a. Statement of compliance and basis for preparation and presentation of financial
statements
These standalone or separate financial statements of the Company have been prepared in
accordance with the Indian Accounting Standards as per the Companies (Indian
Accounting Standards) Rules 2015 as amended and notified under Section 133 of the
Companies Act, 2013 (“the Act”), in conformity with the accounting principles generally
accepted in India and other relevant provisions of the Act. Any application guidance/
clarifications/ directions issued by RBI or other regulators are implemented as and when
they are issued/ applicable.
The Company’s financial statements upto and for the year ended 31 March 2019 were
prepared in accordance with the Generally Accepted Accounting Principles in India
(IGAAP) under the historical cost convention as a going concern and on accrual basis,
unless otherwise stated, and in accordance with the provisions of the Companies Act,
2013, the Accounting Standards specified under section 133 of the Companies Act, 2013
(“the Act”) read with rule 7 of the Companies (Accounts) Rules 2014 (as amended),
prudential norms for income recognition, assets classification and provisioning for non¬
performing assets as well as contingency provision for standard assets as prescribed by
The Reserve Bank of India (RBI) for NBFCs and the guidelines issued by Securities and
Exchange Board of India (SEBI) to the extent applicable, collectively referred as
“Previous GAAP”.
b. Basis and Measurement of fair values
The financial statements have been prepared on the historical cost basis except for certain
financial instruments which are measured at fair values. A number of Company’s
accounting policies and disclosures require the measurement of fair values, for both
financial and non-financial assets and liabilities. The Company has established policies
and procedures with respect to the measurement of fair values. Fair values are Quoted
prices (unadjusted) in active markets for identical assets and liabilities.
c. Revenue Recognition
Income from Shares and Securities includes income/loss form transactions trading in
capital market and future & options, taken place during the year through stock exchanges.
They are recognized and accounted when transaction take place and are recorded at
existing fair value in market with all the relevant taxes and duties. Interest income and
Expenses are accounted on accrual basis. Dividend Income on stock and Investment are
accounted on Receipt basis.
d. Property, Plant and Equipment's (PPE)
Property, Plant and Equipments are stated at cost of acquisition (including incidental
expenses), less accumulated depreciation and accumulated impairment loss, if any. Assets
costing less than Rs.5000/- are fully depreciated in the period of purchase. Property, Plant
and Equipments is derecognized on disposal or when no future economic benefits are
expected from its use. Depreciation on Property, Plant and Equipments is provided on
Written Down Method at the rates specified in Schedule II to the Companies Act, 2013.
An asset is treated as impaired when the carrying cost of the Asset exceeds its recoverable
value. An impairment loss is charged to the Profit & Loss account in the year in which an
asset is identified as impaired. The Impairment loss recognized in prior accounting periods
is increased / reversed where there has been change in the estimate of recoverable amount.
The recoverable value is the higher of the net selling price and value in use.
e. Intangible assets
Intangible assets if any are stated at cost less accumulated amortization and accumulated
impairment loss, if any.
f. Investments in subsidiaries and associates
Investments in subsidiaries and associate are measured at cost less accumulated
impairment, if any.
g. Investments
a. Long term investment is an investment other than a current investment intended to
hold more than one year. All long-term investments were stated at cost upto previous
financial year. After adoption of adoption of the Indian Accounting Standards as per
the Companies (Indian Accounting Standards) Rules 2015 as amended and notified
under Section 133 of the Companies Act, 2013 (“the Act”), in Current Financial
Year, quoted and long-term investment were carried at fair realisable value and that
of unquoted investments are stated at cost. Accordingly Quoted Investments to earlier
years are valued at fair realisable value as on the date of respective year ending and
corresponding effect is given in comprehensive income.
b. Investment in Immovable Properties are stated at cost.
h. Inventories
In view of adoption of the Indian Accounting Standards as per the Companies (Indian
Accounting Standards) Rules 2015 as amended and notified under Section 133 of the
Companies Act, 2013 (“the Act”), in Current Financial Year, Inventories of quoted shares
were carried at fair realisable value and that of unquoted Shares at cost. Accordingly,
Inventories to earlier years are valued at fair realisable value as on the date of respective
year ending and corresponding effect is given in comprehensive income.
i. Employee Benefits
The Company has complied with New Labour Codes, 2025 wherever applicable. Gratuity
is accounted as payable to Employees on Retirement or Resignation of Employees;
whereas there is no defined policy enabling the employees to avail encashment of leave.
The provision for earlier years is treated as exceptional item of this year.
j. Finance costs
Finance costs include interest expense computed by applying the effective and agreed
interest rate measured on the use of borrowed fund. Finance costs are charged to the
Statement of profit and loss.
k. Provisions
Provisions are recognised when there is a present obligation as a result of a past event, and
it is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation and there is a reliable estimate of the amount of the obligation.
Provisions are reviewed at each balance sheet date and adjusted to reflect the current best
estimate.
l. Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash on hand, cheques and drafts
on hand, balance with banks in current accounts and short-term deposits with an original
maturity of three months or less, which are subject to an insignificant risk of change in
value.
m. Earning Per Share
Basic earnings per share are computed by dividing the net profit or loss for the period by
the weighted average number of Equity Shares outstanding during the period. Diluted
earnings per share is computed by dividing the net profit or loss for the period by the
weighted average number of Equity Shares outstanding during the period as adjusted for
the effects of all dilutive potential equity shares.
|