Mar 31, 2015
I. BASIS OF PREPARATION
a) These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. Pursuant to section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule,
2014, till the standards of accounting or any addendum thereto are
prescribed by Central Government in consultation and recommendation of
the National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act, 1956 shall continue to
apply. Consequently, these financial statements have been prepared to
comply in all material aspect with the Accounting Standards notified
under Section 211(3C) of Companies Act, 1956 [ Companies ( Accounting
Standards), 2006 as amended ] and other relevant provisions of the
Companies Act, 2013.
b) All assets and liabilities have been classified as current or
non-current as per the Company's normal operating cycle, and other
criteria set out in the Schedule - III to the Companies Act, 2013.
Based on the nature of products and the time between the acquisition of
assets for processing and their realization in cash and cash
equivalents, the Company has ascertained its operating cycle as up to
twelve months for the purpose of current / non-current classification
of assets and liabilities.
c) Accounting policies not specifically referred to otherwise are
consistent with the generally accepted accounting principles followed
by the Company.
d) The preparation of financial statements requires estimates and
assumption to be made that effect the reported amount of assets and
liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period .The Difference
between the actual and estimate are recognized in the period in which
results are known/materialized.
II. TANGIBLE FIXED ASSETS AND DEPRECIATION
a) Tangible Fixed Assets are stated at cost, less accumulated
depreciation and impairment loss, if any. Cost comprises the purchase
price and any attributable cost of bringing the asset to its working
condition for its intended use.
b) Depreciation has been provided as under:
(i) For assets existing on 1st April 2014 the carrying has been written
off as the useful life is expired and the same has been discarded.
III. IMPAIRMENT OF ASSETS
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal / external
factors. An asset is treated as impaired when the carrying cost of the
assets exceeds its recoverable value. An impairment loss, if any, is
charged to the statement of Profit and Loss in the year in which an
asset is identified as impaired. Reversal of impairment losses
recognized in the prior years is recorded when there is an indication
that the impairment losses recognized for the assets no longer exist or
have decreased.
IV. BORROWING COST
Borrowing Costs attributable to acquisition and construction of
qualifying assets are capitalized as a part of the cost of such assets
up to the date when such assets are ready for its intended use.
Other borrowing costs are charged to the Statement of Profit and Loss
in the period in which they are incurred.
V. INVESTMENTS
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
Investments are recorded at cost on the date of purchase, which
includes acquisition charges such as brokerage, stamp duty, taxes, etc.
Current Investments are stated at lower of cost and net realizable
value. Long-term investments are stated at cost after deducting
provisions made, if any, for other than temporary diminution in the
value.
VI. INVENTORIES
The securities held as stock-in-trade are valued at weighted average
cost. In respect of securities held as stock-in-trade, brokerage,
Security Transaction Tax and stamp duty are included in cost.
VII. REVENUE RECONGNITION
a) Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and can be reliably
measured.
b) Revenue from sale of shares & securities is recognized when the
significant risks and rewards of ownership of shares & securities have
passed. Sale of shares & securities are recorded net of brokerage and
Taxes.
c) Transaction of Purchase and Sales effected in cash market, which are
settled otherwise than by actual delivery or transfer of Shares and
securities are accounted as sales and purchases.
d) Derivative Instruments: Transaction of Purchase and Sales of
derivative contracts effected in F & O market, which are settled
otherwise than by actual delivery or transfer of Shares and securities
are netted and the resultant Gain or loss is accounted as F & O profit
or loss in the statement of profit and loss.
Accounting for derivative contracts, the outstanding derivative
contract with respect to F & O as at the yearend are marked to market
individually to account for the loss, if any and is charged to the
statement of profit and loss. The gains arising on account of mark to
market are ignored.
e) Interest Income is recognized on a time proportion basis.
f) Dividend income on investments is accounted for when the right to
receive the payment is established.
VIII. EMPLOYEE BENEFITS
The Provident Fund contribution and Gratuity is not required to be
provided as the Company does not fulfill the criterion of minimum
number of Employees employed during the year and hence is not under the
statutory obligation to pay the same.
IX TAXATION
Tax expense for the period, comprising Current tax and Deferred Tax are
included in the determination of net profit or loss for the period.
Current tax is measured at the amount expected to be paid to the tax
authorities in accordance with the taxation laws prevailing in India.
Deferred Tax is recognized for all the timing differences, subject to
the consideration of prudence in respect of deferred tax assets.
Deferred tax assets are recognized and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
Deferred Tax assets and liabilities are measured using the tax rates
and tax laws that have been enacted and substantively enacted by the
Balance Sheet date. At each Balance Sheet date, the company re-assesses
unrecognized deferred tax assets, if any.
In case of unabsorbed losses and unabsorbed depreciation, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
profit. At each Balance Sheet date the Company reassesses the
unrecognized deferred tax assets.
X. OPERATING LEASES
As a Lessee :Leases, where significant portion of risk and reward of
ownership are retained by the Lessor, are classified as Operating
Leases and lease rentals thereon are charged to the Statement of Profit
and Loss on a straight-line basis over the lease term.
XI. CASH AND CASH EQUIVALENT
Cash and Cash Equivalents for the purpose of cash flow statement
comprise cash on hand and cash at bank including fixed deposit with
original maturity period three months or less and short term highly
liquid investments with an original maturity of three months or less.
XII. EARNINGS PER SHARE
Basic earnings per share are calculated by dividing the net profit for
the year attributable to equity shareholders by the weighted-average
number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company's earnings per share are the net
profit for the period. The weighted-average number of equity shares
outstanding during the period and for all periods presented is adjusted
for events, such as bonus shares, other than the conversion of
potential equity shares that have changed the number of equity shares
outstanding, without a corresponding change in resources.
XIII. CONTINGENT LIABILITIES AND PROVISIONS
Contingent Liabilities are possible but not probable obligations as on
Balance Sheet date based on the available evidence.
Provisions are recognized when there is a present obligation as a
result of past events, and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made.
Provisions are not discounted to its present value and are determined
based on best estimate required to settle the obligation at the Balance
Sheet date.
Mar 31, 2012
(A) Basis of preparation of Financial Statements:
(a) The financial statements have been prepared under the historical
cost convention, in accordance with the gener- ally accepted accounting
principles and the provisions of the Companies Act, 1956, as adopted
consistently.
(b) Accounting policies not specially referred to otherwise are
consistent with generally accepted accounting prin- ciples followed by
the Company.
(c) The company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
(B) Fixed Assets and Depreciation:
(a) Fixed assets are stated at cost less depreciation.
(b) Depreciation on fixed assets is provided on the straight line
method at the rates and in the manner specified in Schedule XIV of the
Companies Act, 1956.
(C) Foreign Exchange Transaction:
Transactions denominated in foreign currencies are normally recorded at
the exchange rate prevailing at the time of the transaction.
Outstanding balances are valued at the rate prevailing on the Balance
Sheet date.
(D) Investments:
Securities are classified into long term or stock in trade as
considered by the management.
(E) Revenue recognition:
a) Sales of securities are recognized on the date of sale.
b) Profit & loss from Derivatives are recognized on the date of sale.
c) Dividend income is recognized when the right to receive dividend is
established.
d) In respect of other income, company follow accrual basis of
accounting of such income.
(F) Employees Benefits:
The Provident Fund contribution and Gratuity is not required to be
provided as the Company does not fulfill the criterion of minimum
number of Employee employed during the year.
(G) Stock In Trade:
The securities held as stock-in-trade are valued at cost.
(H) Taxation:
Current Taxes, if any, are provided as per the provision of Income Tax
Act 1961.
Deferred Tax is recognized on the timing difference being the
difference between taxable incomes and accounting income that originate
in one period and are capable of reversal in future. Deferred Tax
Assets is recognized only upon actual certainty of sufficient taxable
profit, in the future against which such deferred tax asset can be
rectified.
(I) Impairment of Assets:
An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable value. An impairment loss is charged to Profit and Loss
Account in the year in which an asset is identified as impaired. The
impairment loss recognized in prior accounting periods is reversed if
there has been a change in the estimate of recoverable amount.
Mar 31, 2010
Basis of preparation
The financial statements are prepared under the historical cost
convention, in accordance with the Indian Generally Accepted Accounting
Principles (GAAP), Accounting Standards prescribed under the Companies
(Accounting Standards) Rules, 2006, pronouncements of the Institute of
Chartered Accountants of India (ICAI) and the provisions of the
Companies Act, 1956, and NBFC (Non-deposit accepting or holding)
companies prudential norms (Reserve Bank) Directions, 2007, as adopted
consistently by the Company.
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, the disclosure of that affect the reported amounts of
assets and liabilities, the disclosure of contingent liabilities on the
date of the financial statements and the reported amounts of revenues
and expenses during the period reported. Actual results could differ
from those estimates. Any revision to accounting estimates is
recognised in accordance with the requirements of the respective
accounting standards.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured.
Revenue from services
Revenue from services rendered is recognised as the service is
performed based on agreements/arrangements with the concerned parties.
Dividends
Revenue is recognised when the shareholders right to receive payment
was established during the accounting year.
Interest
Revenue is recognised on a time proportion basis taking into account
the amount outstanding and the rate applicable.
Retirement and other Employees Benefits
i) Retirement benefits in the form of Provident fund and Family Pension
fund is a defined contribution scheme and the contributions are charged
to the profit and loss account for the year when the contributions to
the respective funds are due. There are no other obligations other than
the contributions payable to the respective funds.
ii) Gratuity is a defined benefit obligation. The company has taken
group gratuity scheme with TATA AIG Insurance Co. Limited to cover the
gratuity liability of the employees. Gratuity liability is accrued and
provided for on the basis of an actuarial valuation on the projected
unit credit method made at the end of the financial year.
iii) The Company makes a provision in its books for liability towards
encashment of leave lying to the credit of employee as on the last day
of current financial year, subject to the maximum period of leave
allowable by the company, as if all employees are retiring on the
Balance Sheet date. Leave Encashment liability in incurred and provided
for on the basis of actuarial valuation made at the end of the
financial year.
iv) Actuarial gains/losses are debited to profit and loss account and
are not deferred.
Fixed Assets
Fixed assets are stated at cost and other incidental expenses, less
accumulated depreciation and impairment losses. Cost comprises the
purchase price and any attributable cost such as duties, freight,
borrowing costs, erection and commissioning expenses incurred in
bringing the assets to its working condition for its intended use.
Depreciation
Depreciation on all the assets of the company is provided on straight
line method at rates provided in Schedule XIV to the Companies Act,
1956. Depreciation on assets costing upto Rs.5,000/- are depreciated at
the rate of 100% on pro-rata basis except those which constitute more
than 10% of the aggregate actual cost of Plant & Machinery, on which
the applicable rate of depreciation is charged. Depreciation on
additions to assets or on sale/adjustments of assets is calculated
pro-rata from the date of such addition or up to the date of such
sale/adjustment. Intangible assets are recorded at cost and amortised
over the period the Company expects to derive economic benefits from
their use.
Investments
Investments are classified into long-term investments and current
investments based on intent of the management at the time of making the
investment. Investments intended to be held for more than one year are
classified as long-term investments. Current investments are valued at
lower of cost or market value. The diminution in current investments is
charged to the profit and loss account; appreciation, if any, is
recognised at the time of sale. Long-term investments, including
investments in subsidiaries, are valued at cost unless there is
diminution, other than temporary, in their value. Diminution is
considered other than temporary based on criteria that include the
extent to which cost exceeds the market value, the duration of the
market value decline and the financial health of and specific prospects
of the issuer.
Taxation
Income tax expense is recognised in accordance with Accounting Standard
22 prescribed under the Companies (Accounting Standards) Rules, 2006.
Income tax expense comprises current tax and deferred tax. Current tax
expense is the amount of tax for the period determined in accordance
with the income-tax law and deferred tax charge or credit reflects the
tax effects of timing differences between accounting income and taxable
income for the period. The deferred tax charge or credit and the
corresponding deferred tax liabilities or assets are recognised using
the tax rates that have been enacted or substantively enacted by the
balance sheet date. Deferred tax assets are recognised only to the
extent there is reasonable certainty that the assets can be realised in
future; however, where there is unabsorbed depreciation or carried
forward loss under taxation laws, deferred tax assets are recognised
only if there is a virtual certainty of realisation of such assets.
Deferred tax assets are reviewed as at each balance sheet date and
written down or written-up to reflect the amount that is
reasonably/virtually certain (as the case may be) to be realised.
Provisions and Contingent Liability
A provision for losses arising from claims, litigation, assessments,
fines, penalties, etc is recognised when the Company has a present
obligation as a result of a past events; it is probable that an outflow
of resources embodying economic benefits will be required to settle the
obligation; and a reliable estimate can be made of the amount of the
obligation. A contingent liability is disclosed unless the possibility
of an outflow of resources embodying economic benefits is remote.
Earnings per share
In accordance with Accounting Standard 20 prescribed under the
Companies (Accounting Standards) Rules, 2006, basic earning per share
is computed using the weighted average number of equity shares
outstanding during the year. Diluted earnings per share is computed
using the weighted average number of equity and dilutive potential
shares outstanding during the year, except where the results would be
anti-dilutive.
Operating leases taken
Lease payments under operating lease are recognised as an expense on a
straight line basis over the lease term.
Segmental reporting
i) Segments are identified by the management, keeping in view the
dominant source and nature of risks and returns and the internal
organization and management structure.
ii) Revenue and expenses have been identified to a segment on the basis
of relationship to the operating activities of the segment.
iii) Revenue and expenses, which relate to the company as a whole and
are not allocable to a segment on reasonable basis, have been disclosed
as ÃUnallocable.
iv) Segment assets and liabilities represent assets and liabilities in
respective segments. Tax related assets, and other assets and
liabilities that are not reported or cannot be allocated to a segment
on a reasonable basis, have been disclosed as ÃUnallocable.