1 Significant Accounting Policies and Notes to Financial Statements:
1.1 Corporate and General Information
BAMPSL Securities Limited (the Company) incorporated and domiciled in India having its registered
office at 100-A, Cycle Market, Jhandewalan Extention, New Delhi-110055, India. The Company is a Non
Deposit Taking, Non Banking Financial Company ("NBFC") as defind under section 45 - IA of the
Reserve Bank of India ("RBI") Act, 1934. Equity Shares of the Company are listed on Bombay Stock
Exchange.
1.2 Basis of Preparation of financial statements
(A) Compliance with Ind AS
The financial statements of the Company comply in all material aspects with Indian Accounting Standards
('Ind AS') notified under section 133 of the Companies Act, 2013 ('the Act') read with the Companies
(Indian Accounting Standards) Rule 2015 as amended from time to time and other relevant provisions
of the Act. Any directions issued by the RBI or other regulators are implemented as and when they
become applicable.
Accounting policies have been consistently applied except where a newly issued accounting standard is
initially adopted or revision to the accounting standard requires a change in the accounting policy hereto
in use.
(B) Presentation of financial statements
The Balance Sheet, the statement of changes in Equity and the statement of profit & loss are presented
in the formate prescribed under Division III of Schedule III of the Act, as amended from time to time,
for Non Banking Financial Companies ('NBFCs') that are required to comply with Ind AS. The statement
of cash flows has been presented as per requirements of Ind AS 7 Statement of Cash Flows.
(C) Basis of preparation
The financial statements have been prepared under the historical cost convention on the accrual basis.
(D) Use of estimates and judgements
The preparation of the financial statements in conformity with Ind AS requires management to make
estimates, judgements and assumptions that effect the application of accounting policies and the
reported amounts of assets and liabilities (including contingent liabilities) and disclosures as of the date
of the financial statements and reported amounts of revenues and expenses for the reporting period..
Actual results could vary from these estimates. The estimates and underlying assumptions are reviewed
on an on-going basis. Revisions to accounting estimates are recognised in the period in which the
estimates are revised if the revision effects only that period or in the period of revision and future
periods if the revision effects both current and future years
1.3 Significant Accounting Policies:
A Financial instruments - initial recognition, subsequent measurement and impairment
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.
(i) Financial Assets
Financial Assts are measured at amortised cost or fair value through other comprehensive income or
fair value through Profit or Loss, depending on its business model for managing those financial assets
and the assets contractual cash flow characteristics.
Subsequent measurements of financial assets are dependent on initial categorisation. For impairment
purposes significant financial assets are tested on an individual basis, other financial assets are
assessed collectively in groups that share similar credit risk characteristics.
Trade receivables
Trade receivables are recognised at fair value.
(ii) Financial Liabilities
All financial liabilities are recognised at fair value through Profit and Loss.
Trade and other payables
A payable is classified as trade payable' if it is in respect of amount due on account of goods purchased
in the normal course of business. These amounts represent liabilities for goods purchased by the
company prior to the end of financial year which are unpaid.
Equity Instruments
An equity instrument is any contract that evidences a residual interest in the assets of an equity after
deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds
received. Transaction cost of an equity transaction are recognised as deduction from equity.
(iii) Taxation
The tax expense for the period comprises of current tax and deferred income tax. Tax is recognised in
Statement of Profit & Loss.
a) Current Tax
Current tax provision is computed for income calculated after considering allowances and exemptions
under the provisions of the applicable Income Tax Laws. Current tax assets and current tax liabilities are
off set, and presented as net.
b) Deferred Tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the Financial Statements and corresponding tax basis used in the computation of taxable
profit.
Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period
in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been
enacted or substantively enacted by the end of reporting period. The carrying amount of Deferred tax
liabilities and assets are reviewed at the end of each reporting period.
(iv) Revenue Recognition
Revenue from sale of goods is recognised when the significant risk and rewards of ownership have
been transferred to the buyer. The dividend income is recognised when right to receive the same is
established.
(v) Earning per Share
Basic Earning per Share is calculated by dividing the profit or loss after tax for the year attributable to
equity shareholders by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by dividing the profit or loss after tax by the weighted average
number of equity shares considered for deriving basic earnings per shares and weighted average
number of equity shares which could have been issued.
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