A Oneindia Venture
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NCL Research and Financial Services Ltd. कंपली की लेखा नीति
Mar 31, 2025
BRIEF PROFILE
The company is incorporated on 4th February 1985 at Mumbai, Maharashtra, India. It is a Public limited company by its shares. The company is one of the RBI registered Non-Deposit taking Company NBFC and is into the business of Finance and Investments. The activities of the company includes financing, investing in shares & other securities, Commodities and other related activities of capital market.
The Registered Office of the Company is situated at Bhagyodaya Building, 3rd Floor, 79, N. M. Road, Fort, Mumbai-400
023.
1. SIGNIFICANT ACCOUNTING POLICIES1.1 Statement of Compliance
The financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) issued by Ministry of Corporate Affairs in exercise of the powers conferred by section 133 read with sub-section (1) of section 210A of the Companies Act, 2013. In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied along with compliance with other statutory promulgations require a different treatment.
The financial statements for the year ended March 31, 2025 of the Company is the first financial statements prepared in compliance with Ind AS. The date of transition to Ind AS is April 1, 2017. The financial statements upto the year ended March 31, 2018, were prepared in accordance with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAP") and other relevant provisions of the Act. The figures for the year ended March 31, 2018 have now been restated under Ind AS to provide comparability. Refer Note 43 for the details of first-time adoption exemptions availed by the Company.
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under section 133 of the Companies Act, 2013 (the Act) along with other relevant provisions of the Act and the Master Direction - NonBanking Financial Company (Reserve Bank) Directions, 2016 (''the NBFC Master Directions'') issued by RBI. These financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting except for certain financial assets and liabilities that are measured at fair values at the end of each reporting period, as stated in the accounting policies stated out below.
The Financial statements have been prepared on a going concern basis. The Company presents its balance sheet in order of Liquidity.
Accounting policies have been consistently applied except where newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
Fair value measurements under Ind AS are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
⢠Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at reporting date
⢠Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and
⢠Level 3 inputs are unobservable inputs for the valuation of assets or liabilities
1.3 Presentation of Financial Statements:
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Division III to Schedule III to the Companies Act, 2013 ("the Act") applicable for Non-Banking Finance Companies ("NBFC"). The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7 "Statement of Cash Flows". The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the
financial statements along with the other notes required to be disclosed under the notified accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Amounts in the financial statements are presented in Indian Rupees rounded off to zero decimal places as permitted by Schedule III to the Companies Act, 2013. Per share data are presented in Indian Rupee to two decimal places.
1.4 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured and there exists reasonable certainty of its recovery. Revenue is measured at the fair value of the consideration received or receivable as reduced for estimated customer credits and other similar allowances.
Income from arbitrage comprises profit / loss on sale of securities held as stock-in-trade and profit / loss on equity derivative instruments is accounted as per following:
i. Interest income is recognised in the Statement of Profit and Loss and for all financial instruments except for those classified as held for trading or those measured or designated as at fair value through profit or loss (FVTPL) is measured using the effective interest method (EIR).
The calculation of the EIR includes all fees and points paid or received between parties to the contract that are incremental and directly attributable to the specific lending arrangement, transaction costs, and all other premiums or discounts. For financial assets at FVTPL transaction costs are recognised in profit or loss at initial recognition.
The interest income is calculated by applying the EIR to the gross carrying amount of non-credit impaired financial assets (i.e. at the amortised cost of the financial asset before adjusting for any expected credit loss allowance). For credit-impaired financial assets the interest income is calculated by applying the EIR to the amortised cost of the credit-impaired financial assets (i.e. the gross carrying amount less the allowance for expected credit losses (ECLs)). For financial assets originated or purchased credit-impaired (POCI) the EIR reflects the ECLs in determining the future cash flows expected to be received from the financial asset.
ii. Dividend income is recognised when the Company''s right to receive dividend is established by the reporting date and no significant uncertainty as to collectability exists.
iii. Fee and commission income and expense include fees other than those that are an integral part of EIR. The fees included in the Company statement of profit and loss include among other things fees charged for servicing a loan, non-utilisation fees relating to loan commitments when it is unlikely that these will result in a specific lending arrangement and loan advisory fees.
iv. Any differences between the fair values of the investment in debt oriented mutual funds classified as fair value through the profit or loss, held by the Company on the balance sheet date is recognised as an unrealised gain/loss in the statement of profit and loss. In cases there is a net gain in aggregate, the same is recognised in "Net gains or fair value changes" under revenue from operations and if there is a net loss the same is disclosed "Expenses", in the statement of profit and loss.
v. Profit / loss on sale of securities are determined based on the FIFO cost of the securities sold.
vi. Profit / loss on FNO Segment and Commodity transactions is accounted for as explained below:
Initial and additional margin paid over and above initial margin for entering into contracts for Equity Index / Stock Futures / Commodity Spot Trading/ Currency Futures and or Equity Index / Stock Options / Currency Options, which are released on final settlement / squaring-up of underlying contracts, are disclosed under "Other current assets". Mark-to-market margin-Equity Index / Stock Futures / Currency Futures representing the amounts paid in respect of mark to market margin is disclosed under "Other current assets".
"Equity Index / Stock Option / Currency Option Premium Account" represents premium paid or received for buying or selling the Options, respectively.
On final settlement or squaring up of contracts for Equity Index / Stock Futures / Currency Future, the realized profit or loss after adjusting the unrealized loss already accounted, if any, is recognized in the Statement of Profit and Loss. On settlement or squaring up of Equity Index / Stock Options / Currency Option, before expiry, the premium prevailing in "Equity Index / Stock Option / Currency Option Premium Account" on that date is recognized in the Statement of Profit and Loss.
As at the Balance Sheet date, the Mark to Market / Unrealised Profit / (Loss) on all outstanding arbitrage portfolio comprising of Securities and Equity / Currency Derivatives positions is determined on scrip basis with
net unrealized losses on scrip basis being recognized in the Statement of Profit and Loss and the net unrealized gains on scrip basis are ignored.
vii. Other operational revenue represents income earned from the activities incidental to the business and is recognised when the right to receive the income is established as per the terms of the contract.
1.5 Property, Plant and Equipments
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation less impairment loss, if any. Historical cost comprises of purchase price, including nonrefundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use.
Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to statement of profit or loss during the reporting period in which they are incurred.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separated items (major components) of property, plant and equipment.
Depreciation methods, estimated useful lives and residual value:
Depreciation is provided on the written down value method over the estimated useful lives of the assets which in certain cases may be different than the rate prescribed in Schedule II to the Companies Act, 2013, in order to reflect the actual usages of the assets.
The asset''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The asset''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
|
Class of Assets |
Useful life as prescribed in Schedule II of Companies Act, 2013 (in years) |
Useful life as followed by the Company (in year) |
|
Computers |
3 |
3 |
|
Furniture & Fixtures |
10 |
10 |
|
Office Equipments |
5 |
5 |
|
Vehicles |
8 |
8 |
The assets'' residual values, useful lives and method of depreciation are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized as income or expense in the statement of profit and loss.
1.6 Intangible Assets:
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative impairment. Direct expenses and administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible assets.
Intangible assets not ready for the intended use on the date of Balance Sheet are disclosed as "Intangible assets under development".
Intangible assets are amortised on written down value method over the estimated useful life. The method of amortisation and useful life are reviewed at the end of each accounting year with the effect of any changes in the estimate being accounted for on a prospective basis.
An intangible asset is de-recognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset are recognised in profit or loss when the asset is derecognised.
1.7 Impairment of Tangible and Intangible Assets other than Goodwill
As at the end of each accounting year, the Company reviews the carrying amounts of its PPE and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the PPE, investment property and intangible assets are tested for impairment so as to determine the impairment loss, if any. Goodwill and the intangible assets with indefinite life are tested for impairment each year.
Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined in the case of an individual asset, at the higher of the net selling price and the value in use.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount. For this purpose, the impairment loss recognised in respect of a cash generating unit is allocated first to reduce the carrying amount of any goodwill allocated to such cash generating unit and then to reduce the carrying amount of the other assets of the cash generating unit on a pro-rata basis.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit), except for allocated goodwill, is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss is recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss (other than impairment loss allocated to goodwill) is recognised immediately in the Statement of Profit and Loss.
1.8 Employee Benefits:
i. Short term employee benefits:
Employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in the period in which the employee renders the related service. Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
ii. Post-employment benefits:
a) Defined contribution plans: The Company''s superannuation scheme, state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid/ payable under the schemes is recognised during the period in which the employee renders the related service.
b) Defined benefit plans: The employees'' gratuity fund schemes and employee provident fund schemes managed by board of trustees established by the Company, the post-retirement medical care plan and the Parent Company pension plan represent defined benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method.
The obligation is measured at the present value of the estimated future cash flows using a discount rate based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the defined benefit obligations at the Balance Sheet date.
Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss.
Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the Statement of Profit and Loss as employee benefit expenses. Interest cost implicit in defined benefit employee cost is recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan are recognised when the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or curtailment and when the Company recognizes related restructuring costs or termination benefits.
In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to recognise the obligation on a net basis.
iii. Long term employee benefits:
The obligation recognised in respect of long term benefits such as long term compensated absences is measured at present value of estimated future cash flows expected to be made by the Company and is recognised in a similar manner as in the case of defined benefit plans vide (ii) (b) above.
iv. Termination benefits:
Termination benefits such as compensation under employee separation schemes are recognised as expense when the Company''s offer of the termination benefit is accepted or when the Company recognises the related restructuring costs whichever is earlier.
1.9 Financial instruments:
Financial assets and financial liabilities are recognised in the Company''s balance sheet when the Company becomes a party to the contractual provisions of the instrument.
Recognised financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in profit or loss.
A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the liability simultaneously.
1.10 Write off:
Loans and debt securities are written off when the Company has no reasonable expectations of recovering the financial asset (either in its entirety or a portion of it). This is the case when the Company determines that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. A write-off constitutes a de-recognition event. The Company may apply enforcement activities to financial assets written off. Recoveries resulting from the Company''s enforcement activities will result in impairment gains.
1.11 Impairment:
The Company recognises loss allowances for ECLs on the following financial instruments that are not measured at FVTPL:
o Loans and advances to customers; o Debt investment securities; o Trade and other receivable; o Lease receivables;
o Irrevocable loan commitments issued; and o Financial guarantee contracts issued.
Credit-impaired financial assets
A financial asset is ''credit-impaired'' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Credit-impaired financial assets are referred to as Stage 3 assets. Evidence of credit impairment includes observable data about the following events:
o significant financial difficulty of the borrower or issuer; o a breach of contract such as a default or past due event;
o the lender of the borrower, for economic or contractual reasons relating to the borrower''s financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
o the disappearance of an active market for a security because of financial difficulties; or o the purchase of a financial asset at a deep discount that reflects the incurred credit losses.
It may not be possible to identify a single discrete event instead; the combined effect of several events may have caused financial assets to become credit-impaired. The Company assesses whether debt instruments that are financial assets measured at amortised cost or FVTOCI are credit-impaired at each reporting date. To assess if corporate debt instruments are credit impaired, the Company considers factors such as bond yields, credit ratings and the ability of the borrower to raise funding.
A loan is considered credit-impaired when a concession is granted to the borrower due to a deterioration in the borrower''s financial condition, unless there is evidence that as a result of granting the concession the risk of not receiving the contractual cash flows has reduced significantly and there are no other indicators of impairment. For financial assets where concessions are contemplated but not granted the asset is deemed credit impaired when there is observable evidence of credit-impairment including meeting the definition of default. The definition of default (see below) includes unlikeliness to pay indicators and a back-stop if amounts are overdue for 90 days or more.
1.12 Cash and bank balances:
Cash and bank balances also include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which have restrictions on repatriation. Short term and liquid investments being subject to more than insignificant risk of change in value, are not included as part of cash and cash equivalents.
1.13 Securities premium account:
i. Securities premium includes:
⢠The difference between the face value of the equity shares and the consideration received in respect of shares issued pursuant to Stock Option Scheme.
⢠The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options Scheme.
ii. The issue expenses of securities which qualify as equity instruments are written off against securities premium account.
1.14 Borrowing costs:
Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of assets acquired on finance lease and exchange differences arising from foreign currency borrowings, to the extent they are regarded as an adjustment to interest costs.
Borrowing costs net of any investment income from the temporary investment of related borrowings, that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
1.15 Accounting and reporting of information for Operating Segments:
Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision making body in the Company to make decisions for performance assessment and resource allocation. The reporting of segment information is the same as provided to the management for the purpose of the performance assessment and resource allocation to the segments. Segment accounting policies are in line with the accounting policies of the Company.
1.16 Foreign currencies:
i. The functional currency and presentation currency of the Company is Indian Rupee. Functional currency of the Company and foreign operations has been determined based on the primary economic environment in which the Company and its foreign operations operate considering the currency in which funds are generated, spent and retained.
ii. In currencies other than the Company''s functional currency are recorded on initial recognition using the exchange rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported at the prevailing closing spot rate. Non-monetary items that are measured in terms of historical cost in foreign currency are not retranslated.
Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the closing spot rate are recognised in the Statement of Profit and Loss in the period in which they arise.
iii. Financial statements of foreign operations whose functional currency is different than Indian Rupees are translated into Indian Rupees as follows -
A. assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet;
B. income and expenses for each income statement are translated at average exchange rates; and
C. all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as foreign currency translation reserve for subsequent reclassification to profit or loss on disposal of such foreign operations.
1.17 Taxation:
Current Tax:
Tax on income for the current period is determined on the basis of taxable income (or on the basis of book profits wherever minimum alternate tax is applicable) and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessments/appeals.
Deferred Tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company''s financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profit will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head "capital gains" are recognised and carried forward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets in respect of unutilised tax credits which mainly relate to minimum alternate tax are recognised to the extent it is probable of such unutilised tax credits will get realised.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along with the tax as applicable.
1.18 Provisions, contingent liabilities and contingent assets:
Provisions are recognised only when:
i. an Company entity has a present obligation (legal or constructive) as a result of a past event; and
ii. it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
iii. a reliable estimate can be made of the amount of the obligation
Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
i. a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and
ii. a present obligation arising from past events, when no reliable estimate is possible.
Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.
1.19 Statement of cash flows:
Statement of cash flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method adjusting the net profit for the effects of:
i. changes during the period in operating receivables and payables transactions of a non-cash nature;
ii. non-cash items such as depreciation, provisions, deferred taxes, un-realised gains and losses; and
iii. all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.
1.20 Earnings Per Share:
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
1.21 Key source of Estimation:
The preparation of financial statements in conformity with Ind AS requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant and equipment & intangible assets, expected credit loss on loan books, future obligations in respect of retirement benefit plans, fair value measurement etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.
1.22 Changes in Accounting Standard and recent accounting pronouncements (New Accounting Standards issued but not effective):
On March 30, 2022, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2019, notifying Ind AS 116 on Leases. Ind AS 116 would replace the existing leases standard Ind AS 17. The standard sets out the principles for the recognition, measurement, presentation and disclosures for both parties to a contract, i.e. the lessee and the lessor. Ind AS 116 introduces a single lease accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Currently for operating lease, rentals are charged to the statement of profit and loss. The Company is currently evaluating the implication of Ind AS 116 on the financial statements.
The Companies (Indian Accounting Standards) Amendment Rules, 2019 notified amendments to the following accounting standards. The amendments would be effective from April 1, 2019
a) Ind AS 12, Income taxes â Appendix C on uncertainty over income tax treatments
b) Ind AS 19â Employee benefits
c) Ind AS 23 - Borrowing costs
d) Ind AS 28â investment in associates and joint ventures
e) Ind AS 103 and Ind AS 111 â Business combinations and joint arrangements
f) Ind AS 109 â Financial instruments
The Company is in the process of evaluating the impact of such amendments.
1.23 Inventories
Inventories have been valued at the method prescribed in the Accounting Standards.
1.24 Other Income Recognition
Interest on Loan is booked on a time proportion basis taking into account the amounts invested and the rate of interest.
Dividend income on investments is accounted for when the right to receive the payment is established.
1.25 Purchases
Purchase is recognized on passing of ownership in share based on broker''s purchase note.
1.26 Expenditure
Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.
1.27 Investments
Current investments are stated at the lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments. Investments are classified into current and long-term investments.
Investments that are readily realisable and are 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 noncurrent investments.
1.28 Related Parties
Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.
As required by AS-18 "Related Party Disclosure" only following related party relationships are covered:
i. Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise (this includes holding Companies, subsidiaries and fellow subsidiaries);
ii. Associates and joint ventures of the reporting enterprise and the investing party or venture in respect of which the reporting enterprise is an associate or a joint venture;
iii. Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual;
iv. Key management personnel (KMP) and relatives of such personnel; and
v. Enterprises over which any person described in (iii) or (iv) is able to exercise significant influence.
1.29 Stock I n T rade
Shares are valued at cost or market value, whichever is lower. The comparison of Cost and Market value is done separately for each category of Shares.
Units of Mutual Funds are valued at cost or market value whichever is lower. Net asset value of units declared by mutual funds is considered as market value for non-exchange traded Mutual Funds.
1.30 Fair Value Hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
1.31 Financial Risk Management Objectives and Policies:
The Company''s activities are exposed to a variety of Financial Risks from its Operations. The key financial risks include Market risk, Credit risk and Liquidity risk.
i. Market Risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises mainly three types of risk, foreign currency risk, Interest rate risk and other price risk such as Equity price risk and Commodity Price risk.
ii. Foreign Currency Risk:
There are no Foreign Currency transactions during the financial year.
iii. Foreign Currency Sensitivity:
There are no Foreign Currency transactions during the financial year.
iv. Credit Risk:
Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables).
v. Trade Receivables:
Customer credit risk is managed based on company''s established policy, procedures and controls. The company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The Company has a well-defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed. The Company follows the simplified approach for recognition of impairment loss and the same, if any, is provided as per its respective customer''s credit risk as on the reporting date.
vi. Liquidity Risk:
Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company''s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.
1.32 Summary of Significant Accounting Policies General
⢠Contingent Liabilities & Commitments - Nil
⢠Additional Information disclosed as per Part II of the Companies Act, 2013 - Nil
1.33 Cash and cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.
1.34 Earnings/(loss) per share
i. Basic earnings/ (loss) per share
Basic earnings / (loss) per share is calculated by dividing:
⢠the profit attributable to owners of the Company
⢠by the weighted average number of equity shares outstanding during the financial year.
ii. Diluted earnings / (loss) per share
Diluted earnings / (loss) per share adjusts the figures used in the determination of basic earnings per share to take into account:
⢠the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
⢠the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
Mar 31, 2024
BRIEF PROFILE
The company is incorporated on 4th February 1985 at Mumbai, Maharashtra, India. It is a Public limited company by its shares. The company is one of the RBI registered Non-Deposit taking Company NBFC and is into the business of Finance and Investments. The activities of the company includes financing, investing in shares & other securities, Commodities and other related activities of capital market.
The Registered Office of the Company is situated at Bhagyodaya Building, 3rd Floor, 79, N. M. Road, Fort, Mumbai-400
023.
1. SIGNIFICANT ACCOUNTING POLICIES1.1 Statement of Compliance
The financial statements have been prepared in accordance with the provisions of the Companies Act, 2013 and the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time) issued by Ministry of Corporate Affairs in exercise of the powers conferred by section 133 read with sub-section (1) of section 210A of the Companies Act, 2013. In addition, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also applied along with compliance with other statutory promulgations require a different treatment.
The financial statements for the year ended March 31, 2024 of the Company is the first financial statements prepared in compliance with Ind AS. The date of transition to Ind AS is April 1, 2017. The financial statements upto the year ended March 31, 2018, were prepared in accordance with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006 ("Previous GAAP") and other relevant provisions of the Act. The figures for the year ended March 31, 2018 have now been restated under Ind AS to provide comparability. Refer Note 43 for the details of first-time adoption exemptions availed by the Company.
The financial statements have been prepared in accordance with Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time and notified under section 133 of the Companies Act, 2013 (the Act) along with other relevant provisions of the Act and the Master Direction - NonBanking Financial Company (Reserve Bank) Directions, 2016 (''the NBFC Master Directions'') issued by RBI. These financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting except for certain financial assets and liabilities that are measured at fair values at the end of each reporting period, as stated in the accounting policies stated out below.
The Financial statements have been prepared on a going concern basis. The Company presents its balance sheet in order of Liquidity.
Accounting policies have been consistently applied except where newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
Fair value measurements under Ind AS are categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
⢠Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at reporting date
⢠Level 2 inputs are inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; and
⢠Level 3 inputs are unobservable inputs for the valuation of assets or liabilities
1.3 Presentation of Financial Statements:
The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Division III to Schedule III to the Companies Act, 2013 ("the Act") applicable for Non-Banking Finance Companies ("NBFC"). The Statement of Cash Flows has been prepared and presented as per the requirements of Ind AS 7 "Statement of Cash Flows". The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of the
financial statements along with the other notes required to be disclosed under the notified accounting Standards and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Amounts in the financial statements are presented in Indian Rupees rounded off to zero decimal places as permitted by Schedule III to the Companies Act, 2013. Per share data are presented in Indian Rupee to two decimal places.
1.4 Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured and there exists reasonable certainty of its recovery. Revenue is measured at the fair value of the consideration received or receivable as reduced for estimated customer credits and other similar allowances.
Income from arbitrage comprises profit / loss on sale of securities held as stock-in-trade and profit / loss on equity derivative instruments is accounted as per following:
i. Interest income is recognised in the Statement of Profit and Loss and for all financial instruments except for those classified as held for trading or those measured or designated as at fair value through profit or loss (FVTPL) is measured using the effective interest method (EIR).
The calculation of the EIR includes all fees and points paid or received between parties to the contract that are incremental and directly attributable to the specific lending arrangement, transaction costs, and all other premiums or discounts. For financial assets at FVTPL transaction costs are recognised in profit or loss at initial recognition.
The interest income is calculated by applying the EIR to the gross carrying amount of non-credit impaired financial assets (i.e. at the amortised cost of the financial asset before adjusting for any expected credit loss allowance). For credit-impaired financial assets the interest income is calculated by applying the EIR to the amortised cost of the credit-impaired financial assets (i.e. the gross carrying amount less the allowance for expected credit losses (ECLs)). For financial assets originated or purchased credit-impaired (POCI) the EIR reflects the ECLs in determining the future cash flows expected to be received from the financial asset.
ii. Dividend income is recognised when the Company''s right to receive dividend is established by the reporting date and no significant uncertainty as to collectability exists.
iii. Fee and commission income and expense include fees other than those that are an integral part of EIR. The fees included in the Company statement of profit and loss include among other things fees charged for servicing a loan, non-utilisation fees relating to loan commitments when it is unlikely that these will result in a specific lending arrangement and loan advisory fees.
iv. Any differences between the fair values of the investment in debt oriented mutual funds classified as fair value through the profit or loss, held by the Company on the balance sheet date is recognised as an unrealised gain/loss in the statement of profit and loss. In cases there is a net gain in aggregate, the same is recognised in "Net gains or fair value changes" under revenue from operations and if there is a net loss the same is disclosed "Expenses", in the statement of profit and loss.
v. Profit / loss on sale of securities are determined based on the FIFO cost of the securities sold.
vi. Profit / loss on FNO Segment and Commodity transactions is accounted for as explained below:
Initial and additional margin paid over and above initial margin for entering into contracts for Equity Index / Stock Futures / Commodity Spot Trading/ Currency Futures and or Equity Index / Stock Options / Currency Options, which are released on final settlement / squaring-up of underlying contracts, are disclosed under "Other current assets". Mark-to-market margin-Equity Index / Stock Futures / Currency Futures representing the amounts paid in respect of mark to market margin is disclosed under "Other current assets".
"Equity Index / Stock Option / Currency Option Premium Account" represents premium paid or received for buying or selling the Options, respectively.
On final settlement or squaring up of contracts for Equity Index / Stock Futures / Currency Future, the realized profit or loss after adjusting the unrealized loss already accounted, if any, is recognized in the Statement of Profit and Loss. On settlement or squaring up of Equity Index / Stock Options / Currency Option, before expiry, the premium prevailing in "Equity Index / Stock Option / Currency Option Premium Account" on that date is recognized in the Statement of Profit and Loss.
As at the Balance Sheet date, the Mark to Market / Unrealised Profit / (Loss) on all outstanding arbitrage portfolio comprising of Securities and Equity / Currency Derivatives positions is determined on scrip basis with
net unrealized losses on scrip basis being recognized in the Statement of Profit and Loss and the net unrealized gains on scrip basis are ignored.
vii. Other operational revenue represents income earned from the activities incidental to the business and is recognised when the right to receive the income is established as per the terms of the contract.
1.5 Property, Plant and Equipments
Freehold land is carried at historical cost. All other items of property, plant and equipment are stated at historical cost less depreciation less impairment loss, if any. Historical cost comprises of purchase price, including nonrefundable purchase taxes, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use.
Subsequent costs are included in the asset''s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognized when replaced. All other repairs and maintenance are charged to statement of profit or loss during the reporting period in which they are incurred.
If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separated items (major components) of property, plant and equipment.
Depreciation methods, estimated useful lives and residual value:
Depreciation is provided on the written down value method over the estimated useful lives of the assets which in certain cases may be different than the rate prescribed in Schedule II to the Companies Act, 2013, in order to reflect the actual usages of the assets.
The asset''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period. The asset''s residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
|
Class of Assets |
Useful life as prescribed in Schedule II of Companies Act, 2013 (in years) |
Useful life as followed by the Company (in year) |
|
Computers |
3 |
3 |
|
Furniture & Fixtures |
10 |
10 |
|
Office Equipments |
5 |
5 |
|
Vehicles |
8 |
8 |
The assets'' residual values, useful lives and method of depreciation are reviewed, and adjusted if appropriate, at the end of each reporting period.
An asset''s carrying amount is written down immediately to its recoverable amount if the asset''s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing proceeds with carrying amount and are recognized as income or expense in the statement of profit and loss.
1.6 Intangible Assets:
Intangible assets are recognised when it is probable that the future economic benefits that are attributable to the asset will flow to the enterprise and the cost of the asset can be measured reliably. Intangible assets are stated at original cost net of tax/duty credits availed, if any, less accumulated amortisation and cumulative impairment. Direct expenses and administrative and other general overhead expenses that are specifically attributable to acquisition of intangible assets are allocated and capitalised as a part of the cost of the intangible assets.
Intangible assets not ready for the intended use on the date of Balance Sheet are disclosed as "Intangible assets under development".
Intangible assets are amortised on written down value method over the estimated useful life. The method of amortisation and useful life are reviewed at the end of each accounting year with the effect of any changes in the estimate being accounted for on a prospective basis.
An intangible asset is de-recognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from de-recognition of an intangible asset are recognised in profit or loss when the asset is derecognised.
1.7 Impairment of Tangible and Intangible Assets other than Goodwill
As at the end of each accounting year, the Company reviews the carrying amounts of its PPE and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If such indication exists, the PPE, investment property and intangible assets are tested for impairment so as to determine the impairment loss, if any. Goodwill and the intangible assets with indefinite life are tested for impairment each year.
Impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. Recoverable amount is determined in the case of an individual asset, at the higher of the net selling price and the value in use.
Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pretax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If recoverable amount of an asset (or cash generating unit) is estimated to be less than its carrying amount, such deficit is recognised immediately in the Statement of Profit and Loss as impairment loss and the carrying amount of the asset (or cash generating unit) is reduced to its recoverable amount. For this purpose, the impairment loss recognised in respect of a cash generating unit is allocated first to reduce the carrying amount of any goodwill allocated to such cash generating unit and then to reduce the carrying amount of the other assets of the cash generating unit on a pro-rata basis.
When an impairment loss subsequently reverses, the carrying amount of the asset (or cash generating unit), except for allocated goodwill, is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss is recognised for the asset (or cash generating unit) in prior years. A reversal of an impairment loss (other than impairment loss allocated to goodwill) is recognised immediately in the Statement of Profit and Loss.
1.8 Employee Benefits:
i. Short term employee benefits:
Employee benefits falling due wholly within twelve months of rendering the service are classified as short term employee benefits and are expensed in the period in which the employee renders the related service. Liabilities recognised in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.
ii. Post-employment benefits:
a) Defined contribution plans: The Company''s superannuation scheme, state governed provident fund scheme, employee state insurance scheme and employee pension scheme are defined contribution plans. The contribution paid/ payable under the schemes is recognised during the period in which the employee renders the related service.
b) Defined benefit plans: The employees'' gratuity fund schemes and employee provident fund schemes managed by board of trustees established by the Company, the post-retirement medical care plan and the Parent Company pension plan represent defined benefit plans. The present value of the obligation under defined benefit plans is determined based on actuarial valuation using the Projected Unit Credit Method.
The obligation is measured at the present value of the estimated future cash flows using a discount rate based on the market yield on government securities of a maturity period equivalent to the weighted average maturity profile of the defined benefit obligations at the Balance Sheet date.
Re-measurement, comprising actuarial gains and losses, the return on plan assets (excluding amounts included in net interest on the net defined benefit liability or asset) and any change in the effect of asset ceiling (if applicable) is recognised in other comprehensive income and is reflected in retained earnings and the same is not eligible to be reclassified to profit or loss.
Defined benefit costs comprising current service cost, past service cost and gains or losses on settlements are recognised in the Statement of Profit and Loss as employee benefit expenses. Interest cost implicit in defined benefit employee cost is recognised in the Statement of Profit and Loss under finance cost. Gains or losses on settlement of any defined benefit plan are recognised when the settlement occurs. Past service cost is recognised as expense at the earlier of the plan amendment or curtailment and when the Company recognizes related restructuring costs or termination benefits.
In case of funded plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans to recognise the obligation on a net basis.
iii. Long term employee benefits:
The obligation recognised in respect of long term benefits such as long term compensated absences is measured at present value of estimated future cash flows expected to be made by the Company and is recognised in a similar manner as in the case of defined benefit plans vide (ii) (b) above.
iv. Termination benefits:
Termination benefits such as compensation under employee separation schemes are recognised as expense when the Company''s offer of the termination benefit is accepted or when the Company recognises the related restructuring costs whichever is earlier.
1.9 Financial instruments:
Financial assets and financial liabilities are recognised in the Company''s balance sheet when the Company becomes a party to the contractual provisions of the instrument.
Recognised financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognised immediately in profit or loss.
A financial asset and a financial liability is offset and presented on net basis in the balance sheet when there is a current legally enforceable right to set-off the recognised amounts and it is intended to either settle on net basis or to realise the asset and settle the liability simultaneously.
1.10 Write off:
Loans and debt securities are written off when the Company has no reasonable expectations of recovering the financial asset (either in its entirety or a portion of it). This is the case when the Company determines that the borrower does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. A write-off constitutes a de-recognition event. The Company may apply enforcement activities to financial assets written off. Recoveries resulting from the Company''s enforcement activities will result in impairment gains.
1.11 Impairment:
The Company recognises loss allowances for ECLs on the following financial instruments that are not measured at FVTPL:
o Loans and advances to customers; o Debt investment securities; o Trade and other receivable; o Lease receivables;
o Irrevocable loan commitments issued; and o Financial guarantee contracts issued.
Credit-impaired financial assets
A financial asset is ''credit-impaired'' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Credit-impaired financial assets are referred to as Stage 3 assets. Evidence of credit impairment includes observable data about the following events:
o significant financial difficulty of the borrower or issuer; o a breach of contract such as a default or past due event;
o the lender of the borrower, for economic or contractual reasons relating to the borrower''s financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
o the disappearance of an active market for a security because of financial difficulties; or o the purchase of a financial asset at a deep discount that reflects the incurred credit losses.
It may not be possible to identify a single discrete event instead; the combined effect of several events may have caused financial assets to become credit-impaired. The Company assesses whether debt instruments that are financial assets measured at amortised cost or FVTOCI are credit-impaired at each reporting date. To assess if corporate debt instruments are credit impaired, the Company considers factors such as bond yields, credit ratings and the ability of the borrower to raise funding.
A loan is considered credit-impaired when a concession is granted to the borrower due to a deterioration in the borrower''s financial condition, unless there is evidence that as a result of granting the concession the risk of not receiving the contractual cash flows has reduced significantly and there are no other indicators of impairment. For financial assets where concessions are contemplated but not granted the asset is deemed credit impaired when there is observable evidence of credit-impairment including meeting the definition of default. The definition of default (see below) includes unlikeliness to pay indicators and a back-stop if amounts are overdue for 90 days or more.
1.12 Cash and bank balances:
Cash and bank balances also include fixed deposits, margin money deposits, earmarked balances with banks and other bank balances which have restrictions on repatriation. Short term and liquid investments being subject to more than insignificant risk of change in value, are not included as part of cash and cash equivalents.
1.13 Securities premium account:
i. Securities premium includes:
⢠The difference between the face value of the equity shares and the consideration received in respect of shares issued pursuant to Stock Option Scheme.
⢠The fair value of the stock options which are treated as expense, if any, in respect of shares allotted pursuant to Stock Options Scheme.
ii. The issue expenses of securities which qualify as equity instruments are written off against securities premium account.
1.14 Borrowing costs:
Borrowing costs include interest expense calculated using the effective interest method, finance charges in respect of assets acquired on finance lease and exchange differences arising from foreign currency borrowings, to the extent they are regarded as an adjustment to interest costs.
Borrowing costs net of any investment income from the temporary investment of related borrowings, that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
1.15 Accounting and reporting of information for Operating Segments:
Operating segments are those components of the business whose operating results are regularly reviewed by the chief operating decision making body in the Company to make decisions for performance assessment and resource allocation. The reporting of segment information is the same as provided to the management for the purpose of the performance assessment and resource allocation to the segments. Segment accounting policies are in line with the accounting policies of the Company.
1.16 Foreign currencies:
i. The functional currency and presentation currency of the Company is Indian Rupee. Functional currency of the Company and foreign operations has been determined based on the primary economic environment in which the Company and its foreign operations operate considering the currency in which funds are generated, spent and retained.
ii. In currencies other than the Company''s functional currency are recorded on initial recognition using the exchange rate at the transaction date. At each Balance Sheet date, foreign currency monetary items are reported at the prevailing closing spot rate. Non-monetary items that are measured in terms of historical cost in foreign currency are not retranslated.
Exchange differences that arise on settlement of monetary items or on reporting of monetary items at each Balance Sheet date at the closing spot rate are recognised in the Statement of Profit and Loss in the period in which they arise.
iii. Financial statements of foreign operations whose functional currency is different than Indian Rupees are translated into Indian Rupees as follows -
A. assets and liabilities for each Balance Sheet presented are translated at the closing rate at the date of that Balance Sheet;
B. income and expenses for each income statement are translated at average exchange rates; and
C. all resulting exchange differences are recognised in other comprehensive income and accumulated in equity as foreign currency translation reserve for subsequent reclassification to profit or loss on disposal of such foreign operations.
1.17 Taxation:
Current Tax:
Tax on income for the current period is determined on the basis of taxable income (or on the basis of book profits wherever minimum alternate tax is applicable) and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the expected outcome of assessments/appeals.
Deferred Tax:
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Company''s financial statements and the corresponding tax bases used in computation of taxable profit and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.
Deferred tax assets are generally recognised for all taxable temporary differences to the extent that is probable that taxable profit will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets relating to unabsorbed depreciation/business losses/losses under the head "capital gains" are recognised and carried forward to the extent of available taxable temporary differences or where there is convincing other evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets in respect of unutilised tax credits which mainly relate to minimum alternate tax are recognised to the extent it is probable of such unutilised tax credits will get realised.
The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of reporting period, to recover or settle the carrying amount of its assets and liabilities.
Transaction or event which is recognised outside profit or loss, either in other comprehensive income or in equity, is recorded along with the tax as applicable.
1.18 Provisions, contingent liabilities and contingent assets:
Provisions are recognised only when:
i. an Company entity has a present obligation (legal or constructive) as a result of a past event; and
ii. it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and
iii. a reliable estimate can be made of the amount of the obligation
Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.
Contingent liability is disclosed in case of:
i. a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation; and
ii. a present obligation arising from past events, when no reliable estimate is possible.
Contingent assets are disclosed where an inflow of economic benefits is probable. Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.
1.19 Statement of cash flows:
Statement of cash flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method adjusting the net profit for the effects of:
i. changes during the period in operating receivables and payables transactions of a non-cash nature;
ii. non-cash items such as depreciation, provisions, deferred taxes, un-realised gains and losses; and
iii. all other items for which the cash effects are investing or financing cash flows.
Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.
1.20 Earnings Per Share:
The Company presents basic and diluted earnings per share data for its ordinary shares. Basic earnings per share is calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share is determined by adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares outstanding, adjusted for own shares held, for the effects of all dilutive potential ordinary shares.
1.21 Key source of Estimation:
The preparation of financial statements in conformity with Ind AS requires that the management of the Company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant and equipment & intangible assets, expected credit loss on loan books, future obligations in respect of retirement benefit plans, fair value measurement etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.
1.22 Changes in Accounting Standard and recent accounting pronouncements (New Accounting Standards issued but not effective):
On March 30, 2022, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2019, notifying Ind AS 116 on Leases. Ind AS 116 would replace the existing leases standard Ind AS 17. The standard sets out the principles for the recognition, measurement, presentation and disclosures for both parties to a contract, i.e. the lessee and the lessor. Ind AS 116 introduces a single lease accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Currently for operating lease, rentals are charged to the statement of profit and loss. The Company is currently evaluating the implication of Ind AS 116 on the financial statements.
The Companies (Indian Accounting Standards) Amendment Rules, 2019 notified amendments to the following accounting standards. The amendments would be effective from April 1, 2019
a) Ind AS 12, Income taxes â Appendix C on uncertainty over income tax treatments
b) Ind AS 19â Employee benefits
c) Ind AS 23 - Borrowing costs
d) Ind AS 28â investment in associates and joint ventures
e) Ind AS 103 and Ind AS 111 â Business combinations and joint arrangements
f) Ind AS 109 â Financial instruments
The Company is in the process of evaluating the impact of such amendments.
1.23 Inventories
Inventories have been valued at the method prescribed in the Accounting Standards.
1.24 Other Income Recognition
Interest on Loan is booked on a time proportion basis taking into account the amounts invested and the rate of interest.
Dividend income on investments is accounted for when the right to receive the payment is established.
1.25 Purchases
Purchase is recognized on passing of ownership in share based on broker''s purchase note.
1.26 Expenditure
Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.
1.27 Investments
Current investments are stated at the lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments. Investments are classified into current and long-term investments.
Investments that are readily realisable and are 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 noncurrent investments.
1.28 Related Parties
Parties are considered to be related if at any time during the reporting period one party has the ability to control the other party or exercise significant influence over the other party in making financial and/or operating decisions.
As required by AS-18 "Related Party Disclosure" only following related party relationships are covered:
i. Enterprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise (this includes holding Companies, subsidiaries and fellow subsidiaries);
ii. Associates and joint ventures of the reporting enterprise and the investing party or venture in respect of which the reporting enterprise is an associate or a joint venture;
iii. Individuals owning, directly or indirectly, an interest in the voting power of the reporting enterprise that gives them control or significant influence over the enterprise, and relatives of any such individual;
iv. Key management personnel (KMP) and relatives of such personnel; and
v. Enterprises over which any person described in (iii) or (iv) is able to exercise significant influence.
1.29 Stock I n T rade
Shares are valued at cost or market value, whichever is lower. The comparison of Cost and Market value is done separately for each category of Shares.
Units of Mutual Funds are valued at cost or market value whichever is lower. Net asset value of units declared by mutual funds is considered as market value for non-exchange traded Mutual Funds.
1.30 Fair Value Hierarchy
Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
1.31 Financial Risk Management Objectives and Policies:
The Company''s activities are exposed to a variety of Financial Risks from its Operations. The key financial risks include Market risk, Credit risk and Liquidity risk.
i. Market Risk:
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises mainly three types of risk, foreign currency risk, Interest rate risk and other price risk such as Equity price risk and Commodity Price risk.
ii. Foreign Currency Risk:
There are no Foreign Currency transactions during the financial year.
iii. Foreign Currency Sensitivity:
There are no Foreign Currency transactions during the financial year.
iv. Credit Risk:
Credit risk is the risk that counterparty might not honor its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables).
v. Trade Receivables:
Customer credit risk is managed based on company''s established policy, procedures and controls. The company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors.
Credit risk is reduced by receiving pre-payments and export letter of credit to the extent possible. The Company has a well-defined sales policy to minimize its risk of credit defaults. Outstanding customer receivables are regularly monitored and assessed. The Company follows the simplified approach for recognition of impairment loss and the same, if any, is provided as per its respective customer''s credit risk as on the reporting date.
vi. Liquidity Risk:
Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company''s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due.
1.32 Summary of Significant Accounting Policies General
⢠Contingent Liabilities & Commitments - Nil
⢠Additional Information disclosed as per Part II of the Companies Act, 2013 - Nil
1.33 Cash and cash Equivalents
For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.
1.34 Earnings/(loss) per share
i. Basic earnings/ (loss) per share
Basic earnings / (loss) per share is calculated by dividing:
⢠the profit attributable to owners of the Company
⢠by the weighted average number of equity shares outstanding during the financial year.
ii. Diluted earnings / (loss) per share
Diluted earnings / (loss) per share adjusts the figures used in the determination of basic earnings per share to take into account:
⢠the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and
⢠the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.
Mar 31, 2016
17.1 Basis of accounting and preparation of financial statements
These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act,2013.The financial statements are prepared on accrual basis under historical cost convention. The financial statements are presented in Indian Rupees.
17.2 Tangible Fixed Assets
i Fixed Assets are stated at cost less depreciation, Cost comprises the purchase price and any attributable cost of bringing the assets to working condition for its intended use.
ii Expenditure, for additions improvements and renewals are capitalized and expenditure for maintenance & repairs are charged to the Profit & Loss account. When assets are sold or discarded, their cost and accumulated depreciation is removed from the account & any gain or loss, resulting from their disposal is included in the Profit & loss account.
17.3 Depreciation and Amortization
During the year, the Company has changed its method of charging depreciation from Written Down Value Method to Straight Line Method. Depreciation is provided using the Straight Line Method at the rates and in the manner specified in schedule II to the Companies Act 2013. Depreciation on additions/ deletions during the year is provided on a pro-rata basis from the date of addition/up to the date of deletion.
17.4 Revenue Recognition
i Income are accounted on accrual basis.
ii Expenses other than Interest are net of recoveries, wherever applicable.
17.5 Employee Benefits
The company provides for unutilized leave benefits on the basis of the last salary drawn and the leave balance available to the credit of the employee on the last date of the year.
17.6 Segment Reporting
The Company identifies primary segments based on the dominate source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate financial information available and for which operating profit/Loss amounts are evaluated regularly by the executive M management in deciding how to allocate resources in assessing performance.
The accounting policies adopted for segment reporting are in line with the accounting policies of the company. Segment revenue, segment expenses, segment assets and Segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.
Inter-segment revenue is accounted on the basis of transaction which are primarily determined based on market /fair value factors.
Revenue expenses, assets and liabilities which relate to the company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue/expenses/assets/liabilities".
i Income tax payable for the year is determined in accordance with the provisions of the Income Tax Act, 1961.
ii Deferred tax expense or benefit is recognized on ''timing differenceâ being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets and liabilities are measured using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.
Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only to the extent that there is virtual certainty that sufficient taxable income will be available to realize these assets. All other deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable income will be available to realize these assets.
Trading in Shares - At Cost or Net Realizable Value Whichever is lower.
At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss.
Recoverable amount is the higher of an assetâs net selling price and value in use. In assessing value in use, the estimated future cash flows expected from the continuing use of the asset from its disposal are discounted to their present value using pre tax discount rate that reflects the current market assessments of An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed by way of Notes to Accounts. Contingent Assets are neither recognized nor disclosed in the Financial Statements.
Cash Flows are reported using the indirect method, where by profit I loss before extra ordinary item and tax is adjusted for the effects of the transactions of Non cash nature and any deferrals or accruals of past or future cash receipts or payments. Cash flow from Operating , Investing and Financial activities of the company are segregated based on the available information.
17.12 Material events occurring after Balance Sheet date and till the date of signing of accounts are taken into
17.13 Information as required in terms of paragraph 13 of Non Banking Financial (Non Deposit accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 is given in separate annexure.
18.1 The profit and Loss Account for the year includes certain expenses which are supported only by internal vouchers duly approved as per authorized limits assigned at each levels and in some cases third party evidence/invoices are not available. The board of Directors of the Company has approved such expenses as in the opinion of the Board of Directors, the company has incurred such expenses wholly and exclusively attributable to the business if the company and the nature of such expenses are consistent with the previous years.
18.2 During the year, the Company has incurred certain expenditure of revenue nature, adequate supporting in respect of some of them are not available, however in the opinion of the Board of Directors of the Company, the same is wholly and exclusively attributable to the business of the Company.
18.3 In the opinion of the Board, the Current Assets, Sundry Debtors, Sundry Creditors, Loans & Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Financial Statements. The balances thereof as per Books of Accounts only.
Mar 31, 2015
1 Basis of accounting and preparation of financial statements
These financial statements have been prepared to comply with the
Generally Accepted Accounting Principles in India (Indian GAAP),
including the Accounting Standards notifed under the relavant
provisions of the Companies Act,2013.The financial statements are
prepared on accrual basis under historical cost convention. The
financial statements are presented in Indian Rupees.
2 tangible Fixed assets
i Fixed Assets are stated at cost less depreciation, Cost comprises the
purchase price and any attributable cost of bringing the assets to
working condition for its intended use.
ii Expenditure, for additions improvements and renewals are capitalised
and expenditure for maintenance & repairs are charged to the Profit &
Loss account. When assets are sold or discarded, their cost and
accumulated depreciation is removed from the account & any gain or
loss, resulting from their disposal is included in the Profit & loss
account.
3 depreciation and amortisation
During the year, the Company has changed its method of charging
depreciation from Written Down Value Method to Straight Line Method.
Depreciation is provided using the Straight Line Method Method at the
rates and in the manner specified in schedule II to the Companies Act
2013. Depreciation on additions/ deletions during the year is provided
on a pro-rata basis from the date of addition/up to the date of
deletion.
4 Revenue Recognition
i Income are accounted on accrual basis.
ii Expenses other than Interest are net of recoveries, wherever
applicable.
5 employee Benefits
The company provides for unutilised leave on the basis of the
last salary drawn and the leave balance available to the credit of the
employee on the last date of the year.
6 segment Reporting
The Company identifies primary segments based on the dominat source,
nature of risks and returns and the internal organsiation and
management structure. The operating segments are the segments for which
separate financial information available and for which operating
profit/Loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources in assessing performance.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the company. Segment revenue, segment
expenses, segment assests and Segment liabilities have been identified to
segments on the basisi of their relationship to the operating
activities of the segment.
Inter-segment revenue is accounted on the basis of transcation which
are primarly determined based on market /fair value factors.
Revenue expenses, assets and liabilities which relate to the company as
a whole and are not allocable to segments on reasonable basis have been
included under "unallocated revenue/ expenses/assets/liabilities".
7 taxes on income
i Income tax payable for the year is determined in accordance with the
provisions of the Income Tax Act, 1961.
ii Deferred tax expense or is recognized on "timing difference"
being the difference between taxable income and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and laws that are enacted or substantively enacted
as on the balance sheet date.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognized only to the extent that there is
virtual certainty that sufficient taxable income will be available to
realize these assets. All other deferred tax assets are recognized only
to the extent that there is a reasonable certainty that sufficient
future taxable income will be available to realize these assets.
8 inventories
Inventory are valued as under :
Trading in Shares - At Cost or Net Realisable Value Whichever is lower.
9 impairment of assets
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that those
assets suffered an impairment loss. If any such indication exists, the
recoverable amount of the assets is estimated in order to determine the
extent of impairment loss.
Recoverable amount is the higher of an asset's net selling price and
value in use. In assessing value in use, the estimated future cash fows
expected from the continuing use of the asset from its disposal are
discounted to their present value using pre tax discount rate that
reflects the current market assessments of time value of money and the
risks specific to the asset.
An impairment loss is charged to Profit and Loss Account in the year in
which an asset is identified as impaired. Reversal of impairment loss is
recognized immediately as income in the Profit and loss account.
10 Provisions and Contingencies
Provisions involving substantial degree of estimation in measurement
are recognized when there is present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed by way of
Notes to Accounts. Contingent Assets are neither recognized nor
disclosed in the Financial Statements.
11 Cash Flow statement
Cash Flows are reported using the indirect method, where by Profit /
loss before extra ordinery ITEM and tax is adjusted for the effects of
the transactions of Non cash nature and andy deferrals or accruals of
past or future cash receipts or payments. Cash flow from Operating ,
Investing and Financial activities of the company are segregated based
on the availalble information.
12 Material events occurring after Balance Sheet date and till the
date of signing of accounts are taken into cognizance.
13 Information as required in terms of paragraph 13 of Non Banking
Financial (Non Deposit accepting or holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007 is given in separate annexure.
Mar 31, 2014
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year except otherwise stated.
1.2 Tangible Fixed Assets
a. Fixed Assets are stated at cost less depreciation, Cost comprises
the purchase price and any attributable cost of bringing the assets to
working condition for its intended use.
b. Expenditure, for additions improvements and renewals are
capitalised and expenditure for maintenance & repairs are charged to
the Profit & Loss account. When assets are sold or discarded, their
cost and accumulated depreciation is removed from the account & any
gain or loss, resulting from their disposal is included in the Profit &
loss account.
1.3 Depreciation and Amortisation
Depreciation is provided using written down value method at the rates
and in the manner specified in Schedule XIV to the Companies Act, 1956.
Depreciation on additions during the year is provided on a pro rata
basis from the date of addition.
1.4 Revenue Recognition
(i) Income are accounted on accrual basis.
(ii) Expenses other than Interest are net of recoveries, wherever
applicable
1.5 Employee Benefits
The company provides for unutilized leave benefits on the basis of the
last salary drawn and the leave balance available to the credit of the
employee on the last date of the year.
1.6 Segment Reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organization and
management structure. The operating segments are the segments for which
separate financial information available and for which operating
profit/Loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources in assessing performance.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the company. Segment revenue, segment
expenses, segment assets and Segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment. Inter-segment revenue is accounted on the
basis of transactions which are primarily determined based on market
/fair value factors.
Revenue expenses, assets and liabilities which relate to the company as
a whole and are not allocable to segments on reasonable basis have been
included under "unallocated revenue / expenses / assets / liabilities.
1.7 Taxes on Income
a. Income tax payable for the year is determined in accordance with
the provisions of the Income Tax Act, 1961.
b. Deferred tax expense or benefit is recognized on "timing
difference" being the difference between taxable incomes and accounting
income that originate in one period and are capable of reversal in one
or more subsequent periods. Deferred tax assets and liabilities are
measured using the tax rates and laws that are enacted or substantively
enacted as on the balance sheet date.
Deferred tax assets in respect of unabsorbed depreciation and carry
forward of losses are recognized only to the extent that there is
virtual certainty that sufficient taxable income will be available to
realize these assets. All other deferred tax assets are recognized only
to the extent that there is a reasonable certainty that sufficient
future taxable income will be available to realize these assets.
1.8 Impairment of Assets
At each balance sheet date, the Company reviews the carrying amounts of
its fixed assets to determine whether there is any indication that
those assets suffered an impairment loss. If any such indication
exists, the recoverable amount of the assets is estimated in order to
determine the extent of impairment loss.
Recoverable amount is the higher of an asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows expected from the continuing use of the asset from its disposal
are discounted to their present value using pre tax discount rate that
reflects the current market assessments of time value of money and the
risks specific to the asset.
An impairment loss is charged to Profit and Loss Account in the year in
which an asset is identified as impaired. Reversal of impairment loss
is recognized immediately as income in the profit and loss account.
1.9 Provisions and Contingencies
Provisions involving substantial degree of estimation in measurement
are recognized when there is present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed by way of
Notes to Accounts. Contingent Assets are neither recognized nor
disclosed in the Financial Statements.
1.10 Cash Flow Statements
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
1.11 Material events occurring after Balance Sheet date and till the
date of signing of accounts are taken into cognizance.
1.12 Information as required in terms of paragraph 13 of Non Banking
Financial (Non Deposit accepting or holding) Companies Prudential Norms
(Reserve Bank) Directions, 2007 is given in separate annexure.
Mar 31, 2013
1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
2 Use of Estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialized.
3 Inventories
Inventories are valued at the lower of cost (on FIFO basis) and the net
realisable value after providing for obsolescence and other losses,
where considered necessary.
4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
5 Cash Flow Statements
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
6 Revenue Recognition
All incomes and expenditure are recognised as per ''Accounting
Standard-9'' accounted on accrual basis except where stated otherwise.
Dividends on investments are accounted for when the right to receive
the dividend is established.
7 Employee Benefits
I. Provident Fund and E.S.I.C Scheme is not applicable to the company.
II. Gratuity is accounted as and when it becomes due.
8 Segment Reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
The accounting policies adopted for segment reporting are in line with
the accounting policies of the Company. Segment revenue, segment
expenses, segment assets and segment liabilities have been identified
to segments on the basis of their relationship to the operating
activities of the segment.
Inter-segment revenue is accounted on the basis of transactions which
are primarily determined based on market / fair value factors.
Revenue, expenses, assets and liabilities which relate to the Company
as a whole and are not allocable to segments on reasonable basis have
been included under "unallocated revenue / expenses / assets /
liabilities"
9 Investments
Long-term investments are carried individually at cost less provision
for diminution, other than temporary, in the value of such investments.
Current investments are carried individually, at the lower of cost and
fair value. Costs of investments include acquisition charges such as
brokerage, fees and duties.
10 Borrowing Cost
Borrowing costs directly attributable to the acquisition and
construction of qualifying fixed assets are capitalized as part of the
cost of the assets, up to the date the asset is put to use. Other
borrowing costs are charged to the Profit and Loss Account.
11 Taxes on Income
Current Tax is determined as the tax payable in respect of taxable
income for the year, if any. Deferred tax for the year is recognised
on timing difference; being the difference between taxable incomes and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. Deferred Tax Assets and
Liabilities are measured using the tax rates and tax laws that have
been enacted or substantively enacted by the Balance Sheet date.
Deferred Ta x Assets are recognised and carried forward only if there
is a reasonable/virtual certainty of realisation.
Current and deferred taxes relating to items directly recognised in
equity are recognised in equity and not in the Statement of Profit and
Loss.
12 Provisions and Contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates. Contingent liabilities
are disclosed in the Notes.
13 Impairment of Assets
At the end of each year, the Company assesses whether any impairment
loss may have occurred in respect of its Assets in accordance with
Accounting Standard - 28 "Impairment of Assets" issued by the Institute
of Chartered Accountants of India, and Impairment Losses if any are
accounted for by the company in accordance with the Standard
applicable.
SEGMENT INFORMATION (AS-17)
A) Primary Segment Reporting (by Business Segments)
i. The Company''s business segments are identified as Textile Business,
Investments in Shares & Securities and Money lending Activities.
ii. The accounting policies used in the preparation of the financial
statements of the Company are also applied for segment reporting.
iii. Segment revenues, expenses, assets and liabilities are those,
which are directly attributable to the segment or are allocated on an
appropriate basis. Corporate and other revenues, expenses, assets and
liabilities to the extent not allocable to segments are disclosed in
the reconciliation of reportable segments with the financial
statements.
iv. Figures in brackets are in respect of the previous year.
v. Segment Revenues, Results and Other Information:
Mar 31, 2012
1.1 Basis of Preparation of Financial Statements
Financial Statements have been prepared under the historical cost
convention and in accordance with the provisions of Companies Act,
1956. Accounting Policies not referred to otherwise are consistent and
are in accordance with the generally accepted accounting Principles in
India.
1.2 Use of Estimates
The preparation of Financial Statements are in confirmity with
generally accepted accounting principles requires estimates and
assumptions to be made to that effect the reported amount of Assets and
Liabilities on the date of financial statements and the reported amount
of revenue and expenses during the reporting period. Difference between
the actual results and estimates are recognized in the period in which
the results are known/materialized.
1.3 Fixed Assets
Fixed Assets are valued at Cost less Depreciation.
1.4 Depreciation
Depreciation on Fixed Assets has been provided on written down value
method at rates prescribed in schedule XIV of Companies Act, 1956.
1.5 Investments
Investments which are readily realisable and intended to be held for
less than one year are classified as Current Investments. All other
Investments are classified as long term investments. Current
Investments are carried at lower of cost and fair value determined on
an individual investment basis. Long Term investments are carried at
cost. Provision for diminution in the value of long tem investments is
made only if such a decline is other than temporary in nature in the
opinion of the management.
1.6 Inventories
Stock-in-trade has been valued at cost or market price which ever is
lower.
1.7 Taxes on Income
Provision for Taxation is made on the basis of estimated taxable income
for the period at current rates. Tax expenses comprises of both Current
Tax and Deferred Tax at the applicable enacted or substantively enacted
rates. Current Tax represents the amount of Income Tax payable
/recoverable in respect of taxable income/loss for the reporting
period. Deferred Tax represents the effect of timing difference between
taxable income and accounting income for the reporting period that
originates in one year and are capable of reversal in one or more
subsequent years.
1.8 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 outfolow of resources.
Contingent Liabilities are not recognized but are disclosed in the
Notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
1.9 Revenue Recognition
Items of Income and Expenditure are recognized and accounted for on
Accrual basis.
1.10 Contingent Liability, if any, are disclosed by way of Notes.
Mar 31, 2011
1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 211(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
Revenue Recognition
2. All revenue and expenses are accounted on accrual basis.
Fixed Assets
3. Fixed Assets are capitalized at cost inclusive of all incidental
expenses related thereon.
Turnover
4. Turnover is stated after adjusting rebates and discounts and
excluding Sales Tax.
Depreciation
5. Depreciation on Fixed Assets has been provided for on Diminishing
Balance Method at rated specified in schedule XIV of the Companies Act
1956. Depreciation on Assets purchased/sold during the year has been
provided for on pro-rata basis.
Inventories
6. Inventories of Work-in-Progress, Raw Materials, Stores and Spares
and Finished Goods are valued at cost and the same is done on FIFO
basis. Stock of Shares is valued at cost. Stock-in-Trade of Shares &
Securities; have been valued at cost or market value whichever is
lower.
Investments
7. Investments are valued at cost.
Retirement Benefit
8. None of the Employee has completed the service period to become
eligible for payment of gratuity.
Income Tax
9. Tax expenses comprise of current, deferred and fringe benefit tax.
10. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
11. Deferred Ta x is recognized subject to the consideration of
prudence on timing differences, being the difference between taxable
Income and Accounting Income that originate in one period and are
capable of reversal in one or more subsequent periods.
Provisions, Contingent Liabilities & Contingent Assets
12. The Company creates a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
13. A disclosure for a contingent liability is made when there is a
possible obligation or present obligation that probably will not
require an outflow of resources or where reliable estimate of the
amount of the obligation cannot be made.
14. Contingent Assets are neither recognized nor disclosed.
Others
15. None of the Raw Materials, Stores, Spares and Components consumed
or purchased during the year have been imported.
16. None of the Expenditure has been incurred in Foreign Currency.
17. None of the Earnings are in Foreign Currency.
18. Balance of Debtors, Creditors, Deposits, Loans and Advances are
subject to confirmation.
19. In the opinion of the Board, the Current Assets, Loans & Advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for depreciation and all known
liabilities are adequate and not in excess of the amounts reasonably
necessary.
20. Investments of the Company have been considered by the management
to be of a long term nature and hence they are long term investments
and are valued at cost of acquisitions.
Segment Report
21. Segment reporting as defined in Accounting Standard 17 is not
applicable as the Company is primarily engaged in Trading Activities of
Finished Fabric. As informed to us, there is no separate segment within
the Company as defined as 17 (Segment Report).
Mar 31, 2010
1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 21 l(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
Revenue Recognition
2. All revenue and expenses are accounted on accrual basis.
Fixed Assets
3. Fixed Assets are capitalized at cost inclusive of all incidental
expenses related thereon.
Turnover
4. Turnover is stated after adjusting rebates and discounts and
excluding Sales Tax.
Depreciation
5. Depreciation on Fixed Assets has been provided for on Diminishing
Balance Method at rated specified in schedule XIV of the Companies Act
1956. Depreciation on Assets purchased/sold during the year has been
provided for on pro-rata basis.
Inventories
6. Inventories of Work-in-Progress, Raw Materials, Stores and Spares
and Finished Goods are valued at cost and the same is done on FIFO
basis. Stock of Shares is valued at cost. Stock-in-Trade of Shares &
Securities have been valued at cost or market value whichever is lower.
Investments
7. Investments are valued at cost.
Retirement Benefit
8. None of the Employee has completed the service period to become
eligible for payment of gratuity.
Income Tax
9. Tax expenses comprise of current, deferred and fringe benefit tax.
10. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
11. Deferred Tax is recognized subject to the consideration of
prudence on timing differences, being the difference between taxable
Income and Accounting Income that originate in one period and are
capable of reversal in one or more subsequent periods.
Provisions, Contingent Liabilities & Contingent Assets
12. The Company creates a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
13. A disclosure for a contingent liability is made when there is a
possible obligation or present obligation that probably will not
require an outflow of resources or where reliable estimate of the
amount of the obligation cannot be made.
14. Contingent Assets are neither recognized nor disclosed.
Others
15. None of the Raw Materials, Stores, Spares and Components consumed
or purchased during the year have been imported.
16. None of the Expenditure has been incurred in Foreign Currency.
17. None of the Earnings are in Foreign Currency.
18. Balance of Debtors, Creditors, Deposits, Loans and Advances are
subject to confirmation.
19. In the opinion of the Board, the Current Assets, Loans & Advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for depreciation and all known
liabilities are adequate and not in excess of the amounts reasonably
necessary.
20. Investments of the Company have been considered by the management
to be of a long term nature and hence they are long term investments
and are valued at cost of acquisitions.
Segment Report
21. Segment reporting as defined in Accounting Standard 17 is not
applicable as the Company is primarily engaged in Trading Activities of
Finished Fabric. As informed to us, there is no separate segment within
the Company as defined as 17 (Segment Report).
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NCL Research and Financial Services Ltd. कंपनी का विवरण
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NCL Research and Financial Services Ltd. कॉर्पोरेट घोषणाएं
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Stock Market Crash: शेयर बाजार में हाहाकार, Sensex 1,700 अंक टूटा तो Nifty 24,300 के नीचे फिसला -
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Stock Market Today: शेयर बाजार में 4 कारणों से जोरदार तेजी, एक्सपर्ट्स से समझिए आगे क्या होगा? -
Stock Market Today: लगातार दूसरे दिन शेयर बाजार में उछाल! निफ्टी 23,000 के पार, इन शेयरों ने लगाई दौड़ -
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Stock Market Crash: युद्ध के डर से बाजार में हड़कंप, सेंसेक्स 900 अंक टूटा, बढ़ी बिकवाली, निवेशक हुए सतर्क -
Stock Market Crash: जंग का असर बाजार में हाहाकार, सेंसेक्स 2500 अंक से ज्यादा लुढ़का, निफ्टी 700 अंक क्रैश -
Stock Market Outlook: होर्मुज स्ट्रेट में संकट! क्या आने वाला है भारतीय शेयर बाजार में बड़ा गिरावट का दौर? -
मिडिल ईस्ट के बढ़ते तनाव ने बिगाड़ा बाजार का मूड, सेंसेक्स 1500 अंक लुढ़का, निफ्टी भी बुरी तरह फिसला -
Stock Market Today: मिडिल ईस्ट तनाव! शेयर बाजार में कोहराम, सेंसेक्स 900+ अंक टूटा, निफ्टी 24,900 के नीचे -
Stock Market: Anthropic के दावे से बढ़ी टेंशन! Nifty-Sensex में बड़ी गिरावट, शेयर बाजार किन 5 कारणों से धड़ाम?
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