Accounting Policies of Modex International Securities Ltd. Company

Mar 31, 2018

1 SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) including the Indian Accounting Standards(''Ind AS'') specified under Section 133 of the Companies Act, 2013 and the relevant provisions of the Act, as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2 Summary of significant accounting policies

The significant accounting policies have been predominantly presented below in the order of the Indian Accounting Standards (''Ind AS''s) specified under Section 133 of the Companies Act, 2013.

2.3 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP including Indian Accounting Standard (''Ind AS'') requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.4 Accounting for forward contracts

Premium / discount on forward exchange contracts, which are not intended for trading or speculation purposes, are amortised over the period of the contracts if such contracts relate to monetary items as at the balance sheet date. Any profit or loss arising on cancellation or renewal of such a forward exchange contract is recognised as income or as expense in the period in which such cancellation or renewal is made.

2.5 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

2.6 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

2.7 Deprecation on Tangible Fixed Assets

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible fixed assets has been provided on the written down value method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation period is revised to reflect the changed pattern, if any.

2.8 Investments

''Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible fixed assets. Impairment of investment property is determined in accordance with the policy stated for impairment of assets.

2.9 Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale.

2.10 Revenue recognition

Revenue is recognized to the extent that there is probability that the economic benefits will flow to the company and the revenue can be reliably measured. The following specific criteria must also be met before revenue is recognized.

(a) Sale / purchase of shares

Shares purchases / sales in capital market segment has been taken on absolute basis. Derivative segments transactions has been taken on difference bill basis.

(b) Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive is established.

(c) 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 "Other Income" in the Statement of Profit and Loss.

2.11 Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence 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 any contingent liability but discloses its existence in the financial statements.

2.12 Segment information

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit / loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market / fair value factors. Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

2.13 Earning per shares

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

2.14 Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are classified as operating leases. Lease rents under operating leases are recognized in the Statement of Profit and Loss on a straight line basis over the lease term.

2.15 Income taxes

Tax expense comprises current and deferred tax. Current Income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity and the same taxation authority.

2.16 Operating cycle

All assets and liabilities have been classified as current or non current as per company''s normal operating cycle another criteria as set out in schedule III to the nature of the services and there realization in cash and cash equivalents, the company has ascertained its operating cycle as twelve months for the purpose of current and non current classification of assets and liabilities.

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Mar 31, 2015

2,1 Basis of Preparation of financial Statements

The Financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies Act, 2013 The financial statements have been prepared tin an accrual basts under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year

2.2 Summary of Significant Accounting Policies

Application of the revised Schedule VI to the Companies Act. 1956 for the preparation of the financial statements of the company The revised Schedule VI introduces some significant conceptual changes as well as new disclosures. These include classification of all assets and liabilities into current and non-current. The previous year figures have also undergone a major reclassification to comply with the requirements of the revised Schedule VI.

2.3 CHANGE IN ACCOUNTING POLICY :

Depredation on Fixed Assets

Till the Year ended March 31. 2014 Schedule XIV to the companies Act 1956. prescribed requirements concerning depreciation of fixed assets From the current year. Schedule XIV has been replaced by Schedule II to the companies Act. 2015 The applicability of Schedule II has resulted in the following charges related to depreciation of fixed assets,

i) Useful lives / depreciation rates

Till the year ended March 31, 2014, depreciation rates prescribed under Schedule XIV were treated as minimum rales and the group was not allowed to charge depreciation at lower rates even if such lower rates were justified by the estimated useful life of the asset. Schedule II to the companies Act 2013 prescribes useful lives for fixed assets which in many cases, are different from lives prescribed under the erstwhile Schedule XIV However, Schedule II allows companies to use higher lower useful lives and residual values if such useful lives and residual values can be technically is disclosed in the financial statements considering the applicability of Schedule -II . the Management has re-estimated useful lives and residual values of all its fixed assets. The Management believes that the depreciation rates currently used fairly reflect its estimates of the useful lives in residual values of fixed assets, though these rates are in certain cases are different from lives prescribed in the Schedule II. prescribed in the Schedule -II

ii) Depreciation on assets costing Rs. 5000/- or less

To comply with the requirement of Schdule-II of the Companies Act, 2013, the Group has changed its accounting policy for depreciations of assets costing less than Rs. 5000/-, As per the revised policy, the Group is depreciating such assets over their useful life as assessed by the management. The Management has decided to apply the revised accounting policy prospectively from accounting periods commencing an or after April 01.2014.

iii) Depreciation on Tangible Fixed Assets

Depreciation on fixed assets is calculated on written down value using (he rates arrived at bused on the useful lives estimated by the management .The management has estimated . supported by independent assessment by professionals , the useful lives of the following classes of assets (refer Note 10)

(b) Amortisation on Intangible Assets

Depreciation on fixed assets is calculated on written down value using the rates arrived at based on those prescribed under the Companies Act, 2013,

2.4 Investments

'Long-term investments (excluding investment properties), are carried individually at cost less' provision for diminution, other Ilian temporary , in the value of such investments Current investments are earned individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties. Investment properties are carried individually at cost less accumulated depreciation and impairment, if any Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated tor Tangible Fixed Assets. Impairment of investment property is determined in accordance with the policy stated lor Impairment of Assets.

2.5 Inventories

Inventories are valued at the tower of cost (on FIFO / weighted average basis) and the net realisable value alter providing for obsolescence and other losses, where considered necessary. cost includes all charges in bringing the goods to the point of sale.

2.6 Revenue Recognition

Revenue is recognized to the extent that there is probability that the economic benefits will flow to the company and the revenue can he reliably measured. The Following specific criteria must also be met before revenue is reeogniz.ed.

(a) Sale / Purchase of Shares

Shares Purchases / Safes in Capital Market Segment has been taken on absolute basis. Derivative Segments Transactions has been taken on difference bill basis.

(b) Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established

(c) 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 "Other Income" in the statement of Profit and Loss.

2.7 Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non occurrence of one or more uncertain future events beyond the control of the company ur a present obligation that is nor 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 eases where there is a liability that cannot be recognized because it cannot be measured reliably, The company does not recognize any contingent liability but discloses its existence in the financial statements.

2.8 Segment Information

The Company operates in one segment namely Financial Service Sector. Hence Segment reporting as per As-17 is not required in our ease.

2.9 Earnings Per Shares

Basie earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

2..10 Leases

Lease arrangements where the risks and rewards incidental to ownership of an asset substantially vest with the lessor are classified as operating leases. Lease rents under operating leases are recognized in the Statement of Profit and Loss on a straight line basis over the lease term.

2.11 Income Taxes

Tax expense comprises current and deferred (ax. Current Income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax act -1961 enacted in India and lax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax law s used to compute the amount arethose that arc enacted or substantively enacted, at the reporting date.

Deferred Income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the lax rates and the tax laws enacted or substantively enacted at the reporting dale,

Deferred tax liabilities arc recognized for all taxable Timing Differences. Deferred tax Assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current lax assets against current liabilities and the deferred lax assets and deferred tax liabilities relate to the same taxable entity and the same taxation authority

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Mar 31, 2014

1.1 Basis of Preparation of Financial Statements

The financial statements are prepared on accrual basis under the historical cost convention, modified to include revaluation of certain assets, in accordance with applicable Accounting Standards (AS) specified in the Companies (Accounting Standards) Rules, 2006 issued by the Central Government, the relevant provisions of the Companies Act, 1956 and other accounting principles generally accepted in India, to the extent applicable.

Application of the revised Schedule VI to the Companies Act, 1956 for the preparation of the financial statements of the company. The revised Schedule VI introduces some significant conceptual changes as well as new disclosures. These include classification of all assets and liabilities into current and non-current. The previous year figures have also undergone a major reclassification to comply with the requirements of the revised Schedule VI.

2 Depreciation & Amortisation

(a) Depreciation on Tangible Fixed Assets

Depreciation on fixed assets is calculated on written down value using the rates arrived at based on those prescribed under Schedule XIV of the Companies Act, 1956.

(b) Amortisation on intangible Assets

Amortisation on Software is calculated over a period of five years

2.1 Investments

long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties. Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets. Impairment of investment property is determined in accordance with the policy stated for Impairment of Assets.

3 Inventories

Inventories are valued at the lower of cost (on FIFO / weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale.

3.1 Revenue Recognition

Revenue is recognized to the extent that there is probability that the economic benefits will flow to the company an : the revenue can be reliably measured. The Following specific criteria must also be met before revenue is recognized.

(a) Sale/Purchase of Shares

Shares Purchases / Sales in Capital Market Segment has been taken on absolute basis. Derivative Segments Transactions has been taken on difference bill basis.

(b) Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

(c) 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 "Other Income" in the statement of Profit and Loss.

3.2 Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence 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 any contingent liability but discloses its existence in the financial statements.

3.3 Segment Information

The Company operates in one segment namely Financial Service Sector. Hence Segment reporting as per As-17 is not required in our case.

3.4 Earning Per Shares

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

3.5 Leases

Lease arrangements where the risks and rewaras incidental to ownership of an asset substantially vest with the lessor are classified as operating leases. Lease rents under operating leases are recognized in the Statement of Profit and Loss on a straight line basis over the lease term.

3.6 IncomeTaxes

Tax expense comprises current and deferred tax. Current Income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax act -1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred Income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years; Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable Timing Differences. Deferred tax Assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against current liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity and the same taxation authority.

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Mar 31, 2013

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. The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies Act, 1956. The financial statements have been prepared on an accrual basis under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

1.2 Summary of Significant Accounting Policies

Financial Statements are prepared according to the revised schedule VI notified under the Companies Act 1956.

1.3 Depreciation & Amortisation

1.3 A Depreciation on Tangible Fixed Assets

Depreciation on fixed assets is calculated on written down value using the rates arrived at based on those prescribed under Schedule XIV of the Companies Act, 1956.

1.3 B Amortisation on Intangible Fixed Assets

Amortisation on Software is calculated over a period of five years

1.4 Investments

Investments are stated at cost

1.5 Inventories

Stock in trade has been valued at cost

1.6 Revenue Recognition

Revenue is recognized to the extent that there is probability that the economic benefits will flow to the company and the revenue can be reliably measured. The Following specific criteria must also be met before revenue is recognized.

a Sale / Purchase of Shares

Shares Purchases / Sales in Capital Market Segment has been taken on absolute basis. Derivative Segments Transactions has been taken on difference bill basis.

b Other Income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

c 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 "Other Income" in the statement of Profit and Loss.

1.7 Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence 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 any contingent liability but discloses its existence in the financial statements.

1.8 Segment Information

The Company operates in one segment namely Financial Service Sector. Hence Segment reporting as per As-17 is not required in our case.

1.9 Earning Per Shares

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

1.10 Income Taxes

Tax expense comprises current and deferred tax. Current Income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax act -1961 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred Income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Deferred tax liabilities are recognized for all taxable Timing Differences. Deferred tax Assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred Tax Assets and Deferred Tax Liabilities are offset, if a legally enforceable right exists to set off current tax assets against current liabilities and the deferred tax assets and deferred tax liabilities relate to the same taxable entity and the same taxation authority.

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Mar 31, 2011

The Financial Statements are prepared to comply in all material aspects with the applicable accounting principles in India, the accounting standards notified under sub-section (3C) of Section 211 of the Companies Act, 1956 of India (the Act) and the other relevant provisions of the Act. The Significant accounting policies are as follows-

(a)Basis of Accounting

The financial Statements are prepared in accordance with the historical cost convention.

(b)Fixed Assets and Depreciation

Fixed assets are stated at cost of acquisition, including any attributable cost for bringing the assets to its working condition for its intended use, less accumulated depreciation.

Depreciation on assets is provided on the written down value method at the rates and in the manner prescribed in Schedule XIV of the Act, except software''s which are amortized over a period of five years.

(c)Revenue Recognition

Income and Expenses are recognized on accrual basis except dividends, bonus and staff emoluments (other than salaries) like gratuity. Other items of revenue are recognised in accordance with Accounting Standard – 9 issued by the Institute of Chartered Accountants of India.

(d)Taxes on Income

Current tax is determined as the amount of tax payable in respect of estimated taxable income for the year.

Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.