| i) Basis of Accounting: The accounts of the company are prepared under
the historical cost convention and in accordance with the applicable
accounting standards issued by the Institute of Chartered Accountants
of India, except where otherwise stated and the relevant provisions of
the Companies Act, 1956. For recognition of Profit or Loss, mercantile
system of accounting is followed except in the following cases where
accounting is done on payment/receipt basis:- a) Leave with wages &
salary
b) Rebate/claim on sales & purchases
c) Legal and Professional Charges.
ii) Fixed Assets: Fixed assets acquired during the period are stated at
cost of acquisition inclusive of all incidental expenses and any
attributable cost for bringing the assets to its working condition and
exclusive of CENVAT Credit on Capital Account.
iii) Depreciation: The depreciation of fixed assets has been provided
on SLM Method as per the rates prescribed under Co.Act,2013
iv) Investments: The securities acquired with the intention of holding
till maturity or for a longer period are classified as investments.
Investments are cost arrived at on weighted average basis. Commission
earned in respect of securities acquire upon development are reduced
from the cost of acquisition. Appropriate provisions is made for other
than temporary diminution in the value of investments.
v) Inventories:
a) The securities acquired with the intention of holding for short term
are classified as investment and securities acquired for trading are
classified as stock-in-trade.
b) The securities held as stock-in-trade are valued at lower of cost
arrived at on weighted average basis or market/ fair value, computed
category-wise. In Case of investment transferred to stock in trade,
carrying amount on the date of transfer is considered as cost.
Commission earned in respect of securities acquired upon devolvement is
reduced from the cost of acquisition. Fair market value of unquoted
shares is taken at break-up value of shares as per the latest audited
Balance Sheet of the concerned company. In case of debt instruments,
fair market value is worked out on the basis of yield to maturity rate
selected considered quotes where available and credit profile of the
issuer and market related spreads over the government securities.
c) Discounted instruments like commercial paper/treasury bills/zero
coupon instruments are valued at carrying cost. The difference between
the acquisition cost and the redemption value of discounted instruments
is apportioned on a straight line basis for the period of holding and
recognized as interest income.
d) Units of mutual fund are valued at lower of cost and net asset
value.
vi) Gratuity: The management has decided to adopt cash basis of
accounting for gratuity liability, hence no provision has been made for
accrued liability in the accounts of the company.
vii) Foreign Currency Transactions: Transactions in foreign exchange
are accounted for at exchange rates prevailing on the date on which the
transaction takes place. Gains and Losses arising out of fluctuations
in exchange rates, relating to the fixed assets, are adjusted to the
carrying amount of fixed assets and in other cases transferred to
revenue accounts.
viii) Taxation: - Provision for current tax is made on the basis of
applicable Income Tax Provisions for the current accounting period.
No provision is made for deferred tax as depreciation as not been
charged by the company during the year.
ix) Borrowing Cost:- Borrowing cost which are directly attributable to
the acquisition/construction of fixed assets till the time such assets
are ready for use are capitalized as part of the assets. Other
borrowing costs are treated as revenue expenditure and charged to
profit and loss account for the year.
x) Segment Reporting:- The company has identified its primary
reportable segments under AS-17 and necessary disclosure is separately
made in notes in accounts. The accounting policies adopted for segment
report are in line with the accounting policies of the company with the
following additional policies for segment reporting. Revenue and
expenses have been identified to a segment on the basis of relationship
to operating activities of the segment. Revenue and expenses which
relate to enterprise as a whole and are not allocable to a segment on
reasonable basis have been disclosed as "Unallocable ". Segment assets
and segment liabilities represents assets and liabilities in respective
segments. Investments, tax related assets and other assets and
liabilities that cannot be allocated to a segment on a reasonable basis
have been disclosed as "Unallocable"
xi) Related Party Disclosures:- Related Party Disclosures as per AS-18
issued by ICAI is made and disclosed separately in notes of accounts.
xii) Earning Per Share:- Earning Per Share has been calculated on
weighted average of total number of shares as per AS-20 issued by ICAI.
xiii) Impairment of Assets:- The Company has a policy of assessing the
impairment of Intangible assets every year in accordance with AS-28as
prescribed by ICAI. This is done through comparing its carrying amount
as per books of accounts with its recoverable value. Hence no provision
is required as per AS-28.
xiv ) Revenue Recognition : Revenue from issue management services loan
syndication, financial advisory services etc. is recognized based on
the stage of completion of assignments and terms of agreement with the
client.
Gain and losses of agreement with securities and derivatives are
recognized on trade date.
Dividend income is recognized when right to receive the dividend is
established. Interest income is recognized on the time proportion
basis.
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