(1) SYSTEM OF ACCOUNTING
a. The accounts are prepared on the historical cost basis and on the accounting principles of a going concern.
b. Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.
c. All expenditure and income to the extent considered payable and receivable respectively are accounted for on accrual basis except dividend income and Interest income in respect of loans and advances considered by the management as sticky, which have been accounted for on cash basis.
d. Transactions in futures & options and currency segments have been accounted for on ‘net for the day’ basis.
(2) USE OF ESTIMATES
Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.
(3) FIXED ASSETS
The only fixed asset is Building which has been stated at cost.
(4) DEPRECIATION
No depreciation has been provided for on Company’s building.
(5) VALUATION OF INVENTORIES
Inventories of shares have been valued at lesser of cost ascertained following first-in-first-out method and the respective market values of individual shares.
Exposure in futures and options has been valued at market value.
(6) INVESTMENTS
Investments are stated at cost.
Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the long-term nature of such investments and existence of adequate underlying assets.
Market value of quoted shares has been separately disclosed in the relevant note.
Dividend and capital gain from sale of shares held as investments have been disclosed separately in the relevant note.
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