Accounting Policies of Prime Capital Market Ltd. Company

Mar 31, 2015

I. Basis of Accounting and preparation of financial statements :

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 (Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, till the Standards of Accounting or any other addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act 1956 (the Act) shall continue to apply. Consequently, these financial statements are prepared to comply in all material aspects with the Accounting Standards notified under sub section (3C) of section 211 of the Act {Companies (Accounting Standards) Rules, 2006} and other relevant provisions of the Companies Act 2013.

All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities.

ii. use of Estimates :

The presentation of financial statements in conformity with the generally accepted accounting principles require estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenue and expenses during the reported period. Differences between the actual result and estimates are recognized in the period in which the results are known/materialize. Management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

iii. Cash Flow :

Cash flow statement has been prepared in accordance with the "indirect method" as explained in the Accounting Standard 3 issued by the Institute of Chartered Accountants of India.

iv. Fixed Assets :

Tangible 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 and impairment loss.

v. Depreciation and Amortisation of Tangible Assets :

Depreciation on tangible assets is calculated on a pro-rata basis on the Written Down Value Method at the rates prescribed under Schedule II to the Companies Act, 2013 with the exception of the following:- assets costing Rs. 5,000/- or less are fully depreciated in the year of purchase.

vi. Revenue Recognition :

Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized as under :

a) Revenue from sales is recognized when significant risk and rewards in respect of ownership of the products are transferred, recovery of the consideration in reasonably certain. Revenue from sale of goods includes excise duty, sales tax and is net of returns.

b) Profit / loss earned on sale of investment is recognised on trade date basis. Profit/ Loss on sale of Investment is determined on basis of FIFO cost of the investment sold.

vii. Other Income recognition

Interest on investments and Loans and Advances is booked on a time proportion basis taking into account the amounts invested or loan given and the rate of interest.

Dividend income is recognized when the right to receive payment is established.

viii. Foreign Currency Transactions :

Foreign currency transactions are recorded in the books at exchange rates prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the period are recognized as income or expense in the profit and loss account of the same period.

Foreign currency assets and liabilities are translated at the period end rates and the resultant exchange differences, are recognized in the profit and loss account.

ix. Borrowing Cost :

Borrowing Costs that are directly attributable to the acquisition or construction of qualifying assets are capitalized as the cost of the respective assets until the time all subs activities necessary to prepare the qualifying assets intended use are complete. Other Borrowing Costs are charged to the Profit and Loss Account in the period in which they are incurred.

x. Employees benefits :

All employee benefit obligations payable wholly within twelve months of the rendering the services are classified as Short Term Employee Benefits. Such Benefits are estimated and provided for in the period in which the employee renders the related service.

Post Employment Benefits

1. EE and E.S.I.C Scheme is not applicable to the company.

2. Gratuity is accounted when an employee works for more the 6 months.

xi. Inventories

Inventories are measured at lower of the cost and net realizable value. Cost of inventories comprises all costs of purchase (net of input credit) and other costs incurred in bringing the inventories to their present location and condition. Costs of consumable and trading products are determined by using the Eirst-In Eirst-Out Method (FIFO).

xii. Investments

Investments that are readily realisable and are 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 non-current investments.

Long-term Investments 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. Costs of investments include acquisition charges such as brokerage, fees and duties.

xiii. Accounting for taxes on Income :

a) Income tax comprises the current tax and net change in deferred tax assets, which are made in accordance with the provisions as per the Income Tax Act, 1961.

b) Deferred Tax resulting from timing differences between accounting income and taxable income for the period is accounted for using the tax rates and laws that have been enacted or substantially enacted as at the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

Particulars As at Credit/ As at 1st April 14 (Charge) 31st for the March year 15

Deferred Tax on Account of Depreciation 2,59,522 - 2,59,522

Deferred Tax on Account of Others - - -

Net Deferred Tax (Assets)/ Liabilities 2,59,522 - 2,59,522

xiv. Leased Assets :

Assets acquired on leases where a significant portion of the risks and rewards of the ownership are retained by the lessor, are classified as Operating Leases. The rental and all other expenses of leased assets are treated as revenue expenditure.

xv. Provisions :

The Company recognizes a provision when there is a 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 amount of the obligation.

xvi. Contingent Liabilities :

A contingent liability is disclosed there is a possible obligation that arises from past events whose existences 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.

xvii. impairment of Assets :

The Company assesses at each balance sheet date whether there is any indication that an assets may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or recoverable amount of the cash generating unit to which the assets belongs is less than the carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as impairment loss and is recognized in the profit and loss account. If at the balance date there is an indication that if a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the assets is reflected at the recoverable amount.

xviii. Cash and cash equivalents :

The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.

xix. Segment information :

a) The Company's business segments are identified around products in which company deals.

b) The accounting policies used in the preparation of the financial statements of the Company are also applied for segment reporting.

c) Segment revenues, expenses, assets and liabilities are those, which are directly attributable to the segment or are allocated on an appropriate basis. Corporate and other revenues, expenses, assets and liabilities to the extent not allocable to segments are disclosed in the reconciliation of reportable segments with the financial statements.

d) Figures in brackets are in respect of the previous year.

e) Segment Revenues, Results and Other Information: The Company is operating in single segment vide finance and investments, thus segment reporting is not applicable to the Company for the year under review.

xxi. Segment Reporting

The company operates in Trading activity of Commodity and Shares and is carrying financing activities, which is only identifiable reporting segment under AS-17 Segment Reporting issued by the Institute of Chartered Accountants of India.

xxii. Earnings per Share:

Earnings per share is calculated by dividing the profit/(loss) attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. The number used in calculating the basic and diluted earnings per share are stated below:

Particulars 31.05.2015 11.05.2014

Net profit/(loss) for the year as per statement of profit 4,518,818 2,307,736 and loss (Rs.)

Weighted Average number of equity 10,000,100 10,000,100 shares for calculating Basic EPS

Weighted Average number of equity 10,000,100 10,000,100 shares for calculating Diluted EPS

Face value per share (Rs.) 10.00 10.00

Basic EPS on face value of Rs. 10/- 0.45 0.23

Diluted EPS on face value of Rs. 10/- 0.45 0.23

* xxiii. Related party transactions:

A. Particulars of related Parties

i. Subsidiary Companies - None

ii. Enterprises / individuals having direct or indirect control over the Company

* Blue Circle Services Ltd.

* Unisys Softwares & Holding Industries Ltd.

* Warner Multimedia Ltd.

* JMD Telefilms Industries Ltd.

* Scan Infrastructures Limited

* JMD Sounds Limited

iii. Key Managerial Personnel & their relatives (as on 51st March 2015)

Mr. Sushil Kr. Purohit - Managing Director

Mr. Pawan Kr. Purohit - Non-Executive Director@

Mr. Surendra Singh - CFO

@Mr. Pawan Kr. Purohit resigned from the Board w.e.f. 13.12.2014

B. Details of Remuneration paid to Directors and their relatives

a. Payment to Directors - Nil

b. Payment to Directors' Relatives - Nil

C. Transactions with related parties during the year ended 51st March, 2015

The Company is having investment of Rs. 179.68 Lac in Companies which are related to the Directors of the Company.

D. Disclosure of material transactions with related parties during the year ended 51st March, 2015: Nil

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Mar 31, 2014

1. Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2. Accounts of the Company have been prepared on historical cost basis and on accrual basis of Accounting as going concern.

3. Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

4. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequate and not in excess of the amount reasonably necessary.

Fixed Assets

5. The Company is not having any of the Fixed Assets during the year under review.

Investments

6. Investments are valued at cost.

Revenue Recognition

7. Income is accounted on accrual basis except Dividend.

Gratuity

8. None of the Employee has completed the service period to become eligible for payment of gratuity.

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Mar 31, 2013

1. Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2. Accounts of the Company have been prepared on historical cost basis and on accrual basis of Accounting as going concern.

3. Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

4. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequate and not in excess of the amount reasonably necessary.

Fixed Assets

5. The Company is not having any of the Fixed Assets during the year under review. Investments

6. Investments are valued at cost. Revenue Recognition

7. Income is accounted on accrual basis except Dividend. Gratuity

8. None of the Employee has completed the service period to become eligible for payment of gratuity.

Contingent Liabilities

9. No provision has been made in the books of Accounts as against income tax demand. Others

10. None of the Raw Materials, Stores, Spares and Components consumed or purchased during the year have been imported.

11. None of the Earnings / Expenditures is in Foreign Currency.

12. Balance of Debtors, Creditors, Deposits, Loans and Advances are subject to confirmation.

13. In the opinion of the Board, the Current Assets, Loans & Advances are approximately of the value stated if realized in the ordinary course of business. The provision for depreciation and all known liabilities are adequate and not in excess of the amounts reasonably necessary.

14. Investments of the Company have been considered by the management to be of a long term nature and hence they are long term investments and are valued at cost of acquisitions.

15. There was no employee receiving remuneration to the extent as laid on under section 217 (2A) of the Companies Act, 1956.

Segment Report

16. Segment reporting as defined in Accounting Standard 17 is not applicable as the Company is primarily engaged in NBFC Activities. As informed to us, there are not separate segment within the Company as defined as 17 (Segment Report).

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Mar 31, 2011

General

1. Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2. Accounts of the Company have been prepared on historical cost basis and on accrual basis of Accounting as going concern.

3. Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

4. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequate and not in excess of the amount reasonably necessary.

Fixed Assets

5. The Company is not having any of the Fixed Assets during the year under review.

Investments

6. Investments are valued at cost.

Revenue Recognition

7. Income is accounted on accrual basis except Dividend.

Gratuity

8. None of the Employee has completed the service period to become eligible for payment of gratuity.

Contingent Liabilities

9. No provision has been made in the books of Accounts as against income tax demand.

Others

10. None of the Raw Materials, Stores, Spares and Components consumed or purchased during the year have been imported.

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Mar 31, 2010

1. Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2. Accounts of the Company have been prepared on historical cost basis and on accrual basis of Accounting as going concern.

3. Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

4. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequate and not in excess of the amount reasonably necessary.

FIXED ASSETS

5. The Company is not having any of the Fixed Assets during the year under review.

INVESTMENTS

6. Investments are valued at cost.

REVENUE RECOGNITION

7. Income is accounted on accrual basis except Dividend.

GRATUITY

8. None of the Employee has completed the service period to become eligible for payment of gratuity.

CONTINGENT LIABILITIES

9. No provision has been made in the books of Accounts as against income tax demand.

OTHERS

10. None of the Raw Materials, Stores, Spares and Components consumed or purchased during the year have been imported.

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Mar 31, 2009

1. Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2. Expenses and Income considered payable and receivable respectively are accounted for on accrual basis.

3. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequate and not in excess of the amount reasonably necessary.

Fixed Assets

4. The Company is not having any of the Fixed Assets during the year under review. Investments

5. Investments are valued at cost.

Revenue Recognition

6. Income is accounted on accrual basis except Dividend.

Gratuity

7. None of the Employee has completed the service period to become eligible for payment of gratuity.

Contingent Liabilities

8. Contingent Liabilities not provided for : Nil Others