation
is provided based on useful life of the assets as prescribed in
Schedule II of Companies Act, 2013. Depreciation on additions to assets
or on sale/disposal of assets is calculated, based on the above
principle, from the date of such additions, or up to the date of
sale/disposal, as the case may be.
Intangible Assets: Intangible assets are amortized based on its useful
life without considering its scrap value.
Impairment of Assets: Impairment of Assets, if any, is recognized in
accordance with AS-28.
e) Non-Current Investments:
Non-Current Investments are treated as strategic long-term investments
and the same are stated at the cost without considering any increase or
erosion in the value.
f) Inventories:
Inventories are consisting of stocks and securities and the same are
accounted at cost and any decline in the carrying value other than
temporary in nature is provided for.
g) Equity Index/Stock Futures/Currency Futures:
i. "Initial Margin- Equity Derivative Instrument", representing the
initial margin paid for entering into contracts for Equity Index/Stock
Futures/Currency Futures which are released on final
settlement/squaring-up of underlying contracts is classified under
Loans and Advances.
ii. Equity index/Stock Futures/Currency Futures for arbitrage purposes
are Marked-to-Market on a daily basis. Debit or credit balance
disclosed under Loans and Advances or Current Liabilities,
respectively, in the "Mark-to-Market Margin- Equity Index/Stock
Futures/Currency Futures Account", represents the net amount paid or
received on the basis of movement in the prices of Index/Stock
Futures/Currency Futures till the Balance Sheet date.
iii. As on the Balance Sheet date, profit/loss on open positions in
Equity index/Stock Futures/Currency Futures are accounted for as
follows:
a) Credit balance in the "Mark-to-Market Margin- Equity index/Stock
Futures/Currency Futures Account, being the anticipated profit, is
ignored and no credit for the same is taken in the statement of Profit
and Loss Account.
b) Debit balance in the "Mark-to-Market Margin- Equity index/Stock
Futures/Currency Futures", being anticipated loss, is adjusted in the
statement of Profit and Loss Account.
iv. On final settlement or squaring-up of contracts for Equity
index/Stock Futures/Currency Futures, the profit or loss is calculated
as the difference between the settlement/squaring-up price and the
contract price. Accordingly, debit or credit balance pertaining to the
settled/squared-up contract in "Mark-to-Market Margin- Equity
index/Stock Futures/Currency Futures Account" after adjustment of
provision for anticipated losses is recognized in the statement of
Profit and Loss Account.
v. When more than one contract in respect of the relevant series of
Equity index/Stock Futures/Currency Futures contract to which the
squared-up contract pertains is outstanding at the time of the
squaring-up of the contract, the contract price of the contract so
squared-up is determined using the weighted average cost method for
calculating the profit/loss on squaring-up.
h) Revenue Recognition:
i. Revenue is recognized where there is reasonable certainty of its
ultimate realization.
ii. Consultancy and Advisory fees are accounted on accrual basis
depending on the progress of the assignment.
iii. Brokerage on stock market operations is recognized on completion
of settlement period of respective segments & Stock Exchanges,
iv. Dividend income, if any, is recognised on the basis of actual
receipt irrespective of the right to received is established,
v. The Annual Maintenance charges in respect of depository account
holders are accounted at the time of opening the account or on
completion of the year irrespective of the period they pertain to.
vi. Interest income is recognized on time proportionate basis taking
into account the amount outstanding and the rate applicable,
vii. Income other than above is accounted on accrual basis,
viii. Service tax is accounted on the basis of services provided and
in line with the Point of Taxation Rules, 2011 (as amended) under
service tax law.
i) Employee Benefits:
Short term Employee Benefits: The undiscounted amount of short term
employee benefits expected to be paid in exchange for the services
rendered by employees are recognised as an expense during the period
when the employee render the services. These benefits include
performance incentive and compensated absences.
Post-employment Benefits: Contributions to defined contribution
retirement benefit schemes are recognised as expense when employees
have rendered services entitling them to such benefits.
The Company's contribution towards Provident Fund is charged against
revenue on actual basis. The Provisions for liability on account of
other benefits including Gratuity & Leave encashment are made on
accrual basis.
I) Borrowing Cost:
Borrowing cost that are attributable to the acquisition of qualifying
assets are capitalised as part of the cost of such assets. A qualifying
asset is one that necessarily takes substantial period of time to get
ready for its intended use. All other borrowing costs are charged to
the Statement of Profit & Loss in the period in which they are
incurred.
k) Segment Reporting:
The Company operates in single business segment i.e. financial services
and therefore segment information as per Accounting Standard 17 is not
required to be disclosed.
I) Earnings Per Share (E.P.S.):
The Company reports Basic and Diluted Earnings per Share in accordance
with Accounting Standard 20 issued by The Institute of Chartered
Accountants of India.
The basic earnings per share are computed by dividing the net profit
attributable to equity shareholders for the year by the weighted
average number of Equity Shares outstanding during the reporting year.
Diluted earning per share is computed using the weighted average number
of equity share and dilute potential equity share outstanding during
the period.
m) Provision for Taxation:
Current Tax: Provision for current year taxation is determined as the
tax payable in respect of taxable income for the year and is computed
in accordance with provisions of Income Tax Act, 1961. Advance taxes
and provisions for current income taxes are presented in the balance
sheet without off-setting advance tax paid and income tax provision.
The same are netted off only after completion of the assessment of the
relevant year. Short or excess provision of earlier years are charged/
transferred to Statement of Profit & Loss after completion of the
assessment, if any.
Deferred Tax: The Company provides for deferred tax liability in
accordance with Accounting Standard 22 - "Accounting for Taxes on
Income" issued by The Institute of Chartered Accountants of India and
Companies (Accounting Standard) Rules, 2006. In accordance with
transition provision of AS-22, the Company has adjusted the opening
deferred tax liability against opening revenue reserves.
Deferred tax resulting from timing difference between accounting income
and taxable income is accounted for at the current tax
rate/substantively enacted tax rate, as applicable, to the extent that
the timing differences are expected to crystallize. The Company offsets
deferred tax assets and deferred tax liabilities as it has a legally
enforceable right and these relate to taxes on income levied by the
same governing taxation law.
n) Provisions, Contingent Liabilities and Contingent Assets.
A provision is recognized in the accounts when there is a present
obligation as a result of past event(s) and it is probable that an
outflow of resources will be required to settle the obligation, in
respect of which a reliable estimate can be made. Provisions are
determined based on best management estimate required to settle the
obligation as on the date of balance sheet. These are reviewed at each
balance sheet date and adjusted to reflect the current best management
estimates.
Mar 31, 2014
A) Basis of Accounting:
The financial statements have been prepared as a going concern basis
under historical cost convention; on an accrual basis and in accordance
with the Accounting Standards notified under Companies (Accounting
Standards) Rules, 2006 and the relevant provisions of the Companies
Act, 1956. Accounting policies, not stated explicitly otherwise, are
consistent with generally accepted accounting principles.
b) Use of Estimates :
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contingent
assets and liabilities. The estimates and assumptions used in the
accompanying financial statements are based on management''s evaluation
of the relevant facts and circumstances as of the date of the financial
statements. Actual results may differ from the estimates and
assumptions used in preparing the accompanying financial statements.
Any differences of actual results to such estimates are recognized in
the period in which the results are known materialized.
c) Fixed Assets :
Tangible Assets are stated at cost net of recoverable taxes, trade
discounts and rebates and include amounts added on revaluation, less
accumulated depreciation and impairment loss, if any. The cost of
tangible assets comprises its purchase price, borrowing cost and any
cost directly attributable to bringing the asset to its working
condition for its intended use, net charges on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the assets.
Subsequent expenditures related to an item of tangible asset are added
to its book value only if they increase the future benefits from the
existing asset beyond its previously assessed standard of performance.
d) Depreciation:
Depreciation on all fixed assets is provided on Straight Line Method at
the rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions to assets or on sale/disposal of assets is
calculated on pro-rata from the date of such additions, or up to the
date of sale/disposal, as the case may be.
e) Non Current Investments:
Non Current Investments are treated as strategic long-term investments
and the same are stated at the cost without considering any increase or
erosion in the value.
f) Inventories/Current Investments:
Inventories/Current Investments are consisting of stocks and securities
and the same are accounted at cost and any decline in the carrying
value other than temporary in nature is provided for.
g) Equity Index/Stock Futures/Currency Futures:
i. "Initial Margin- Equity Derivative Instrument", representing the
initial margin paid for entering into contracts for Equity Index/Stock
Futures/Currency Futures which are released on final
settlement/squaring-up of underlying contracts, are disclosed under
Loans and Advances.
ii. Equity index/Stock Futures/Currency Futures for arbitrage purposes
are Marked-to-Market on a daily basis. Debit or credit balance
disclosed under Loans and Advances or Current Liabilities,
respectively, in the "Mark-to-Market Margin- Equity Index/Stock
Futures/Currency Futures Account", represents the net amount paid or
received on the basis of movement in the prices of Index/Stock
Futures/Currency Futures till the Balance Sheet date.
iii. As on the Balance Sheet date, profit/loss on open positions in
Equity index/Stock Futures/Currency Futures are accounted for as
follows:
a) Credit balance in the "Mark-to Market Margin- Equity index/Stock
Futures/Currency Futures Account, being the anticipated profit, is
ignored and no credit for the same is taken in the statement of Profit
and Loss Account.
b) Debit balance in the "Mark-to-Market Margin- Equity index/Stock
Futures/Currency Futures", being anticipated loss, is adjusted in the
statement of Profit and Loss Account.
iv. On final settlement or squaring-up of contracts for Equity
index/Stock Futures/Currency Futures, the profit or loss is calculated
as the difference between the settlement/squaring-up price and the
contract price. Accordingly, debit or credit balance pertaining to the
settled/squared-up contract in "Mark-to- Market Margin- Equity
index/Stock Futures/Currency Futures Account" after adjustment of
provision for anticipated losses is recognized in the statement of
Profit and Loss Account.
v. When more than one contract in respect of the relevant series of
Equity index/Stock Futures/Currency Futures contract to which the
squared-up contact pertains is outstanding at the time of the
squaring-up of the contract, the contract price of the contract so
squared-up is determined using the weighted average cost method for
calculating the profit/loss on squaring-up.
h) Revenue Recognition:
i. Revenue is recognized where there is reasonable certainty of its
ultimate realization.
ii. Consultancy and Advisory fees are accounted on accrual basis
depending on the progress of the assignment.
iii. Brokerage on stock market operations is recognized on completion
of settlement period of respective segments & Stock Exchanges.
iv. Dividend income has been treated as stipulated in AS-13 issued by
ICAI. The same has not been treated as exempted income for the purpose
of calculating taxable income. v. The Annual Maintenance charges in
respect of depository account holders are accounted at the time of
opening the account or on completion of the year irrespective of the
period they pertain to.
vi. Interest income is recognized on time proportionate basis taking
into account the amount outstanding and the rate applicable.
vii. Income other than above is accounted on accrual basis.
viii. Service tax is accounted on the basis of services provided and in
line with the point of taxation rules 2012 under service tax law.
i) Retirement Benefits:
The Company''s contribution towards Provident Fund is charged against
revenue on actual basis. The Provisions for liability on account of
other benefits including Gratuity & Leave encashment are made on
accrual basis.
j) Segment Reporting:
The Company operates in single business segment i.e. financial services
and therefore segment information as per Accounting Standard 17 is not
required to be disclosed.
k) Earnings Per Share (E.P.S.):
The Company reports Basic and Diluted Earnings per Share in accordance
with Accounting Standard 20 issued by The Institute of Chartered
Accountants of India.
The basic earnings per share are computed by dividing the net profit
attributable to equity shareholders for the year by the weighted
average number of Equity Shares outstanding during the reporting year.
Diluted earning per share is computed using the weighted average number
of equity share and dilute potential equity share outstanding during
the period.
l) Provision for Taxation:
- Current Tax
Provision for current year taxation is determined as the tax payable in
respect of taxable income for the year and is computed in accordance
with provisions of Income Tax Act, 1961.
- Deferred Tax
The Company provides for deferred tax liability in accordance with
Accounting Standard 22 - "Accounting for Taxes on Income" issued by The
Institute of Chartered Accountants of India and Companies (Accounting
Standard) Rules, 2006. In accordance with transition provision of
AS-22, the Company has adjusted the opening deferred tax liability
against opening revenue reserves.
Deferred tax resulting from timing difference between book profit and
tax profit is accounted for at the current tax rate/substantively
enacted tax rate, as applicable, to the extent that the timing
differences are expected to crystallize.
m) Impairment of Assets.
Impairment of Assets, if any, is recognized in accordance with AS-28.
n) Provisions, Contingent Liabilities and Contingent Assets.
A provision is recognized when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are determined based
on best management estimate required to settle the obligation as on the
date of balance sheet. These are reviewed at each balance sheet date
and adjusted to reflect the current best management estimates.
Mar 31, 2013
A) Basis of Accounting:
The financial statements are prepared as a going concern under
historical cost convention on an accrual basis and in accordance with
the Companies Act, 1956. Accounting policies not stated explicitly
otherwise are consistent with generally accepted accounting principles.
b) Use of Estimates :
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires the management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenues and expenses and disclosure of contingent
assets and liabilities. The estimates and assumptions used in the
accompanying financial statements are based upon management''s
evaluation of the relevant facts and circumstances as of the date of
the financial statements. Actual results may differ from the estimates
and assumptions used in preparing the accompanying financial
statements. Any differences of actual results to such estimates are
recognized in the period in which the results are known materialized.
c) Fixed Assets :
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss.
d) Depreciation:
Depreciation on all fixed assets is provided on Straight Line Method at
the rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions to assets or on sale/disposal of assets is
calculated on pro-rata from the date of such additions, or upto the
date of sale/disposal, as the case may be.
e) Non Current Investments:
Non Current Investments are treated as strategic long-term investments
and the same are stated at the cost, without considering any increase
or erosion in the value.
f) Inventories/Current Investments:
Inventories/Current Investments are consisting of stocks and securities
and the same are accounted at cost and any decline in the carrying
value other than temporary in nature is provided for.
g) Equity Index/Stock Futures/Currency Futures:
i. "Initial Margin- Equity Derivative Instrument", representing the
initial margin paid for entering into contracts for Equity Index/Stock
Futures/Currency Futures which are released on final
settlement/squaring-up of underlying contracts, are disclosed under
Loans and Advances.
ii. Equity index/Stock Futures/Currency Futures for arbitrage purposes
are Marked-to-Market on a daily basis. Debit or credit balance
disclosed under Loans and Advances or Current Liabilities,
respectively, in the "Mark-to-Market Margin- Equity Index/Stock
Futures/Currency Futures Account", represents the net amount paid or
received on the basis of movement in the prices of Index/Stock
Futures/Currency Futures till the Balance Sheet date.
iii. As on the Balance Sheet date, profit/loss on open positions in
Equity index/Stock Futures/Currency Futures are accounted for as
follows:
- Credit balance in the "Mark-to Market Margin- Equity index/Stock
Futures/Currency Futures Account, being the anticipated profit, is
ignored and no credit for the same is taken in the statement of Profit
and Loss Account.
- Debit balance in the "Mark-to-Market Margin- Equity index/Stock
Futures/Currency Futures", being anticipated loss, is adjusted in the
statement of Profit and Loss Account.
iv. On final settlement or squaring-up of contracts for Equity
index/Stock Futures/Currency Futures, the profit or loss is calculated
as the difference between the settlement/squaring-up price and the
contract price. Accordingly, debit or credit balance pertaining to the
settled/squared-up contract in "Mark-to-Market Margin- Equity
index/Stock Futures/Currency Futures Account" after adjustment of
provision for anticipated losses is recognized in the statement of
Profit and Loss Account.
v. When more than one contract in respect of the relevant series of
Equity index/Stock Futures/Currency Futures contract to which the
squared-up contact pertains is outstanding at the time of the
squaring-up of the contract, the contract price of the contract so
squared-up is determined using the weighted average cost method for
calculating the profit/loss on squaring-up.
h) Revenue Recognition:
i. Revenue is recognized where there is reasonable certainty of its
ultimate realization.
ii. Consultancy and Advisory fees are accounted on accrual basis
depending on the progress of the assignment.
iii. Brokerage on stock market operations is recognized on completion
of settlement period of respective segments & Stock Exchanges.
iv. Dividend income has been treated as stipulated in AS-13 issued by
ICAI. The same has not been treated as exempted income for the purpose
of calculating taxable income.
v. The Annual Maintenance charges in respect of depository account
holders are accounted at the time of opening the account or on
completion of the year irrespective of the period they pertain to.
vi. Interest income is recognized on time proportionate basis taking
into account the amount outstanding and the rate applicable.
vii. Income other than above is accounted on accrual basis.
i) Retirement Benefits:
The Company''s contribution towards Provident Fund is charged against
revenue on actual basis. The Provisions for liability on account of
other benefits including Gratuity & Leave encashment are made on
accrual basis.
j) Segment Reporting:
The Company operates in single business segment i.e. financial services
and therefore segment information as per Accounting Standard 17 is not
required to be disclosed.
k) Earnings Per Share (E.P.S):
The Company reports Basic and Diluted Earnings per Share in accordance
with Accounting Standard 20 issued by The Institute of Chartered
Accountants of India.
The basic earning per share is computed by dividing the net profit
attributable to equity shareholders for the year by the weighted
average number of Equity Shares outstanding during the reporting year.
Diluted earning per share is computed using the weighted average number
of equity share and dilute potential equity share outstanding during
the period.
l) Provision for Taxation:
- Current Tax
Provision for current year taxation is determined as the tax payable in
respect of taxable income for the year and is computed in accordance
with provisions of Income Tax Act, 1961.
- Deferred Tax
The Company provides for deferred tax liability in accordance with
Accounting Standard 22 - "Accounting for Taxes on Income" issued by The
Institute of Chartered Accountants of India and Companies (Accounting
Standard) Rules, 2006. In accordance with transition provision of
AS-22, the Company has adjusted the opening deferred tax liability
against opening revenue reserves.
Deferred tax resulting from timing difference between book profit and
tax profit is accounted for at the current tax rate/substantively
enacted tax rate, as applicable, to the extent that the timing
differences are expected to crystallize.
m) Impairment of Assets.
Impairment of Assets, if any, is recognized in accordance with AS-28.
n) Provisions, Contingent Liabilities and Contingent Assets.
A provision is recognized when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are determined based
on best management estimate required to settle the obligation as on the
date of balance sheet. These are reviewed at each balance sheet date
and adjusted to reflect the current best management estimates.
Mar 31, 2012
A) Basis of Accounting:
The financial statements are prepared as a going concern under
historical cost convention on an accrual basis and in accordance with
the Companies Act, 1956. Accounting policies not stated explicitly
otherwise are consistent with generally accepted accounting principles.
b) Use of Estimates :
The presentation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumption to be
made that affect the reported amount of assets and liabilities on the
date of financial statement and the reported amount of revenue and
expenses during the year. Difference between actual results and
estimates are recognized in the year in which the results are known /
materialized.
c) Fixed Assets :
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss.
d) Depreciation:
Depreciation on all fixed assets is provided on Straight Line Method at
the rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions to assets or on sale/disposal of assets is
calculated on pro-rata from the date of such additions, or upto the
date of sale/disposal, as the case may be.
e) Non Current Investments:
Non Current Investments are treated as strategic long-term investments
and the same are stated at the cost, without considering any increase
or erosion in the value.
f) Inventories/Current Investments:
Inventories/Current Investments are consisting of stocks and securities
and the same are accounted at cost and any decline in the carrying
value other than temporary in nature is provided for.
g) Equity Index/Stock Futures/Currency Futures:
i. "Initial Margin- Equity Derivative Instrument", representing the
initial margin paid for entering into contracts for Equity Index/Stock
Futures/Currency Futures which are released on final
settlement/squaring-up of underlying contracts, are disclosed under
Loans ad Advances.
ii. Equity index/Stock Futures/Currency Futures for arbitrage purposes
are Marked-to-Market on a daily basis. Debit or credit balance
disclosed under Loans and Advances or Current Liabilities,
respectively, in the "Mark-to-Market Margin- Equity Index/Stock
Futures/Currency Futures Account", represents the net amount paid or
received on the basis of movement in the prices of Index/Stock
Futures/Currency Futures till the Balance Sheet date.
iii. As on the Balance Sheet date, profit/loss on open positions in
Equity index/Stock Futures/Currency Futures are accounted for as
follows:
- Credit balance in the "Mark-to Market Margin- Equity index/Stock
Futures/Currency Futures Account, being the anticipated profit, is
ignored and no credit for the same is taken in the statement of Profit
and Loss Account.
- Debit balance in the "Mark-to-Market Margin- Equity index/Stock
Futures/Currency Futures", being anticipated loss, is adjusted in the
statement of Profit and Loss Account.
iv. On final settlement or squaring-up of contracts for Equity
index/Stock Futures/Currency Futures, the profit or loss is calculated
as the difference between the settlement/squaring-up price and the
contract price. Accordingly, debit or credit balance pertaining to the
settled/squared-up contract in "Mark-to-Market Margin- Equity
index/Stock Futures/Currency Futures Account" after adjustment of
provision for anticipated losses is recognized in the statement of
Profit and Loss Account.
v. When more than one contract in respect of the relevant series of
Equity index/Stock Futures/Currency Futures contract to which the
squared-up contact pertains is outstanding at the time of the
squaring-up of the contract, the contract price of the contract so
squared-up is determined using the weighted average cost method for
calculating the profit/loss on squaring-up.
h) Revenue Recognition:
i. Revenue is recognized where there is reasonable certainty of its
ultimate realization.
ii. Consultancy and Advisory fees are accounted on accrual basis
depended on the progress of assignment.
iii. Brokerage on stock market operations is recognized on completion
of settlement period of respective segments & Stock Exchanges.
iv. Dividend income has been accounted on receipt basis.
v. The Annual Maintenance charges in respect of depository account
holders are accounted at the time of opening the account or on
completion of the year irrespective of the period they pertain to.
vi. Interest income is recognized on time proportionate basis taking
into account the amount outstanding and the rate applicable.
vii. Income other than above is accounted on accrual basis.
i) Retirement Benefits:
The Company's contribution towards Provident Fund is charged against
revenue on actual basis. The Provisions for liability on account of
other benefits including Gratuity & Leave encashment are made on
accrual basis.
j) Segment Reporting;
The Company operates in single business segment i.e. financial services
and therefore segment information as per Accounting Standard 17 is not
required to be disclosed.
k) Earnings Per Share (E.P.S):
The Company reports Basic and Diluted Earnings per Share in accordance
with Accounting Standard 20 issued by The Institute of Chartered
Accountants of India.
The basic earning per share is computed by dividing the net profit
attributable to equity shareholders for the year by the weighted
average number of Equity Shares outstanding during the reporting year.
Diluted earning per share is computed using the weighted average number
of equity share and dilute potential equity share outstanding during
the period.
l) Provision for Taxation:
- Current Tax
Provision for current year taxation is determined as the tax payable in
respect of taxable income for the year and is computed in accordance
with provisions of Income Tax Act, 1961.
- Deferred Tax
The Company provides for deferred tax liability in accordance with
Accounting Standard 22 - "Accounting for Taxes on Income" issued by The
Institute of Chartered Accountants of India. In accordance with
transition provision of AS-22, the Company has adjusted the opening
deferred tax liability against opening revenue reserves.
Deferred tax resulting from timing difference between book profit and
tax profit is accounted for at the current tax rate/substantively
enacted tax rate, as applicable, to the extent that the timing
differences are expected to crystallize.
- Security Transaction Tax (STT)
The STT on Proprietary trades are treated as expenses for determining
the Profit /Loss from such activity. m) Impairment of Assets.
Impairment of Assets, if any, is recognized in accordance with AS-28.
n) Provisions, Contingent Liabilities and Contingent Assets.
A provision is recognized when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are determined based
on best management estimate required to settle the obligation at the
balance sheet date. These are reviewed at each balance sheet date and
adjusted to reflect the current best management estimates.
Mar 31, 2011
A) Basis of Accounting:
The financial statements are prepared as a going concern under
historical cost convention on an accrual basis and in accordance with
the Companies Act, 1956. Accounting policies not stated explicitly
otherwise are consistent with generally accepted accounting principles.
b) Use of Estimates:
The presentation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumption to be
made that affect the reported amount of assets and liabilities on the
date of financial statement and the reported amount of revenue and
expenses during the year. Difference between actual results and
estimates are recognized in the year in which the results are known /
materialized.
c) Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss except Stock Exchange Card which has been stated at
acquisition cost.
d) Depreciation:
No depreciation is provided on the acquisition of Stock Exchange Card.
Depreciation on all other assets is provided on Straight Line Method at
the rates prescribed in Schedule XIV of the Companies Act1956.
Depreciation on additions to assets or on sale/ disposal of assets is
calculated pro-rata from the date of such additions, or up to the date
of sale/ disposal, as the case may be.
e) Investments:
Investments are treated as strategic long-term investments and the same
are stated at the cost, without considering any increase or erosion in
the value.
f) Inventories:
Inventories consisting of stocks and securities are stated at cost
without considering any increase or erosion in value there of, as per
the practice followed by the Company right since the beginning.
g) Revenue Recognition:
i. Revenue is recognized where there is reasonable certainty of its
ultimate realization.
ii. Consultancy and Advisory fees are accounted on accrual basis
depended on the progress of assignment.
iii. Brokerage on stock market operations is recognized on completion
of settlement period.
iv. Dividend income has been accounted on receipt basis.
v. The Annual Maintenance charges in respect of depository account
holders are accounted at the time of opening the account or on
completion of the year irrespective of the period they pertain to.
vi. Interest income is recognized on time proportionate basis taking
into account the amount outstanding and the rate applicable.
vii. Income other than above is accounted on accrual basis.
h) Retirement Benefits:
The Company's contribution towards Provident Fund is charged against
revenue on actual basis. The Provisions for liability on account of
other benefits including Gratuity & Leave encashment are made on
accrual basis.
i) Segment Reporting:
The Company operates in single business segment i.e. financial
services.
j) Earnings Per Share (E.P.S):
The Company reports Basic and Diluted Earnings per Share in accordance
with Accounting Standard 20 issued by The Institute of Chartered
Accountants of india.
The basic Earnings Per Share is computed by dividing the net profit
attributable to equity shareholders for the year by the weighted
average number of Equity Shares outstanding during the reporting
year. Diluted Earnings Per Share is computed using the weighted
average number of Equity Shares and dilute potential Equity Shares
outstanding during the period.
k) Provision for Taxation:
- Current Tax
Provision for current year taxation is determined as the tax payable in
respect of taxable income for the year and is computed in accordance
with provision of relevant statute.
- DeferredTax
The Company provides for deferred tax liability in accordance with
Accounting Standard 22-"Accounting for Taxes on Income" issued by The
Institute of Chartered Accountants of India. In accordance with
transition provision of AS- 22,theCompanyhasadjustedtheopeningdeferred
tax liability against opening revenue reserves.
Deferred tax resulting from timing difference between book profit and
tax profit is accounted for at the current tax rate/substantively
enacted tax rate, as applicable, to the extent that the timing
differences are expected to crystallize.
- Security Transaction Tax(STT)
The STT on Proprietary trades are treated as expenses for determining
the Profit/Loss from such activity.
Mar 31, 2010
A) Basis of Accounting:
The financial statements are prepared as a going concern under
historical cost convention on an accrual basis and in accordance with
the companies Act, 1956. Accounting policies not stated explicitly
otherwise are consistent with generally accepted accounting principals.
b) Use of Estimates:
The presentation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumption to be
made that affect the reported amount of assets and liabilities on the
date of financial statement and the reported amount of revenue and
expenses during the year. Difference between actual results and
estimates are recognized in the year in which the results are known /
materialized.
c) Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss except one-time Membership fees and Stock Exchange
Card. Registration fees and Stock Exchange Card have been stated at
their cost of acquisition.
d) Depreciation:
No depreciation is provided on Membership fees and Stock Exchange Card.
Depreciation on all other assets is provided on Straight Line Method at
the rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on additions to assets or on sale/disposal of assets is
calculated pro-rata from the date of such additions, or upto the date
of sale/disposal, as the case may be.
e) Investments:
Investments are treated as strategic long-term investments and the same
are stated at the cost, without considering any increase or erosion in
the value.
f) Inventories:
Inventories consisting of stocks and securities are stated at cost
without considering any increase or erosion in value thereof, as per
the practice followed by the Company right since the beginning.
g) Revenue Recognition:
i. Revenue is recognized where there is reasonable certainty of its
ultimate realization.
ii. Consultancy and Advisory fees are accounted on accrual basis
depended on the progress of assignment.
iii. Brokerage on stock market operations is recognized on completion
of settlement period.
iv. Dividend income has been accounted on receipt basis.
v. The Annual Maintenance charges in respect of depository account
holders are accounted at the time of opening the account or on
completion of the year irrespective of the period they pertain to.
vi. Income other than above is accounted on accrual basis.
h) Retirement Benefits:
The Companys contribution towards Provident Fund is charged against
revenue on actual basis. The Provisions for liability on account of
other benefits including Gratuity & Leave encashment are made on
accrual basis.
i) Segment Reporting:
The Company operates in single business segment i.e. financial
services.
j) Earning Per Share (E.P.S):
The Company reports Basic and Diluted Earning Per Share in accordance
with Accounting Standard 20 issued by The Institute of Chartered
Accountants of India.
The basic earning per share is computed by dividing the net profit
attributable to equity shareholders for the year by the weighted
average number of Equity Shares outstanding during the reporting year.
Diluted Earning Per Share is computed using the weighted average number
of equity share and dilute potential equity share outstanding during
the period.
k) Provision for Taxation:
- Current Tax
Provision for current year taxation is determined as the tax payable in
respect of taxable income for the year and is computed in accordance
with provision of relevant statute.
- Deferred Tax
The Company provides for deferred tax liability in accordance with
Accounting Standard 22 à ÃAccounting for Taxes on Incomeà issued by The
Institute of Chartered Accountants of India. In accordance with
transition provision of AS-22, the Company has adjusted the opening
deferred tax liability against opening revenue reserves.
Deferred tax resulting from timing difference between book profit and
tax profit is accounted for at the current tax rate/substantively
enacted tax rate, as applicable, to the extent that the timing
differences are expected to crystallize.
- Security Transaction Tax (STT)
The STT on Proprietary trades are treated as expenses for determining
the Profit / Loss from such activity.
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