i. Basis for preparation of financial statements:
The financial statements are prepared under the historical cost
convention, having due regard to the fundamental accounting assumptions
of going concern, consistency, accrual and in compliance with the
mandatory accounting standards as specified in the Companies
(Accounting Standards) Rules, 2006.
ii. Use of estimates :
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the results of operations during the reporting
year end. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates.
Investments are stated at cost. Permanent decline in the value of
long-term investments is recognized. Temporary declines in the value
of long-term investments are ignored.
iv. Revenue recognition:
All revenues are generally recognized on accrual basis except where
there is an uncertainty of ultimate realization.
i. Dividend from investment in shares is recognized as and when the
company''s right to receive payment is established.
ii. Security commission and interest income is recognized on accrual
v. Provision and contingencies:
A provision is recognized when an enterprise has a present 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. Provisions are not discounted to
its present value and are determined based on management estimate
required to settle the obligation at the balance sheet date. These are
reviewed at each balance sheet date and adjusted to reflect the current
vi. Tax expense:
Tax expense comprises of current tax. Current tax is measured at the
amount expected to be paid to the tax authorities in accordance with
the Indian Income Tax Act.
vii. Segmental reporting :
The operations of the company are divided into investment and financial
services. Accordingly, the primary segment reporting comprises the
performance under these segments.
viii. Employee Benefit :
a. Defined-contribution plans
These are plans in which the Company pays pre-defined amounts to
separate funds and does not have any legal or informal obligation to
pay additional sums. These comprise of contributions to the
employees'' provident fund and Employees'' Pension Scheme with the
government. The Company''s payments to the defined contribution plans
are recognized as expenses during the period in which the employees
perform the services that the payment covers.