1. Accounting : Conventional Basis of accounting
The financial statements are prepared under the historical cost
convention, on accrual basis of accounting in accordance with the
Companies Act, 1956 and in accordance with generally accepted
accounting principles (Indian ''GAAP'') are in compliance with the
Accounting Standards issued by the Institute of Chartered Accountants
of India (ICAI).
2. Use of Estimates :
The preparation of financial statements requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities, disclosure of contingent amount as at the date of
financial statements and reported amounts of revenues and expenses
during the reporting period. Actual results could differ from these
estimates. Any revision to the accounting estimates is recognized in
the periods in which the results are known / materialized.
3. As the Company''s business activity falls within a single primary
business segment viz. Investment and Advisory services, etc. the
disclosure requirements of Accounting Standard (AS-17) Segment
Reporting issued by the Institute of Chartered Accountants of India
are not applicable.
4. Income and Expenditure :
Income and expenditure are accounted on accrual basis.
5. Fixed Assets :
All the fixed assets have been stated at their original cost inclusive
of any expenses incurred for the acquisition and / or installation as
reduced by any sale / discard and accumulated depreciation.
The asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value, there is no such assets which is
impaired during the year.
6. Depreciation :
The Company has provided depreciation at the rate prescribed in
Schedule XIV to The Companies Act, 1956.
7. Investment :
a. Long Term investments are carried in the financial statement at
cost, less any diminution in value, other than temporary as per the
b. Shares, Debentures, Units, Warrants and Securities those are
intended, at the time of acquisition, to be held for a period exceeding
twelve months are classified as Investments. The balance are
c. Shares, Debentures, Units, Warrants and Securities are accounted
under Investments on trade dates.
d. Rights entitlements are accounted for as Investments at issue price
plus acquisition cost, if any.
e. Bonus entitlements are recognised on ex-bonus dates without any
f. The cost of Investments includes brokerage, service tax and stamp
8. Valuation of Investments :
Quoted scrip under Investments is valued at cost whereby the cost of
each scrip is compared with its market value and the resultant
shortfall, if any, of long-term nature is charged to revenue.
Unquoted/Thinly traded scripts are valued at intrinsic value.
10. Related Party Transactions :
Parties are considered related, if at any time during the year, one
party has the ability to control the other party, or to exercise
significant influence over the other party in making financial and/or
11. Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources
Contigent Liabilities are not recognized but are disclosed in the
notes. Contigent Assets are neither recognized nor disclosed in the