A. REVENUE RECOGNITION
(a) Income from trading of Shares and Debentures, Brokerage, Issue
management fee, underwriting commission and other services are
accounted on accrual basis.
(b) Income from Dividends on shares and interest on Debentures / Bonds
are accounted on receipt basis.
B. FIXED ASSETS AND DEPRECIATION
(a) Fixed Assets are stated at cost less depreciation.
(b) Depreciation is provided on straight line basis as per rates
prescribed under Schedule XIV of the Companies Act, 1956
(c) Depreciation is provided on pro-rate basis with respect to the
period of use.
(d) Fixed Assets are capitalized at cost inclusive of duties, freights,
taxes and installation expenses.
a) All expenses are accounted on accrual basis (except Gratuity, leave
encashment, which is being accounted on payment basis).
b) The Company generally follows Mercantile systems of accounting and
recognizes significant items of Income & Expenditures on accrual basis.
a) Investments are states at cost (without transfer expenses)
b) Investment in membership of OTCEI is stated at cost price.
c) Investment in property are stated at cost including the interest
The stock of Shares and Debentures has been valued scrip wise at cost
F. MISCELLANEOUS EXPENDITURES
The Preliminary expenses and Share issue expenses are written off in
equal installments over 10 years.
G. PROVISION FOR TAXATION
Provision for Current Tax is made as per the provision of Income Tax
Act, 1961 and adjustment for Deferred Tax is made in accordance with
Accounting Standard - 22 issued by ICAI.