Notes to the financial statements as at March 31, 2016 1 SIGNIFICANT ACCOUNTING POLICIES (a) BASIS OF brPARATION OF FINANCIAL STATEMENTS The financial statements are brpared in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on accrual basis. These financial statements have been brpared to comply in all material aspects with the accounting standards as notified under section 133 of the Companies Act, 2013, read with Rule 7 of [Companies (Accounts) Rules, 2014], and other relevant provisions of Companies Act, 2013, and the guidelines issued by the Securities Exchange Board of India. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. (b) USE OF ESTIMATES The brparation of financial statements is in conformity with the generally accepted accounting principles requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the reporting period. Although these estimates are based on the managements' best knowledge of current events and actions that the Company may undertake in future, the actual results could differ from those estimates. Any material changes in estimates are adjusted prospectively. (c) FIXED ASSETS - TANGIBLE Fixed assets are stated at cost and other incidental expenses, less accumulated debrciation and impairment losses. The cost comprises purchase price and any attributable cost incurred in bringing the asset to its working condition for its intended use. An item of fixed assets is de-recognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the fixed asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the financial statements in the year the asset is de-recognised. (d) IMPAIRMENTOF ASSETS Consideration is given at each Balance Sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indication exists, the recoverable value of assets is estimated. An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount, the latter being greater of net selling price and value in use. (e) DEbrCIATION Debrciation on fixed assets is provided in accordance with estimate of useful life of the assets, on straight line method, at rates specified in Part 'C' of Schedule II of the Companies Act, 2013. Debrciation on assets purchased/sold during a period is proportionately charged. In respect of an asset for which impairment loss is recognised, debrciation is provided on the revised carrying amount of the assets over its remaining useful life. ( f ) INVESTMENTS Trade investments are the investments made to enhance the Company's business interests. Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investments and are stated at cost and provision is made when there is a decline, other than temporary, in the value thereof. Investments other long term investments, being current investments, are stated at cost or fair value, whichever is lower. 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. (g) RECOGNITION OF REVENUE AND EXPENDITURE - Income and expenditure are accounted on accrual basis. Interest income is recognised on time proportion basis taking into account the amount outstanding and the applicable rate of interest. Expenditure incurred on continuing education programs in which employees participate is expensed in the year it is incurred. Dividend on shares earned are accounted in the year of receipt. (h) FOREIGN CURRENCY TRANSLATIONS AND TRANSACTIONS Revenue and expenditure items, current assets, current liabilities, if any, appearing/outstanding at the year end, are converted into equivalent Indian Rupees at the exchange rate brvailing at the year end except in cases where actual amount has been ascertained by the time of finalization of accounts. Transactions in foreign currencies are accounted at the exchange rate brvailing at the time of transaction. Foreign currency monetary assets and liabilities are translated at year end exchange rates. Exchange difference arising on settlement of transactions and translation of monetary items are recognised as income or expense in the year in which they arise. (i) TAXES ON INCOME Provision for current income tax is made as per the provisions of the Income tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future. ( j ) EARNINGS PER SHARE The Company reports basic and diluted per equity share in accordance with Accounting Standard (AS) 20, "Earnings per Share" issued by the Institute of Chartered Accountants of India. Basic earnings per equity share is computed by dividing net income by the weighted average number of equity shares outstanding for the year. Diluted earnings per equity share is computed by dividing net income by the weighted average number of equity shares outstanding including shares pending allotment. (k) CASH FLOW STATEMENT Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated. (l) CASH AND CASH EQUIVALENTS Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand, and short term investments with an original maturity period of three months or less. (m) PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provision involving substantial degree of estimation in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements. (n) RETIREMENT BENEFITS In accordance with the Accounting Standard -15 on "Employee Benefits", the Company provides for gratuity covering eligible employees on the basis of actuarial valuation as carried out by an Actuary. The liability is unfunded. Liability in respect of leave encashment is accounted for at the time of termination of service. 2 The Company has alongwith certain other professional services firms and Companies in 7 (Seven) other countries, promoted umbrella entity, to (i) promote professional services of the members, (ii) promote cross referrals of international work, and (iii) creating a frame work f o r progressing joint pitching opportunities. The Company has nominated one of its Directors as a director on the Board of Directors of BTGA. The Company's guarantee is UK Pound 1. 3 The Company had initiated arbitration proceedings against its clients in accordance with the rules and regulations of the National Stock Exchange of India Limited in respect of trades conducted by the Company for such clients at trading counter of the aforesaid stock exchange. The learned Arbitrators issued awards short of the claimed amounts by Rs. 22.10 lacs (Rs. 22.10 lacs) (excluding interest demanded bythe Company). The Company's appeals are pending before the Courts. 4 The Company deals only in one segment. Consulting and Advisory Services, hence, no separate information for segment-wise disclosure is required under Accounting Standard - 17 "Segment Reporting", issued by the Institute of Chartered Accountants of India. 5 .The Company's equity shares were listed on Delhi Exchange Ltd., Jaipur Stock Exchange Ltd. and Madras Stock Exchange Ltd. The Securities Exchange Board of India (SEBI)had withdrawn recognition of Delhi Stock Exchange Ltd. on November 19, 2014 and allowed Jaipur Stock Exchange Ltd. and Madras Stock Exchange Ltd. to exit as a Stock Exchange on March 23, 2015 and May 14, 2015 respectively, in terms of Clause 8 of the Exit Circular, 2012. The Company's shares were admitted for trading on Bombay Stock Exchange in May 25, 2015. The listing of equity shares of the company on Ahmedabad Stock Exchange Limited continues during the year. There has been no trading on the Stock Exchange and fee too was not demanded by Stock Exchange. 6 . In the opinion of the Board, the assets, other than fixed assets and non-current investments, do have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. 7 Figures and words in brackets pertain to brvious year unless otherwise specified. 8 Figures have been rounded off to the nearest Rupee. 9 Figures of the brvious year have been regrouped/recast, wherever necessary, to confirm to current years brsentation. Signatures to the above accompanying notes are an integral part of the financial statements. As per our report of even date. KR & Co. Chartered Accountants Firm Registration No. 025217N By the hand of Kamal Ahluwalia Partner Membership No. 093812 April 08, 2016 New Delhi. Brijinder Bhushan Deora Chairman & Director DIN No. 00004942 Monisha Meghna Company Secretary Membership No. 41747 Sajeve Deora Director DIN No. 00003305 R. L. Kaura Director, Finance DIN:01089893 Ravi Mathur Chief Financial Officer |