Mar 31, 2014
1.1 Basis of preparation
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 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 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 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.
1.4 Depreciation on Tangible Fixed Assets
Depreciation on tangible fixed assets is provided on a straight line
basis from the date the asset is ready to use or put to use, whichever
is earlier at the rates prescribed in the Schedule XIV to the Companies
Act 1956. In respect of assets sold, depreciation is provided upto the
date of disposal.
1.5 Impairment of Tangible and Intangible Assets
The carrying amount of assets is reviewed at each balance sheet date if
there is any indication of impairment based on intemal/extemal 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.
1.6 Investments
Investments are classified as long term and current in accordance with
the Accounting Standard on ''Accounting for Investments'' (AS 13) issued
by the Institute of Chartered Accountants of India. Long-term
investments are valued at acquisition cost unless the fall in value is
of permanent nature. Current investments are valued at lower of cost
and market value and in case of unquoted shares lower of cost or break
up value. The break up value of unquoted investment is determined as
per the Non Banking Prudential Norms Directions, 1998. Provision for
diminution in the value of investments is made in accordance with the
directions issued by Reserve Bank of India and recognized through
provision for diminution in the value of investments.
In accordance with the Note No. 1 of 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 an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
1.7 Stock in Trade
The securities acquired with the intention of short term holding and
trading positions are considered as stock-in-trade and disclosed as
current assets and non current assets depending upon the holding
period. Stock in trade is valued in accordance accounting policy
mentioned under the head investments.
1.8 Revenue Recognition
Revenue is recognized to the extent that it 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 Advisory Services
Income from Advisory Services are accounted for as and when the
relevant services are rendered and revenue is recognised 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 Operations" in
the statement of profit and loss.
c) Dividends
Dividend income is recognized when the company''s right to receive
dividend is established on the reporting date.
d) Profit/ Loss on sale of Investments/ Stock in Trade
Profit/loss on the sale of investments/ stock in trade is dealt with at
the time of actual sale except for shares held as stock in trade if the
fall in value is other than temporary, the valuation of the same is
done as per RBI prudential norms as applicable to the NBFC.
1.9 Retirement and other employee benefits
The Company has adopted the revised Accounting Standard 15 - Accounting
for Employee Benefits. The accounting policy followed by the Company in
respect of its employee benefit schemes is set out below:
Gratuity: Short term employee benefits are accounted in the period
during which the services have been rendered. Defined contribution
plans such as Provident Fund Act 1952 is not applicable to the Company
Leave Encashment:The employees of the Company are entitled to leave as
per the leave policy of the Company however no carry forward is
permitted and the same if any remain balance is encashed at the end of
the year.
1.10 Income Taxes
Income tax expenses comprises of current tax (i.e. amount of tax for
the period determined in accordance with the income-tax law) & the
deferred tax charge or benefit (reflecting the tax effect of timing
differences between accounting income and taxable income for the
period).
Deferred Taxation: The deferred tax charge or benefit and the
corresponding deferred tax liabilities and assets are recognised using
the tax rates that have been enacted or substantially enacted as at the
balance sheet date. Deferred tax assets are recognised 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 recognised
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 he) to be realised.
1.11 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.
1.12 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.
1.13 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 he required to settle the
obligation, the provision is reversed.
1.14 Contingent Liabilities /Assets
A contingent liabilities 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 recognize a
contingent liability but discloses its existence in the financial
statements.
Contingent assets are not recognised in the financial statements.
However contingent assets are assessed continually and if it is
virtually certain that an economic benefit will rise, asset and related
income are recognised in the period in which the change occurs.
1.15 Cash and 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
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 CRBI'') 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, except for the
change in accounting policy explained below.
1.2 Change in Accounting Policy:
Presentation and Disclosure of Financial Statement
During the year ended 31-03-2012, the revised Schedule VI notified
under the Companies Act, 1956, has become applicable to the company,
for preparation and presentation of its financial statements. he
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
1.3 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.
1.4 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.
1.5 Depreciation on Tangible Fixed Assets
Depreciation on tangible fixed assets is provided on a straight line
basis from the date the asset is ready to use or put to use, whichever
is earlier at the rates prescribed in the Schedule XIV to the Companies
Act 1956. In respect of assets sold, depreciation is provided upto the
date of disposal.
1.6 Impairment of Tangible and Intangible 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.
1.7 Investments:
Investments are classified as long term and current in accordance with
the Accounting Standard on "Accounting for Investments'' (AS 13) issued
by the Institute of Chartered Accountants of India. Long-term
investments are valued at acquisition cost unless the fall in value is
of permanent nature. Current investments are valued at lower of cost
and market value and in case of unquoted shares lower of cost or break
up value. The break up value of unquoted investment is determined as
per the Non Banking Prudential Norms Directions, 1998. Provision for
diminution in the value of investments is made in accordance with the
directions issued by Reserve Bank of India and recognized through
provision for diminution in the value of investments.
In accordance with the Note No. 1 of 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 an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
1.08 Stock in Trade
The securities acquired with the intention of short term holding and
trading positions are considered as stock-in-trade and disclosed as
current assets. Stock in trade of shares being current in nature is
valued in accordance accounting policy mentioned under the head
investments.
1.09 Revenue Recognition
Revenue is recognized to the extent that it 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 Advisory Services
Income from Advisory Services are accounted for as and when the
relevant services are rendered and revenue is recognised 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 Operations" in
the statement of profit and loss.
c) Dividends
Dividend income is recognized when the company''s right to receive
dividend is established on the reporting date.
d) Profit/ Loss on sale of Investments/ Stock in Trade
Profit/loss on the sale of investments/ stock in trade is dealt with at
the time of actual sale except for shares held as stock in trade if the
fall in value is other than temporary , the valuation of the same is
done as per RBI prudential
1.10 Retirement and other employee benefits
The Company has adopted the revised Accounting Standard 15 - Accounting
for Employee Benefits. The accounting policy followed by the Company in
respect of its employee benefit schemes is set out below:
Gratuity: Short term employee benefits are accounted in the period
during which the services have been rendered.
Defined contribution plans such as Provident Fund Act 1952 is not
applicable to the Company
Leave Encashment:
The employees of the Company are entitled to leave as per the leave
policy of the Company however no carry forward is permitted and the
same if any remain balance is encashed at the end of the year.
1.11 Income Taxes
Income tax expenses comprises of current tax (i.e. amount of tax for
the period determined in accordance with the income-tax law) & the
deferred tax charge or benefit (reflecting the tax effect of timing
differences between accounting income and taxable income for the
period).
Deferred Taxation:
The deferred tax charge or benefit and the corresponding deferred tax
liabilities and assets are recognised using the tax rates that have
been enacted or substantially enacted as at the balance sheet date.
Deferred tax assets are recognised 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 recognised 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.
1.12 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.
1.13 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.
1.14 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.
1.15 Contingent Liabilities / Assets
A contingent liabilities 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 recognize a
contingent liability but discloses its existence in the financial
statements.
Contingent assets are not recognised in the financial statements.
However contingent assets are assessed continually and if it is
virtually certain that an economic benefit will rise, asset and related
income are recognised in the period in which the change occurs.
1.16 Cash and 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, 2012
1.1 Basis of preparation
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 aNon 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, except for the
change in accounting policy explained below.
1.2 Change in Accounting Policy:
Presentation and Disclosure of Financial Statement
During the year ended 31 -03-2012, the revised Schedule VI notified
under the Companies Act, 1956, has become applicable to the company,
for preparation and presentation of its financial statements. The
adoption of revised Schedule VI does not impact recognition and
measurement principles followed for preparation of financial
statements. However, it has significant impact on presentation and
disclosures made in the financial statements. The company has also
reclassified the previous year figures in accordance with the
requirements applicable in the current year.
1.3 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.
1.4 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 its intended use.
1.5 Depreciation on Tangible Fixed Assets
Depreciation on tangible fixed assets is provided on a straight line
basis from the date the asset is ready to use or put to use,
whichever is earlier at the rates prescribed in the Schedule XIV to the
Companies Act 1956. In respect of assets sold, depreciation is provided
up to the date of disposal.
1.6 ImpairmentofTangibleand IntangibleAssets:
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.
1.7 Investments:
Investments are classified as long term and current in accordance with
the Accounting Standard on 'Accounting for Investments' (AS 13)
issued by the Institute of Chartered Accountants of India. Long-term
investments are valued at acquisition cost unless the fall in value is
of permanent nature. Current investments are valued at lower of cost
and market value and in case of unquoted shares lower of cost or break
up value. The breakup value of unquoted investment is determined as
per the Non Banking Prudential Norms Directions, 1998. Provision for
diminution in the value of investments is made in accordance with the
directions issued by Reserve Bank of India and recognized through
provision for diminution in the value of investments.
In accordance with the Note No. 1 of Revised Schedule VI to the
Companies Act, 1956, the portion of the Long Term Investments
classified above, and expected to be realized within 12 months of the
reporting date, have been classified as current investments.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
1.8 Stock in Trade
The securities acquired with the intention of short term holding and
trading positions are considered as stock-in-trade and disclosed as
current assets. Stock in trade of shares being current in nature is
valued in accordance accounting policy mentioned under the head
investments.
1.9 Revenue Recognition
Revenue is recognized to the extent that it 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 Advisory Services
Income from Advisory 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
Operations" in the statement of profit and loss.
c) Dividends
Dividend income is recognized when the company's right to receive
dividend is established on the reporting date.
d) Profit/ Loss 011 sale of Investments/Stock in Trade
Profit/loss on the sale of investments/ stock in trade is dealt with at
the time of actual sale except for shares held as stock in trade if the
fall in value is other than temporary, the valuation of the same is done
as per RBI prudential norms as applicable to theNBFC.
1.10 Retirement and other employee benefits
The Company has adopted the revised Accounting Standard 15 - Accounting
for Employee Benefits. The accounting policy followed by the Company in
respect of its employee benefit schemes is set out below :
Gratuity: Short term employee benefits are accounted in the period
during which the services have been rendered. Defined contribution
plans such as Provident Fund Act 1952 is not applicable to the Company
Leave Encashment: The employees of the Company are entitled to leave as
per the leave policy of the Company however no carry forward is permitted
and the same if any remain balance is encased at the end of the
year.
1.11 Income Taxes
Income tax expenses comprises of current tax (i.e. amount of tax for
the period determined in accordance with the income- tax law) & the
deferred tax charge or benefit (reflecting the tax effect of timing
differences between accounting income and taxable income for the
period).
Deferred Taxation: 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 realized 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 realization 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 realized.
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.
1.13 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.
1.14 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.
1.15 Contingent Liabilities/Assets
A contingent liabilities 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 recognize a
contingent liability but discloses its existence in the financial
statements.
Contingent assets are not recognized in the financial statements.
However contingent assets are 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 Cash and 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, 2010
(A) BASIS OF ACCOUNTING: The accounts are prepared as a going concern
under historical cost conversion in accordance with the requirements of
the Companies Act, 1956 and generally accepted accounting policies.
(B) METHOD OF ACCOUNTING: The Company follows accrual system of
accounting and recognizes income and expenditure on accrual basis
unless otherwise stated elsewhere.
(C) INCOME RECOGNITION: /. In respect of loans and interest bearing
advances, interest is calculated at contracted rate on amount
outstanding and on a time proportion. II. The difference between the
carrying amount of investment and the sale proceed (net of expenses) is
recognized in the Profit and Loss Account in the year of sale.
(D) DEPRECIATION: Depreciation of owned assets is provided as per
Straight Line Method at the rates prescribed under Schedule XIV of the
Companies Act, 1956.
(E) INVESTMENTS: Investments are classified as long term and current in
accordance with the Accounting Standard on Accounting for Investments
(AS 13) issued by the Institute of Chartered Accountants of India.
Long-term investments are valued at acquisition cost unless the fall in
value is of permanent nature. Current investments are valued at lower
of cost and market value and in case of unquoted shares lower of cost
or break up value. The break up value of unquoted investment is
determined as per the Non Banking Prudential Norms Directions, 1998.
Provision for diminution in the value of investments is made in
accordance with the directions issued by Reserve Bank of India and
recognized through provision for diminution in the value of
investments.
(F) STOCK IN TRADE: Stock in trade of shares being current in nature is
valued in accordance accounting policy mentioned under the head
investments.
(G) PRELIMINARY AND ISSUE EXPENSES: Preliminary and issue expenses are
being written off in 10 equal instalments.
(H) PROVISION FOR NON-PERMOFORMING ASSETS: Provision for doubtful loans
and advances are made to the extent of 100% of the amount of such loans
and advances and debited to the Profit and Loss Account. Provision for
diminution in the value of investment is made as mentioned in the
clause (E) above and the amount is debited to the Profit and Loss
Account.
(I) INCOME TAX: The accounting treatment for Income Tax is based on the
Accounting Standard 22 on Accounting for Taxes on Income issued by
the Institute of Chartered Accountants of India.
(J) EMPLOYEES BENEFIT: Short term employee benefits are accounted in
the period during which the services have been rendered. Defined
contribution plans such as Provident Fund Act 1952 is not applicable to
the Company The employees of the Company are entitled to leave as per
the leave policy of the Company however no carry forward is permitted
and the same if any remain balance is encashed at the end of the year.
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