Accounting Policies of Anupam Finserv Ltd. Company

Mar 31, 2015

I) Basis of Accounting.

The financial statement is prepared on mercantile basis under the historical cost convention in accordance with the generally accepted accounting principles in India, Accounting Standards notified under Section 133 of the Companies Act, 2013 and the other relevant provisions of the Companies Act, 2013.

ii) Revenue Recognition

(a) Sale of securities is accounted on receipt of broker's contract irrespective of the actual deliveries being effected or not and is shown net of brokerage/service taxes charged by the broker.

(b) Dividends and miscellaneous incomes are accounted on receipt basis. Revenue is generally recognised on accrual basis.

iii) Fixed Assets

Fixed Assets are stated at cost of acquisition and includes other direct / indirect and incidental expenses incurred to put them into use.

iv) Depreciation

(a) Pro-rata depreciation is provided on the basis of the period of usage of the asset, which is rounded off to the nearest month. Depreciation is provided on straight line basis.

(b) The rates of depreciation adopted are in conformity with those prescribed by Schedule XIV of the Act.

v) Impairment of Assets.

Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount.

vi) Investments

Investments, which are long term in nature, are stated at cost of acquisition with provision where necessary for diminution, other than temporary, in the value of investments. Current investments are carried at lower of cost or market value and quoted/fair price, computed category wise.

vii) Inventories

(a) The inventory comprises of stock of shares, securities, quoted and unquoted and may include stock in transit and lying with third parties.

(b) The stock of inventories namely quoted securities are valued at lower of cost and market price, whereas unquoted securities are valued at cost or at a value (in case of torpid securities), which in the management's perception it will fetch in the open market.

viii) Tax Expense

(a) Tax expenses comprise of current and deferred tax.

(b) Provision for current income tax is made on the basis of relevant provisions of the Income Tax Act, 1961 as applicable to the financial year.

(c) Deferred Tax is recognized subject to the consideration of prudence 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.

(d) Minimum Alternate Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period.

ix) Borrowing Costs.

Borrowing Costs directly attributed to the acquisition of fixed assets are capitalized as a part of the cost of asset upto the date the asset is put to use. Other Borrowing Costs are charged to the profit and loss account in the year in which they are incurred.

x) Employee Benefits.

The management is of the opinion that provision in respect of employee's retirement benefits are not required to be made.

xi) Provisions and contingencies.

The company creates a provision when there is a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or present obligation that probably will not require an outflow of resources or where reliable estimate of the amount of the obligation cannot be made.

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Mar 31, 2014

(1) Background - Vantage Corporate Services Limited (the Company) was originally incorporated as Vantage Financial Consultancy Service Private Limited on 16-5-1991, with the objects of providing financial services, and was later on 13-10-1992 changed into Vantage Financial Services Limited. The equity shares of the Company were listed on the Bombay and Ahmedabad Stock Exchanges in 1995, and subsequently on 6-1-1999, the name of the Company was changed to its present name. Currently, the Company is active in the finance and education segments.

(2) Basis of preparation of Financial Statements

(a) Basic Principles - The financial statements are prepared under the historical cost convention, on a going concern basis and they comply in all material aspects with the accounting principles generally accepted in India (Indian GAAP), the prescribed Accounting Standards (AS) and the relevant provisions of the Companies Act, 1956 (the Act).

(b) Use of Estimates - The preparation of the financial statements entail the management to make certain estimates and assumptions that affect the facts and figures reported. Disparities between actual result and estimates are recognised in the period in which they materialise.

(c) Method of Accounting - The Company generally follows the accrual method of accounting subject to the extent of determinability of accruals and keeping the materiality concept in view. All assets and liabilities are classified into current and non- current, based on the criteria of realisation or settlement within twelve months period from the balance sheet date.

(3) Revenue Recognition

(a) Sale of securities is accounted on receipt of broker''s contract irrespective of the actual deliveries being effected or not and is shown net of brokerage/service taxes charged by the broker.

(b) Revenue from education, training and publishing activities are recognised on issue of invoice, interest from funding activity is recorded on pro-rata accrual basis. Fees for services rendered are accounted upon provision of services and raising the invoice for the same.

(c) Dividends and miscellaneous incomes are accounted on receipt basis. Revenue is generally recognised on accrual basis.

(4) Fixed Assets

(a) The fixed assets are shown at their cost of acquisition including any attributable costs.

(b) None of the fixed assets have been revalued during the year.

(c) The management has physically verified the fixed assets during the year and no material discrepancies were noticed on such verification.

(5) Depreciation

(a) Pro-rata depreciation is provided on the basis of the period of usage of the asset, which is rounded off to the nearest month. Depreciation is provided on straight line basis.

(b) The rates of depreciation adopted are in conformity with those prescribed by Schedule XIV of the Act.

(6) Investments - The Company has not acquired any investments during the year.

(7) Inventories

(a) The inventory comprises of stock of shares, securities, quoted and unquoted and may include stock in transit and lying with third parties.

(b) The management has conducted physical verification of the stocks during the year and no material discrepancies were noticed on such verification.

(c) The stock of inventories namely quoted securities are valued at lower of cost and market price, whereas unquoted securities are valued at cost or at a value (in case of torpid securities), which in the management''s perception it will fetch in the open market.

(8) Cash Flow Statement - Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non- cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the information made available to us.

(9) Tax Expense

(a) Current Tax - Tax expense for the period, comprising of current tax (or MAT as applicable) and deferred tax are charged to the profits for the year. Current tax is measured at the amount expected to be paid to the revenue authorities in accordance with the prevailing tax laws. Minimum alternate tax (MAT) paid is recognised as an asset as it shall accrue future benefit in the form of a set off against tax expense.

(b) Deferred Tax - Pursuant to AS 22 - "Accounting for Taxes on Income", the Company computes the deferred tax arising on account of temporary timing differences between the taxable income and accounting income that originates in one period and is capable of being reversed in one or more subsequent periods, using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. The net deferred tax liability is charged to the profits, whereas a deferred tax asset is recognised and carried forward only to the extent there is a reasonable certainty that it can be realised in future.

(10) Borrowing Costs - Generally the borrowing costs attributable to acquisition and construction of eligible assets are capitalised as a part of the cost of such assets, up to the date such assets are ready for their intended use. Other borrowing costs are charged to the statement of profit and loss. During the year the Company has not acquired any eligible assets.

(11) Impairment of Assets - An asset is treated as impaired when the carrying cost of an asset exceeds its realisable or recoverable value. An impairment loss (if any), is charged to the statement of profit and loss of the year in which any asset is identified as impaired.

(12) Prior Period Items - The provision for expenses and accounting for accruals is done on the basis of the materiality concept and to the extent determinable.

(13) Employee Benefits - The management is of the opinion that provision in respect of employee''s retirement benefits are not required to be made.

(14) Foreign Currency Transactions - The Company has not entered into any foreign currency transactions during the year.

(15) Conversion of Warrants - The Company had issued 4337500 Convertible Warrants of Rs. 10 each, at a premium of Rs. 6 on preferential basis on 23rd November, 2010, convertible to equal number of equity shares of Rs. 10 each on 12th June, 2012, and on which application money @ Rs. 4 amounting to Rs. 17350000/- was paid-up at the time these warrants were issued and balance amount of Rs. 12 payable at the time of conversion. The Company had received the final call money in respect of only 2700000 warrants which were converted into an equal number of equity shares ranking pari passu. The application money of Rs. Nil (Rs. 6550000/-) in respect of Nil (1637500) warrants, on which call money was not received, were forfeited and the forfeited amount was transferred to the appropriate capital reserves. The premium portion of converted as well as forfeited warrants was transferred to the appropriate capital reserves (refer Note B).

(16) Contingent Liability & Subsequent Events - All disputed and/or contingent liabilities are either provided for or disclosed as such, on the basis of mutual acceptances or depending on the management''s perception of its potential outcome. The management has taken adequate steps to provide sufficiently for all known, anticipated or contingent liabilities. Events occurring after the balance sheet date up to the date of adoption of the financial statements, having a material bearing are considered while preparing the financial statements.

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Mar 31, 2013

A. Background - Vantage Corporate Services Limited (the Company) was originally incorporated as Vantage Financial Consultancy Service Private Limited on 16-5- 1991, with the objects of providing financial services, and was later on 13-10- 1992 changed into Vantage Financial Services Limited. The equity shares of the Company got listed on the Bombay and Ahmedabad Stock Exchanges in 1995, and subsequently on 6-1-1999, the name of the Company was changed to its present name. Currently, the Company is engaged in capital market activities, financial services, education and publishing businesses.

B. Basis of preparation of Financial Statements

a. Basic Principles -The financial statements are prepared under the historical cost convention, on a going concern basis and they comply in all material aspects with the accounting principles generally accepted in India (Indian GAAP), the prescribed accounting standards and the relevant provisions of the Companies Act, 1956 (the Act).

b. Use of Estimates - The preparation of the financial statements entail the management to make certain estimates and assumptions that affect the facts and figures reported. Disparities between actual result and estimates are recognised in the period in which they materialise.

c. Method of Accounting - The Company generally follows the accrual method of accounting subject to the extent of determinability of accruals and keep- ing the materiality concept in view. All assets and liabilities are classified into current and non-current, based on the criteria of realisation or settle- ment within twelve months period from the balance sheet date.

C. Revenue Recognition

a. Sale of securities is accounted on receipt of broker''s contract irrespective of the actual deliveries being effected or not and is shown net of broker- age/service taxes charged by the broker.

b. Revenue from education, training and publishing activities are recognised on issue of invoice, interest from funding activity is recorded on pro-rata accrual basis. Fees for services rendered are accounted upon provision of services and raising the invoice forthe same.

c. Dividends and miscellaneous incomes are accounted on receipt basis. Revenue is generally recognised on accrual basis.

D. Fixed Assets

a. The fixed assets are shown at their cost of acquisition including any attribut- able costs.

b. None of the fixed assets have been revalued during the year.

c. The management has physically verified the fixed assets during the year and no material discrepancies were noticed on such verification.

E. Depreciation

a. Pro-rata depreciation is provided on the basis of the period of usage of the asset, which is rounded off to the nearest month. Depreciation is provided on straight line basis.

b. The rates of depreciation adopted are in conformity with those prescribed by Schedule XIV of the Act.

F. Investments - The Company has not acquired any investments during the year.

G. Inventories

a. The inventory comprises of stock of shares, securities, quoted and unquoted and may includes stock in transit and lying with third parties.

b. The management has conducted physical verification of the stocks during the year and no material discrepancies were noticed on such verification.

c. The stock of inventories namely quoted securities are valued at lower of cost and market price, whereas unquoted securities are valued at cost or at a value (in case of torpid securities), which in the management''s perception it will fetch in the open market.

H. Cash Flow Statement - Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the information made available to us.

I. Foreign Currency Transactions - The Company has not entered into any foreign currency transactions during the year.

J. Tax Expense

a. Current Tax - Tax expense for the period, comprising of current tax (includ- ing MAT) and deferred tax are charged to the profits for the year. Current tax is measured at the amount expected to be paid to the revenue authorities in accordance with the prevailing tax laws. Minimum alternate tax (MAT) paid is recognised as an asset as it shall accrue future benefit in the form of getting set off against tax expense.

b. Deferred Tax - Pursuant to AS 22 - "Accounting for Taxes on Income", the Company computes the deferred tax arising on account of temporary timing differences between the taxable income and accounting income that origi- nates in one period and is capable of being reversed in one or more subse- quent periods, using the tax rates and laws that have been enacted or sub- stantively enacted as of the balance sheet date. The net deferred tax liabil- ity is charged to the profits, whereas a deferred tax asset is recognised and carried forward only to the extent there is a reasonable certainty that it can be realised in future.

K. Borrowing Costs - Generally the borrowing costs attributable to acquisition and construction of eligible assets are capitalised as a part of the cost of such assets, up to the date such assets are ready for their intended use. Other borrowing costs are charged to the statement of profit and loss. During the year the Company has not acquired any eligible assets.

L. Impairment of Assets - An asset is treated as impaired when the carrying cost of an asset exceeds its realisable or recoverable value. An impairment loss (if any), is charged to the statement of profit and loss of the year in which any asset is identified as impaired.

M. Prior Period Items - The provision for expenses and accounting for accruals is done on the basis of the materiality concept and to the extent determinable.

N. Employee Benefits - The management is of the opinion that provision in respect of employee''s retirement benefits are not required to be made.

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Mar 31, 2010

A. Method of Accounting -

a. The accounts have been prepared to comply in all material aspects with the accounting principles generally accepted in India, the accounting standards issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

b. The Company generally follows the accrual method of accounting subject to the ascertainability of accruals and keeping the materiality concept in view.

B. Revenue Recognition -

a. Sale of securities is accounted on receipt of brokers bill irrespective of actual deliveries and is net of brokerage/service taxes charged by the broker,

b. Event management, consultancy, training and other fees are accounted on raising the invoice for the same. Dividends and other incomes are accounted on receipt basis,

c. Revenue is generally recognised on accrual basis.

C. Fixed Assets -

a. The fixed assets are shown at their cost of acquisition including any attributable costs,

b. None of the fixed assets have been revalued during the year.

c. The management has physically verified the fixed assets during the year and no material discrepancies were noticed on such verification.

D. Depreciation -

a. Pro-rata depreciation is provided on the basis of the period of usage of the asset, which is rounded off to the nearest month. Depreciation is provided on straight line basis,

b. The rates of depreciation adopted are in conformity with those prescribed under Schedule XIV of the Companies Act, 1956.

E. Investments - The Company has not acquired any investments during the year.

F. Inventories -

a. The inventory comprises of stock of securities, quoted and unquoted and may includes stock in transit and lying with third parties,

b. The management has conducted physical verification of the stocks during the year and no material discrepancies were noticed on such verification,

c. The stock of inventories namely quoted securities are valued at lower of cost and market price and unquoted securities are valued at cost.

G. Prior Period Items - The provision for expenses and accounting for accrued income is done on the basis of the materiality concept and wherever ascertainable.

H. Foreign Currency Transactions - The Company has not entered into any foreign currency transactions during the year.

I. Retirement Benefits - The management is of the opinion that provision in respect of employees retirement benefits is not required to be made.

J. Earnings Per Share - Pursuant to the requirements of Accounting Standard 20 - "Earnings Per Share" (EPS) issued by Institute of Chartered Accountants of India, the EPS calculations are specified below:

K. Borrowing Costs - Generally the borrowing costs attributable to acquisition and construction of assets are capitalized as a part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

L. Segmental Information - Pursuant to Accounting Standard 17 - "Segmental Reporting" issued by the Institute of Chartered Accountants of India, the segment information is specified below-