A. BASIS OF ACCOUNTING
The accounts are prepared in accordance with the accounting principles
generally accepted in India and are in line with the relevant laws as
well as the guidelines prescribed by the Department of Company Affairs
and the Institute of Chartered Accountants of India.
B. ACCOUNTING CONVENTION
The Financial Accounts, unless otherwise stated, are prepared at
historical cost under the accrual method of accounting.
C. REVENUE RECOGNITION
i. Company recognises Brokerage Income on the basis of the date of
trade of settlement, of respective stock exchanges.
ii. Other Income is accounted for on accrual basis.
iii. The Maintenance Charges in respect of Account Holders of the
Depository Division of the Company are accounted on prorata basis. In
case of receipt of lifetime fees, the total amount received is
recognized in the period of receipt.
iv. Incentive on primary market subscription - mobilisation is
accounted on the basis of intimation received by the Company.
D. FIXED ASSETS
i. Fixed Assets are stated at cost of acquisition less accumulated
ii. Depreciation on Fixed Assets has been provided on Straight Line
Method at the rates specified in Schedule XIV of the Companies Act,
1956 on pro rata basis which in the opinion of the management are
reflective of the estimated useful lives of fixed asset.
Investments are classified into current investments and non-current
investments. Investments which are intended to be held for more than
one year are classified as non- current investments and investments
which are intended to be held for less than one year are classified as
current investments. Investments are accounted at cost and any decline
in the carrying value other than temporary in nature is provided for.
F. RETIREMENT BENEFITS
i. Gratuity liability is a defined benefit obligation and is wholly
unfunded. The Company accounts for liability for future gratuity
benefits based on actuarial assumptions.
ii. Provident fund is a defined contribution scheme and the
contributions as required by the statute are charged to the Profit and
Loss Account as incurred.
G. TAXES ON INCOME
a. Current Tax is the amount of tax payable on the taxable income for
the year determined in accordance with the provisions of the Income Tax
b. Deferred Tax is recognized on timing differences; being the
differences between the taxable incomes and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred Tax Assets subject to the consideration of
prudence are recognized and carried forward only to the extent there is
a reasonable certainty that sufficient Futures taxable income will be
available against which such deferred tax assets can be realized.
H. EARNING PER SHARE
The Company reports Basic and Diluted Earning Per Share in accordance
with Accounting Standard -20, Earning Per Share issued by The
Institute of Chartered Accountants of India. Basic Earning Per Share is
computed by dividing net profit after tax by the weighted average
number of equity shares outstanding for the period. Diluted Earning Per
Share is computed using the weighted average number of equity shares
and dilutive potential equity shares outstanding during the period.
I. IMPAIRMENT OF ASSETS
Impairment loss, if any, is provided to the extent the carrying amount
of assets exceeds their recoverable amount. Recoverable amount is
higher of an asset''s net selling price and its value in use. Value in
use is the present value of estimated Futures cash flows expected to
arise from the continuing use of an asset and from its disposal at the
end of its useful life.