(i) Revenue Recognition
(a) Revenue from issue management services, loan syndication, financial
advisory services etc., is recognized based on the stage of completion
of assignments and terms of agreement with the client.
(b) Gains and losses on dealing with securities & derivatives are
recognized on trade date.
(ii) Stock-in-trade (i.e. Inventories)
(a) The securities acquired with the intention of holding for
short-term are classified as investment and securities acquired for
trading are classified as stock-in-trade.
(b) The securities held as stock-in-trade are valued at lower of cost
arrived at on weighted average basis or market/ fair value, computed
In case of investments transferred to stock-in-trade, carrying amount
on the date of transfer is considered as cost. Commission earned in
respect of securities acquired upon devolvement is reduced from the
cost of acquisition. Fair value of unquoted shares is taken at break-up
value of shares as per the latest audited Balance Sheet of the
concerned company. In case of debt instruments, fair value is worked
out on the basis of yield to maturity rate selected considering quotes
where available and credit profile of the issuer and market related
spreads over the government securities
(c) Discounted instruments like Commercial paper/treasury bills/zero
coupon instruments are valued at carrying cost. The difference between
the acquisition cost and the redemption value of discounted instruments
is apportioned on a straight line basis for the period of holding and
recognized as Interest income.
(d) Units of mutual fund are valued at lower of cost and net asset
The securities acquired with the intention of holding till maturity or
for a longer period are classified as investments. (b) Investments are
carried at cost arrived at on weighted average basis. Commissions
earned in respect of securities acquired upon devolvement are reduced
from the cost of acquisition. Appropriate provision is made for other
than temporary diminution in the value of investments.
(iv) Fixed Assets and Depreciation
(a) Fixed assets are stated at historical cost less accumulated
depreciation and impairment loss, if any. Cost comprises the purchase
price and any attributable cost of bringing the asset to its working
condition for intended use.
(b) Depreciation on fixed assets is provided on WDV Method at the rate
and in the manner prescribed in Schedule XIV of the Companies Act,
(v) Deferred Tax
No provisions made as Depreciation has not been charged by the company
during the year.
(vi) Derivatives Transactions
(a) All open positions are marked to market.
(b) Gains are recognized only on settlement/expiry of the derivative
instruments except for Interest Rate derivatives where even mark
to-market gains are recognized.
(c) Receivables/payables on open position are disclosed as current
assets/current liabilities, as the case may be.
(vii) Earning Per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period.