A Oneindia Venture
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Accounting Policies of Quest Capital Markets Ltd. Company
Mar 31, 2025
1 Corporate information
Quest Capital Markets Limited CIN:L34202WB1986PLC040542 is a public limited Company domiciled in India and incorporated under the Companies Act, 1956. The registered office of the company is located at Duncan House, 31 Netaji Subhas Road, Kolkata 700001. Quest Capital Markets Limited is registered under the Reserve Bank of India Act, 1934 as a Non-Banking Financial Company and is primarily engaged in investment activities. Its shares are listed on the BSE Limited.
The Standalone Financial Statements for the year ended 31st March, 2025 have been approved by the Board of Directors of the Company in their meeting held on 15th May, 2025.
1.1 Statement of Compliance with Ind AS
These financial statements have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Companies Act, 2013 ("the Actâ) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act and rules issued thereafter.
1.2 Basis of Preparation of Financial Statements
The financial statements have been prepared on accrual basis under the historical cost convention except for certain financial instruments measured at fair value at the end of each reporting period as explained in accounting policies below.
The financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest lacs, except for information pertaining to EPS and number of shares.
1.3 Use of estimates & judgements
The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management of the Company to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures including disclosures of contingent assets and contingent liabilities as at the date of financial statements and the reported amounts of revenues and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods which are affected.
Key sources of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of fair valuation of unquoted equity investments, impairment of financial instruments, impairment of property, plant and equipment, useful lives of property, plant and equipment, provisions and contingent liabilities and long term retirement benefits.
2 Material Accounting Policy Information 2.1 Revenue /Income recognition
(a) Dividend income (including from FVOCI investments) is recognised when the Company''s right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably. This is generally when the Shareholders or Board of Directors approve the dividend.
(b) Interest Income: Under Ind AS 109 interest income is recorded using the Effective Interest Rate (EIR) method for all financial instruments measured at amortised cost, debt instrument measured at FVOCI and debt instruments designated at FVTPL. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset.
The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees and costs that are an integral part of the EIR.
(c) Income from Sale of shares and Securities: The Company recognises purchase and sale of securities at transaction price. Closing Inventory is fair valued and net changes is recognised in statement of profit and loss.
(d) Net Gain/(Loss) on Fair value Changes: The Company recognises net gain/(loss) measured at fair value measured at fair value through profit or loss in the Statement of profit or loss.
(e) Other Income: The Company recognises other income on accrual basis when it becomes due.
(f) (i) Revenue from contracts with customers: Revenue from contracts with customers is recognised when control
of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade and other discounts, rebates and amounts collected on behalf of third parties.
Where the Company is the principal in the transaction, the sales are recorded at their gross values. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, the Company considers the effects of variable consideration, the existence of significant financing component, non-cash considerations and consideration payable to the customer (if any). Any amounts received for which the Company does not provide any distinct goods or services are considered as a reduction of purchase cost. However, Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue. The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company regardless of when the payment is being made and specific criteria have been met for each of the Company''s activities as described below.
(ii) Sale of services: Revenue from rendering of services is recognised when the outcome of a transaction can be estimated reliably and when the Company satsifies its performance obligation.
2.2 Property, Plant and Equipment and Intangible Assets
(a) Property, plant and equipment and intangible assets are stated at cost of acquisition less accumulated depreciation / amortisation. Cost includes all expenses incidental to the acquisition of the Property, plant and equipment and intangible assets and any attributable cost of bringing the asset to its working condition for its intended use.
Property plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognised in other income / expense in the statement of profit and loss in the year the asset is derecognised.
(b) Capital work in progress and Capital advances
Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances given towards acquisition of property, plant and equipment outstanding at each Balance Sheet date are disclosed in Non-Financial Assets.
(c) Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the written down value method to allocate their cost, net of their residual values on the basis of useful life prescribed in Schedule II to the Companies Act, 2013.
Property, plant and equipment''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Financial assetsRecognition and initial measurement
All financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets (other than financial assets at FVTPL) are added to the fair value of the financial assets on initial recognition.
Transaction costs directly attributable to the acquisition of financial assets at FVTPL are recognised immediately in profit or loss.
Classification and Subsequent measurement
The Company classifies its financial assets in the following measurement categories:
a) those to be measured subsequently at fair value either through other comprehensive income (FVOCI), or through profit or loss (FVTPL),
b) those measured at amortised cost, and
c) Equity Instruments measured at fair value through Other Comprehensive Income (FVOCI)
The classification depends on the Company''s business model for managing the financial assets and the contractual terms of cash flows.
Financial assets carried at amortised cost (AC):
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
For investments in debt instruments, this depends on the business model in which the investment is held. The Company reclassifies the debt investments when and only when the business model for managing those assets changes.
Such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.
Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
For investments in equity instruments, this depends on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Investment in Invit funds are measured through FVTOCI
Financial Assets included within the FVTOCI category are subsequently measured at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). On de-recognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to P&L.
Financial assets at fair value through profit or loss (FVTPL)
Financial asset which does not meet the criteria for categorization as at amortized cost or as FVTOCI is classified as at FVTPL. Financial assets at FVTPL are subsequently measured at fair value at the end of each reporting period. Any gains or losses arising on re-measurement are recognised in profit and loss statement.
All investments in equity instruments (other than Investment in subsidiary and associate) are initially measured at fair value. The Company may, on initial recognition, elect to measure the same either at FVTOCI or FVTPL. Any change in Fair value on
an equity instrument measured at FVTOCI are recognized in Other comprehensive income. Amounts recognized in OCI are not subsequently reclassified to the Statement of Profit and Loss. When the investment is disposed of, the cumulative gain or loss previously accumulated in FVTOCI is transferred from FVTOCI to Retained Earnings.
Investment in subsidiary and associate
Investment in subsidiary and associate are carried at cost less impairment cost, if any.
Investments in mutual and venture capital fund
Investments in mutual and venture capital funds are measured at fair value through profit or loss De-recognition of financial assets
Financial assets are derecognised only when
⢠The Company has transferred the rights to receive cash flows from the financial asset or the rights have expired or
⢠retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.
On de-recognition of a financial asset in its entirety, the difference between:
⢠the carrying amount (measured at the date of de-recognition) and
⢠the consideration received (including any new asset obtained less any new liability assumed) is recognised in profit or loss.
Impairment of financial assets
The Company applies the expected credit loss model for recognising impairment loss on the following financial assets
i) Financial assets at amortised cost,
ii) Financial assets measured at fair value through Other Comprehensive income
The company follows the ''simplified approach'' for recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
Historical loss experience used to determine the impairment loss allowance on the portfolio of trade receivables. At every reporting date, the historical observed default rates are updated and changes in the forward looking estimates are analysed. For recognition of impairment loss on financial assets and risk exposure, the company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.
Financial Liabilities and equity instrumentsClassification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial liabilities represent a contractual obligation to deliver cash or another financial assets to another entity, or a contract that may or will be settled in the entity''s own equity instruments.
Initial Recognition and Measurement:
All financial liabilities are recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the financial liability except for financial liabilities classified as fair value through profit or loss.
The Company classifies all financial liabilities at amortised cost or fair value through profit or loss.
Subsequent measurementFinancial liabilities measured at amortised cost
Financial liability are subsequently measured at amortized cost using the EIR method. Any gains or losses arising on derecognition of liabilities are recognised in the Statement of Profit and Loss.
Financial liabilities at fair value through profit or loss
A financial liability is classified as at FVTPL if it is classified as held for trading or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss.
Derecognition of Financial liabilities
The Company derecognises a financial liability when the obligation under the liability is discharged, cancelled or expired.
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
Reclassification of Financial assets
The company does not re-classify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances when the company changes its business model for managing such financial assets.
2.4 Measurement of fair values
The Company has established policies and procedures with respect to the measurement of fair values. All financial assets and financial liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level I: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level II: techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level III: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
All method of assessing fair value result in general approximation of fair value and such value may not be realised.
2.5 Foreign currency transactions and translation
The financial statements of the Company are presented in Indian rupees (Rs.), which is the functional currency of the Company and the presentation currency for the financial statements.
In preparing the financial statements, transactions in currencies other than the Company''s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period. Exchange differences arising on the retranslation or settlement of monetary items are included in the statement of profit and loss for the period.
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short term deposits, as defined above, as they are considered an integral part of the Company''s cash management.
The Company makes trading in Equity Shares/Securities of companies listed over stock exchanges in India. Inventories of Equity Shares and securities are valued at fair value and the gain/ loss is recognised through the Statement of Profit and Loss.
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transactions cost) and the redemption amount is recognized in the statement of Profit and Loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that sum or all of the facility will be drawn down. In this case, the fees is deferred until the drawn down occurs. To the extent there is no evidence that it is probable that sum or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.
Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in Statement of Profit and Loss as other gains/(losses).
2.9 Provision, Contingent Liabilities and Contingent Assets, legal or constructive
Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
A disclosure for contingent liabilities is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.
When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.
Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.
2.10 Employee Benefits(a) Short-term Employee Benefits
These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.
(b) Post-employment Benefit Plans
Post retirement benefits like provident fund, superannuation, gratuity, leave and post retirement medical benefits are provided for as below :
(i) Defined Contribution Plans
Contributions under Defined Contribution Plans i.e. provident fund & superannuation fund are recognised in the Statement of Profit and Loss in the period in which the employee has rendered the service.
For defined benefit retirement schemes the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuation being carried out at each year end balance sheet date. Re-measurement gains and losses of the net defined benefit liability/(asset) are recognised immediately in other comprehensive income or in profit and loss account. The service cost and net interest on the net defined benefit liability/(asset) is recognised as an expense.
Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when any related restructuring costs or termination benefits are recognised, whichever is earlier.
The retirement benefit obligation recognised in the balance sheet represents the present value of the defined-benefit obligation as reduced by the fair value of plan assets.
2.11 Impairment of non-financial assets
The carrying amounts of the Company''s property, plant and equipment and intangible assets are reviewed at each reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset''s recoverable amounts are estimated in order to determine the extent of impairment loss, if any. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The impairment loss, if any, is recognised in the statement of profit and loss in the period in which impairment takes place.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, however subject to the increased carrying amount not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior accounting periods. A reversal of an impairment loss is recognised immediately in profit or loss.
2.12 Segment Reporting(a) Identification of segment
The Company has identified that its operating segments are the primary segments. The Company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit and offering different products and serving different markets.
(b) Allocation of common costs
Common allocable costs are inter-se allocated to segments based on the basis most relevant to the nature of the cost concerned. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segment on a reasonable basis, are included under the head unallocated expense / income.
Income tax expense comprises both current and deferred tax. Current and deferred taxes are recognised in the statement of profit and loss, except when they relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity.
Current income-tax is recognised at the amount expected to be paid to the tax authorities, using the tax rates and tax laws, enacted or substantially enacted as at the balance sheet date.
Taxable profit differs from net profit as reported in the Standalone statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
Deferred income tax assets and liabilities are recognised for temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements and is accounted for using the balance sheet liability method.
Deferred income tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using tax rates and laws, enacted or substantially enacted as of the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as an income or expense in the period that includes the enactment or substantive enactment date.
Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit and loss as current tax for the year.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and they are in the same taxable entity, or a Group of taxable entities where the tax losses of one entity are used to offset the taxable profits of another and there are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.
Deferred tax asset arising from single transaction shall be recognised to the extent it is is probable that taxable profit will be available against which the deductible temporary difference can be utilised and a deferred tax for all the deductible and taxable temporary differences assocaites with:
(i) right-of-use assets and lease liabilities and
(ii) decommisioning restoration and similar liabilities and the corresponding amounts recognised as part of cost of related assets.
Ind AS 116 defines a lease term as the non -cancellable period for which the lessee has the right to use an underlying asset including optional periods, when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. The Company considers all relevant facts and circumstances that create an economic incentive for the lessee to exercise the option when determining the lease term. The option to extend the lease term is included in the lease term, if it is reasonably certain that the lessee would exercise the option. The Company reassesses the option when significant events or changes in circumstances occur that are within the control of the lessee. The Company has also taken exemption for leases which are of short term period.
Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares
2.16 Standards issued but not yet effective:
Ministry of Corporate Affairs(''"''MCA''"'') notifies new standards or amendments to the existing standards under Companies(Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
All amounts disclosed in financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III of the Act, unless otherwise stated.
Mar 31, 2024
1 Background information
Quest Capital Markets Limited CIN:L34202WB1986PLC040542 is a public limited Company domiciled in India and incorporated under the Companies Act, 1956. Quest Capital Markets Limited is registered under the Reserve Bank of India Act, 1934 as a NonBanking Financial Company and is primarily engaged in investment activities. Its shares are listed on the BSE Limited.
1.1 Statement of Compliance with Ind AS
These financial statements have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') prescribed under Section 133 of the Companies Act, 2013 ("the Actâ) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.
1.2 Basis of Preparation of Financial Statements
The financial statements have been prepared on accrual basis under the historical cost convention except for certain financial instruments measured at fair value at the end of each reporting period as explained in accounting policies below.
The financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest lacs, except for information pertaining to EPS and number of shares.
The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management of the Company to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures including disclosures of contingent assets and contingent liabilities as at the date of financial statements and the reported amounts of revenues and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods which are affected.
Key sources of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of fair valuation of unquoted equity investments, impairment of financial instruments, impairment of property, plant and equipment, useful lives of property, plant and equipment, provisions and contingent liabilities and long term retirement benefits.
2 Material Accounting Policy Information 2.1 Revenue /Income recognition
(a) Dividend income (including from FVOCI investments) is recognised when the Company''s right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably. This is generally when the Shareholders or Board of Directors approve the dividend.
(b) Interest Income: Under Ind AS 109 interest income is recorded using the Effective Interest Rate (EIR) method for all financial instruments measured at amortised cost, debt instrument measured at FVOCI and debt instruments designated at FVTPL. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset.
The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees and costs that are an integral part of the EIR.
(c) Income from Sale of shares and Securities: The Company recognises purchase and sale of securities at transaction price. Closing Inventory is fair valued and net changes is recognised in statement of profit and loss.
(d) Net Gain/(Loss) on Fair value Changes: The Company recognises net gain/(loss) measured at fair value measured at fair value through profit or loss in the Statement of profit or loss.
(e) Other Income: The Company recognises other income on accrual basis when it becomes due.
(f) "(i) Revenue from contracts with customers: Revenue from contracts with customers is recognised when control of
the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade and other discounts, rebates and amounts collected on behalf of third parties.
Where the Company is the principal in the transaction, the sales are recorded at their gross values. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, the Company considers the effects of variable consideration, the existence of significant financing component, non-cash considerations and consideration payable to the customer (if any). Any amounts received for which the Company does not provide any distinct goods or services are considered as a reduction of purchase cost. However, Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company regardless of when the payment is being made and specific criteria have been met for each of the Company''s activities as described below.
(ii) Sale of services: Revenue from rendering of services is recognised when the outcome of a transaction can be estimated reliably and when the Company satsifies its performance obligation."
2.2 Property, Plant and Equipment and Intangible Assets
(a) Property, plant and equipment and intangible assets are stated at cost of acquisition less accumulated depreciation / amortisation. Cost includes all expenses incidental to the acquisition of the Property, plant and equipment and intangible assets and any attributable cost of bringing the asset to its working condition for its intended use.
Property plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognised in other income / expense in the statement of profit and loss in the year the asset is derecognised.
(b) Capital work in progress and Capital advances
Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances given towards acquisition of property, plant and equipment outstanding at each Balance Sheet date are disclosed in Non-Financial Assets.
(c) Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the written down value method to allocate their cost, net of their residual values on the basis of useful life prescribed in Schedule II to the Companies Act, 2013.
Property, plant and equipment''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.
Recognition and initial measurement
All financial assets are initially measured at fair value. Transaction costs that are directly attributable to the acquisition of financial assets (other than financial assets at FVTPL) are added to the fair value of the financial assets on initial recognition. Transaction costs directly attributable to the acquisition of financial assets at FVTPL are recognised immediately in profit or loss.
The Company classifies its financial assets in the following measurement categories:
a) those to be measured subsequently at fair value either through other comprehensive income (FVOCI), or through profit or loss (FVTPL),
b) those measured at amortised cost, and
c) Equity Instruments measured at fair value through Other Comprehensive Income (FVOCI)
The classification depends on the Company''s business model for managing the financial assets and the contractual terms of cash flows.
Financial assets carried at amortised cost (AC):
A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
For investments in debt instruments, this depends on the business model in which the investment is held. The Company reclassifies the debt investments when and only when the business model for managing those assets changes.
Such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized in the profit or loss.
Financial assets at fair value through other comprehensive income (FVTOCI)
A financial asset is measured at fair value through other comprehensive income if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding
For investments in equity instruments, this depends on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income. Investment in Invit funds are measured through FVTOCI
Financial Assets included within the FVTOCI category are subsequently measured at each reporting date at fair value. Fair value movements are recognized in the other comprehensive income (OCI). On de-recognition of the asset, cumulative gain or loss previously recognized in OCI is reclassified from the equity to P&L.
Financial assets at fair value through profit or loss (FVTPL)
Financial asset which does not meet the criteria for categorization as at amortized cost or as FVTOCI is classified as at FVTPL. Financial assets at FVTPL are subsequently measured at fair value at the end of each reporting period. Any gains or losses arising on re-measurement are recognised in profit and loss statement.
All investments in equity instruments (other than Investment in subsidiary and associate) are initially measured at fair value. The Company may, on initial recognition, elect to measure the same either at FVTOCI or FVTPL. Any change in Fair value on an equity instrument measured at FVTOCI are recognized in Other comprehensive income. Amounts recognized in OCI are not subsequently reclassified to the Statement of Profit and Loss. When the investment is disposed of, the cumulative gain or loss previously accumulated in FVTOCI is transferred from FVTOCI to Retained Earnings.
Investment in subsidiary and associate
Investment in subsidiary and associate are carried at cost less impairment cost, if any.
Investments in mutual and venture capital fund
Investments in mutual and venture capital funds are measured at fair value through profit or loss De-recognition of financial assets
Financial assets are derecognised only when
⢠The Company has transferred the rights to receive cash flows from the financial asset or the rights have expired or
⢠retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.
On de-recognition of a financial asset in its entirety, the difference between:
⢠the carrying amount (measured at the date of de-recognition) and
⢠the consideration received (including any new asset obtained less any new liability assumed) is recognised in profit or loss.
Impairment of financial assets
The Company applies the expected credit loss model for recognising impairment loss on the following financial assets
i) Financial assets at amortised cost,
ii) Financial assets measured at fair value through Other Comprehensive income
The company follows the ''simplified approach'' for recognition of impairment loss allowance. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.
Historical loss experience used to determine the impairment loss allowance on the portfolio of trade receivables. At every reporting date, the historical observed default rates are updated and changes in the forward looking estimates are analysed.
For recognition of impairment loss on financial assets and risk exposure, the company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.
Financial Liabilities and equity instrumentsClassification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
Financial liabilities represent a contractual obligation to deliver cash or another financial assets to another entity, or a contract that may or will be settled in the entity''s own equity instruments.
All financial liabilities are recognised initially at fair value plus transaction costs that are directly attributable to the acquisition of the financial liability except for financial liabilities classified as fair value through profit or loss.
The Company classifies all financial liabilities at amortised cost or fair value through profit or loss.
Subsequent measurementFinancial liabilities measured at amortised cost
Financial liability are subsequently measured at amortized cost using the EIR method. Any gains or losses arising on derecognition of liabilities are recognised in the Statement of Profit and Loss.
Financial liabilities at fair value through profit or loss
A financial liability is classified as at FVTPL if it is classified as held for trading or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in profit or loss.
Derecognition of Financial liabilities
The Company derecognises a financial liability when the obligation under the liability is discharged, cancelled or expired.
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires. Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.
Reclassification of Financial assets
The company does not re-classify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances when the company changes its business model for managing such financial assets.
2.4 Measurement of fair values
The Company has established policies and procedures with respect to the measurement of fair values. All financial assets and financial liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level I: quoted (unadjusted) prices in active markets for identical assets or liabilities.
Level II: techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.
Level III: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.
All method of assessing fair value result in general approximation of fair value and such value may not be realised.
2.5 Foreign currency transactions and translation
The financial statements of the Company are presented in Indian rupees (Rs.), which is the functional currency of the Company and the presentation currency for the financial statements.
In preparing the financial statements, transactions in currencies other than the Company''s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period. Exchange differences arising on the retranslation or settlement of monetary items are included in the statement of profit and loss for the period.
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short term deposits, as defined above, as they are considered an integral part of the Company''s cash management.
The Company makes trading in Equity Shares/Securities of companies listed over stock exchanges in India. Inventories of Equity Shares and securities are valued at fair value and the gain/ loss is recognised through the Statement of Profit and Loss.
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transactions cost) and the redemption amount is recognized in the statement of Profit and Loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that sum or all of the facility will be drawn down. In this case, the fees is deferred until the drawn down occurs. To the extent there is no evidence that it is probable that sum or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.
Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in Statement of Profit and Loss as other gains/(losses).
2.9 Provision, Contingent Liabilities and Contingent Assets, legal or constructive
Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
A disclosure for contingent liabilities is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow ow of resources will be required to settle or a reliable estimate of the amount cannot be made.
When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.
Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.
2.10 Employee Benefits(a) Short-term Employee Benefits
These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.
(b) Post-employment Benefit Plans
Post retirement benefits like provident fund, superannuation, gratuity, leave and post retirement medical benefits are provided for as below :
(i) Defined Contribution Plans
Contributions under Defined Contribution Plans i.e. provident fund & superannuation fund are recognised in the Statement of Profit and Loss in the period in which the employee has rendered the service.
For defined benefit retirement schemes the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuation being carried out at each year end balance sheet date. Re-measurement gains and losses of the net defined benefit liability/(asset) are recognised immediately in other comprehensive income or in profit and loss account. The service cost and net interest on the net defined benefit liability/(asset) is recognised as an expense.
Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when any related restructuring costs or termination benefits are recognised, whichever is earlier.
The retirement benefit obligation recognised in the balance sheet represents the present value of the defined-benefit obligation as reduced by the fair value of plan assets.
2.11 Impairment of non-financial assets
The carrying amounts of the Company''s property, plant and equipment and intangible assets are reviewed at each reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset''s recoverable amounts are estimated in order to determine the extent of impairment loss, if any. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The impairment loss, if any, is recognised in the statement of profit and loss in the period in which impairment takes place.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, however subject to the increased carrying amount not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior accounting periods. A reversal of an impairment loss is recognised immediately in profit or loss.
2.12 Segment Reporting(a) Identification of segment
The Company has identified that its operating segments are the primary segments. The Company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit and offering different products and serving different markets.
(b) Allocation of common costs
Common allocable costs are inter-se allocated to segments based on the basis most relevant to the nature of the cost concerned. Revenue and expenses, which relate to the enterprise as a whole and are not allocable to segment on a reasonable basis, are included under the head unallocated expense / income.
Income tax expense comprises both current and deferred tax. Current and deferred taxes are recognised in the statement of profit and loss, except when they relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive income or directly in equity.
Current income-tax is recognised at the amount expected to be paid to the tax authorities, using the tax rates and tax laws, enacted or substantially enacted as at the balance sheet date.
Taxable profit differs from net profit as reported in the Standalone statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
Deferred income tax assets and liabilities are recognised for temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements and is accounted for using the balance sheet liability method.
Deferred income tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using tax rates and laws, enacted or substantially enacted as of the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as an income or expense in the period that includes the enactment or substantive enactment date.
Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit and loss as current tax for the year.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and they are in the same taxable entity, or a Group of taxable entities where the tax losses of one entity are used to offset the taxable profits of another and there are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.
Deferred tax asset arising from single transaction shall be recognised to the extent it is is probable that taxable profit will be available against which the deductible temporary difference can be utilised and a deferred tax for all the deductible and taxable temporary differences assocaites with:
(i) right-of-use assets and lease liabilities and
(ii) decommisioning restoration and similar liabilities and the corresponding amounts recognised as part of cost of related assets.
Ind AS 116 defines a lease term as the non -cancellable period for which the lessee has the right to use an underlying asset including optional periods, when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. The Company considers all relevant facts and circumstances that create an economic incentive for the lessee to exercise the option when determining the lease term. The option to extend the lease term is included in the lease term, if it is reasonably certain that the lessee would exercise the option. The Company reassesses the option when significant events or changes in circumstances occur that are within the control of the lessee. The Company has also taken exemption for leases which are of short term period.
Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares
considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares
2.16 Recent PronouncementsNew and revised standards adopted by the Company
Effective 1st April, 2023, the Company has adopted the amendments vide Companies (Indian Accounting Standards) Amendment Rules, 2023 notifying amendment to existing Indian Accounting Standards. These amendments to the extent relevant to the Company''s operations include amendment to,
Ind AS 1 "Presentation of Financial Statementsâ which requires the entities to disclose their material accounting policies rather than their significant accounting policies,
Ind AS 8 "Accounting Policies, Changes in Accounting Estimates and Errorsâ which has introduced a definition of ''accounting estimates'' and include amendments to help entities distinguish changes in accounting policies from changes in accounting estimates.
Further, consequential amendments with respect to the concept of material accounting policies have also been made in Ind AS 107 "Financial Instruments: Disclosures" and Ind AS 34 "Interim Financial Reportingâ.
There are other amendments in various standards including Ind AS 101 "First-time Adoption of Indian Accounting Standards", Ind AS 103 "Business Combinations, Ind AS 109 "Financial Instruments " Ind AS 115 "Revenue from Contracts with Customersâ, Ind AS 12 "Income Taxesâ which has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences and Ind AS 102 "Share-based Paymentâ which have not been listed herein above since these are either not material or relevant to the Company.
Standards issued but not yet effective:
Ministry of Corporate Affairs (""MCA"") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.
All amounts disclosed in financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III of the Act, unless otherwise stated.
Mar 31, 2023
1 Background information
Quest Capital Markets Limited CIN:L34202WB1986PLC040542 is a public limited Company domiciled in India and incorporated under the Companies Act, 1956. Quest Capital Markets Limited is registered under the Reserve Bank of India Act, 1 934 as a Non-Banking Financial Company and is primarily engaged in investment activities. Its shares are listed on the BSE Limited and The Calcutta Stock Exchange Limited in India.
The impact assessment of COVID 19 is a continuous process given the uncertainties associated with its nature and duration. Hence, the management will continue to closely observe the evolving scenario and take into account any future developments arising out of the same.
1.1 Statement of Compliance with Ind AS
These financial statements have been prepared in accordance with the Indian Accounting Standards (âInd AS'') prescribed under Section 133 of the Companies Act, 2013 (âthe Actâ) read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 as amended and other relevant provisions of the Act.
1.2 Basis of Preparation of Financial Statements
The financial statements have been prepared on accrual basis under the historical cost convention except for certain financial instruments measured at fair value at the end of each reporting period as explained in accounting policies below.
The financial statements are presented in Indian Rupees (INR) and all values are rounded to the nearest lacs, except for information pertaining to EPS.
1.3 Use of estimates
The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management of the Company to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures including disclosures of contingent assets and contingent liabilities as at the date of financial statements and the reported amounts of revenues and expenses during the period. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in future periods which are affected.
Key sources of estimation of uncertainty at the date of the financial statements, which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, is in respect of fair valuation of unquoted equity investments, impairment of financial instruments, impairment of property, plant and equipment, useful lives of property, plant and equipment, provisions and contingent liabilities and long term retirement benefits.
2 Significant Accounting policies 2.1 Revenue /Income recognition
(a) Dividend income (including from FVOCI investments) is recognised when the Company''s right to receive the dividend is established, it is probable that the economic benefits associated with the dividend will flow to the entity and the amount of the dividend can be measured reliably. This is generally when the Shareholders or Board of Directors approve the dividend.
(b) Interest Income: Under Ind AS 109 interest income is recorded using the Effective Interest Rate (EIR) method for all financial instruments measured at amortised cost, debt instrument measured at FVOCI and debt instruments designated at FVTPL. The EIR is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset.
The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees and costs that are an integral part of the EIR.
(c) Income from Sale of shares and Securities: The Company recognises purchase and sale of securities at transaction price. Closing Inventory is fair valued and net changes is recognised in statement of profit and loss.
(d) Net Gain/(Loss) on Fair value Changes: The Company recognises net gain/(loss) measured at fair value measured at fair value through profit or loss in the Statement of profit or loss.
(e) Other Income: The Company recognises other income on accrual basis when it becomes due.
(f) (i) Revenue from contracts with customers: Revenue from contracts with customers is recognised when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services.
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of returns, trade and other discounts, rebates and amounts collected on behalf of third parties.
Where the Company is the principal in the transaction, the sales are recorded at their gross values. The Company considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated. In determining the transaction price, the Company considers the effects of variable consideration, the existence of significant financing component, non-cash considerations and consideration payable to the customer (if any). Any amounts received for which the Company does not provide any distinct goods or services are considered as a reduction of purchase cost.
However, Goods and Service Tax (GST) is not received by the Company on its own account. Rather, it is collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company regardless of when the payment is being made and specific criteria have been met for each of the Company''s activities as described below.
(ii) Sale of services: Revenue from rendering of services is recognised when the outcome of a transaction can be estimated reliably and when the Company satsifies its performance obligation."
2.2 Property, Plant and Equipment and Intangible Assets
a) Property, plant and equipment and intangible assets are stated at cost of acquisition less accumulated depreciation / amortisation. Cost includes all expenses incidental to the acquisition of the Property, plant and equipment and intangible assets and any attributable cost of bringing the asset to its working condition for its intended use.
Property plant and equipment is derecognised on disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is recognised in other income / expense in the statement of profit and loss in the year the asset is derecognised.
(b) Capital work in progress and Capital advances
Cost of assets not ready for intended use, as on the Balance Sheet date, is shown as capital work in progress. Advances given towards acquisition of property, plant and equipment outstanding at each Balance Sheet date are disclosed in Non-Financial Assets.
(c) Depreciation methods, estimated useful lives and residual value
Depreciation is calculated using the written down value method to allocate their cost, net of their residual values on the basis of useful life prescribed in Schedule II to the Companies Act, 2013.
Property, plant and equipment''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
2.3 Financial Instruments
(a) Classification
A Financial instrument is any contract that gives rise to a financial asset of one entity and financial liability or equity instruments of another entity.
Financial assets, other than equity, are classified into, Financial assets at fair value through other comprehensive income (FVOCI) or fair value through profit and loss account (FVTPL) or at amortised cost. Financial assets that are equity instruments are classified as FVTPL or FVOCI. Financial liabilities are classified as amortised cost category and FVTPL.
Business Model assessment and Solely payments of principal and interest (SPPI) test:
Classification and measurement of financial assets depends on the business model and results of SPPI test. The Company determines the business model at a level that reflects how groups of financial assets are managed together to achieve a particular business objective. This assessment includes judgement reflecting all relevant evidence including;
How the performance of the business model and the financial assets held within that business model are evaluated and reported to the entity''s key management personnel
The risks that affect the performance of the business model (and the financial assets held within that business model) and, in particular, the way those risks are managed
How managers of the business are compensated (for example, whether the compensation is based on the fair value of the assets managed or on the contractual cash flows collected)
The expected frequency, value and timing of sales are also important aspects of the Company''s assessment
If cash flows after initial recognition are realised in a way that is different from the Company''s original expectations, the Company does not change the classification of the remaining financial assets held in that
business model, but incorporates such information when assessing newly originated or newly purchased financial assets going forward.
(b) Initial recognition
The classification of financial instruments at initial recognition depends on their contractual terms and the business model for managing the instruments.
Financial assets and financial liabilities are initially measured at fair value.
Financial assets and financial liabilities, with the exception of loans, debt securities and deposits are recognised on the trade date i.e. when a Company becomes a party to the contractual provisions of the instruments. Loans, debt securities and deposits are recognised when the funds are transferred to the customers account. Trade receivables are measured at the transaction price.
(c) Subsequent measurement
Financial assets at amortised cost
Financial assets having contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on the principal outstanding and that are held within a business model whose objective is to hold such assets in order to collect such contractual cash flows are classified in this category. Subsequently these are measured at amortised cost using effective interest method less any impairment losses.
(d) Debt Instruments at FVOCI
Debt instruments that are measured at FVOCI have contractual terms that give rise on specified dates to cash flows that are solely payments of principal and interest on principal outstanding and that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets. These instruments largely comprise long-term investments made by the Company. FVOCI debt instruments are subsequently measured at fair value with gains and losses arising due to changes in fair value recognised in OCI. Interest income and gains and losses are recognised in profit or loss in the same manner as for financial assets measured at amortised cost. On derecognition, cumulative gains or losses previously recognised in OCI are reclassified from OCI to profit or loss.
(e) Equity Instruments at FVOCI
These include financial assets that are equity instruments as defined in Ind AS 32 âFinancial Instruments: Presentationâ and are not held for trading and where the Company''s management has elected to irrevocably designated the same as Equity instruments at FVOCI upon initial recognition. Subsequently, these are measured at fair value and changes therein are recognised directly in other comprehensive income, net of applicable income taxes.
Gains and losses on these equity instruments are never recycled to profit or loss.
Dividends from these equity investments are recognised in the statement of profit and loss when the right to receive the payment has been established.
(f) Fair value through Profit and loss account
Financial assets are measured at FVTPL unless it is measured at amortised cost or at FVOCI on initial recognition. The transaction costs directly attributable to the acquisition of financial assets at fair value through profit or loss are immediately recognised in profit or loss.
2.4 Financial Liabilities and equity instruments
(a) Classification as debt or equity
Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument.
(b) Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Equity instruments are recorded at the proceeds received, net of direct issue costs.
(c) Other Financial Liabilities
These are measured at amortised cost using effective interest rate.
(d) Derecognition of Financial assets and Financial liabilities
The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expires or it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity.
On de-recognition of a financial asset in its entirety, the difference between:
⢠the carrying amount (measured at the date of de-recognition) and
⢠the consideration received (including any new asset obtained less any new liability assumed) is recognised in profit or loss or Other Comprehensive Income.
When the investment is disposed of, the cumulative gain or loss previously accumulated in FVTOCI is transferred from FVTOCI to Retained Earnings."
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
(e) Impairment of financial assets
The Company recognizes a loss allowance for expected credit losses on a financial asset that is at amortized cost or fair value through OCI. Loss allowance in respect of financial assets is measured at an amount equal to life time expected credit losses and is calculated as the difference between their carrying amount and the present value of the expected future cash flows discounted at the original effective interest rate.
(f) Reclassification of Financial assets
The company does not re-classify its financial assets subsequent to their initial recognition, apart from the exceptional circumstances when the company changes its business model for managing such financial assets.
2.5 Determination of fair value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair value of a financial instrument on initial recognition is normally the transaction price (fair value of the consideration given or received). Subsequent to initial recognition, the Company determines the fair value of financial instruments that are quoted in active markets using the quoted bid prices (financial assets
held) or quoted ask prices (financial liabilities held) and using valuation techniques for other instruments. Valuation techniques include discounted cash flow method and other valuation models.
2.6 Investment in subsidiaries and associates
The company has chosen to carry the Investments in associates and subsidiaries at cost less impairment, if any in the separate financial statements.
2.7 Foreign currency transactions and translation
The financial statements of the Company are presented in Indian rupees (Rs.), which is the functional currency of the Company and the presentation currency for the financial statements.
In preparing the financial statements, transactions in currencies other than the Company''s functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period. Exchange differences arising on the retranslation or settlement of monetary items are included in the statement of profit and loss for the period.
2.8 Cash and Cash Equivalents
Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.
For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short term deposits, as defined above, as they are considered an integral part of the Company''s cash management.
2.9 Inventories
The Company makes trading in Equity Shares/Securities of companies listed over stock exchanges in India. Inventories of Equity Shares and securities are valued at fair value and the gain/ loss is recognised through the Statement of Profit and Loss.
2.10 Borrowings
Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transactions cost) and the redemption amount is recognized in the statement of Profit and Loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that sum or all of the facility will be drawn down. In this case, the fees is deferred until the drawn down occurs. To the extent there is no evidence that it is probable that sum or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates.
Borrowings are removed from the Balance Sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in Statement of Profit and Loss as other gains/(losses).
2.11 Provision, Contingent Liabilities and Contingent Assets, legal or constructive
Provisions are recognised when there is a present obligation as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risk specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
A disclosure for contingent liabilities is made when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow ow of resources will be required to settle or a reliable estimate of the amount cannot be made.
When there is a possible obligation or a present obligation and the likelihood of outflow of resources is remote, no provision or disclosure for contingent liability is made.
Contingent Assets are not recognised but are disclosed when an inflow of economic benefits is probable.
2.12 Employee Benefits
(a) Short-term Employee Benefits
These are recognised at the undiscounted amount as expense for the year in which the related service is rendered.
(b) Post-employment Benefit Plans
Post retirement benefits like provident fund, superannuation, gratuity, leave and post retirement medical benefits are provided for as below :
(i) Defined Contribution Plans
Contributions under Defined Contribution Plans i.e. provident fund & superannuation fund are recognised in the Statement of Profit and Loss in the period in which the employee has rendered the service.
(ii) Defined Benefit Plans
For defined benefit retirement schemes the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial valuation being carried out at each year end balance sheet date. Re-measurement gains and losses of the net defined benefit liability/(asset) are recognised immediately in other comprehensive income or in profit and loss account. The service cost and net interest on the net defined benefit liability/ (asset) is recognised as an expense.
Past service cost is recognised as an expense when the plan amendment or curtailment occurs or when any related restructuring costs or termination benefits are recognised, whichever is earlier.
The retirement benefit obligation recognised in the balance sheet represents the present value of the defined-benefit obligation as reduced by the fair value of plan assets.
2.13 Impairment of non-financial assets
The carrying amounts of the Company''s property, plant and equipment and intangible assets are reviewed at each reporting period to determine whether there is any indication of impairment. If any such indication exists, the asset''s recoverable amounts are estimated in order to determine the extent of impairment loss, if any. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. The impairment loss, if any, is recognised in the statement of profit and loss in the period in which impairment takes place.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
Where an impairment loss subsequently reverse, the carrying of the asset is increased to the revised estimate of its recoverable amount, however subject to the increased carrying amount not exceeding the carrying amount that would have been determined (net of amortisation or depreciation) had no impairment loss been recognised for the asset in prior accounting periods. A reversal an impairment loss is recognised immediately in profit of loss.
2.14 Segment Reporting
(a) Identification of segment
The Company has identified that its operating segments are the primary segments. The company''s operating businesses are organized and managed separately according to the nature of products, with each segment representing a strategic business unit and offering different products and serving different markets.
(b) Allocation of common costs
Comman allocable costs are inter se allocated to setments based of the basis most relevant to the nature of the cost concerned. Revenue and expenses. Which relate to items credited or debited either in other
comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive
income or directly in equity.
2.15 Income Tax
Income tax expense comprises both current and deferred tax. Current and deferred taxes are recognised in the statement of profit and loss, except when they relate to items credited or debited either in other
comprehensive income or directly in equity, in which case the tax is also recognised in other comprehensive
income or directly in equity.
Current income-tax is recognised at the amount expected to be paid to the tax authorities, using the tax rates and tax laws, enacted or substantially enacted as at the balance sheet date.
Taxable profit differs from net profit as reported in the Standalone statement of profit and loss because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
Deferred income tax assets and liabilities are recognised for temporary differences arising between the tax base of assets and liabilities and their carrying amounts in the financial statements and is accounted for using the balance sheet liability method.
Deferred income tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow or part of the deferred income tax asset to be utilised.
Deferred tax assets and liabilities are measured using tax rates and laws, enacted or substantially enacted as of the balance sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognised as an income or expense in the period that includes the enactment or substantive enactment date.
Minimum Alternate Tax (MAT) paid in a year is charged to the statement of profit and loss as current tax for the year.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and they are in the same taxable entity, or a Group of taxable entities where the tax losses of one entity are used to offset the taxable profits of another and there are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.
2.16 Leases
Ind AS 116 defines a lease term as the non -cancellable period for which the lessee has the right to use an underlying asset including optional periods, when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. The Company considers all relevant facts and circumstances that create an economic incentive for the lessee to exercise the option when determining the lease term. The option to extend the lease term is included in the lease term, if it is reasonably certain that the lessee would exercise the option. The Company reassesses the option when significant events or changes in circumstances occur that are within the control of the lessee. The Company has also taken exemption for leases which are of short term period.
2.17 Earnings Per Share
Basic earnings per share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares
2.18 Rounding off amounts
All amounts disclosed in financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III of the Act, unless otherwise stated.
Mar 31, 2018
1 SIGNIFICANT ACCOUNTING POLICIES
a) Corporate Information:
BNK Capital Markets Limited is a Public Limited Company domiciled in India and incorporated under the Provisions of the Companies Act, 1956. Its shares are listed on the BSE Limited and The Calcutta Stock Exchange Limited in India. BNK Capital Markets Limited is a Non- Banking Financial (Non Deposit Accepting or Holding) Company registered underthe Reserve Bank oflndia Act, 1934.
b) Basis of Accounting and Preparation of Financial Statements:
The financial statements of the Company have been prepared under on going concern assumption and underthe historical cost convention in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) and relevant provisions of the Companies Act, 2013.
All Expenses and Income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.
c) Use of Estimates:
The preparation of financial statements in conformity with generally accepted accounting principles (Indian GAAP) requires the management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities as on the date of financial statements and the amou nts of revenue and expenses within the reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized All assets and liabilities have been classified as Current and Non Current as perthe Companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.
d) Tangible Assets:
All Fixed Assets are valued at cost less depreciation.
An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to profit & loss account in the year in which an asset is identified as impaired.
e) Depreciation:
Depreciation is systematically allocated over the useful life of all tangible assets under StraightLine Method as specified in part C of Schedule II of the Companies Act, 2013.Depreciation for assets purchased/sold during the period under review is proportionately charged.
f) Investments:
Investments are readily realizable but intended to be held for more than one year from the date on which such investments are made, are classified as Non Current Investments, all other Investments are classified as current Investments. Investments are stated at cost.
On disposal of an Investment, the difference between its carrying amount and net disposal proceeds is charged to the statement of profit and loss,however if there is any permanent diminution in the value of investment it is recognized in the statement of Profit & Loss and appreciation is generally ignored.
g) Inventory
Inventories are valued at lower of cost and net realizable value or at NAV in case of mutual fund.
h) Income Recognition
Revenue is recognized and reported to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.
Interest Income is recognized as and when the same has accrued on time proportion basis and companyâs right to receive interest is established.
Dividend Income is recognized when the same is received by the company.
Income including interest/ discount or any other charges on NPA is recognized when it is actually realized.
The expenditure of the business are measured and taken into account on accrual basis.
i) Employees Retirement & Other Benefits
Short term employees benefits are recognized in the period in which employeesâ services are rendered.
Leave Encashment benefit is considered and provided for, based on actual as at the financial year.
The benefits for staff gratuity have been provided for the year under review, j) Income Taxes
Tax expenses comprise Current & 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.
Deferred Taxes reflect the impact of the timing differences between taxable income and the accounting income originating during the current year and reversal of timing differences for the earlier years.
Deferred tax liabilities are recognised for all taxable timing differences. Deferred tax asset is not recognized in the books as a matter of prudence. Deferred tax is measured at substantively enacted tax rates by the Balance Sheet date. Minimum Alternate Tax (MAT) if paid in a year is charged to the Statement of Profit & Loss as Current Tax. The company recognises MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be earned forward, k) Provisions, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financialstatements.
I) Earnings per Share (EPS)
Basic EPS are calculated by dividing the net profit for the period attributable to the equity share holders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.
Mar 31, 2016
a) Corporate Information:
BNK Capital Markets Limited is a public limited Company domiciled in India and incorporated under the Provisions of the Companies Act, 1956. Its shares are listed on the BSE Limited and The Calcutta Stock Exchange Limited in India. BNK Capital Markets Limited is a Non- Banking Financial (Non Deposit Accepting or Holding) Company registered under the Reserve Bank of India Act, 1934.
b) Basis of Accounting and Preparation of Financial Statements: The financial statements of the Company have been prepared under or going concern assumption and under the historical cost convention in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) and relevant provisions of the Companies Act, 2013, in compliance with all material aspects with the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 and also as per the guidelines for prudential norms prescribed by the Reserve Bank of India.
All Expenses and Income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.
c) Use of Estimates:
The preparation of financial statements in conformity with generally accepted accounting principles (Indian GAAP) requires the management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities as on the date of financial statements and the amounts of revenue and expenses within the reported period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized .All assets and liabilities have been classified as Current and Non Current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013.
d) Tangible Assets:
All Fixed Assets are valued at cost less depreciation.
An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to profit & loss account in the year in which an asset is identified as impaired.
e) Depreciation:
Depreciation is systematically allocated over the useful life of all tangible assets under Straight-line Method as specified in part C of Schedule II of the Companies Act, 2013.Depreciation for assets purchased/sold during the period under review is proportionately charged.
f) Investments:
Investments are readily realizable but intended to be held for more than one year from the date on which such investments are made, are classified as Non Current Investments, all other Investments are classified as current Investments. Investments are stated at cost.
On disposal of an Investment, the difference between its carrying amount and net disposal proceeds is charged to the statement of profit and loss, but if there is any appreciation in the value of investments is generally ignored.
There have been changes in the quantity face value/the name of the Companies due to their respective various corporate restructuring activities. These are marked with (*) in Note no. 6(b).
g) Inventory
Inventories are valued at lower of cost and net realizable value or at NAV in case of mutual fund.
h) Income Recognition
Revenue is recognized and reported to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.
Interest Income is recognized as and when the same has accrued on time proportion basis and company''s right to receive interest is established.
Dividend Income is recognized when the same is received by the company.
Income including interest / discount or any other charges on NPA is recognized when it is actually realized.
The expenditure of the business are measured and taken into account on accrual basis.
i) Employees Retirement & Other Benefits
Short term employees benefits are recognized in the period in which employees'' services are rendered.
Leave Encashment benefit is considered and provided for, based on actual as at the financial year The benefits for staff gratuity have been provided for the year under review, j) Income Taxes
Tax expenses comprise Current & 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.
Deferred Taxes reflect the impact of the timing differences between taxable income and the accounting income originating during the current year and reversal of timing differences for the earlier years.
Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax asset is not recognized in the books as a matter of prudence. Deferred tax is measured at substantively enacted tax rates by the Balance Sheet date. Minimum Alternate Tax (MAT) if paid in a year is charged to the Statement of Profit & Loss as Current Tax. The Company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the Company will pay normal income tax during the specified period i.e. the period for which MAT credit is allowed to be carried forward, k) Provisions, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the financial statements.
I) Earnings Per Share (EPS)
Basic EPS are calculated by dividing the net profit for the period attributable to the equity share holders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.
Mar 31, 2015
A) Corporate Information:
BNK Capital Markets Limited is a public limited Company domiciled in
India and incorporated under the Provisions of the Companies Act, 1956.
Its shares are listed on the BSE Limited and The Calcutta Stock
Exchange Limited in India. BNK Capital Markets Limited is a Non-
Banking Financial (Non Deposit Accepting or Holding) Company registered
underthe Reserve Bank oflndia Act, 1934.
b) Basis of Preparation of Financial Statements:
The financial statements have been prepared under on going concern
assumption and under the historical cost convention in accordance with
Generally Accepted Accounting Principles in India and provisions of the
Companies Act, 2013.
All Expenses and income to the extent ascertainable with reasonable
certainty are accounted for on accrual basis.
c) Use of Estimates:
The preparation of financial statements in conformity with generally
accepted accounting principles (GAAP) requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities as on the date of financial statements and the amounts
of revenue and expenses within the reported period. Difference between
the actual results and estimates are recognized in the period in which
the results are known/materialized.AII assets and liabilities have been
classified as Current and Non Current as per the Company's normal
operating cycle and other criteria set out in the Schedule III to the
Companies Act, 2013.
d) Fixed Assets:
All Fixed Assets are valued at cost less depreciation.
An Asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to profit & loss
account in the year in which an asset is identified as impaired.
e) Depreciation:
Depreciation is systematically allocated over the useful life of all
tangible assets under StraightLine Method as specified in part C of
Schedule II of the Companies Act, 2013.The Company had followed under
W. D.V. method for and upto the year ended 31st March 2014. Due to the
change of depreciation method, the consequential impact on the
depreciation charged for the year ended 31st March 2015, since not
being material, has not been separately considered.
f) Investments:
Investments are readily realizable but intended to be held for more
than one year from the date on which such investments are made, are
classified as Non Current Investments, all other Investments are
classified as current Investments. Investments are stated at cost.
On disposal of an Investment, the difference between its carrying
amount and net disposal proceeds is charged to the statement of profit
and loss, but if there is any appreciation in the value of investments
is generally ignored.
There have been changes in the quantity /focevalue/the name of the
Companies due to their respective various corporate restructuring
activities. These are marked with (*) in Note no. 6(b).
g) Inventory
Inventories are valued at lower of cost and net realizable value or at
NAV in case of mutual fund.
h) Income Recognition
Revenue is recognized and reported to the extent it is probable that
the economic benefits will flow to the company and the revenue can be
reliably measured.
Interest Income is recognized as and when the same has accrued on time
proportion basis and company's right to receive interest is
established. Dividend Income is recognized when the same is received by
the company.
Income including interest/ discount or any other charges on NPA is
recognized when it is actually realized.
The expenditure of the business are measured and taken into account on
accrual basis.
i) Employees Retirement & Other Benefits .
Short term employees benefits are recognized in the period in which
employees' services are rendered.
Leave Encashment benefit is considered and provided for, based on
actual as at the financial year.
The benefits for staff gratuity have been provided for the year under
review.
j) Income Taxes
Tax expenses comprise Current & 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. Deferred Taxes reflect the
impact of the timing differences between taxable income and the
accounting income originating during the current year and reversal of
timing differences for the earlier years.
Deferred tax liabilities are recognised for all taxable timing
differences. Deferred tax asset is not recognized in the books as a
matter of prudence. Deferred tax is measured at substantively enacted
tax rates by the Balance Sheet date. Minimum Alternate Tax (MAT) if
paid in a year is charged to the Statement of Profit & Loss as Current
Tax. The company recognises MAT credit available as an asset only to
the extent that there is convincing evidence that the company will pay
normal income tax during the specified period i.e. the period for which
MAT credit is allowed to be carried forward.
k) Provisions, Contingent Liabilities and Contingent Assets Provisions
involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financialstatements.
l) Earnings Per Share (EPS)
Basic EPS are calculated by dividing the net profit for the period
attributable to the equity share holders (after deducting attributable
taxes) by the weighted average number of equity shares outstanding
during the period.
Mar 31, 2014
A) Corporate Information
BNK Capital Markets Limited is a public limited Company domiciled in
India and incorporated under the Provisions of the Companies Act, 1956.
Its shares are listed on the BSE Limited and The Calcutta Stock
Exchange Limited in india. BNK Capital Markets Limited is a Non-
Banking Financial ( Non Deposit Accepting or Holding ) Company
registered under the Reserve Bank of India Act, 1934.
b) Basis of Accounting :
The financial statements have been prepared under the historical cost
convention on the accounting principles of a going concern. Accounting
Policies not specifically referred to otherwise are consistent and in
consonance with the applicable accounting standards prescribed by the
Companies (Accounting Standards) Rules, 2006 and the relevant
provisions of the Companies Act, 1956 (as amended) to the extent
applicable and also as per the guidelines for prudential norms
prescribed by the Reserve Bank of India and the general circular
15/2013 dated 13th september,2013 of the Ministry of Corporate Affairs
in respect of section 133 of the Companies Act, 2013. All Expenses and
income to the extent ascertainable with reasonable certainty are
accounted for on accrual basis."The preparation of financial statements
in conformity with generally accepted accounting principles (GAAP)
requires the management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosures of
contingent liabilities on the date of financial statements and reported
amounts of revenue and expenses for that year. Actual result could
differ from these estimates. Any revision to the accounting estimates
is recognised prospectively."All assets and liabilities have been
classified as Current and Non Current as per the Company''s normal
operating cycle and other criteria set out in the Schedule VI to the
Companies Act, 1956 (as amended).
c) Fixed Assets :
All Fixed Assets are valued at cost less depreciation.
An Asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to profit & loss
account in the year in which an asset is identified as impaired.
d) Depreciation :
Depreciation on all tangible fixed assets is provided on written down
value method in terms of Section 350 of the Companies Act, 1956, at the
rates prescribed in Schedule XIV to the said act over their useful
life.
e) Investments :
Investments, are readily realisable but intended to be held for more
than one year from the date on which such investments are made, are
classified as Non Current Investments, all other Investments are
classified as current Investments. Investments are stated at cost. On
disposal of an Investment, the difference between its carrying amount
and net disposal proceeds is charged to the statement of profit and
loss.
f) Inventory
Inventories are valued at cost.
g) Recognition of Income and Expenditure :
i) Revenue is recongnised and reported to the extent it is probable
that the economic benefits will flow to the company and the revenue can
be reliably measured.
ii) Interest Income is recognised as and when the same has accrued on
time proportion basis and company''s right to receive interest is
established.
iii) Dividend Income is recognised when the same is received by the
company.
h) Employee Retirement & Other Benefits
i) Short term employees benefits are recognised in the period in which
employees'' services are rendered.
ii) Leave Encashment benefit is considered and provided for, based on
actual as at the financial year.
iii) The benefits for staff gratuity have not been provided for the
year under review. As most of the employees appointed are contractual.
i) Income Taxes
Tax expenses are comprised of Current & 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. Deferred
Income Taxes reflect the impact of the timing differences between
taxable income and the accounting income originating during the current
year and reversal of timing differences for the earlier years.
Deferred tax liabilities are recognised for all taxable timing
differences. Deferred tax Assets are recognised for deductable 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 realised. Minimum Alternate Tax (MAT) if
paid in a year is charged to the Statement of Profit & Loss as Current
Tax. The company recognises MAT credit available as an asset only to
the extent that there is convincing evidence that the company will pay
normal income tax during the specified period i.e. the period for which
MAT credit is allowed to be carried forward.
j) Provisions, Contingent Liabilities and Contingent Assets Provisions
involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recongnized nor disclosed in the
financial statements.
k) Earnings Per Share (EPS)
Basic EPS are calculated by dividing the net profit for the period
attributable to the equity share holders (after deducting attributable
taxes) by the weighted average number of equity shares outstanding
during the period.
Mar 31, 2013
A) Basis of Preparation of Financial Statements :
The financial statements have been prepared to comply in all material
aspects with the Accounting Standards notified by the Companies
(Accounting Standards) Rules, 2006, relevant provisions of the
Companies Act, 1956 and also as per the guidelines for prudential norms
prescribed by the Reserve Bank of India. The accounts have been
prepared on the historical cost basis and on the principles of going
concern.
b) Fixed Assets :
All Fixed Assets are valued at cost less depreciation.
An Asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to profit & loss
account in the year in which an asset is identified as impaired.
c) Depreciation :
Depreciation on all tangible fixed assets is provided on written down
value method in terms of Section 350 of the Companies Act, 1956, at the
rates prescribed in Schedule XIV to the said act over their useful
life.
d) Investments :
Investments, are readily realisable but intended to be held for more
than one year from the date on which such investments are made, are
classified as Non Current Investments, all other Investments are
classified as current Investments.
Long Term Investments are stated at cost.
On disposal of an Investment, the difference between its carrying
amount and net disposal proceeds is charged to the statement of profit
and loss.
e) Recognition of Income and Expenditure :
i) Revenue is recongnised and reported to the extent it is probable
that the economic benefits will flow to the company and the revenue can
be reliably measured.
ii) Interest Income is recognised as and when the same has accrued on
time proportion basis and company''s right to receive interest is
established.
iii) Dividend Income is recognised when the same is received by the
company.
f) Emloyee Retirement & Other Benefits
i) Short term employees benefits are recognised in the period in which
employees'' services are rendered.
ii) Leave Encashment
Leave Encashment benefit is considered and provided for, based on
actual as at the financial year.
g) Income Taxes
Deferred Income Taxes reflect the impact of the timing differences
between taxable income and the accounting income originating during the
current year and reversal of timing differences for the earlier years.
Deferred tax liabilities are recognised for all taxable timing
differences. Deferred tax Assets are regnised for deductable timing
differences only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deffered tax assets can be realised.
Minimum Alternate Tax (MAT) in accordance with the provisions of
sec.115JB of the income tax act, 1961 is not applicable to the company
for the year under audit.
h) Provisions, Contingent Liabilities and Contingent Assets Provisions
involving substantial degree of estimation in measurement are
recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recongnized nor disclosed in the
financial statements.
i) Earnings Per Share (EPS)
Basic EPS are calculated by dividing the net profit for the period
attributable to the equity share holders (after deducting attributable
taxes) by the weighted average number of equity shares outstanding
during the period.
Mar 31, 2012
A) Presentation & Disclosure of Financial statements
The revised Schedule VI notified under the Companies Act, 1956 has
become applicable to the company during the year ended 31st March, 2012
for preparation & presentation of its financial statements. The
adoption of revised Schedule VI does not impact recognition &
measurement principles followed for preparation of financial
statements. However, the company has reclassified the previous year
figures in accordance with the requirements applicable in the current
year.
b) Basis of Accounting :
The financial statements have been prepared to comply in all material
aspects with the Accounting Statendards notified by the Companies
(Accounting Standards) Rules, 2006, relevant provisions of the
Companies Act, 1956 and also as per the guidelines for prudential norms
prescribed by the Reserve Bank of India. The accounts have been
prepared on the historical cost basis and on the principles of going
concern.
c) Fixed Assets :
All Fixed Assets are valued at cost less depreciation. An Asset is
treated as impaired when the carrying cost of asset exceeds its
recoverable value. An impairment loss is charged to profit & loss
account in the year in which an asset is identified as impaired.
d) Depreciation :
Depreciation on all tangible fixed assets is provided on written down
value method in terms of Section 350 of the Companies Act, 1956, at the
rates prescribed in Schedule XIV to the said act.
e) Investments :
Investments, are readily realisable but intended to be held for more
than one year from the date on which such investments are made, are
classified as Non Current Investments. All other Investments are
classified as current Investments.
Long Term Investments are stated at cost. Current Investments are
carried in the financial statements at cost of individual investment
basis. In case of unquoted securities, the value is determined at cost.
On disposal of an Investment, the difference between its carrying
amount and net disposal proceeds is charged to the statement of profit
and loss.
f) Recognition of Income and Expenditure :
i) Revenue is recongnised and reported to the extent it is probable
that the economic benefits will flow to the company and the revenue can
be reliably measured.
ii) Interest Income is recognised as and when the same has accrued on
time proportion basis and company's right to receive interest is
established.
iii) Dividend Income is recognised when the same is received by the
company.
g) Employee Retirement & Other Benefits
Short term employees benefits are recognised in the period in which
employees's services are rendered.
Leave Encashment : Leave Encashment benefit is considered and provided
for, based on actual as at the financial year.
h) Income Taxes
Deferred Income Taxes reflect the impact of the timing differences
between taxable income and the accounting income originating during the
current year and reversal of timing differences for the earlier years.
Deferred tax liabilities are recognised for all taxable timing
differences. Deferred tax Assets are recognised for deductable timing
differences only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
differed tax assets can be realised.
Minimum Alternate Tax (MAT) in accordance with the provisions of
sec.115GB of the income tax act,1961 is not applicable for the year
under audit to the company.
i) Earnings Per Share (EPS)
Basic EPS are calculated by dividing the net profit or loss for the
period attributable to the equity share holders (after deducting
attributable taxes) by the weighted average number of equity shares
outstanding during the period.
For the purpose of calculating the diluted EPS, 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 shares.
Mar 31, 2010
1. Basis of preparation of Financial Statement
a) The Company prepares the accompanying financial statements in
accordance with Generally Accepted Accounting Principles(GAAP).GAAP
comprises mandatory accounting standards issued by the Institute of
Chartered Accountants of India(ICAI), the provisions of the Companies
Act, 1956 and guidelines issued by the Securities and Exchange Board of
India to the extent applicable.The financial statements are presented
in Indian rupees rounded off to the nearest thousand.
b) The Company generally follows mercantile system of accounting and
recognises significant items of income / expenditure on the accrual
basis.
c) Management evaluates all recently issued or revised accounting
standards on an ongoing basis.
2. Fixed Assets and Depreciation
The Company capitalises Fixed Assets at cost inclusive of all
incidental expenses incurred in acquisition of such ? .sets .
Depreciation on Fixed Assets has been provided on written down value
method . The rates applied, however, are in accordance with the
provision of Schedule XIV to the Companies Act, 1956.
3. Investments
Investments being in the nature of long term investments are valued at
cost at which they have been accured.
4. Stock-in-Trade Stock-in-Trade is valued at cost
Information pursuant to Schedule VI of the Companies Act,1956
Particulars in respect of Opening Stock,Purchases.Sales,and Closing
stock of shares and Bonds.
5. Taxes on Income
Current Tax is determined as the amount of tax payable in taxable
income for the period.Deferred tax is recognized subject to the
consideration of prudence in respect of deferred tax liablities.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.
8. The Company has not provided gratuity liability as per Accounting
Standard AS-15, as there is no liability on gratuity for the year
under reference.
9. There is no reportable segment as per Accounting Standard 17 as the
operations of the Company relate to mainly NBFC activities
10. Provisions
Provisions are recognised for liabilities that can be measured only by
using a substantial degree of estimation,if the company has a present
obligation as a result of a past event, and the amount of the
obligation can be reliably estimated.
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