SIGNIFICANT ACCOUNTING POLICIES BASIS OF brPARATION OF FINANCIAL STATEMENTS The company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis. Financial statements are brpared under the historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money. These financial statements have been brpared in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013, of India. The accounting policies applied by the company are consistent with those used in brvious year USE OF ESTIMATES The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. FIXED ASSETS AND DEbrCIATION FIXED ASSETS Fixed Assets are stated at cost, less accumulated debrciation & impairment loss, if any. All costs till commencement of their use including br-installation charge attributable to fixed assets are capitalized. DEbrCIATION & AMORTISATION a) Debrciation has been provided on Written down Value Basis based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013. b) Debrciation on addition is provided on pro rata basis from the date of such addition. c) Debrciation on assets sold, discarded or demolished during the year is being provided at their rates up to the date on which such assets are sold, discarded or demolished. INTANGIBLE ASSETS Intangible assets acquired separately are measured on initial recognition at cost. Intangible assets are carried at cost less accumulated debrciation /amortization and accumulated impairment losses. Intangible assets are debrciated on a Written Down Value Basis. Gains or losses arising from derecognition of an intangible assets are measured as the difference between the net disposal proceeds and the carrying amount of the assets and are recognized in the statement of profit and loss when the assets is derecognized. IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS The company assesses at each reporting date whether there is an indication that an assets may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's net selling price and its value in use. After impairment, debrciation is provided on the revised carrying amount of the assets over its remaining useful life. An assessment is made at each reporting date as to whether there is any indication that brviously recognized impairment losses may no longer exist or may have decreased, If such indication exists, the company estimates the asset's recoverable amount. A brviously recognized impairment loss is reversed only if there has been a change in the assumptions used to determine the asset's recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of debrciation, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of profit and loss unless the asset is carried at a revalued amount, in which case the reversal is treated as a revaluation increase. INVESTMENTS Investments, which are readily realizable and intended to be held for not more than one year from the date on which investments are made, are classified as current investments. All other investments are classified as long-term investments. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties. Current investments are carried in the financial statements at lower of cost and fair value determined on an individual investment bases. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of profit and loss. CASH & CASH EQUIVALENTS Cash and cash equivalents in the cash flow statement comprise cash at bank, cash in hand and fixed deposit with banks. REVENUE RECOGNITION The company recognizes income on accrual basis. Revenue is recognised to the extent it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Interest Income, Brokerage Income, Income from Depository Participants is recognized as & when accrued. Dividend income is accounted forduring the year in which it is declared whereby a right to receive is established. EMPLOYEES'BENEFIT Retirement benefit in the form of provident fund is a defined contribution scheme. The contributions to the provident fund are charged to the statement of profit and loss for the year when the contributions are due. The company has no obligation, other than the contribution payable to the provident fund. All other payments related to employees' benefit shall be made on due basis. INCOME TAXES Tax expense comprises current and deferred tax. Current income-tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961 enacted in India and tax laws brvailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income originating during the current year and reversal of timing differences for the earlier years. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted at the reporting date. Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed debrciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. At each reporting date, the company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax asset to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority. Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e, the period for which MAT credit is allowed to be carried forward in the which the company recognizes MAT credit as an asset in accordance with the guidance note on accounting for credit available in respect of minimum alternative tax under the income tax Act, 1961, and the asset is created by way of credit to the statement of profit and loss and shown as "Mat credit entitlement." The company reviews the "MAT credit entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period. EARNINGS PER SHARE Basic earnings per share are calculated by dividing the net profit or loss after tax for the period attributable to equity shareholders by the number of equity shares outstanding during the period. I. PROVISIONS A provision is recognized when the company has a brsent obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their brsent value and are determined based on the best estimates required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. m. CONTINGENT LIABILITIES & CONTINGENT ASSETS A Contingent liability is a possible obligation that arises from past event whose existence will be confirmed by the occurrence or non- occurrence of one or more uncertain future events beyond the control of the company or a brsent obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that can not be recognized because it can not be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements Contingent assets are neither recognized nor disclosed in the financial statements. n. SEPARATE REPORTABLE SEGMENTS There are no separate reportable segments as per Accounting Standard 17 as the entire operations of the company relate to one segment viz. Share Broker. o. FOREIGN CURRENCYTRANSACTIONS There are no transactions denominated in foreign currency and/or income /expenses on account of difference either on settlement or on translation to be recognized in the statement of profit and loss as of even date. p. LEASES Operating lease payments are recognised as an expense in the Profit and Loss account on a straight line basis over the lease term. 1. a) Contingent Liabilities not provided for in respect of :Guarantee issued by banks Rs. 72.50 Crores (PreviousYearRs. 67.00 Crores) b) Loans and Advances, Debtors, Security Deposit and other assets have value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. c) The expenses incurred by branches have been incorporated in the respective heads of account. d) The brvious year figures have been reworked, regrouped, rearranged, reclassified wherever necessary. Amounts and other disclosures for brceding year are included as an integral part of the current year financial statements and are to be read in relation to the amount and other disclosures relating to the current year. e) There is unpaid amount of Rs. 4,60,535/- outstanding against Dividend declared for the financial year 2009-10,2010-2011 and 2011-12. The said balance is lying in titled "Indusind Dividend Account" with Indusind Bank. The said unpaid dividend is not reflected in the current liability and Bank balance in the figure of Current & brvious Financial year. f) Figures have been rounded off to the nearest rupee. g) Note from 1 to 21 form an integral part of the accounts. As per our Report of even date attached For & On behalf of Board of Directors For Chaudhry Vigg James & Co Chartered Accountants Firm Regn. No. 000949N Shiv Narayan Daga Managing Director Sachin Rathi Director Yashwant Gupta Company Secretary Sd/-B B Chaudhry Partner M.No. 014231 Date : 29.05.2015 Place : New Delhi |