| 1. Basis Of Accounting
The Financial statements are prepared under historical cost convention,
an an accrual basis and in accordance with relevant presentational
requirements of the Companies Act, 2013 and the applicable mandatory
Accounting Standards as prescribed under section 133 of Companies Act,
2013 read with rule 7 of the Companies (Accounts) Rules, 2014,
2. Inventories:
Inventories of shares are valued at cast computed on FIFO Basis nr fair
value, which ever is lower.
3. Recognition of income and Expenditure ;
Income and expenditure are accounted for on accrual basis. Interest
income is recognized on a time proportion basis taking ntb account the
amount outstanding and the rate applicable. Dividend Income s
recognized when the shareholder's rignt to receive payment is
established by the balance sheet date.
4. Depreciation on Fhred Assets:
Depreciation on Fixed Assets has been provided based on useful life
assignee to each asset prescribed m accordance with Part MC' of
Schedule-!! of the Compames Act, 2013.
5. Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation and
impairment losses, if any.
Cost comprises the purchase price and any attributable cost of bringing
the asset to its working condit on for its intended use.
6. Impairment of Assets
. The carrying amounts of assets are reviewed at each balance sheet
date if there S any indication of impairment based on Intcrnal/externai
factors. An impalmtent loss is recognized wherever the carrying
annoLint of an asset exceeds its recoverable amount.
E The recoverable amount is the greater of the asset's net selling price
end value in use. in assessing the value in use, the estimated future
cash flows are discounted :o their u Op œ present value at the weighted
average cost of capita:, ii After impairment, depreciation is provided
on the revised carrying amount of the assest value.
7. INVESTMENTS
investments that are readily realizable and intended to be held tor rot
more then a year are classified as Current Investments. All other
Investments are classified as Non Current Investments. Current
Investments are stated at lower of cost and market rate on an mdivicual
investment basis. Non Current Investments are considered 'at cost' on
individual investment basis, unless there is a decline other than
temporary in the value, in which case adequate provision is made
against such diminution in the value of investments.
8. Earning per share:
Earnings per share are calculated by dividing the net profit or loss
for the year attributable to equity shareholdc's, by the weighted
average number of equty shares outstanding during the year.
Far the purpose of calculating diluted earnings per sha-'e, the net
profit or loss for the year attributable to equity shareholders and
weighted average number of shares outstanding during the year is
adjusted for the effects ct all dilutive potential equity shares.
9. Ptgvifripn and Deferred Tan ;
The Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred rax resulting from Timings difference" between book and
taxable profit Is accounted for using the tax rates and laws that have
been enacted or substantially enacted as on the Balance Sheet date, lbe
Deferred Tax Asset is recognized and earned forward o-nly to the extent
that there is a reasonable certainty that the assets will be realized
in future.
10 Contingencies!
These are disclosed ay way of notes on the Balance sheet. Provisions is
made in the accounts in respect of those contingencies winch are likely
to materialize into liabilities after the year end , ti I the
finalization of accounts, and material effect on the position stated
Balance Sheet .
11. PROVISIONING FOR STANDARD ASSETS :
The Reserve Btink Of India vide Notification No DNSS 223/GSM (US) 2011
DATED T - JANUARY, 2011 has issued direction to all NBFCs to make
provision of 0.25% on STANDARD ASSETS with immedate effect. Accordingly
the Company has made provision
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