Notes to Standalone Financial Statement for the year ended 31st March, 2015

A. Significant Accounting Policies

I. Basis of Accounting : The financial accounts have been brpared on historical cost convention. The

Company foltows the accrual basis of accounting. 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 Ruse 7. The accounting policies have been consistently applied by the

Company and are consistent with those used in the brvious year.

The financial statements have been brpared under Schedule III of the Companies Act, 2013 notified by

the Central Government.

2.         The brparation of financial statements requires estimates and assumptions to be made that effect the

reported amount of assets and liabilities on the date of the financial statement and the reported amount

of revenue and expenses during, the reporting periods. Difference between the actual results and

estimates are recognized in the period In which they are known/ materialised.

3.         Revenue Recognition : Revenue is recognized when there is reasonable certainty of its ultimate

realization / collection,

a) Brokerage Income net of service tax)

I) on fixed deposit is accounted on completion of the transaction,

ii) on primary market subscription - mobilisation is accounted on the basis of intimation

received by the Company.

III) on secondary market transaction is recognised on the date of the transaction.

I)) Interest Income is accounted on accRial basis.

Incentive on primary market subscription - mobilisation is accounted on the basis of intimation

received by the Company.

d) Depository Fees (net of service tax)

i) Transaction fees are recognised on completion of the transaction.

it) Account maintenance charges are recognised on time basis over the period of the contract.

4.         Fixed Assets: AU fixed assets are stated at cost inclusive of legal and / or installation and incidental

expenses less accumulated debrciation.

5.         Debrdation / Amortisation: 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.

As regards improvement to leasehold properties, the same ts amortised equally over the period of tease.

6.         Impairment of Assets: Impairment Josses, if any, are recognized in accordance with Accounting

Standard 28(A5 28). Where there is an indication that an asset is impaired, the recoverable amount, if

any, is estimated and the impairment toss is recognized to the extent carrying amount exceeds

recoverable amount and the same is charged to the Statement of Profit and Loss.

7.Operating Lease: Leases where the lessor effectively retains substantially all the risk and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments / receipts are recognised as an expense / income in the statement of profit and loss o a straight line basis over the lease term.

8.   Investment / Stock in Trade: Securities which are intended to be held for one year or more 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 losses on investments are accounted as and when realized.

Stock in trade rebrsents shares and securities held for sale generally within one year and is classified as current assets. Year end stock of shares and securities are valued at lower of cost or market values. Profit or loss is accounted as and when realised and is charge to the statement of profit and loss.

9.Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contribution 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 partly 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.    a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Deferred Tax: In Accordance with Accounting Standard 22- "Accounting for Taxes on Income", the deferred tax for timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

11.    Earning Per Share: The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20 - Earning per Share. 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.

12.    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.

As on 31st March 2014, the actuarial liability for gratuity was determined at Rs. 1,36,24,179/-. The computation as on 31st March 2015 is pending. The Company has not fully funded the liability with LIC. During the year 2014-15 the Company has made a provision of Rs.24,00,000/- and has made a contribution of Rs.7,38,119/-. The total provision for gratuity in the books as on 31.03.2015 is Rs.76,73,836/-