A. SIGNIFICANT ACCOUNTING POLICIES 1. Basis of Accounting These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles ( GAAP) under the historical cost convention on the accrual basis. The financial statements are brpared in accordance with the accounting standards notified by the Central Government, in terms of section 133 of the Companies Act,2013 read with Rule 7 and guidelines issued by the Securities and Exchange Board if India(SEBI) and the guidelines issued by the Reserve Bank of India (‘RBI’) as applicable to a Non Banking Finance Company (‘NBFC’). The accounting policies have been consistently applied by the Company and are consistent with those used in the brvious year. 2. Use of Estimates The brparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the fi nancial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized. 3. Revenue Recognition The Company follows the practice of accounting for Income on accrual basis except dividend. In respect of loans and advances, interest is accrued on standard advances and on others are accounted on the basis of certainty of collection, and/or receipt basis. In respect of loans classified as NPA’s interest is not accrued from the date the loan is recognized as NPA. 4. Fixed Assets & Debrciation All Fixed Assets are capitalized at cost inclusive of legal and/ or installation and incidental expenses, less accumulated debrciation. The Company provides debrciation on straight line basis on the basis of useful lives of assets as specified in Schedule II to the Companies Act, 2013. Debrciation on assets sold / purchased during the year is proportionately charged. Impairment of Assets Impairment losses, if any, are recognized in accordance with the Accounting Standard. Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss. 5. Inventories a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed as current assets. b) The securities held as inventories under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds as at 31st March, 2015 is considered as market value. 6. Non Current Investments Securities which are intended to be held for more than one year are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or loss on these investments are accounted as and when realized 7. Earning Per Share The Company reports basic and diluted earnings per share in accordance with the Accounting Standard. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares. 8. Taxes on Income a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year. b) Minimum Alternative Tax : In the event the income tax liability as per normal provisions of the Income Tax Act, 1961 is lower than the tax payable as per section 115J (Minimum Alternative Tax), tax is provided as per Section 115J. c) Deferred Tax : In accordance with the Accounting Standard, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date. Deferred tax assets arising from timing difference are recognized only on the consideration of prudence. 9. Employee Benefits Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered. Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities. Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual brmium payable to them. Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year 10. Derivative Transactions. a. Equity, Currency & Commodity Futures : Gains/Losses on futures transactions are recognized on continous basis. b. Options Contracts : Gains / Losses on options contract are recognized on squaring off/settlement day. 11. a. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved. b. Contingent Assets are neither recognized nor disclosed. 1. Previous Years Figures are regrouped / reclassified wherever necessary. As per our Report attached. For and on behalf of the Board For FORD, RHODES, PARKS & CO. LLP Chartered Accountants Firm Registration No.102860W / W100089 M. V. Doshi Executive Chairman V. N. Suchanti Director A. D. Shenoy Director Sayanta Basu Partner Head - Corporate Affairs S. S. Gulati Membership No 11549 GM (Legal) & Company Secretary G. B. Innani Mumbai Mumbai Dated : 2nd May, 2016 Dated : 2nd May, 2016 |