Mar 31, 2015
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
These financial statements of the company have been prepared in
accordance with Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013, read with the Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013. The financial statements have been prepared on an
accrual basis and underthe historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
1.2 USE OF ESTIMATES:
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenue, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
1.3 RECOGNITION OF INCOME AND EXPENDITURE
Revenue is recognized to the extent that is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured. The following specific recognition criteria are met before
revenue is recognized.
a) Income from Professional Services
Income from Professional Services are accounted for as and when the
relevant services are rendered and revenue is recognized using
completed service contract method except where the recovery is
uncertain in which case it is accounted for on receipt.
b) Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "Revenue from operation" in
the statement of profit and loss. Delayed Payment charges, Penal
Interest, Other Penal Charges, etc, are in accordance with the
guidelines issued by the Reserve Bank of India for Non-Banking Finance
Companies, income on business assets classified as Non-performing
Assets, is also recognised on receipt basis.
c) Dividend
Dividend Income is recognized when the Company's Right to Receive
dividend is established by the reporting date.
d) Profit / Loss on sale of Investments / Inventories
Profit / Loss on the sale of Investments / inventories is dealt with at
the time of actual sale/ redemption.
1.4 INVENTORIES:
The Securities acquired with the intention of trading are considered as
stock in trade and disclosed as current assets. The Securities held as
Stock in Trade under current asset and are valued at lower of Cost or
Market value, whichever is less on FIFO Basis.
1.5 TANGIBLE FIXED ASSETS:
Tangible Fixed Assets are stated at cost less accumulated depreciation
and impairment losses, if any. The cost of fixed assets comprises
purchase price and any attributable cost of bringing the asset to it's
working condition for it's intended use.
1.6 DEPRECIATION ON TANGIBLE FIXED ASSETS:
Consequent to the enactment of the Companies Act, 2013 (the Act) and
its applicability for accounting periods commencing on or after April
1, 2014, the Company has re-worked depreciation with reference to the
useful lives of fixed assets prescribed by PART 'C of Schedule II to
the Act or the useful lives of assets as estimated by the Company,
whichever is lower. Where the remaining useful life of an asset is Nil,
the carrying amount of the asset after retaining the residual value
(net of deferred tax), as atApril 1,2014 has been adjusted to the
Retained Earnings. In other cases, the carrying values have been
depreciated over the remaining useful lives of the assets using
Straight Line Method and the same is recognised in the Statement of
Profit and Loss.
1.7 FOREIGN CURRENCYTRANSACTIONS
a) Initial recognition
Foreign Currency Transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction. Exchange differences, if any, arising out of transactions
settled during the year are recognised in the statement of Profit &
loss.
b) Conversion
Monetary assets and liabilities denominated in the foreign currencies
as at the Balance Sheet date are translated at the closing exchange
rates on that date. The exchange differences, if any, are recognised in
the Statement of profit & loss account and related assets and
liabilities are accordingly restated in the Balance Sheet.
1.8 INVESTMENTS:
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments.
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis. Long
term Investments are carried at cost. However, provision for diminution
in value is made to recognize a decline other than temporary in the
value of the investments. In the case of Mutual funds, the net asset
value of units declared by the Mutual funds is considered as the
fairvalue.
On disposal of investments, the difference between into carrying amount
and the net disposal proceeds is charged or credited to the statement
of profit & loss.
1.9 FUTURESAND OPTION CONTRACT
a) Equity Index/ Stock Futures are marked-to-market on a daily basis.
Debit or credit balances, if any, disclosed under Loans and Advances or
Current Liabilities respectively, in the "Mark-to-Market Margin -
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.
b) As at the Balance Sheet date, the profit / loss on open positions,
if any, in Equity Index/Stock Futures are accounted for as follows:
Credit balance in the "Mark-to-Market Equity Index/ Stock Futures
Account", being anticipated profit, is ignored and no credit is taken
in the statement of Profit and Loss.
Debit balance in the "Mark-to-Market Equity Index / Stock Futures
Account", being anticipated loss, is recognized in the statement of
Profit and Loss.
c) On final settlement or squaring-up of contracts for Equity
Index/Stock Futures, the profit or loss is calculated as difference
between settlement/ squaring-up price and contract price. Accordingly,
debit or credit balance pertaining to the settled/ squared-up contract
in "Mark-to-Market Margin - Equity Index/ Stock Futures Account" is
recognized in the Statement of Profit and Loss upon expiry of the
contracts. When more than one contract in respect of the relevant
series of Equity Index/ Stock 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 First In First Out Method for calculating profit/ loss
on squaring-up.
1.10 RETIREMENT BENEFITS:
The Company has adopted Revised Accounting Standard 15- Employee
Benefits. The policy followed by the Company in respect of its
employee benefit scheme is set out below:
a) Gratuity
The Company provides for the gratuity, a defined benefit retirement
plan covering all employees. The plan provides for lump sum payments to
employees at retirement, death while in employment or on termination of
employment. The liability for gratuity are provided for in accordance
with actuarial valuation.
b) Leave Encashment
Provision for Leave encashment is made on accrual basis on estimates as
at the year end and is charged to the Statement of Profit and Loss.
1.11 SEGMENT REPORTING POLICIES
Identification of segments:
The Company's operating businesses are organized and managed separately
according to the nature of products and services provided, with each
segment representing a strategic business unit that offers different
products and serves different markets.
Unallocated Items:
Unallocated items include income and expenses which are not allocated
to any business segment.
Segment Policies:
The company prepares its segment information in conformity with the
accounting policies for preparing and presenting the financial
statements of the company as a whole.
1.12 EARNINGS PER SHARE
The Company reports basic and diluted earnings per share in accordance
with Accounting Standard 20 - Earning pershare.
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as fraction of an equity share to the
extent that they are entitled to participate in dividends relative to a
fully paid equity share during the reporting period. The Weighted
average number of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus element in a rights
issue, share split, and reverse share split (consolidation of shares)
that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity share.
1.13 PROVISION FOR CURRENT TAX AND DEFERRED TAX
a) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per applicable provisions of
the Income Tax Act, 1961 and considering assessment orders and decision
of appellate authorities.
b) The deferred tax charge or benefit and the corresponding deferred
tax liabilities and assets are recognized using the tax rates that have
been enacted or substantially enacted as at the balance sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the asset can be realised in future; however,
where there is unabsorbed depreciation or carried forward loss
undertaxation laws, deferred tax assets are recognized only if there is
a virtual certainty of realisation of the assets. Deferred tax assets
are reviewed as at each balance sheet date and written down or written
up to reflect the amount that is reasonable / virtually certain (as the
case may be) to be realised.
1.14 IMPAIRMENT OF ASSETS:
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment based on internal / external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the assets, net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances. However the carrying value after reversal is
not increased beyond the carrying value that would have prevailed by
charging usual depreciation if there was no impairment.
1.15 CONTINGENT LIABILITY:
A contingent liability is a possible obligation that arise from past
events whose existence will be confirmed by the occurency or non
occurrence of one or more uncertain future events beyond the control of
the company or a present obligation that is not recognized because it
is not probable that an outflow of resources will be required to settle
the obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognized because it
cannot be measured reliably. The company does not recognise a
contingent liability but discloses its existence in the financial
statements.
Contingent assets are not recognized in the financial statements.
However contingent assets as assessed continually and if it is
virtually certain that an economic benefit will rise, asset and related
income are recognized in the period in which the change occurs.
1.16 PROVISIONS:
The company creates a provision when there is 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 amounts of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates. If it is no longer
probable that the outflow of resources would be required to settle the
obligation, the provision is reversed.
1.17 CASH & CASH EQUIVALENTS:
Cash and Cash Equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less, as per Accounting Standard 3
"Cash Flows".
Mar 31, 2014
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956 and the
guidelines issued by the Reserve Bank of India (''RBI'') as applicable to
a Non Banking Finance Company. The financial statements have been
prepared on an accrual basis and underthe historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
1.2 USE OF ESTIMATES:
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenue, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
1.3 RECOGNITION OF INCOME AND EXPENDITURE
Revenue is recognized to the extent that is probable that the economic
benefits will flow to the company and the revenue can be reliably
measured. The following specific recognition criteria are met before
revenue is recognized.
a) Income from Professional Services
Income from Professional Services are accounted for as and when the
relevant services are rendered and revenue is recognized using
completed service contract method except where the recovery is
uncertain in which case it is accounted for on receipt.
b) Interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included underthe head "Revenue from operation" in
the statement of profit and loss.
c) Dividend
Dividend Income is recognized when the Company''s Right to Receive
dividend is established by the reporting date.
d) Profit / Loss on sale of Investments / Inventories
Profit / Loss on the sale of Investments / inventories is dealt with at
the time of actual sale/redemption.
1.4 INVENTORIES:
The Securities acquired with the intention of trading are considered as
stock in trade and disclosed as current assets. The Securities held as
Stock in Trade undercurrent asset and are valued at lower of Cost or
Market value, whichever is less on FIFO Basis.
1.5 TANGIBLE FIXED ASSETS :
Tangible Fixed Assets are stated at cost less accumulated depreciation
and impairment losses, if any. The cost of fixed assets comprises
purchase price and any attributable cost of bringing the asset to it''s
working condition for it''s intended use.
1.6 DEPRECIATION ON TANGIBLE FIXED ASSETS:
Depreciation on tangible fixed assets is provided on a Straight Line
Method. In respect of assets sold, depreciation is provided upto the
date of disposal. Depreciation is charged at the rates prescribed in
the Schedule XIV to the Companies Act, 1956.
1.7 FOREIGN CURRENCYTRANSACTIONS
a) Initial recognition
Foreign Currency Transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction. Exchange differences, if any, arising out of transactions
settled during the year are recognised in the statement of Profit &
loss.
b) Conversion
Monetary assets and liabilities denominated in the foreign currencies
as at the Balance Sheet date are translated at the closing exchange
rates on that date. The exchange differences, if any, are recognised in
the Statement of profit & loss account and related assets and
liabilities are accordingly restated in the Balance Sheet.
1.8 INVESTMENTS:
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments.
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis. Long
term Investments are carried at cost. However, provision for diminution
in value is made to recognize a decline other than temporary in the
value of the investments. In the case of Mutual funds, the net asset
value of units declared by the Mutual funds is considered as the fair
value.
In accordance with the Revised Schedule VI to the Companies Act, 1956,
the portion of the Long Term Investments classified above, and expected
to be realised within 12 months of the reporting date, have been
classified as current investments.
On disposal of investments, the difference between into carrying amount
and the net disposal proceeds is charged or credited to the statement
of profit & loss.
1.9 FUTURESAND OPTION CONTRACT
a) Equity Index/ Stock Futures are marked-to-market on a daily basis.
Debit or credit balances, if any, disclosed under Loans and Advances or
Current Liabilities respectively, in the "Mark-to-Market Margin -
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.
b) As at the Balance Sheet date, the profit / loss on open positions,
if any, in Equity Index/ Stock Futures are accounted for as follows:
Credit balance in the "Mark-to-Market Equity Index/ Stock Futures
Account", being anticipated profit, is ignored and no credit is taken
in the statement of Profit and Loss.
Debit balance in the "Mark-to-Market Equity Index / Stock Futures
Account", being anticipated loss, is recognized in the statement of
Profit and Loss.
On final settlement or squaring-up of contracts for Equity Index/ Stock
Futures, the profit or loss is calculated as difference between
settlement/ squaring-up price and contract price. Accordingly, debit or
credit balance pertaining to the settled/ squared-up contract in "Mark
to-Market Margin - Equity Index/ Stock Futures Account" is recognized
in the Statement of Profit and Loss upon expiry of the contracts. When
more than one contract in respect of the relevant series of Equity
Index/ Stock 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 First
In First Out Method for calculating profit/ loss on squaring-up.
1.10 RETIREMENT BENEFITS:
The Company has adopted Revised Accounting Standard 15- Employee
Benefits. The policy followed by the Company in respect of its
employee benefit scheme is set out below:
a) Gratuity
The Company provides for the gratuity, a defined benefit retirement
plan covering all employees. The plan provides for lump sum payments to
employees at retirement, death while in employment or on termination of
employment. The liability for gratuity are provided for in accordance
with actuarial valuation.
b) Leave Encashment
Provision for Leave encashment is made on accrual basis on estimates as
at the year end and is charged to the Statement of Profit and Loss.
1.11 SEGMENT REPORTING POLICIES
Identification of segments:
The Company''s operating businesses are organized and managed separately
according to the nature of products and services provided, with each
segment representing a strategic business unit that offers different
products and serves different markets.
Unallocated Items:
Unallocated items include income and expenses which are not allocated
to any business segment.
Segment Policies:
The company prepares its segment information in conformity with the
accounting policies for preparing and presenting the financial
statements of the company as a whole.
1.12 EARNINGS PER SHARE
The Company reports basic and diluted earnings per share in accordance
with Accounting Standard 20 - Earning per share prescribed by the
Companies (Accounting Standards) Rules, 2006.
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting preference dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as fraction of an equity share to the
extent that they are entitled to participate in dividends relative to a
fully paid equity share during the reporting period. The Weighted
average number of equity shares outstanding during the period is
adjusted for events such as bonus issue, bonus element in a rights
issue, share spilit, and reverse share split (consolidation of shares)
that have changed the number of equity shares outstanding, without a
corresponding change in resources.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity share.
1.13 PROVISION FORCURRENTTAXAND DEFERRED TAX
a) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per applicable provisions ofthe
Income Tax Act, 1961 and considering assessment orders and decision of
appellate authorities.
b) The deferred tax charge or benefit and the corresponding deferred
tax liabilities and assets are recognized using the tax rates that have
been enacted or substantially enacted as at the balance sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty that the asset can be realised in future; however,
where there is unabsorbed depreciation or carried forward loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realisation ofthe assets. Deferred tax assets are
reviewed as at each balance sheet date and written down or written up
to reflect the amount that is reasonable / virtually certain (as the
case may be) to be realised.
1.14 IMPAIRMENT OF ASSETS:
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment based on internal / external
factors. An impairment loss is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the assets, net selling price and value in use. In
assessing value in use, the estimated future cash flows are discounted
to their present value at the weighted average cost of capital.
After impairment, depreciation is provided on the revised carrying
amount ofthe asset over its remaining useful life. A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances. However the carrying value after reversal is
not increased beyond the carrying value that would have prevailed by
charging usual depreciation if there was no impairment.
1.15 CONTINGENT LIABILITY:
A contingent liability is a possible obligation that arise from past
events whose existence will be confirmed by the occurency or non
occurrence of one or more uncertain future events beyond the control of
the company or a present obligation that is not recognized because it
is not probable that an outflow of resources will be required to settle
the obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognized because it
cannot be measured reliably. The company does not recognise a
contingent liability but discloses its existence in the financial
statements.
Contingent assets are not recognized in the financial statements.
However contingent assets as assessed continually and if it is
virtually certain that an economic benefit will rise, asset and related
income are recognized in the period in which the change occurs.
1.16 PROVISIONS:
The company creates a provision when there is 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 amounts of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates. If it is no longer
probable that the outflow of resources would be required to settle the
obligation, the provision is reversed.
1.17 CASH & CASH EQUIVALENTS:
Cash and Cash Equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less, as per Accounting Standard 3
"Cash Flows".
Mar 31, 2013
1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The financial statements of the company have been prepared m accordance
with generally accepted accounting principles in India (Indian GAAP).
The company has prepared these financial statements to comply in all
material respects with the a ceo tinting standards notified under ihe
Companies (Accounting Standards) Rules 2006, (as amended) and the
relevant provisions of the Companies Act, 1956 and the guidelines
issued by the Reserve Bank of India (RBI) as applicable to a Non
Banking Finance Company The financial statements have been prepared on
an accrual basis and under the historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
1.2 USE OF ESTIMATES:
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect Ihe reported amounts of revenue, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on Ihe
management''s best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities m future periods.
1.3 RECOGNITION OF INCOME AND EXPENDITURE
Revenue is recognized to the extent that is probable lhat the economic
benefits will flow to the company and the revenue can be reliably
measured. The following specific recognition criteria are met before
revenue is recognized
a) Income from Professional Services
Income from Professional Services are accounted for as and when the
relevant services are rendered and revenue is recognized using
completed service contract method except where the recovery is
uncertain in which case it is accounted for on receipt.
b i interest
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate
Interest income is included under the head "Revenue from operation* in
the statement of profit and loss.
c) Dividend
Dividend Income is recognized when Ihe Company''s Right to Receive
dividend is established by the reporting dace.
d) Profit/ Loss on sale of In vestments / Inventories
Profit / Loss on the sale of Investments / inventories is dealt with at
the time of actual sale/redemption.
1.4 INVENTORIES:
The Securities acquired with the intention of trading are considered as
stock in trade and disclosed as current assets. The Securities haid as
Slock in Trade under currant asset and are valued at lower of Cost or
Market value, whichever is less or FIFO Basis.
1.5 TANGIBLE FIXED ASSETS ;
Tangible Fixed Assets are stated at cost less accumulated depreciation
and impairment losses, if any. The cost of fixed assets comprises
purchase price end any attributable cost of hringing the asset to it''s
working condition for it''s intended use.
1.6 DEPRECIATION ON TANGIBLE FIXED ASSETS:
Depredation on tangible Fixed assets is provided on a Straight Line
Method in respect of assets sold, depreciation Is provided uplo the
date of disposal. Depreciation is charged at the rales prescribed in
the Schedule XIV to the Companies Act, f956.
1.7 FOREIGNCURRENCY TFtANSACTIONS
a] Initial recognition
Foreign Currency Transactions are recorded in Ihe reporting currency,
by applying to the Foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the dale of the
transaction. Exchange differences, if any, arising out of transactions
settled during the year are recognized in the statement of Profits.
Loss.
b) Conversion
Monetary assets and liabilities denominated in the foreign currencies
as at the Balance Sheet date are translated at the dosing exchange
rates on that date. The exchange differences, if any. are recognized in
the statement of profit & toss account and related assets and
liabilities are accordingly restated in the Balance Sheet.
1.B INVESTMENTS:
Investments, which are readily realizable and intended lo be held for
not more than one year from the date on which such investments are
made, are classified as current investments. Ail other investments are
classified as long term investments,
Current investments are carried in the financial statements at lower of
cost and fair value determined on an individual investment basis. Long
term Investments are carried at cost. However, provision for diminution
in value is made to recognise a decline other than temporary in the
value of (he investments. In the case of Mutual funds. Ihe net asset
value of untls declared by the Mutual funds is considered as the fair
value. 1 In accordance with the Revised Schedule VI to the Companies
Act, 1956, Ihe portion of the Long Term Investments classified above,
and expected to be realised within 12 months of the reporting date,
have been classified as current investments.
On disposal of investments, the difference between Into carrying amount
and the net disposal proceeds is charged or credited to the statement
of profit & loss.
1,9 FUTURES AND OPTION CONTRACT
a) Equity Index I Slock Futures are marked-to-market on a daity basis.
Debit or credit balances, "if any, disclosed under Loans and Advances
or Current Liabilities respectively, in the "Mark-to-Market Margin -
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. As at the Balance Sheet date, the
profit i loss on open positions. If any, in Equity Index / Stock
Futures are accounted for as follows:
Credit balance in frte "Marfc-lo-Market Equity Index t Stock Futures
Account", being anticipated profit, is ignored and no credit is taken
in the statement of Profit and Loss.
Debit balance in the "Ma rk-to-Market Equity Index I Slock Futures
Account", being antici pated toss Js recogn ized in Ihe stalemen t of
Profit and Loss.
c) On final settlement or squaring-up or contracts for Equity Index
/Stock Futures, the profit or loss is calculated as difference between
settlement / squaring-up price and contract price. Accordingly, debit
or credit balance pertaining to the settled t squared-up contract In
"Mark lo-Markel Margin - Equity Index ! Slock Futures Account" is
recognized in the Statement of Profit and Loss upon expiry of the
contracts. When more lhan one contract in respect of Ihe relevant
series of Equity Index / Stock Futures contract to which the squared-up
contract pertains is outstanding at the time of the squaring up of the
contract, the contract pnce of the contract so squared up Is determined
using First In First Out Method far calculating profit/ lass an
squaring-up.
1.10 RETIREMENT BENEFITS:
The Company has adopted Revised Accounling Standard 15- Employee
Benefils. The policy foilowed by the Company in respect of its
employee benefit scheme is set out below:
a) Gratuity
The Company provides for the gratuity, a defined benefit retirement
plan covenng all employees The plan provides for lump sum payments to
employees at retirement, death while in employment or on termination of
employment. The liability for gratuity are provided for in accordance
wilh actuarial valuation.
b) Leave Encashment
Provision for Leave encashment is made on accrual basis on estimates as
at the year end an d is cha rged to I he State ment of Pf ofil and
Loss.
1.11 SEGMENT REPORTING POLICIES
Identification of segments:
The Company''s operating businesses are organized and menaced separately
according lo the nature of products and services provided, with each
segment representing a strategic business unit that offers different
products and serves different markets.
Unallocated Items:
Unallocated items include income and expenses which are not allocated
to any business segment.
Segment Policies:
The company prepares its segment information in conformity with the
accounting polices for preparing and presenting the financial
statements of the company as a whole,
1.12 EARNINGS PER SHARE
The Company reports basic and diluted earnings per share in accordance
with Accounting Standard 20 - Earning per share prescribed by the
Companies (Accounting Standards) Rules, 2006
Basic earnings per share are calculated by dividing the net profit or
loss far the period attributable lo equity shareholders (after
deducting preferences dividends and attributable taxes) by the weighted
average number of equity shares outstanding during the period. Partly
paid equity shares are treated as fraction of an equity share the
extent [hat they are entitled to participate in dividends relative to a
fully paid equity share during the reporting period. The Weighted
average number of equity shares outstanding during the period is
adjusted far events such as bonus issue, bonus element in a nghls
issue, share spill, and reverse share split (consolidation of shares)
that have changed the number of equity shares outstanding, without a
corresponding change in resources
For the purpose oF calculating diluted earnings per share, the net
profit or loss for ine period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity share
1.13 PROVISION FOR CURRENT TAX AND DEFERRED TAX
a) Provision for current lax Is made and retained in the accounts on
the hasis of estimated tan liability as per applicable provisions of
the Income Tax Act. 1961 and considering assessment orders and decision
of appellate authorities,
b) The deferred tax change or benefit and the corresponding deferred
lax liabilities and assets are recognized using the tax rales that have
been enaclad or substantially enacted as at the balance sheet date.
Deferred tax assets are recognized only to the extent there is
reasonable certainty lhat the asset can be realised in Future; however,
where there is unabsorbed depreciation or earned forward loss under
taxation laws, deferred lax assets are recognized only if there is a
virtual certainly of realisation of the assets. Deferred tax assets are
reviewed as at each balance sheet dale and written down or written up
io reflect the amount that is reasonable / virtually certain (as the
case may be) to be realised.
1.14 IMPAIRMENT OF ASSETS:
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment based on internal / external
factors. An impairment loss Is recognized wherever the carrying amount
of an asset exceeds its recoverable amount. The recoverable amount is
the greater of the assets, net selling price and value in use In
assessing value in use, the estimated future cash Hows a re discounted
to their present value at the weighted average cost of capital
After impairment, depreciation is provided on the revised carrying
amount of the asset over its remaining useful life A previously
recognized impairment loss is increased or reversed depending on
changes in circumstances. However Ihe carrying value after reversal is
not increased beyond the carrying value that would have prevailed by
charging usual depreciation if there was no impairment.
1.15 CONTINGENT LIABILITY:
A contingent liability is a possible obligation that arise from past
events whose existence will be confirmed by the occurency or nan
occurrence of one or more uncertain future events beyond the control of
the company or a present obligation that is not recognized because it
is not probable that an outflow of resources will be required to settle
the obligation. A contingent liability also arises in extremely rare
cases where there is a liability that cannot be recognized because it
cannot be measured reliably. The company does not recognise a
contingent liability but discloses its existence in the financial
statements
Contingent assets are not recogmzed m the financial statements. However
contingent assets as assessed continually and if it is virtually
certain that an economic benefit will rise, asset and related Income
are recognized m the period in which the change occurs.
1.16 PROVISIONS:
The company creates a provision when Ihere is present obligation as a
result of a past event thai probably requires an outflow of resources
and a reliable estimate can be made of the amounts of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle Ihe obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current besl estimates. If it is no longer
probable thai the outflow of resources would be required to settle the
obligation, the provision is reversed.
1.17 CASH & CASH EQUIVALENTS .
Cash and Cash Equivalents for the purposes of cash flow statement
compnse cash at bank and in hand and short term investments with an
original maturity of three months or less, as per Accounting Standard 3
"Cash Flows".
Mar 31, 2011
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The financial statements are prepared and presented under the
historical cost convention, on accrual basis, in accordance with the
Indian Generally Accepted Accounting Principles (GAAP), the accounting
standards issued by the Institute of Chartered Accountants of India and
the provisions of the Companies Act, 1956.
2. USE OF ESTIMATES
The preparation of financial statemensts (in conformity with generally
accepted accounting principles) requires the management to make
estimations and assumptions that affect (i) the reported amount of
assets and liabilities, (ii) the result of operations during and at the
end of the reporting period, and (iii) the disclosures of contingent
liabilites at the date of the financial statements. As these estimates
are based on the management's best knowledge of events and actions at
the relevant period of time, the actual results could differ from these
estimates.
3. RECOGNITION OF INCOME & EXPENDITURE:
Items of Income & Expenditure are recognized on accrual basis, as they
are earned or incurred.
4. FIXED ASSETS AND DEPRECIATION:
a) Fixed assets are stated at cost of acquisition less accumulated
depreciation.
b) Depreciation on fixed assets has been provided on Straight Line
Method at the rates specified in Schedule XIV to the Companies Act,
1956.
c) Impairment of Assets :
The Company identifies impairable assets at the year-end in terms of
para-5 to 13 of AS - 28 issued by ICAI for the purpose of arriving at
impairment loss thereon; being the difference between the book value
and recoverable value and impairment loss is recognised.
5. INVESTMENT:
The Long Term Investment has been valued at cost and the short Term
Investment has been valued at cost or Market Price whichever is lower.
Provision for diminution is made to recognize a decline, other than
temporary, in the value of such investments.
6. Stock in Trade:
Stock in trades are valued at cost or market value whichever is lower
on FIFO basis in case of quoted securities and at cost in case of
unquoted securities.
7. Futures and Option Contract
a) Equity Index/Stock Futures are marked-to-market on a daily basis.
Debit or credit balance, if any, disclosed under Loans and Advances or
Current Liabilities respectively, in the "Mark-to-Market Margin-Index/
Stock Futures Account," represents the net amount paid or received on
the basis of movement in the prices on Index/Stock Futures till the
Balance Sheet date.
b) As at the Balance Sheet date, the profit/loss on open positions, if
any, in Equity Index/Stock Futures are accounted for as follows :
- Credit balance in the "Mark-to-Market Equity Index / Stock Futures
Account," being anticipated profit, is ignored and no credit is taken
in the Profit and Loss Account.
- Debit balance in the "Mark-to-Market Equity Index / Stock Futures
Accounts," being anticipated loss, is recognized in the Profit and Loss
Account.
c) On final settlement or squaring-up of contracts for Equity
Index/Stock Futures, the profit or loss is calculated as difference
between settlement/ squaring-up price and contract price. Accordingly,
debit or credit balance pertaining to the settled/squared-up contract
in "Mark-to- Market Margin-Equity Index/Stock Futures Account" is
recognized in the Profit and Loss Account upon expiry of the contracts.
When more than one contract in respect of the relevant series of Equity
Index / Stock 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 determinded using
First In First Out Method for calculating profit/loss on squaring-up.
8. Provision for Current tax and Deferred tax :
a) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per applicable provisions of
the Income Tax Act, 1961 and considering assessment orders and decision
of appellate authorities.
b) Deferred tax is recognized subject to the consideration of prudence,
on time difference being the difference between taxable income and
accounting income that originate in one period and capable of reversal
in one or more subsequent periods in due cognizance of AS - 22 issued
by ICAI.
9. Earning per share :
The earnings considered in ascertaining the Company's EPS comprises the
Net Profit after Tax and includes the Post Tax effect of any
extraordinary items. The Number of Shares used in computing basic EPS
is the weighted average number of shares outstanding during the year.
10. Exchange Fluctuation :
Foreign currency assets / liabilities are translated in rupees at the
rate ruling at the year end and the exchange difference arising on such
transactions is dealt with in the Profit & Loss Account.
11. Retirement Benefits:
i) Gratuity :
The liability for gratuity are provided for in accordance with
actuarial valuation.
ii) Leave Encashment :
Provision for Leave encashment is made on accrual basis on estimates as
at the year end and is charged to Profit & Loss Account.
12. Contingent Liability :
Contingent Liabilities are not provided for in the accounts, but are
disclosed in the Notes, if any.
Mar 31, 2010
1. Basis of Accounting :
The financial statements are prepared and presented under the
historical cost convention, on accrual basis, in accordance with the
Indian Generally Accepted Accounting Principles (GAAP), the accounting
standards issued by the Institute of Chartered Accountants of India and
the provisions of the Companies Act, 1956.
2. Recognition of Income & Expenditure:
Items of Income & Expenditure are recognized on accrual basis, as they
are earned or incurred.
3. Use of Estimates :
The preparation of financial statements (in conformity with generally
accepted accounting principles) requires the management to make
estimations and assumptions that affect (i) the reported amount of
assets and liabilities, (ii) the result of operations during and at the
end of the reporting period, and (iii) the disclosures of contingent
liabilities at the date of the financial statements. As these estimates
are based on the managements best knowledge of events and actions at
the relevant period of time, the actual results could differ from these
estimates.
4. Fixed Assets and Depreciation:
a) Fixed assets are stated at cost of acquisition less accumulated
depreciation.
b) Depreciation on fixed assets has been provided on Straight Line
Method at the rates specified in Schedule XIV to the Companies Act,
1956.
c) Impairment of Assets :
The Company identifies impairable assets at the year-end in terms of
para-5 to 13 of AS - 28 issued by ICAI for the purpose of arriving at
impairment loss thereon; being the difference between the book value
and recoverable value and impairment loss is recognised.
5. Investment:
The Long Term Investment has been valued at cost and the short Term
Investment has been valued at cost or Market Price whichever is lower.
Provision for diminution is made to recognize a decline, other than
temporary, in the value of such investments.
6. Stock in Trade:
Stock in trades are valued at cost or market value whichever is lower
on FIFO basis in case of listed securities and at cost in case of
non-listed securities.
7. Futures and Option Contract
In respect of futures and option contracts gain/losses on settlement
are recognized on settlement dates for the completed contracts. In
respect of open contracts of futures and options at the end of the
year, the losses are provided in the books at the end of the year, but
profit is booked on realization by following global approach. (as per
the terms of Guidance Note of the Institute of Chartered Accountants of
India.)
8. Provision for Current tax and Deferred tax :
a) Provision for current tax is made and retained in the accounts on
the basis of estimated tax liability as per applicable provisions of
the Income Tax Act, 1961 and considering assessment orders and decision
of appellate authorities.
b) Deferred tax is recognized subject to the consideration of prudence,
on time difference being the difference between taxable income and
accounting income that originate in one period and capable of reversal
in one or more subsequent periods in due cognizance of AS - 22 issued
by ICA1.
9. Earning per share :
The earning considered in ascertaining the Companys EPS comprises the
Net Profit after Tax and includes the Post Tax effect of any
extraordinary items. The Number of Shares used in computing basic EPS
is the weighted average number of shares outstanding during the year.
10. Exchange Fluctuation :
Foreign currency assets / liabilities are translated in rupees at the
rate ruling at the year end and the exchange difference arising on such
transactions is dealt with in the Profit & Loss Account.
11. Retirement Benefits: i) Gratuity :
The liability for gratuity are provided for in accordance with
actuarial valuation. ii) Leave Encashment :
Provision for Leave encashment is made on accrual basis on estimates as
at the year end and is charged to Profit & Loss Account.
12. Contingent Liability :
Contingent Liabilities are not provided for in the accounts, but are
disclosed in the Notes, if any.
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