16 Material Accounting Policies:
1 Property Plant and Equipment:
i Property Plant and Equipment are measured at cost, less accumulated depreciation and
impairment losses.
ii
The cost of property, plant and equipment includes those incurred directly for the construction or
acquisition of the asset, and directly attributable to bringing it to the location and condition
necessary for it to be capable of operating in the manner intended by the management and
includes the present value of expected cost for dismantling/ restoration wherever applicable.
iii Depreciation on tangible assets is provided under straight line method over the useful life of
assets specified in Part C of Schedule II to the Companies Act, 2013 and manner specified
therein.
2 Impairment of Assets:
i Financial Assets:
The Company applies Expected Credit Loss (ECL) model for measurement and recognition of
impairment loss and credit risk exposure on Financial Assets that are debt instruments and are
measured at amortised cost wherever applicable for e.g. loans debt securities, deposits, and bank
balances.
ii Non - Financial Assets:
The Company assesses, at each reporting date, whether there is any objective evidence that a
Non-Financial Asset or a group of Non-Financial Assets is impaired. If any such indication exists,
the Company estimates the amount of impairment loss and accounts for the same.
5 Revenue Recognition:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being made.
Revenue is measured at the Fair Value of the consideration received or receivable, taking into account
contractually defined terms of payment, excluding taxes or duties collected on behalf of the
Government.
i Revenue on sale of Mutual Fund units is recognised on transfer of ownership.
ii Revenue on sale of Shares / Securities are recognised as on date of transaction.
iii
Dividend income from investments is recognised when the right to receive payment is established.
6 Employee Benefits:
i Short Term Benefits
All employee benefits falling due wholly within twelve months of rendering the service are
classified as Short Term Employee Benefits. The cost of the benefits like salaries, wages,
medical, leave travel assistance, short term compensated absences, bonus, exgratia etc., are
recognised as an expense in the period in which the employee renders the related service.
ii Post-Employment Benefits:
Payment of Provident Fund, E.S.I.C. and Gratuity to employees are not applicable to the
Company, as the number of employees is below the coverage limite. The Company does not have
any scheme for retirement benefits for its employees. Other benefits such as leave encashment
etc., are provided in accordance with the service rules of the Company.
7 Provision for Current and Deferred Tax:
i Current Tax is provided for on the taxable income for the year as determined in accordance with
the provisions of the Income Tax Act, 1961.
ii Deferred Tax is recognised on the 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. Deferred Tax Assets in respect of unabsorbed depreciation and carry
forward of losses are recognised, if there is virtual certainty that there will be sufficient future
taxable income available to realise such losses.
8 Earnings Per Share:
Basic earnings per share are computed by dividing the net profit after tax by the weighted average
number of equity shares outstanding during the period.
9 Financial Instruments (Financial Assets and Financial Liabilities):
Financial Assets which include inter-alia any asset that is cash, equity instrument of another entity or
contractual obligation to receive cash or another Financial Asset or to exchange Financial Asset or
Financial Liability under conditions that are potentially favourable to the Company. A Financial Asset is
recognised when and only when the Company becomes party to the contractual provisions of the
instrument.
i Classification:
The Company classifies its financial assets in the following categories:
- at Amortised Cost;
- at Fair Value Through Other Comprehensive Income (FVTOCI)
ii Initial Recognition and Measurement:
All Financial Assets, except Trade Receivables are recognised initially at Fair Value plus, in the
case of Financial Assets not recorded at Fair Value through Profit or Loss, transaction costs that
are attributable to the acquisition of the Financial Asset. Transaction costs of Financial Assets
carried at fair value through Profit or Loss are expensed in the Statement of profit and Loss.
The Company measures the Trade Receivables, if any, at their transaction price, if the Trade
Receivables do not contain a significant financing component.
iii Subsequent Measurement:
All equity and mutual fund investments are measured at Fair Value. Instruments which are not
held for trading are classified at Fair Value through Other Comprehensive Income (FVTOCI) and
Fair Value through Profit or loss. The Company makes such election on an instrument by¬
instrument basis. The Classification is made on initial recognition and is irrevocable.
All fair value changes on an equity instrument classified at FVTOCI, are recognized in the OCI.
There is no subsequent reclassification of fair value gains and losses to the Statement of Profit
and Loss. However, the Company may transfer the cumulative gain or loss within equity.
Dividends from such investments are recognized in the Statement of Profit and Loss as other
income when the company's right to receive payment is established.
All fair value changes on Liquid mutual funds classified at FVTPL and recognised in the Profit or
Loss.
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