Notes forming part of Financial Statements 1 Company Background Mideast Portfolio Management Limited ("Mideast") is a Public Limited finance company. Its equity shares are listed on Bombay Stock Exchanges. It has managed public issues as Lead Managers and acted as IPO advisors. It has contributed significant amount in mobilising / marketing IPOs to NRIs abroad. Mideast is also engaged in Corporate advisory services, Loan Syndication, Debt Placement, arranging External Commercial Borrowings (ECB) etc. 2 Statement of Significant Accounting Policies 2.1 Basis of Preparation of Financial Statements These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards as brscribed under Section l33 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified). 2.2 Use of Estimates The brsentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the year in which results are known / materialised. 2.3 Fixed Assets-Tangible Assets Fixed Assets are stated at their cost of acquisition/ construction including incidental expenses related to acquisition, construction and installation of the concerned assets. 2.4 Impairment of Assets Pursuant to Accounting Standard1 AS 28 Impairment of Assets, the company assessed its fixed assets for impairment as at March 31, 2015 and concluded that there has been no significant impaired fixed assets that needs to be recognised in the books of accounts. 2.5 Debrciation: Debrciation on fixed assets is provided on Straight Line Method basis using the rate and in the manner brscribed in Schedule II to the Companies Act, 2013. 2.6 Revenue recognition a) Portfolio Management Services: Income from Portfolio Management Services is recoginsed on accrual basis. b) Interest Interest is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable. 2.7 Borrowing Cost: Borrowing Cost which have a direct nexus and are directly attributable to the project are charged to the project and other borrowing costs are expensed out as a period cost as specified in Accounting Standard 16 on "Borrowing Cost". 2.8 Investments Investments held by the Company are of long term in nature and are stated at cost less provision for diminution in the value is made to recognise a decline other than temporary in the value of the investments. 2.9 Employee Benefit a. Defined Contribution Plan: The company's Contribution paid/payable for the period to defined contribution retirement benefit plan is charged to the Statement of Profit and Loss. b. Defined Benefit Plan and other long term benefit: The company's liability towards defined benefit schemes viz gratuity benefits and other long term benefit viz leave encashment are determined using the 'Project Unit Credit Method'. Actuarial Valuations under the project unit credit method are carried out at a balance sheet date. Actuarial gain and losses are recognised in the statement of Profit and Loss in the period of occurence of such gain and losses. Past service cost is recognised immediately to the extent of benefits are vested, otherwise it is amortised on the straight line basis over the remaining average period until the benefit become vested. b. Short Term Employee Benefits: Short term employee benefits expected to be paid in exchange for services rendered by the employees are recognised undiscounted during the period employee renders services. 10 Prior period adjustments, extra ordinary items and changes in accounting policies Prior period adjustments, extraordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed. 11 Taxes on income Current tax is determined on the amount of tax payable in respect of taxable income for the year. The deferred tax charge or credit is recognized using current tax rates. Where there is unabsorbed debrciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets / liabilities are reviewed as at each balance sheet date based on developments during the year and available case laws, to reassess realization/liabilities. 12 Cash and Cash Equivalents Cash and cash equivalent for the purpose of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less. 13 Contingent Liabilities Contingent Liabilities are not provided for in the accounts and if any the same is reflected in notes to accounts. 3. Contingent Liability:- (a) The Company has received Assessment Order from Income Tax Department for Ass. Year 1995-96 raising a demand of Rs.93,82,760/- on account of various disallowances and additions. The company has brferred an appeal against the said Assessment Order in the High Court, Bombay and no provision has been made for the net liability of Rs.45,59,122/- and interest payable thereon, if any. (b) The company has not provided for arrears of fixed cumulative dividend payable on 11% Cumulative, Preference Shares of Rs.20,000,000/- since its allotment on 31.03.1998. Total arrears of dividend Rs.37,950,000/- (Previous Year Rs.35,750,000/-). 4. In the opinion of the Board of Directors, current assets, loan and advances have value on realization in the ordinary course of business at least equal to the amount at which they are stand and all known liabilities are provided for. 5. Figures of the brvious'year have been regrouped and reclassified wherever necessary. 6. The amount of Balance Sheet and Statement of Profit and loss are rounded off the nearest rupee. As per our attached report of even date. For Mehta Chokshi & Shah Chartered Accountants Firm Registration No. 106201W Sd/- Vijay R Gajaria Partner Membership No. 137561 For and on Behalf of the Board Mid East Portfolio Management Limited Sd/- KishorAShah Chairman & Managing Director Sd/- Jyoti K. Shah Director & CFO Place :Mumbai Date : 30th May, 2015 |