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Accounting Policies of Wealth First Portfolio Managers Ltd. Company

Mar 31, 2023

Note 1: Significant accounting policies

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

1. Company Overview

Wealth First Portfolio Managers Limited (the Company) is a public company limited by shares, incorporated on 16th April, 2002 and domiciled in India. The company is listed on NSE. The Company has migrated from NSE SME Platform to NSE Main Board w.e.f. 20th January, 2021. The Company is also providing Demat Services as a Depository Participant of Central Depository Services (India) Ltd (CDSL). The Company is engaged in the business of providing share & stock broking services, Portfolio Management, Mutual Funds Distribution, Depository Participant services and to invest, buy, sell or otherwise deal in all kind of securities and other related activities. The Company''s registered office is at "Capitol House" 10 Paras-II, Near Campus Corner, Prahaladnagar, Anand Nagar Ahmedabad Gujarat-380015.

2. Basis of preparation

The Standalone financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under section 133 of the Companies Act, 2013 (the Act) along with other relevant provisions of the Act. The Company uses accrual basis of accounting. The financial statements are presented in Indian Rupee (INR) which is also the functional currency of the Company.

The Standalone financial statements have been prepared on a historical cost basis. The financial statements are prepared on a going concern basis, as the Management is satisfied that the Company shall be able to continue its business for the foreseeable future and no material uncertainty exists that may cast significant doubt on the going concern assumption. In making this assessment, the Management has considered a wide range of information relating to present and future conditions, including future projections of profitability, cash flows and capital resources. The outbreak of COVID-19 has not affected the going concern assumption of the Company.

Presentation of financials statements

The Company is covered in the definition of Company other than Non-Banking Financial Company as defined in Companies

(Indian Accounting Standards) (Amendment) Rules, 2016. As per the format prescribed under Division II of Schedule III to the Companies Act, 2013 on 11th October, 2013 the Company presents the Balance Sheet, the Statement of Profit and Loss and the Statement of Changes in Equity in the order of liquidity.

Use of estimates and judgments

The preparation of financial statements in conformity with Ind AS requires management to make estimates, judgments, and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities (including contingent liabilities) and disclosures as of the date of financial statements and the reported amounts of revenue and expenses for the reporting period. Actual results could differ from these estimates. Accounting estimates and underlying assumptions are reviewed on an ongoing basis and could change from period to period. Appropriate changes in estimates are recognized in the period in which the Company becomes aware of the changes in circumstances surrounding the estimates. Any revisions to accounting estimates are recognized prospectively in the period in which the estimate is revised and future periods.

3. Revenue recognition

The Company recognises revenue from contracts with customers (other than financial assets to which Ind AS 109 ''Financial instruments'' is applicable) based on Ind AS 115 ''Revenue from contracts with customers''. The Company identifies contract(s) with a customer and its performance obligations under the contract, determines the transaction price and its allocation to the performance obligations in the contract and recognises revenue only on satisfactory completion of performance obligations. Revenue is measured at the fair value of the consideration received or receivable.

Brokerage income is recognised as per contracted rates at the point in time when transactions performance obligation is satisfies on behalf of the customers on the trade date and is reflected net of related stock exchanges, goods and service tax and security transaction tax. These include brokerage fees charged per transaction executed on behalf of the clients as per the contractually agreed rate.

Dividend income on equity shares is recognised when the Company''s right to receive the payment is established, which is generally when shareholders approve the dividend.

Interest income is recognized on accrual basis.

4. Cash and cash equivalents

Cash and cash equivalents include cash on hand and Bank Balance which are subject to an insignificant risk of changes in value.

5. Financial Instruments

A financial instrument is defined as any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. Trade receivables and payables, loan receivables, investments in securities and subsidiaries, debt securities and other borrowings, preferential and equity capital etc. are some examples of financial instruments.

All the financial instruments are recognised on the date when the Company becomes party to the contractual provisions of the financial instruments. For tradable securities, the Company recognises the financial instruments on trade date.

i) Financial Assets

Financial assets include cash, or an equity instrument of another entity, or a contractual right to receive cash or another financial asset from another entity. Few examples of financial assets are loan receivables, investment in equity and debt instruments, trade receivables and cash and cash equivalents.

Investment in subsidiaries

Investment in subsidiaries is recognised at cost and is not adjusted to fair value at the end of each reporting period. Cost of investment represents amount paid for acquisition of the said investment.

The Company assesses at the end of each reporting period, if there are any indications that the said investment may be impaired. If so, the Company estimates the recoverable value/amount of the investment and provides for impairment, if any i.e. the deficit in the recoverable value over cost.

Financial Assets (other than investment in subsidiaries)

All financial assets are recognized at fair value on initial recognition

Classification and subsequent measurement

The Company has applied Ind AS 109 and classifies its

financial assets in the following measurement categories:

• Fair value through profit or loss (FVTPL);

• Fair value through other comprehensive income (FVOCI); or

• Amortised cost.

Financial assets carried at amortised cost A financial asset is measured at the amortised cost if the following condition is met:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows.

Derecognition of Financial Assets

The Company derecognises a financial asset (or, where

applicable, a part of a financial asset) when:

• The right to receive cash flows from the asset have expired; or

• The Company has transferred its right to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under an assignment arrangement and the Company has transferred substantially all the risks and rewards of the asset. Once the asset is derecognised, the Company does not have any continuing involvement in the same.

On derecognition of a financial asset in its entirety, the difference between:

• the carrying amount (measured at the date of derecognition) and

• the consideration received (including any new asset obtained less any new liability assumed) is recognised in profit or loss.

ii) Financial Liabilities

Initial recognition and measurement Financial liabilities are measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on derecognition is also recognised in Statement of Profit or loss.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR method.

Derecognition

A financial liability is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

6. Property, plant, equipment and Intangible assets

Property, plant and equipment are carried at historical cost of acquisition less accumulated depreciation and impairment losses, consistent with the criteria specified in Ind AS 16 ''Property, Plant and Equipment.

Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably.

On transition to Ind AS, the Company has elected to continue with the carrying value of all of its property, plant and equipment measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

Depreciation is calculated using the written down method to allocate their cost, net of their residual values, over their estimated useful life prescribed under Schedule II to the Companies Act, 2013. The Company provides prorata depreciation from the date of installation till date the assets are sold or disposed.

The estimated useful lives of the fixed assets are as follows:

Class of assets

Useful life

Office Equipments

5 Years

Furniture and Fixtures

10 Years

Vehicle

8 Years

Computer and Data Processing

• Servers and Networks

6 Years

• End user devices (Laptop, Desktop etc.)

3 Years

Office Premises

30 Years

Electrical equipments

10 Years

Plant & Machinery

15 Years

The carrying amount of an item of property, plant and equipment is derecognized on disposal or when no future

economic benefits are expected from its use or disposal. Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized in the statement of profit and loss when the asset is derecognized.

Other Intangible Assets

Intangible assets purchased are measured at cost or fair value as of the date of acquisition, as applicable, less accumulated amortisation and accumulated impairment, if any. The amortization period and the amortization method are reviewed at least at each financial year end.

7. Provisions and contingent liabilities

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation.

Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, provision is reversed.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognised in the period in which the change occurs.

8. Retirement and other employee benefits

a. Gratuity

The employees of the Company are eligible for gratuity in accordance with the Payment of Gratuity Act, and is a Defined Employee Benefit. A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company''s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service. The company has paid an amount of B 14,26,057/- to Life Insurance Corporation of India (LIC of India) in the year under consideration. The amount would be respectively paid to the employees on their retirement.

b. Provident fund

The Company contributes to a recognized provident fund which is a Defined Contribution Scheme. The Company

makes specified monthly contributions towards Provident Fund. The contributions are accounted for on an accrual basis and recognized in the Statement of Profit and Loss.

c. Performance incentive and compensated absences

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services.

9. Dividends

Dividend on equity shares paid during the year ended 31st March, 2023

The Board of Directors, at its meeting held on 10th May, 2022 had proposed the dividend of B2/-per share for the year ended 31st March, 2022which was approved by the shareholders at the Annual General meeting held on 28th September, 2022.This resulted in a cash outflow of B21.31 million

10. Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period (excluding other comprehensive income) attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the financial year.

(D in Thousand)

Particulars

31/03/2023

31/03/2022

A. Shareholders earnings (as per statement of profit and loss)

1,35,139.75

1,87,655.69

B. Calculation of weighted average no. of Equity Shares:

Equity Shares Outstanding at the beginning of the period

1,06,55,000

1,06,55,000

Right shares issued during the year

-

-

Equity Shares Allotted pursuant to the Public Issue

-

-

Total No. of Equity Shares Outstanding at the end of the year

1,06,55,000

1,06,55,000

Weighted Average No. of Share (Based on date of issue of shares)

1,06,55,000

1,06,55,000

C. Basic Earnings per Share (A/B)

12.68

17.61

11. Related Party Transactions

The following details give information pursuant to Indian Accounting Standard 24 "Related party disclosures"

(D in Thousand)

NAME OF RELATED PERSON RELATION NATURE OF TRANSACTION

PAYMENT MADE (AMOUNT)

Ashish Shah Director Salary

4,800.00

Rent

1,800.00

Sitting Fees

45.00

Hena Shah Director Salary

2,112.00

Sitting Fees

25.00

Manish Kansara C.F.O. Salary

1,555.56

Rupal Kansara Wife of C.F.O. Salary

1,448.38

Aayush Shah C.S. Salary

935.13

Rajan Mehta Director Sitting fees

75.00

NAME OF RELATED PERSON

RELATION

NATURE OF TRANSACTION

PAYMENT MADE (AMOUNT)

Devanshu Mehta

Director

Sitting fees

55.00

Binal Gandhi

Director

Sitting fees

50.00

Sanjiv Shah

Director

Sitting fees

15.00

Ashesh Shah

Brother of Director

Professional Fees

1,260.00

Sonal Shah

Sister-in-Law of Director

Salary

710.00

Swapneel Shah

Son of Director

Salary

1,986.14


12. Taxation

Tax expense comprises of current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Act, 1961), and deferred tax charge or benefit (i.e. reflecting the tax effect of timing differences between accounting income and taxable income for the year).

Current tax

Provision for current tax is recognized based on estimated tax liability computed after adjusting for allowances, disallowances and exemptions in accordance with the Income Tax Act, 1961.

Deferred Tax

Deferred income tax reflects the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized when there is reasonable certainty that the asset can be realized in future, however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized to the extent there is virtual certainty of realization of the 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 realized.

13. Segment Reporting - IND AS 108

The Company publishes the standalone financial statements along with the consolidated financial statements of the Company. In accordance with IND AS 108 - Operating Segments, the Company has disclosed the segment information in the consolidated financial statements.

14. Foreign Currency Transactions

Foreign currency transactions are recorded at exchange rates prevailing on the date of the transaction.


Mar 31, 2018

SIGNIFICANT ACCOUNTING POLICIES

1. SIGNIFICANT ACCOUNTING POLICIES.

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (''Indian GAAP1) to comply with the Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Companies Act, 2013 (to the extent notified), provisions of Companies Act, 1956 (to the extent applicable) (hereinafter together referred to as The Act'') and the Schedule III of the Act. The financial statements have been prepared on the accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless stated otherwise. Also, Accounts have been prepared on the assumption of going concern basis.

B. USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

C. CURRENT / NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it is expected to be realized in, or is intended for sale or consumption in, the company''s normal operating cycle or it is held primarily for the purpose of being traded or it is expected to be realized in 12 months after the reporting date or it is cash or cash equivalents unless it is restricted from being exchanged or expected to be used to settle a liability for at least 12 months after the reporting date. Current Assets include the current portion of non-current assets. All other assets are classified as non-current. In the opinion of

Board Directors, the aggregate value of the current assets, on realization in the ordinary course of business, will not be less than the amount at which they are stated in the Balance Sheet.

Liabilities

A liability is classified as current when its is expected to be settled in the company''s normal operating cycle or it is held primarily for the purpose of being traded or is due to be settled within 12 months after the reporting date or the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current Liabilities include the current portion of non-current liabilities. All other liabilities are classified as non-current.

D. REVENUE RECOGNITION

Revenue is recognised only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of Government Bonds, Securities, services, service tax, adjusted for discounts (net), i) Dividend income is recognised when the right to receive payment is established, ii) Brokerage Income on sale of Mutual funds, Bonds, Fixed Deposits is booked on accrual basis, iii) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable, iv) Loss incurred on sale of investments is recognized on trade date basis. Profit/Loss on sale of investments is determined based on the Purchase Cost of the investments sold, v) Advisory fee income is recognized on an accrual basis in accordance with the terms and contracts entered into between the Company and the counterparty.

E. FIXED ASSETS

Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates, less accumulated depreciation and impairment loss, if any.

SIGNIFICANT ACCOUNTING POLICIES

The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use.

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Intangible assets

An intangible asset is a non-physical asset having a useful life greater than one year. These assets are generally recognized as part of an acquisition, where the acquirer is allowed to assign some portion of the purchase price to acquired intangible assets. The company does not possess any intangible asset.

F. DEPRECIATION

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the basis of Written Down Value (WDV) method from the date of its intended use or the date it is put to use, whichever is earlier. In respect of assets sold, depreciation is provided upto the date of disposal.

As per the requirement of Schedule 11 of the Companies Act, 2013, the Company has evaluated the useful lives of its fixed assets from those given in the Schedule II of the Act. The Company has the policy of maintaining nil Scrap value.

INVESTMENT

Investments are classified into non-current investments and current investments. Investments which are intended to be held for one year or more are classified as non-current investments and investments which are intended to be held for less than one year are classified as current investments.

Non-current Investments are carried at cost less diminution in value which is other than temporary, determined separately for each investment.

The company does not hold any current investment on the date.

During the last year the company has made an investment in fully Owned subsidiary named Wealth First Investments Advisers Private Limited. As per Accounting Standard 21 the accounts of fully owned subsidiary is required to be consolidated in the financial statements of the company. The method to be used for the consolidation is "On a line by line basis" as prescribed in AS 21.

H. RELATED PARTY DISCLOSURES

Sr.No.

NAME OF RELATED PERSON

RELATION

NATURE OF TRANSACTION

PAYMENT MADE (AMOUNT)

1

ASHISHN.SHAH

Director

Salary

30,00,000.00

Rent

16,00,000.00

Seating fees

50,000.00

2

HENA A. SHAH

Director

Salary

15,00,000.00

Seating fees

50,000.00

3

MANISH D. KANASARA

C.F.O.

Salary

7,75,667.00

4

RURAL M. KANSARA

Wife of C.F.O.

Salary

6,97,667.00

5

AAYUSH K. SHAH

C.S.

Salary

3,57,150.00

6

DALAL & SHAH FISCAL SERVICES LTD.

Sister Concern

Sale

2,35,13,040.00

7

RAJAN MEHTA

Director

Seating fees

60,000.00

8

DEVANSHU MEHTA

Director

Seating fees

45,000.00

9

BINAL GANDHI

Director

Seating fees

20,000.00

10

SWAPNEEL ASHISH SHAH

Son of Director

Salary

8,94,200.00

SIGNIFICANT ACCOUNTING POLICIES

I. SEGMENT REPORTING

The Company earns more than 90% of its total income from a particular segment. Also, it is not possible to differentiate the expenses, assets etc into different segments. Thus, segments are not separately disclosed.

J. FOREIGN CURRENCY TRANSACTIONS

During the period under consideration no amount was remitted in foreign currency on account of traveling expenditure and no amount was remitted on account of dividend and there was no earning in foreign currency.

K. INVENTORY

The Quantitative details of the Stock maintained are as under:

Particulars

Opening Balance Inwards Quantity Quantity

Outwards Quantity

Closing Balance Quantity

TAXABLE BOND

6% IDBI 2012

6

6

-

7.50% GOI 2034

53,000

51,000

2,000

7.80%PSIDC2014/15/16

1

1

-

7.94% GOI 2021

2,000

-

2,000

7.95% GOI 2032

2,000

-

2,000

8.23% GJ SDL 2028

7,21,500

3,22,000

3,99,500

8.28% GOI 2032

26,000

19,000

7,000

8.95% RFC 2025

6

4

2

8.90%RHFL2020

1,000

250

750

9.57% EHFL 2026

1,592 1,592

2,602

582

ICICI DDB 2023

2 6

6

2

NABARD ZCB 2019

4078

4077

1

10% EHFL 2026

13,500

8,500

5,000

7.40% GOI 2035

6,000

-

6,000

8.05% GJ SDL 2028

5,00,000

-

5,00,000

8.67% IDFC BANK 2025

5

1

4

9.80% TATA CAPITAL 2019

1

-

1

9.85% DCB BANK LTD 2027

20

18

2

ICICI DDB 2022

560

525

35

8.28% RH SDL 2028

1,75,000

1,72,000

3,000

8 %GOI 2026

20,000

-

20,000

TAX FREE BOND

7.39% NHAI 2031

10,181

8,500

1,681

7.60%NHAI 2031

36,000 2,800

38,200

600

7.69% NHAI 2031

9,500

7,500

2,000

8.12% REC 2027

25,072

24,843

229

8.66% IIFCL 2034

37,500

36,500

1,000

8.75% NHAI 2029

3,235

-

3,235

8.76% NHB 2034

1,988

1,400

588

8.93% NHB 2029

213 673

-

886

SIGNIFICANT ACCOUNTING POLICIES

Particulars

Opening Balance Quantity

Inwards Quantity

Outwards Quantity

Closing Balance Quantity

MUTUAL FUND STOCK

BOI AXA LARGE & MID CAP EQ FUND GROWTH

310

-

-

310

DSP BLACK ROCK EQ FUND GROWTH

656

-

-

656

ICICI PRU MULTI ASSET FUND GROWTH

101

-

-

101

ICICI PRU SAVING FUND RETAIL PLAN DDP

76

-

-

76

JM BAL FUND DPQDVP

5,07,697

24,19,793

19,71,442

9,56,048

J M EQ FUND MTHLY DIV PLAN

-

25,51,525

-

25,51,525

SBI MAGNUM MIDCAP FUND DIVIDEND PAYOUT

6,515

-

-

6,515

SHARES STOCK

ACEPRO ADVISORS P LTD.

2,26,000

-

-

2,26,000

TIGER LOGISTICS (INDIA) LTD

20,000

58,200

58,200

20,000

ARVEE LABORATORIES INDIA LTD

-

92,000

34,000

58,000

HEC INFRA PROJE

82,800

4,00,800

3,40,800

1,42,800

JET KNITWEARS PVT. LTD.

27,000

-

-

27,000

LIBAS DESIGNS

34,000

4,000

24,000

1 4,000

FORTUNE FIN SER

-

54,600

36,400

18,200

INFIBEAM AVENUES LTD.

-

2,85,500

1,85,500

1,00,000

PECOS HOTELS

18,000

92,000

83,000

27,000

SBI

-

66,000

48,000

18,000

SHAIVALREALITY

-

2,16,000

-

2,16,000

UNITED SPIRITS

500

18,118

13,150

5,468

TOTAL

9,61,469

78,75,753

34,91,425

53,45,797

L EMPLOYEE BENEFITS

Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

Post-Employment Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company''s contribution is recognised as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

Gratuity

The company has paid an amount of Rs 6,67,452/- to Life Insurance Corporation of India (LIC of India) in the year under consideration. The amount would be respectively paid to the employees on their retirement.

M. EARNING PER SHARE

The Company reports basic earnings per share in accordance with Accounting Standard 20- "Earnings Per Share" notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. Basic earnings per share is computed by dividing the net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

The calculation of the same is as under:

Particulars |

31/03/2018

31/03/2017

A.

Shareholders earnings (as per statement of profit and loss)

8,74,86,031

4,80,21,858

B.

Calculation of weighted average no. of Equity Shares:

Equity Shares Outstanding at the beginning of the period

63,93,000

63,93,000

Equity Shares Alloted as Bonus Shares

Equity Shares Alloted pursuant to the Public Issue

Total No, of Equity Shares Outstanding at the end of the year

3,93,000

63,93,000

Weighted Average No. of Share (Based on date of issue of shares)

63,93,000

63,93,000

C.

Basic Earnings per Share (A/B)

13.68

7.51

N. TAXATION

Tax expense comprises of current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Act, 1961), and deferred tax charge or benefit (i.e. reflecting the tax effect of timing differences between accounting income and taxable income for the year).

Current Tax

Provision for current tax is recognized based on estimated tax liability computed after adjusting for allowances, disallowances and exemptions in accordance with the Income Tax Act, 1961.

Deferred Tax

Deferred income tax reflects the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/ period. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized when there is reasonable certainty that the asset can be realized in future, however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized to the extent there is virtual certainty of realization of the 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 realized.

0. OTHER NOTES ON ACCOUNTS

1) Estimated amount of contracts remaining to be executed on Capital Account Rs NIL

2) We have relied on internal evidences certified by management, in case where external evidences in respect of expenses are not available.

3) Previous year figures are regrouped where ever required for comparative financial statements.


Mar 31, 2016

1. SIGNIFICANT ACCOUNTING POLICIES.

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements of the Company have been prepared in accordance with Generally Accepted Accounting Principles in India (''Indian GAAP'') to comply with the Accounting Standards as prescribed under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Companies Act, 2013 (to the extent notified), provisions of Companies Act, 1956 (to the extent applicable) (hereinafter together referred to as ''The Act'') and the Schedule III of the Act. The financial statements have been prepared on the accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year unless stated otherwise. Also, Accounts have been prepared on the assumption of going concern basis.

B. USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

C. CURRENT / NON-CURRENT CLASSIFICATION

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it is expected to be realized in, or is intended for sale or consumption in, the company''s normal operating cycle or it is held primarily for the purpose of being traded or it is expected to be realized in 12 months after the reporting date or it is cash or cash equivalents unless it is restricted from being exchanged or expected to be used to settle a liability for at least 12 months after the reporting date. Current Assets include the current portion of non-current assets. All other assets are classified as non-current. In the opinion of Board Directors , the aggregate value of the current assets, on realization in the ordinary course of business , will not be less than the amount at which they are stated in the Balance Sheet.

Liabilities

A liability is classified as current when its is expected to be settled in the company''s normal operating cycle or it is held primarily for the purpose of being traded or is due to be settled within 12 months after the reporting date or the company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current

Liabilities include the current portion of non-current liabilities. All other liabilities are classified as non-current.

D. REVENUE RECOGNITION

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of Government Bonds, Securities, services, service tax, adjusted for discounts (net).

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

ii) Brokerage Income on sale of Mutual funds, Bonds, Fixed Deposits is booked on accrual basis

iii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

iv) Loss incurred on sale of investments is recognized on trade date basis. Profit/Loss on sale of investments is determined based on the Purchase Cost of the investments sold.

v) Advisory fee income is recognized on an accrual basis in accordance with the terms and contracts entered into between the Company and the counterparty.

E. FIXED ASSETS

Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates, less accumulated depreciation and impairment loss, if any.

The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use. Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Intangible assets

An intangible asset is a non-physical asset having a useful life greater than one year. These assets are generally recognized as part of an acquisition, where the acquirer is allowed to assign some portion of the purchase price to acquired intangible assets. The company does not possess any intangible asset.

F. DEPRECIATION

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the basis of Written Down Value (WDV) method from the date of its intended use or the date it is put to use, whichever is earlier. In respect of assets sold, depreciation is provided upto the date of disposal.

As per the requirement of Schedule II of the Companies Act, 2013, the Company has evaluated the useful lives of its fixed assets from those given in the Schedule II of the Act. The Company has the policy of maintaining nil Scrap value.

On account of changes in the method of depreciation as per Schedule II to the Companies Act, 2013, there is depletion in the value of fixed assets amounting to Rs. 8,33,795.88 which has been transferred to Reserves & Surplus.

G. INVESTMENT

Investments are classified into non-current investments and current investments. Investments which are intended to be held for one year or more are classified as noncurrent investments and investments which are intended to be held for less than one year are classified as current investments.

Non-current Investments are carried at cost less diminution in value which is other than temporary, determined separately for each investment.

The company does not hold any current investment on the date.

I. SEGMENT REPORTING

The Company earns more than 90% of its total income from a particular segment. Also, it is not possible to differentiate the expenses, assets etc into different segments. Thus, segments are not separately disclosed.

J. FOREIGN CURRENCY TRANSACTIONS

During the period under consideration no amount was remitted in foreign currency on account of traveling expenditure and no amount was remitted on account of dividend and there was no earning in foreign currency.

L. EMPLOYEE BENEFITS

Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include performance incentive and compensated absences.

Post-Employment Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company''s contribution is recognized as an expense in the Profit and Loss Statement during the period in which the employee renders the related service.

Gratuity

The company has paid an amount of Rs. 1,57,224/- to Life Insurance Corporation of India (LIC of India) in the year under consideration. The amount would be respectively paid to the employees on their retirement.

M. EARNING PER SHARE

The Company reports basic earnings per share in accordance with Accounting Standard 20- "Earnings Per Share" notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014. Basic earnings per share is computed by dividing the net profit after tax attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

N. TAXATION

Tax expense comprises of current tax (i.e. amount of tax for the year determined in accordance with the Income Tax Act, 1961), and deferred tax charge or benefit (i.e. reflecting the tax effect of timing differences between accounting income and taxable income for the year).

Current Tax

Provision for current tax is recognized based on estimated tax liability computed after adjusting for allowances, disallowances and exemptions in accordance with the Income Tax Act, 1961.

Deferred Tax

Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognized when there is reasonable certainty that the asset can be realized in future, however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized to the extent there is virtual certainty of realization of the 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 realized.

O. OTHER NOTES ON ACCOUNTS

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