NOTES TO FINANCIAL STATATEMENT FOR THE YEAR ENDED 31st MARCH 2015 1. General information Twentyfirst Century Management Services Limited is a listed company engaged in investments in Capital Market and Futures & Options segment.. The company has a wholly owned subsidiary which was a trading member of the National Stock Exchange of India Limited. Subsdiary has surrendered its membership card with the NSE and same has been approved during the year by the Exchange. Our Company has been incorporated in the year 1986 to: * Deploy the investible surplus funds in the Capital Market. * Act as Intermediaries in the Financial Market. * Assist Corporates for Mobilisation and Deployment of Resources (funds) Company's shares are listed in BSE and NSE. Trading in shares of the company in NSE was suspended in the year 2001-02, since company didn't have Company Secretary. This requirement has been since met. The Company is following up with the NSE for revoking the suspension order 2. Significant Accounting Policies a) Basis of brparation of financial Statements The financial statements are brpared under the historical cost convention on an accrual basis and in accordance with the generally accepted accounting principles in India, the applicable Accounting Standards and the relevant provisions of the Companies Act 2013 of India. Use of Estimates The brparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ. Differences between the actual results and estimates are recognized in the period in which the results are known or materialized. c) Revenue Recognition Revenue Income and Expenditure are generally accounted on accrual or as they are earned or incurred except in case of significant uncertainty. Profit/Loss from trading activity is recognized on trade dates on first in first out basis. In respect of completed transactions pending settlement process, necessary treatment is given in the accounts for the Profits/Losses arising from these transactions. Dividend income is recognized when right to receive the payment is established. d) Fixed Assets Fixed asset is stated at cost less debrciation and impairment losses. e) Debrciation Assets are debrciated under the written down value mnedthod at the rates brscribed in Schedule IIn of the companies Act 2013 and on the revised carrying amount of the asset, identified as impaired on which debrciation has been provided over the residual life of the respective assets. f) Investments Current and Long term investments are stated at cost. Provision for diminution in the value of long term investments is made only if such decline is other than temporary. g) Current and Deferred Tax Provision for current income tax is made in accordance with the Income Tax Act 1961. Deferred Tax Liabililties and assets are recognized at substantively enacted tax rates, subject to the consideration of prudence on timing difference, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. No deferred tax asset has been created on carried forward losses as per income tax, as there is no reasonable certainty of reversal of the same in one or more subsequent year. h) Employment Benefits The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. The gratuity plan provides a lump sum payment to the vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and tenure of employment with the company. The estimates used for provision of Gratuity are not as per "AS 15 -Employee Benefits" issued by ICAI. Provident fund is a defined contribution scheme and the company has no further obligation beyond the contribution made to the fund. Contributions are charged to profit and loss account in the year in which they accrue. event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Disclosure for contingent liability is made when there is a possible obligation or brsent obligation that may, but probably will not require an outflow of resources. No provision is recognized or disclosure for contingent liability is made when there is a possible obligation or a brsent obligation and the likelihood of outflow of resources is remote. j) Impairment of assets The carrying amount of assets is reviewed at each Balance Sheet date for indication of any impairment based on internal/ external factors. An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value and impairment loss is charged to the Profit & Loss account. The impairment of loss recognized in the prior accounting period is reversed if there has been a change in estimates of recoverable amount. k) Current assets, loans & advances The current assets, Loans and Advances have a value on realization at least equal to the amount at which they are stated in the balance sheet. l) Borrowing costs Borrowing costs that are attributable to the acquisition of assets are capitalized as part of cost of the asset. All other borrowing costs are charged to statement of Profit and Loss. m)segment reporting The Company operates in only one segment i.e., Capital Market operations, hence segment reporting in accordance with Accounting Standard-17 is not applicable 2. Company has not provided income tax liability of Rs. 1113.87 lacs for the Assessment years 1995- 96, 1996-97, 2005-06, 2006-07, 2007-08, 2010-11 and 2011-12 that may arise in respect of income tax matters pending in appeal. It is not practicable to estimate the timing of cash outflows in respect of this matter. However, the company has been advised that it has fair chance of winning the appeal. 3. The Company has made contingency provision of Rs. 75 lacs towards estimated interest cost of Rs 75 lacs payable to Gujarat Industrial Investment Corporation for pending legal case in the High Court of Chennai. 4. The company has written off Rs.61.20 lacs (shown under exceptional items) being the amount misappropriated by an official of the company. Matter is under investigation and steps for recovery is being initiated. 5. Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from October, 2 2006 certain disclosure are required to be made relating to Micro, Small & Medium Enterprises. There have been no reported cases of delays in payments to Micro and Small Enterprises or of interest payments due to delays in such payments. 6. Previous year figures have been rearranged and regrouped wherever necessary to facilitate the comparison. As per our Report of even Date For and on behalf of Board For Lakhani & Lakhani Chartered Accountants (Firm Registration No.115728W) Sundar Iyer Chairman Suhas Shinde (M.No.117107) Partner Krishnan Muthukumar Director A.V.M. Sundaram Company Secretary Place : Mumbai Date : 21-04-2015 |