1.1 Basis of preparation of financial statements
The financial statements have been prepared and presented under the
historical cost convention on the accrual basis of accounting and
comply with the Accounting Standards issued by the Institute of
Chartered Accountants of India (''ICAI'') and the relevant provisions of
the Companies Act, 1956, to the extent applicable.
1.2 Use of estimates
The preparation of financial statements in conformity with generally
accepted accounting principles (''GAAP'') requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities as of the date
of financial statements, and the reported amount of revenue and
expenses during the reporting period. The estimates and assumptions
used in the accompanying financial statements are based upon
management''s evaluation of the relevant facts and circumstances as of
the date of the financial statements. Actual results may differ from
the estimates used in preparing the accompanying financial statements.
Any revision to accounting estimates is recognised prospectively in
current and future periods.
1.3 Fixed assets and depreciation
The Company values its Fixed Assets on written down value. Depreciation
is charged as per the rates prescribed by the Companies Act, 1956. The
company practices reducing balance method for charging depreciation on
1.4 Intangible Assets
The Company does not own any Intangible Assets.
1.5 Going Concern
As at March 31, 2012 the Company has accumulated Profit of
approximately Rs. 302.18 Lacs (Previous year - Rs. 241.95 Lacs).
Accordingly, these financial statements have been prepared under the
going concern assumption.
(i) Income from investment and derivatives trading in Shares is
recognised on Accrual Basis
(ii) Dividend income from investments is recognised when the Company''s
right to receive payment is established.
1.7 Employees Retirement benefits
The Company provides for retirement benefits in form of gratuity. Such
defined benefits are charged to the Profit & Loss Accounts, as
applicable, as incurred.
1.8 Foreign Currency Transactions
Company does not have any transaction involving foreign currency.
Long term investments are stated at cost. Cost includes brokerage and
other directly related payments made for acquiring investments.
Provision, where necessary, is made to recognise a diminution, other
than temporary, in the value of the investments. Current investments
are stated at lower of cost and fair value.
Company does not possess any inventories.
Income tax expense comprises current tax (i.e. amount of tax for the
period determined in accordance with the income tax law) and deferred
tax charge or credit (reflecting the tax effects of timing differences
between accounting income and taxable income for the period.) Provision
for current Income taxes is made at the tax rate applicable to the
relevant assessment year. The deferred tax charge or credit and the
corresponding deferred tax liabilities or assets are recognised using
the tax rates that have been enacted or substantively enacted at the
balance sheet date. Deferred tax assets are recognised only to the
extent that there is a reasonable certainty that the assets can be
realised in future; however, where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognised only if there is a virtual certainty of realisation of such
assets. Deferred tax assets are reviewed as at each balance sheet date
and written down or written up to reflect the amount that is
reasonable/virtually certain (as the case may be) to be realised.
1.12 Earnings per share (''EPS'')
The basic earnings per share is computed by dividing the net profit
attributable to the equity shareholders for the period by the weighted
average number of equity shares outstanding during the Year ended March
1.13 Provisions and contingent liabilities
The Company creates a provision where there is present 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
or a present obligation that may, but probably will not require an
outflow of resources. When there is a possible obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made