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Photon Capital Advisors

BSE: 509084|ISIN: INE107J01016|SECTOR: Finance - Investments
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Photon Capital Advisors is not listed on NSE
Mar 13
Accounting Policy Year : Mar '14
1 Basis of preparation
 
 The financial statements of the company have been prepared in
 accordance with generally accepted accounting principles in India
 (Indian GAAP). The company has prepared these financial statements to
 comply in all material respects with the accounting standards issued by
 the Institute of Chartered Accountants of India.
 
 2 Use of estimates
 
 The preparation of financial statements, in conformity with GAAP,
 requires that the management makes estimates and assumptions that
 affect the reported amounts of assets and liabilities, disclosure of
 contingent liabilities as at the date of financial statements and the
 reported amounts of revenue and expenses during the reported period.
 Actual results could differ from those estimates. Any revision to
 accounting estimates is recognized prospectively in current and future
 periods.
 
 3 Tangible fixed assets
 
 Fixed assets are stated at their original cost less accumulated
 depreciation and impairment losses. Cost comprises the purchase price
 and any other attributable cost of bringing the asset to its working
 condition for its intended use. Capital work in progress includes
 advances paid to acquire fixed assets and cost of assets not ready for
 intended use before the balance sheet date.
 
 4 Intangible assets
 
 Portfolio Management Fees are amortized on straight line basis over
 their expected useful life in line with Accounting Standard 26
 Intangible Assets issued by the Institute of Chartered Accountants of
 India.
 
 5 Depreciation on tangible fixed assets
 
 Depreciation on assets is provided on straight-line method at the rates
 and in the manner specified in Schedule XIV to the Companies Act, 1956
 except for lease hold improvement which are depreciated over the period
 of lease.
 
 Depreciation on fixed assets added / disposed off during the year is
 provided on pro-rata basis with reference to the month of addition /
 disposal. Individual assets costing less than Rs. 5,000 are depreciated
 in full in the year of purchase.
 
 6 Leases
 
 (i) Assets acquired under lease where the Company has substantially all
 the risks and rewards of ownership are classified as finance lease.
 Such leases are capitalized at the inception of lease at lower of the
 fair value and present value of minimum lease payments.
 
 (ii) Assets acquired under lease where the significant portion of risks
 and rewards of ownership are retained by the lesser are classified as
 operating lease. Lease rentals are charged to profit and loss account
 on accrual basis.
 
 7 Impairment of tangible and intangible assets
 
 The company assesses at each reporting date whether there is an
 indication that an asset may be impaired. If any indication exists, or
 when annual impairment testing for an asset is required, the company
 estimates the asset''s recoverable amount. An asset''s recoverable amount
 is the higher of an asset''s or cash-generating unit''s (CGU) net selling
 price and its value in use. The recoverable amount is determined for an
 individual asset, unless the asset does not generate cash inflows that
 are largely independent of those from other assets or groups of assets.
 Where the carrying amount of an asset or CGU exceeds its recoverable
 amount, the asset is considered impaired and is written down to its
 recoverable amount.  In assessing value in use, the estimated future
 cash flows are discounted to their present value using a pre-tax
 discount rate that reflects current market assessments of the time
 value of money and the risks specific to the asset. In determining net
 selling price, recent market transactions are taken into account, if
 available. If no such transactions can be identified, an appropriate
 valuation model is used.
 
 An assessment is made at each reporting date as to whether there is any
 indication that previously recognized impairment losses may no longer
 exist or may have decreased. If such indication exists, the company
 estimates the asset''s or cash- generating unit''s recoverable amount. A
 previously recognized impairment loss is reversed only if there has
 been a change in the assumptions used to determine the asset''s
 recoverable amount since the last impairment loss was recognized.  The
 reversal is limited so that the carrying amount of the asset does not
 exceed its recoverable amount, nor exceed the carrying amount that
 would have been determined, net of depreciation, had no impairment loss
 been recognized for the asset in prior years. Such reversal is
 recognized in the statement of profit and loss unless the asset is
 carried at a revalued amount, in which case the reversal is treated as
 a revaluation increase.
 
 8 Investments
 
 Investments, which are readily realizable and intended to be held for
 not more than one year from the date on which such investments are
 made, are classified as current investments. All other investments are
 classified as long-term investments.
 
 (i) Long term investments are carried at cost. Diminution in the value
 of investments, other than temporary, is provided
 
 (ii) Current investments are carried at lower of cost and fair value
 
 (iii) Unlisted and not-actively traded investments are stated at their
 cost of acquisition less provision for diminution in the value.
 
 9 Revenue recognition
 
 Revenue is recognized to the extent that it is probable that the
 economic benefits will flow to the company and the revenue can be
 reliably measured. The following specific recognition criteria must
 also be met before revenue is recognized:
 
 a Income from services
 
 Revenues from maintenance contracts are recognized pro-rata over the
 period of the contract as and when services are rendered. The company
 collects service tax on behalf of the government and, therefore, it is
 not an economic benefit flowing to the company. Hence, it is excluded
 from revenue.
 
 b Interest
 
 Interest income is recognized on a time proportion basis taking in to
 account the amount outstanding and the applicable interest rate.
 Interest income is included under the head other income in the
 statement of profit and loss.
 
 c Dividends
 
 Dividend income is recognized when the company''s right to receive
 dividend is established by the reporting date.
 
 10 Foreign currency transactions
 
 The transactions in foreign currency are accounted at the exchange rate
 prevailing on the date of transaction. Foreign currency monetary assets
 and monetary liabilities at the balance sheet date are translated at
 the rate of exchange prevailing on that date. The exchange difference
 arising from foreign currency transactions and premium on forward
 contracts are amortized as expenses or income over the life of the
 contract.
 
 11 Retirement and other employee benefits
 
 a Short-term employee benefits
 
 Short-term employee benefits including salaries, social security
 contributions, short term compensated absences (such as paid annual
 leave) where the absences are expected to occur within twelve months
 after the end of the period in which the employees render the related
 employee service, profit sharing and bonuses payable within twelve
 months after the end of the period in which the employees render the
 related services and non monetary benefits (such as medical care) for
 current employees are estimated and measured on an undiscounted basis.
 
 b Defined contribution plans
 
 Company''s contributions paid/payable during the year are recognized in
 the Profit and Loss Account.
 
 c Defined benefit plans
 
 The Company provides for gratuity in accordance with the Payment of
 Gratuity Act, 1972, a defined benefit retirement plan (the Plan)
 covering all employees. The plan, subject to the provisions of the
 above Act, provides a lump sum payment to eligible employees at
 retirement, death, incapacitation or termination of employment, of an
 amount based on the respective employee''s salary and the tenure of
 employment. Gratuity liability is accrued and provided for on the basis
 of an actuarial valuation on projected unit credit method made at the
 end of each financial year.  Actuarial gains/losses are immediately
 taken to profit and loss account and are not deferred.
 
 12 Income taxes
 
 a Income tax
 
 Tax expense comprises current and deferred tax. Current income-tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Income-tax Act, 1961 enacted in India and tax laws
 prevailing in the respective tax jurisdictions where the company
 operates. The tax rates and tax laws used to compute the amount are
 those that are enacted or substantively enacted, at the reporting date.
 Current income tax relating to items recognized directly in equity is
 recognized in equity and not in the statement of profit and
 loss.Deferred income taxes reflect the impact of timing differences
 between taxable income and accounting income originating during the
 current year and reversal of timing differences for the earlier years.
 Deferred tax is measured using the tax ratesand the tax laws enacted or
 substantively enacted at the reporting date. Deferred income tax
 relating to items recognized directly in equity is recognized in equity
 and not in the statement of profit and loss.
 
 b Deferred tax
 
 Deferred tax liabilities are recognized for all taxable timing
 differences. Deferred tax assets are recognized for deductible timing
 differences only to the extent that there is reasonable certainty that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized. In situations where the company
 has unabsorbed depreciation or carry forward tax losses, all deferred
 tax assets are recognized only if there is virtual certainty supported
 by convincing evidence that they can be realized against future taxable
 profits.
 
 13 Segment reporting
 
 Identification of segments
 
 The Company''s business is organized in two segments - Financial
 services and Investment services. Accordingly, these divisions comprise
 the primary basis of segment information. The Company caters to Indian
 markets and as such there are no reportable geographical segments. All
 the assets are also located in India.
 
 The generally accepted accounting principles used in the preparation of
 the financial statements are applied to record revenue and expenditure
 in individual segments Revenue and direct expenses in relation to
 segments are categorized based on items that are individually
 identifiable to that segment, while other costs, wherever allocable, is
 apportioned to the segments on an appropriate basis. Certain expenses
 are not specifically allocable to individual segments as the underlying
 services are used inter changeably. The Company believes that it is not
 practicable to provide segment disclosures relating to such expenses,
 and accordingly such expenses are separately disclosed as ''unallocated''
 and directly charged to total income.
 
 14 Earnings Per Share
 
 Basic earnings per share are calculated by dividing the net profit or
 loss for the period attributable to equity shareholders (after
 deducting preference dividends and attributable taxes) by the weighted
 average number of equity shares outstanding during the period. Partly
 paid equity shares are treated as a fraction of an equity share to the
 extent that they are entitled to participate in dividends relative to a
 fully paid equity share during the reporting period.
 
 15 Provisions
 
 A provision is recognized when the company has a present obligation as
 a result of past event, it is probable that an outflow of resources
 embodying economic benefits will be required to settle the obligation
 and a reliable estimate can be made of the amount of the obligation.
 Provisions are not discounted to their present value and are determined
 based on the best estimate required to settle the obligation at the
 reporting date. These estimates are reviewed at each reporting date and
 adjusted to reflect the current best estimates.
 
 16 Contingent liabilities
 
 A contingent liability is a possible obligation that arises from past
 events whose existence will be confirmed by the occurrence or
 non-occurrence of one or more uncertain future events beyond the
 control of the company or a present obligation that is not recognized
 because it is not probable that an outflow of resources will be
 required to settle the obligation. A contingent liability also arises
 in extremely rare cases where there is a liability that cannot be
 recognised because it cannot be measured reliably. The company does not
 recognize a contingent liability but discloses its existence in the
 financial statements.
 
 17 Cash and cash equivalents
 
 Cash and cash equivalents for the purposes of cash flow statement
 comprise cash at bank and in hand and short-term investments with an
 original maturity of three months or less.
 
 18 Derivative instruments
 
 In accordance with the ICAI announcement, derivative contracts, other
 than foreign currency forward contracts covered under AS 11, are marked
 to market on a portfolio basis, and the net loss, if any, after
 considering the offsetting effect of gain on the underlying hedged
 item, is charged to the statement of profit and loss. Net gain, if any,
 after considering the offsetting effect of loss on the underlying
 hedged item, is ignored.
 
 19 Measurement of EBITDA
 
 As permitted by the Guidance Note on the Revised Schedule VI to the
 Companies Act, 1956, the company has elected to present earnings before
 interest, tax, depreciation and amortization (EBITDA) as a separate
 line item on the face of the statement of profit and loss. The company
 measures EBITDA on the basis of profit/ (loss) from continuing
 operations. In its measurement, the company does not include
 depreciation and amortization expense, finance costs and tax expense.
Source : Dion Global Solutions Limited
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