Summary of Significant Accounting Policies

a. Basis of Accounting

i) The Company follows the mercantile system of accounting and recognises income and expenditure on an accrual basis except in case of significant uncertainties.

ii) 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.

iii) Estimates and Assumptions used in the brparation of the financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the Financial Statements, which may differ from the actual results at a subsequent date.

b. Revenue recognition

i) Income from financial advisory service charges is recognized net of service tax when due.

ii) Commission on sale of life and general insurance policies is recognized net of service tax on due basis.

iii) Profit/loss on sale/redemption of investments is recognised on the contract date.

c. Investments

a) Long term Investments are stated at cost. Provision for decline in value, other than temporary is considered whenever necessary.

b) Current Investments are stated at lower of the cost and fair value.

d. Fixed assets, Debrciation & Amortisation

Fixed assets are stated at cost of acquisition less accumulated debrciation and impairment loss if any thereon. Debrciation is charged using the straight line method based on the useful life of fixed assets as estimated by the management as specified below, or the rates specified in accordance with the provisions of schedule XIV of the Companies Act, 1956, whichever is higher.

Estimated useful life of the assets is as under:

Assets	Estimated useful life
Furniture and fixtures - Leased brmises	5 years
Furniture and fixtures - other brmises	10 years
Communication equipments	5 years
Electric Installation	3 years
IT Installation	3 years
Customized & licensed softwares	3 years
Office equipment	5 years
Vehicles	5 years

Debrciation is charged from the month in which new assets are put to use. Debrciation on assets sold, discarded or demolished during the year is being provided at their rates upto the month in which such assets are sold, discarded or demolished.

Individual assets / group of similar assets costing less than Rs. 5,000 has been debrciated in full in the year of purchase.

e. Provisions and Contingent Liabilities

The Company creates a provision when there is brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a brsent obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

f. Taxation

a) Provision for Taxation is made for the current accounting period (reporting period) on the basis of the taxable profits computed in accordance with the Income Tax Act, 1961.

b) Deferred Tax resulting from timing difference between book profits and taxable profits are accounted for to the extent deferred tax liabilities are expected to crystalise with reasonable certainty. However, in case of deferred tax assets (rebrsenting unabsorbed debrciation or carried forward losses) are recognised, if and only if there is virtual certainty that there would be adequate future taxable income against which such deferred tax assets can be realised. Deferred tax is recognised on adjustments to revenue reserves to the extent the adjustments are allowable as deductions in determination of taxable income and they would reverse out in future periods.

g. Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders (after deducting brference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period.

h. Employee Benefits

a) Privilege Leave entitlements

Privilege leave entitlements are recognised as a liability, in the calendar year of rendering of service, as per the rules of the company. As accumulated leave can be availed at any time during the tenure of employment the liability is recognised at the actuarially determined value by an Appointed Actuary.

b) Gratuity

Payment for brsent liability of future payment of gratuity is being made to approved Gratuity Fund, which fully covers the same under Cash Accumulation Policy of the Life Insurance Corporation of India (LIC) and Bajaj Allianz Life Insurance Company Limited (BALIC). However, any deficit in Plan Assets managed by LIC and BALIC as compared to the actuarial liability is recognised as a liability.

c) Provident Fund Contributions are made to Government Provident Fund Trust.

Bajaj Financial Solutions Limited was incorporated, as wholly owned subsidiary of Bajaj Finserv Limited., on 13 June 2008 with the main object of undertaking, inter alia, financial advisory, distribution of all kinds of financial products and to act as corporate agent under the provisions of IRDA Act, 1999.

Liability for employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the accounting standard 15 (Revised) the details of which are as hereunder.
Funded Scheme

		Rs.
Amount To Be Recognized in Balance Sheet	As at 31 March 2014	As at 31 March 2013
	Gratuity	Gratuity
Present Value of Funded Obligations	-	805,024
Fair Value of Plan Assets	-	-3,591,525
Amount not recognized as an Asset ( limit in Para 59(b))	-	940,419
Net Liability	-	-1,846,082
Amounts in Balance Sheet
Liability	-	-
Assets	-	-
Net Liability	-	-

Expense To Be Recognized in the Statement of P&L

Current Service Cost	248,334	1,138,281
Interest on Defined Benefit Obligation	84,728	353,390
Expected Return on Plan Assets	-269,302	-228,908
Net Actuarial Losses / (Gains) Recognized in Year	-872,037	-3,633,165
Effect of the limit in Para 59 (b)	-940,419	940,419
Total, Included in "Employee Benefit Expense"	-1748696	-1,429,983
Actual Return on Plan Assets

Assets information	As at 31 March 2014	As at 31 March 2013
Insurer Managed Funds	100%	100.00%

Experience Adjustments	As at 31 March 2014	As at 31 March 2013
Defined Benefit Obligation	-	805,024
Plan Assets	-	3,591,525
Surplus / (Deficit)	-	2,786,501
Exp. Adj. on Plan Liabilities	-1,138,086	-3,708,900
Exp. Adj. on Plan Assets	-266,049	-4,795

Principal Actuarial Assumptions (Exbrssed as Weighted Averages)	As at 31 March 2014	As at 31 March 2013
Discount Rate (p.a.)	9.35%	8.05%
Expected Rate of Return on Assets (p.a.)	7.50%	7.50%
Salary Escalation Rate (p.a.) - Senior Staff	10.00%	8.00%
Salary Escalation Rate (p.a.) - Junior Staff	10.00%	9.00%

Unfunded Scheme

		Rs.
Particulars	As at 31 March 2014	As at 31 March 2013
	Compensated Absences	Compensated Absences
Present Value of Unfunded Obligations	-	395,193
Expense recognized in the Statement of P&L	-	1,318,508
Discount Rate (p.a.)	-	8.05%
Salary Escalation Rate (p.a.) - Senior Staff	-	8.00%
Salary Escalation Rate (p.a.) - Junior Staff	-	9.00%