Basis of Preparation of Financial Statements
1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 211(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
2. All revenue and expenses are accounted on accrual basis.
3. Fixed Assets are stated at cost less Depreciation, cost comprises
the purchases price and other attributable costs. Depreciation on
assets is provided on written down value method as per rates prescribed
in Schedule XIV to the Companies Act 1956.
4. Depreciation on Fixed Assets has been provided for on Diminishing
Balance Method at rates specified in schedule XIV of the Companies Act
1956. Depreciation on Assets purchased/sold during the year has been
provided for on pro-rata basis.
5. Depreciation on additions/deletions is calculated on pro-rata with
respect to date of addition/ deletions.
6. Inventories of Work-in-Progress, Raw Materials, Stores and Spares,
Finished Goods as well as Stock in Trade of Shares & Securities are
valued at cost and the same is done on FIFO basis. Stock of Shares is
valued at cost.
7. Stock / Securities acquired and intended to be held for a longer
period are classified as Investments.
8. Investments are valued at cost of acquisition with the provision
where necessary for diminution, other than temporary, in the value of
9. None of the Employee has completed the service period to become
eligible for payment of gratuity.
10. Provision for taxes comprising of current tax is measured in
accordance with Accounting Standard 22- Accounting For Taxes On
Income issued by the Institute of Chartered Accountants of India:
11. Tax expenses comprises of current and deferred tax.
12. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
13. Deferred Tax is recognized subject to the consideration of
prudence on timing differences, being the difference between taxable
Income and Accounting Income that originate in one period and are
capable of reversal in one or more subsequent periods.
Provisions, Contingent Liabilities & Contingent Assets
Disclosures in terms of Accounting Standards (AS 29) Provisions ,
Contingent Liabilities and Contingent Assets issued by the Institute of
Chartered Accountants of India :
14. The Company creates a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
15. A disclosure for a contingent liability is made when there is a
possible obligation or present obligation that probably will not
require an outflow of resources or where reliable estimate of the
amount of the obligation cannot be made.
16. Contingent Assets are neither recognized nor disclosed.
17. None of the Raw Materials, Stores, Spares and Components consumed
or purchased during the year have been imported.
18. None of the Earnings / Expenditures is in Foreign Currency.
19. Balance of Debtors, Creditors, Deposits, Loans and Advances are
subject to confirmation.
20. In the opinion of the Board, the Current Assets, Loans & Advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for depreciation and all known
liabilities are adequate and not in excess of the amounts reasonably
21. Investments of the Company have been considered by the management
to be of a long term nature and hence they are long term investments
and are valued at cost of acquisitions.
22. Based on the Similarity of activities, risks and reward structure,
organization structure and internal reporting systems, the Company has
structured its operations into the following Segment:- a. Short-term
funding to its Clients as well as Deposits with Banks
b. Investments in Capital Market & Mutual Fund related activities
c. Trading in Software & Hardware Products
d. Trading in Mobile Instruments & allied Accessories
e. Recording & Selling/ Distribution of Audio Video CDs
f. Sound Recording for Music CDs / DVDs