Employee and Retirement Benefits

(i) Provident Fund is a defined contribution scheme and the contributions are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

(ii) The Company  contributes to an approved  Group Gratuity  Policy  with  the  Life Insurance Corporation of India. Gratuity liability are defined benefit obligations and are provided for on the basis of an actuarial valuation as per AS 15 (Revised) made at the end of each financial year.

(iii) Short term compensated absences are provided for based on estimates.

(iv) Actuarial gains/losses are immediately taken to the profit and loss account and are not deferred.

(v) Gratuity and Leave encashment in respect of deputed employees is calculated as per the terms of deputation and provided in the accounts on accrual basis.

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summarize the components of net benefit expense recognized in the profit  and loss account and the funded status and amounts recognized in the balance sheet.

Profit and Loss account

Net employee benefit expense (recognized in Employee Cost)

Particular	As at Mar 31st, 2018 (Amount in Rs.)	As at Mar 31st, 2017 (Amount in Rs.)
Current service cost	28,45,815	26,35,780
Interest cost on benefit obligation	20,20,667	18,49,943
Expected return on plan assets	(16,12,314)	(15,48,872)
Net actuarial( gain) / loss recognized in the year	(17,96,556)	8,67,410
Past Service Cost	67,93,636	-
Net benefit expense	82,51,248	38,04,261
Actual return on plan assets	15,50,816	13,43,138

Balance sheet

Details of Provision for gratuity

Particular	As at Mar 31st, 2018 (Amount in Rs.)	As at Mar 31st, 2017 (Amount in Rs.)
Defined benefit obligation	3,44,37,282	2,68,50,028
Fair value of plan assets	(2,29,28,680)	(2,14,32,287)
Plan (asset)/ liability	1,15,08,602	54,17,741

Changes in the brsent value of the defined benefit obligation are as follows:

Particular	As at Mar 31st, 2018 (Amount in Rs.)	As at Mar 31st, 2017 (Amount in Rs.)
Opening defined benefit obligation	2,68,50,028	2,21,45,985
Interest cost	20,20,667	18,49,943
Current service cost	28,45,815	26,35,780
Benefits paid	(22,14,810)	(4,43,356)
Actuarial (gains)/ losses on obligation	(18,58,054)	6,61,676
Past Service Cost	67,93,636
Closing defined benefit obligation	3,44,37,282	2,68,50,028

Changes in the fair value of plan assets are as follows:

Particular	As at Mar 31st, 2018 (Amount in Rs.)	As at Mar 31st, 2017 (Amount in Rs.)
Opening fair value of plan assets	2,14,32,287	1,90,76,508
Expected return	16,12,314	15,48,872
Contributions by employer	21,60,387	14,55,997
Benefits paid	(22,14,810)	(4,43,356)
Actuarial gains / (losses)	(61,498)	(2,05,734)
Closing fair value of plan assets	2,29,28,680	2,14,32,287

The overall expected rate of return on assets is determined based on the market prices brvailing on that date, applicable to the period over which the obligation is to be settled.

The principal assumptions used in determining gratuity and post-employment benefit obligations for the Company’s plans are shown below:

Particular	As at Mar 31st, 2018	As at Mar 31st, 2017
Discount rate	7.55%	7.15%
Expected rate of return on Plan assets	7.5%	7.5%
Salary Escalation Rate	8%	7%

Based on guiding principles given in Accounting Standard - 17 “Segment Reporting” ,the Company’s primary business segment is administering Mutual Fund Schemes. As the Company has a single primary business segment, the disclosure requirements of AS - 17 in this regard are not applicable. The company’s operations being confined to India only, there is no reportable secondary segment.

SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31st MARCH 2018

The following accounting policies have been applied in dealing with items which are considered material in relation to the Company’s Accounts:

(1)   Basis of brparation of Accounts

The Financial statements have been brpared on accrual basis of accounting in accordance with historical cost convention, applicable Accounting Standards issued by the Institute of Chartered Accountants of India and relevant provisions of the companies Act, 2013 to the extent applicable. The brparation of the financial statements in conformity with generally accepted accounting principles (‘GAAP’) requires that the Company’s management make estimates and assumptions that affect the reported amounts of income and expenses for the year , reported balances of assets and liabilities and disclosures relating to contingent liabilities as of the date of the financial statements. Actual results could differ from these estimates/assumptions.

(2)   Revenue Recognition

Revenue is recognized when there is certainty of ultimate collection. Management fee is recognized at specified rates agreed with the relevant schemes applied on the average daily net assets of each scheme on accrual basis as per SEBI regulations. Dividend income is recognized when the right to receive payment is established. All income to the extent ascertainable with reasonable certainty are accounted on accrual basis.

(3)   Fixed Assets

Fixed Assets are stated at cost of acquisition or construction including incidental costs related to their acquisition /installation less accumulated debrciation /amortization.

(4)   Debrciation

Debrciation on various assets is provided on the basis of estimated useful life of the asset as stipulated by schedule II of the Companies Act 2013.

Following is the summary of estimate useful life of assets stipulated by schedule II of the Companies Act 2013 and adopted by the company for various block of assets:

Description of Assets	Useful Lives (In years)	Method of Debrciation
RESIDENTIAL FLATS	60 years	Written Down Value
OFFICE EQUIPMENTS	5 years	Written Down Value
COMPUTERS  - Servers & networks	6 years	Written Down Value
COMPUTERS - End user devices, such as, desktops, laptops, etc	3 years	Written Down Value
AIRCONDITIONERS	5 years	Written Down Value
FURNITURE & FIXTURES	10 years	Written Down Value
ELECTRICAL ITEMS	5 years	Written Down Value
MOTOR VEHICLES	8 years	Written Down Value

Expenditure on fixtures in leased brmises is debrciated over the lease period. Debrciation on Fixed Assets added/disposed off/discarded during the year is provided on pro rata basis.

Leasehold improvements are amortized over a period equivalent to the initial period of lease from date of capitalization.

Intangible assets comprising of software purchased / developed and licensing costs are debrciated on straight line basis over the useful life of the software up to a maximum of three years commencing from the date on which such software is first utilized.

(5)   Foreign Exchange Transactions

Transactions in foreign currency are recorded at a rate that approximates the exchange rate brvailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currency are translated at the rate of exchange brvailing on the Balance Sheet date. Exchange differences arising on foreign currency transactions are recognized in the Profit and Loss Account.

(6)   Investment

Long-term investments are stated at cost. The excess of cost over face value is amortized over the period of holding of investment up to redemption. The provision for diminution in value of investments is made, if such diminution in the opinion of the management is other than temporary. Current investments are stated at lower of cost and fair market value.

(7)   Operating Leases

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased Assets are classified as operating leases. Operating lease payments/receipts are recognized as an expense/income in the profit and loss Account.

(8)   Employee and Retirement Benefits

(i)    Provident Fund is a defined contribution scheme and the contributions are charged to the Profit & Loss Account of the year when the contributions to the respective funds are due.

(ii)   The Company contributes to an approved Group Gratuity Policy with the Life Insurance Corporation of India. Gratuity liability are defined benefit obligations and are provided for on the basis of an actuarial valuation as per AS 15 (Revised) made at the end of each financial year.

(iii)   Short term compensated absences are provided for based on estimates.

(iv)   Actuarial gains/losses are immediately taken to the profit and loss account and are not deferred.

(v)   Gratuity and Leave encashment in respect of deputed employees is calculated as per the terms of deputation and provided in the accounts on accrual basis.

(9)   Earnings per Share

In determining earnings per share, the Company considers the net profit after tax and includes the post tax effect of any extra ordinary items. Basic earning per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all potential dilutive equity shares.

(10)   Taxes on Income

Tax expense comprises of current and deferred tax. Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the Balance Sheet Date. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that these would be realised in future.

Deferred tax assets, in case of unabsorbed losses and unabsorbed debrciation, are recognised only if there is virtual certainty that such deferred tax asset can be realised against future taxable profits.

(11)   Impairment of Fixed Assets

The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factor. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss if any, is charged to Profit and Loss Account in the year in which an asset is identified as impaired. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

(12)   Contingent Liabilities and Provisions

Contingent liabilities where outflow is possible but not probable to the extent not provided are disclosed by the way of note. Provisions are recognized when there is a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.

(13)   Software Expenses

Expenses on subscription, license fees and costs towards right to use/access of application software are charged to revenue account in the year in which they are incurred.

(14)   Scheme Expenses

Recurring expenses of the schemes of Canara Robeco Mutual Fund in excess of limits brscribed under the SEBI Mutual Fund Regulation, 1996 are charged to Statement of Profit & Loss in the year end in which they are incurred.

Upfront brokerage/ commission/incentives paid to distributors and expenses incurred for selling Equity Linked Saving Schemes/close ended schemes of Canara Robeco Mutual Fund are treated as brpaid expenses incurred for the year and such amounts are expensed out over a period of three year/tenure of the schemes. Any other brokerage/commission/incentive is expensed in the year in which they are incurred.