Click it and Unblock the Notifications
Accounting Policies of B N Rathi Securities Ltd. Company
Mar 31, 2025
1 MATERIAL ACOUNTING POLICIES & OTHER INFORMATION1.1 Corporate Information
B. N. Rathi Securities Limited (''the Company''/''BNRSL''), is a Public Limited company incorporated in India on 30-09-1985 under the provisions of the Companies Act, 1956. The Company''s registered office is located at 6-3-652, IV Floor, Kautilya Amrutha Estates, Somajiguda, Hyderabad, Telangana, India - 500082. The equity shares of BNRSL are listed on BSE Limited (BSE), in India. The Company is primarily engaged in the business of stock and commodity broking, providing margin trading facility, depository services and distribution of mutual funds to its clients. It earns brokerage, fees, commission and interest income thereon.
1.2 Basis of preparation and measurement
(i) Statement of compliance & basis of preparation
The standalone financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as per the Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time, notified under section 133 of the Companies Act, 2013, ("Act"), read with Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act. Accounting policies have been consistently applied except where the change is required by an Ind AS or change results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or condition on the entity''s financial position, performance or cash flow.
(ii) Functional and presentation currency
The standalone financial statements are presented in Indian Rupees (INR). All financial information presented in Indian rupees have been rounded-off to two decimal places to the nearest lakh except share data or as otherwise stated.
(iii) Basis of measurement
The Standalone financial statements have been prepared on the historical cost basis except for the following items:
- Certain financial assets and liabilities : Measured at fair value
- Net defined benefit (asset)/ liability : Fair value of plan assets less present value of defined benefit obligations
- Borrowings : Amortised cost using effective interest rate method
(iv) Use of estimates and judgements
"In preparation of the Standalone financial statements, the Company makes judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and the associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.The estimates and the underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected. The areas involving significant judgements and estimates are estimation of useful lives of property, plant and
equipment and intangible assets, impairment of property, plant and equipment and intangible assets, provision for employee benefits and other provisions, contingent liabilities and recoverability of deferred tax assets."
Assumptions and estimation uncertainties
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following notes:
- Determining an asset''s expected useful life and the expected residual value at the end of its life;
- Impairment of financial assets;
- Measurement of defined benefit obligations: key actuarial assumptions;
- Recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow of resources;
- Recognition of tax expense including deferred tax.
Company accounting polices and disclosures require measurement of fair value for both financial and non-financial assets.
"Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: - In the principal market for the asset or liability; or -In the absence of a principal market, in the most advantageous market for the asset or liability."
The principal or the most advantageous market must be accessible by the Company. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.
The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows :
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: inputs other than quoted prices included in 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 asset or liability that are not based on observable market data (unobservable inputs).
When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. If the inputs used to measure the fair value of an asset or a
liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
Further information about the assumptions made in measuring fair values is included Note 35 - Financial instruments
(v) Current and non-current classification:
Based on the time involved between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities in the Balance sheet.
(vi) Fair value measurement:
The Company measures certain financial instruments at fair value at each reporting date. Certain accounting policies and disclosures require the measurement of fair values, for both financial and nonfinancial asset and liabilities. Fair value is the price that would be received to sell an asset or paid to settle a liability in an ordinary transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumption that market participants would use when pricing an asset or liability acting in their best economic interest. The Company uses valuation techniques, which are appropriate in circumstances and for which sufficient data is available considering the expected loss/ profit in case of financial assets or liabilities.
2 Summary of Material accounting policies
A Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment net of taxes or duties collected on behalf of the government.
(i) Trading and Brokerage Income
Trading income is recognized when a legally binding contract is executed. Brokerage income and transaction charges are recognized on the trade date of the transaction upon confirmation of the transaction by the exchanges.
(ii) Other Income
(a) Interest and Dividend Income - Interest income is recognized using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. While calculating the effective interest rate, the Company estimates the expected cash flows by considering all the contractual terms of the financial instruments but does not consider the expected credit losses. Dividends are recognized in the statement of profit and loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably."
(b) Depository transaction charges - Depository transaction charges are recognized on completion of respective transaction. Annual maintenance charges for depository accounts are accounted as and when the services are rendered.
(c) Income from portfolio management fees - Income from portfolio management fees are recognized on the basis of agreements entered into with the clients and when the right to receive income is established.
B Property, plant and equipment (PPE)
Property, plant and equipment are carried at acquisition cost less accumulated depreciation and accumulated impairment losses, if any. The acquisition cost for this purpose includes the purchase price (net of duties and taxes which are recoverable in future) and expenses directly attributable to the asset to bring it to the site and in the working condition for its intended use. Subsequent costs are included in the asset''s carrying amount or recognised 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. All other repairs and maintenance are charged to statement of profit and loss during the reporting period in which they are incurred.An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from its use. Difference between the sales proceeds and the carrying amount of the asset is recognized in the statement of profit and loss.
C Intangible Assets
Intangible assets (software) are stated in the balance sheet at their carrying value being the cost of acquisition less accumulated depreciation. The cost comprises purchase price and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.
D Depreciation and Amortisation
Depreciation on property, plant and equipment is provided on written down value method, computed on the basis of useful lives as estimated by management which coincides with rates prescribed in Schedule II to the Companies Act, 2013.Intangible assets are amortised on written down value method computed on the basis of useful lives as estimated by management. The residual values, useful lives and method of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.
|
Particulars |
Asset class |
Useful life (In years) |
|
Property, Plant and Equipment |
Buildings |
60 |
|
Furniture and fixtures |
10 |
|
|
Office equipment |
10 |
|
|
Computers and Data Processing Units |
6 |
|
|
Motor Vehicles |
8 |
|
|
Intangible Assets |
Computer Software |
3 |
At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If, at the reporting date there is an indication that a previously assessed impairment loss no longer exists,the recoverable amount is reassessed, and the asset is reflected at the recoverable amount.Impairment losses previously recognized are accordingly reversed in the statement of profit and loss.
The Company applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets.The Company recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.
(i) Right-of-Use Assets
The Company recognises right-of-use assets (âROU Assetsâ) at the commencement date of the ease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets. If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset. The right-of use assets are also subject to impairment. ROU asset shall be separately presented in the Balance Sheet and lease payments shall be classified as financing cash flows. Refer to the accounting policies in Section (E) Impairment of non-financial assets.
(ii) Lease liabilities
The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rates in the country of domicile of the leases. Lease liabilities are re-measured with a corresponding adjustment to the related right of use asset if the Company changes its assessment if whether it will exercise an extension or a termination option. Lease liability shall be separately presented in the Balance Sheet and lease payments shall be classified as financing cash flows.
G Employee benefits:
Short-term employee benefitsWages and salaries, including non-monetary benefits that are expected to be settled within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
Defined benefit plan - Gratuity obligationThe liability or assets recognized in the balance sheet in respect of gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows by reference to market yields at the end of the reporting period on government bonds that have terms approximating to the terms of the related obligation. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This cost is included in employee benefit expense in the statement of profit and loss.Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognized in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments are recognized immediately in profit or loss. The gratuity liability is covered through a recognized Gratuity Fund managed by Life Insurance Corporation of India and the contributions made under the scheme are charged to Statement of Profit and Loss."
Defined contribution plansContributions to post employment benefit plans in the form of provident funs, employee state insurance scheme and pension scheme as per regulations are charged as an expense on accrual basis when employees have rendered the service. The Company has no further payment obligations once the contributions have been paid.
H Tax expenses
Accounting treatment in respect of deferred taxation and current tax is in accordance with Indian Accounting Standard 12 (Ind AS 12) - "Income Taxesâ.
Tax expense for the year comprises current and deferred tax.
Current Tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income-tax Act, 1961 and other applicable tax laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Standalone financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary differences arise from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit.
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 and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Tax relating to items recognized directly in equity or other comprehensive income is recognised in equity or other comprehensive income and not in the Statement of Profit and Loss.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they are related to income taxes levied by the same tax authority, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realized simultaneously.
I Cash and cash equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financialinstitutions, 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.
J Employee share based payments:
Equity- settled share-based payments to employees are measured at the fair value of the employee stock options at the grant date. The fair value determined at the grant date of the equity-settled share-based payments is amortised over the vesting period, based on the Company''s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in the statement of profit and loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.
K Earnings Per Share
Basic Earnings Per Share (âEPS'') is computed by dividing the net profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the year, unless issued at a later date. In computing diluted earnings per share, only potential equity shares that are dilutive and that either reduces earnings per share or increases loss per share are included.
L Provisions, Contingent liabilities and Contingent assets
The Company recognises provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognised in the Statement of Profit and Loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to the reflect the current best estimate.A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent Liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.Contingent assets are not recognized in Standalone financial statements since this may result in the recognition of income that may never be realised.
A financial instrument is any contract that gives rise to a Financial Asset of one entity and Financial liability or equity instrument of another entity.
(i) Initial measurement and recognition :
The Company recognizes financial assets when it becomes a party to the contractual provisions of the instrument. All financial assets are recognized at fairvalue on initial recognition. Transaction costs that are directly attributable to the acquisition of financial assets that are not at fair value through profit or loss, are added to the fair value on initial recognition. Transaction costs of financial assets carried at fair value through profit and loss are expensed in the statement of profit and loss. Regular way purchase and sale of financial assets are accounted for at trade date.
(ii) Subsequent measurement :
(a) ''Debt instruments at amortized cost - A âdebt instrument'' is measured at the amortized cost if both the following conditions are met: (i) The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and (ii) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding."
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.
(b) Equity investments - All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are generally classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an instrument by instrument basis. The classificationis made on initial recognition and is irrevocable.
(c) Mutual funds - All mutual funds in scope of Ind-AS 109 are measured at fair value through profit and loss (FVTPL).
(i) Initial measurement and recognition
The Company recognizes financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial liabilities are recognized at fair value on initial recognition. Transaction costs that are directly attributable to the issue of financial liabilities, that are not at fair value through profit or loss, are reduced from the fair value on initial recognition. Transaction costs that are directly attributable to the issue of financial liabilities at fair value through profit and loss are expensed in the statement of profit and loss.
(ii) Subsequent measurement
These liabilities include borrowings and deposits. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in the statement of profit and loss when the liabilities are de-recognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
Derecognition - Financial assets
A Financial asset is primarily derecognised when the right to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.
If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets, the transferred assets are not derecognised.
Derecognition - Financial liabilities
The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expired.
The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in profit or loss.
Financial Instruments Offsetting
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if there is a currently and legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of Schedule III, unless otherwise stated.
Dividends paid (including income tax thereon) is recognised in the period in which the interim dividends are approved by the Board of Directors, or in respect of the final dividend when approved by shareholders.
P Recent accounting pronouncements
Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2025, MCA has not notified any new standards or amendments to the existing standards appliable to the Company.
Mar 31, 2024
1. Corporate Information:
B.N.Rathi Securities Limited (âBNRSLâ or âthe Companyâ) is a listed public company domiciled in India and is incorporated under the Companies Act, 1956 (âthe Actâ) on September 30, 1985. The registered office of the company is located at 6-3-652, IV Floor, Kautilya Amrutha Estates, Somajiguda, Hyderabad, Telangana - 500082.
The Company is primarily engaged in the business of broking in securities. The Company also deals in depository operations and institutional equities. The Company is listed on Bombay Stock Exchange Limited (âBSEâ).
2. Significant Accounting Policies:
This note provides a list of the significant accounting policies adopted in the preparation of these separate financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
These separate financial statements are prepared in accordance with Ind AS under the historical cost convention on accrual basis except for certain financials instruments which are measured at fair value, the provisions of the Companies Act, 2013 (to the extent notified). The Ind AS are prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015.
Accounting policies have been consistently applied except where the change is required by an Ind AS or change results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or condition on the entity''s financial position, performance or cash flow.
b) Use of estimates and judgements:
The preparation of the financial statements in conformity with Ind AS required management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Difference between the actual results and estimates are recognized in the year in which results are known/materialized.
Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment net of taxes or duties collected on behalf of the government.
The specific recognition criteria described below must also be met before revenue is recognized.
Trading income is recognized when a legally binding contract is executed.
Brokerage income and transaction charges are recognized on the trade date of the transaction upon confirmation of the transaction by the exchanges.
Interest income is recognized using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. While calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instruments but does not consider the expected credit losses.
Depository transaction charges are recognized on completion of respective transaction. Annual maintenance charges for depository accounts are accounted as and when the services are rendered.
Income from portfolio management fees are recognized on the basis of agreements entered into with the clients and when the right to receive income is established.
Dividends are recognized in the statement of profit and loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the company and the amount of the dividend can be measured reliably.
The Company measures certain financial instruments at fair value at each reporting date.
Certain accounting policies and disclosures require the measurement of fair values, for both financial and nonfinancial asset and liabilities.
Fair value is the price that would be received to sell an asset or paid to settle a liability in an ordinary transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumption that market participants would use when pricing an asset or liability acting in their best economic interest. The Company uses valuation techniques, which are appropriate in circumstances and for which sufficient data is available considering the expected loss/ profit in case of financial assets or liabilities.
e) Property, plant and equipment:i. Recognition and initial measurement:
Property, plant and equipment are stated in the balance sheet at their carrying value being the cost of acquisition less accumulated depreciation. The costcomprises purchase price, borrowing costif capitalization criteria are met and directly attributable cost of bringing the asset to itsworking condition for the intended use. Anytrade discount and rebates are deducted inarriving at the purchase price.
Subsequent costs are included in the asset''scarrying amount or recognized as a separateasset, as appropriate, only when it is probablethat future economic benefits associated withthe item will flow to the Company. All otherrepair and maintenance costs are recognized in statement of profit or loss as incurred.
ii. Depreciation, estimated useful lives and residual value:
Depreciation on property, plant andequipment is provided on written down value method, computed on the basis of usefullives as estimated by management whichcoincides with rates prescribed in Schedule IIto the Companies Act, 2013.
The residual values, useful lives and methodof depreciation are reviewed at eachfinancial year end and adjusted prospectively,if appropriate.
An item of property, plant and equipmentand any significant part initially recognized is derecognized upon disposal or when nofuture economic benefits are expected fromits use or disposal. Any gain or loss arising onde-recognition of the asset (calculated as thedifference between the net disposal proceedsand the carrying amount of the asset) isincluded in the income statement when theasset is de-recognized.
On transition to Ind AS, the company haselected to continue with the carrying valueof all its property, plant and equipmentrecognized as at April 01, 2016 measured asper the provisions of Previous GAAP and usethat carrying value as the deemed cost ofproperty, plant and equipment.
i. Recognition and initial measurement:
Intangible assets (software) are stated in the balance sheet at their carrying value being the cost of acquisition less accumulated depreciation. The costcomprises purchase price, borrowing costif capitalization criteria are met and directly attributable cost of bringing the asset to itsworking condition for the intended use. Anytrade discount and rebates are deducted inarriving at the purchase price.
ii. Amortization and estimated useful lives:
Amortization on intangible assets is provided on written down value method, computed on the basis of usefullives as estimated by management whichcoincides with rates prescribed in Schedule IIto the Companies Act, 2013.
The residual values, useful lives and methodof depreciation of are reviewed at eachfinancial year end and adjusted prospectively,if appropriate.
On transition to Ind AS, the company haselected to continue with the carrying valueof all its intangible assetsrecognized as at April 01, 2016 measured asper the provisions of Previous GAAP and usethat carrying value as the deemed cost ofintangible assets.
At each reporting date, the Companyassesses whether there is any indicationthat an asset may be impaired, based oninternal or external factors. If any suchindication exists, the Company estimates the recoverable amount of the asset or the cashgenerating unit. If such recoverable amountof the asset or cash generating unit to whichthe asset belongs is less than its carryingamount, the carrying amount is reduced to itsrecoverable amount. The reduction is treatedas an impairment loss and is recognized in thestatement of profit and loss. If, at the reportingdate there is an indication that a previouslyassessed impairment loss no longer exists,the recoverable amount is reassessed, and theasset is reflected at the recoverable amount.
Impairment losses previously recognizedare accordingly reversed in the statement ofprofit and loss.
The Company assesses at contract inception whether acontract is, or contains, a lease. That is, if the contractconveys the right to control the use of an identifiedasset for a period of time in exchange for consideration.
Company as a lessee
The Company applies a single recognition andmeasurement approach for all leases, except forshort-term leases and leases of low-value assets.The Company recognises lease liabilities to make leasepayments and right-of-use assets representing theright to use the underlying assets.
The Company recognises right-of-use assets (âRoUAssetsâ) at the commencement date of the ease(i.e., the date the underlying asset is available foruse). Right-of-use assets are measured at cost, lessany accumulated depreciation and impairmentlosses, and adjusted for any remeasurement oflease liabilities. The cost of right-of-use assetsincludes the amount of lease liabilities recognised,initial direct costs incurred, and lease paymentsmade at or before the commencement date lessany lease incentives received. Right-of-use assetsare depreciated on a straight-line basis over theshorter of the lease term and the estimated usefullives of the assets.If ownership of the leased asset transfers tothe Company at the end of the lease term or thecost reflects the exercise of a purchase option,depreciation is calculated using the estimateduseful life of the asset. The right-of-use assetsare also subject to impairment. Refer to theaccounting policies in Section (g) Impairment ofnon-financial assets.
At the commencement date of the lease,the Company recognises lease liabilities measuredat the present value of lease payments to be madeover the lease term. The lease payments includefixed payments (including in substance fixedpayments) less any lease incentives receivable,variable lease payments that depend on an indexor a rate, and amounts expected to be paid underresidual value guarantees. The lease paymentsalso include the exercise price of a purchaseoption reasonably certain to be exercised bythe
Company and payments of penalties forterminating the lease, if the lease term reflectsthe Company exercising the option to terminate.Variable lease payments that do not depend onan index or a rate are recognised as expenses(unless they are incurred to produce inventories)in the period in which the event or condition thattriggers the payment occurs.In calculating the present value of lease payments,the Company uses its incremental borrowing rateat the lease commencement date because theinterest rate implicit in the lease is not readilydeterminable. After the commencement date, theamount of lease liabilities is increased to reflectthe accretion of interest and reduced for the leasepayments made. In addition, the carrying amountof lease liabilities is remeasured if there is amodification, a change in the lease term, a changein the lease payments (e.g., changes to futurepayments resulting from a change in an indexor rate used to determine such lease payments)or a change in the assessment of an option topurchase the underlying asset. Lease liabilities hasbeen presented under the head âOther FinancialLiabilitiesâ. Lease liabilities has been presentedunder the head âOther Financial Liabilitiesâ.
(iii) Short-term leases and leases of low-value assets
The Company applies the short-term leaserecognition exemption to its short-term leases(i.e., those leases that have a lease term of 12months or less from the commencement dateand do not contain a purchase option). It alsoapplies the lease of low-value assets recognitionexemption that are considered to be low value.Lease payments on short-term leases and leasesof low-value assets are recognised as expense ona straight-line basis over the lease term.
i) Financial Instruments:a. Financial Assets
Initial recognition and measurement
The company recognizes financial assets when it becomes a party to the contractual provisions of the instrument. All financial assets are recognized at fairvalue on initial recognition. Transaction costs that are directly attributable to the acquisition of financial assets that are not at fair value through profit or loss, are added to the fair value on initial recognition. Transaction costs of financial assets carried at fair value through profit and loss are expensed in the statement of profit and loss. Regular way purchase and sale of financial assets are accounted for at trade date.
a. Debt instruments at amortized cost - A âdebt instrument'' is measured at the amortized cost ifboth the following conditions are met:
⢠The asset is held within a business modelwhose objective is to hold assets for collectingcontractual cash flows, and
⢠Contractual terms of the asset give rise onspecified dates to cash flows that are solelypayments of principal and interest (SPPI) onthe principal amount outstanding.
After initial measurement, such financial assetsare subsequently measured at amortized costusing the effective interest rate (EIR) method.
b. Equity investments - All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are generally classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an instrument by instrument basis. The classificationis made on initial recognition and is irrevocable.
c. Mutual funds - All mutual funds in scope of Ind-AS 109 are measured at fair value through profit andloss (FVTPL).
Investments in subsidiaries, associates and joint ventures
Investment in subsidiaries, associates and joint ventures is carried at cost in the separate financials statements.
De-recognition of financials assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of a similar financial asset) is primarily de-recognized (i.e., removed from the company''s separate balance sheet) when:
⢠The rights to receive cash flows from the asset have expired, or
⢠The company has transferred its rights to receive cash flows from the asset.
b. Financial LiabilitiesInitial recognition and measurement
The company recognizes financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial liabilities are recognized at fairvalue on initial recognition. Transaction costs that are directly attributable to the issue of financial liabilities, that are not at fair value through profit or loss, are reduced from the fair value on initial recognition. Transaction costs that are directly attributable to the issue of financial liabilities at fair value through profit and loss are expensed in the statement of profit and loss.
These liabilities include borrowings and deposits. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in the statement of profit and loss when the liabilities are de-recognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
De-recognition of financial liabilities
A financial liability is de-recognized when the obligationunder the liability is discharged or cancelled orexpires. When an existing financial liability is replacedby another from the same lender on substantiallydifferent terms, or the terms of an existing liabilityare substantially modified, such an exchange ormodification is treated as the de-recognition of theoriginal liability and the recognition of a new liability.The difference in the respective carrying amounts isrecognized in the statement of profit or loss.
c. Offsetting financials instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying asset are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
k) Employee Benefits:a. Short-term benefit plans
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized and measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
The company pays provident fund contributions to publicly administered provident funds as per local regulations. The company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. Prepaid contributions, if any, are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
The company''s gratuity plan is a defined benefit plan. The present value of gratuity obligation under such defined benefit plans is determined based on actuarial valuations carried out by an independent actuary using the Projected Unit Credit Method [PUCM], which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on government securities as at the balance sheet date, having maturity periods approximately to the terms of related obligations. Actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
The company has subscribed to a group gratuity scheme of Life Insurance Corporation [LIC]. Under the said policy, theeligible employees are entitled for gratuityupon their resignation, retirement or in theevent of death in lumpsum after deductionof necessary taxes upto a maximum limit of liabilities in respect of the Gratuity Planare determined by an actuarial valuation,based upon which the Company makescontributions to the Gratuity Fund.
Tax expense recognized in statement of profitor loss comprises the sum of deferred taxand current tax except the ones recognizedin other comprehensive income or directly inequity.
Calculation of current tax is based on tax ratesand tax laws that have been enacted for thereporting period. Current income tax relatingto items recognized outside profit or loss isrecognized outside profit or loss (either inother comprehensive income or in equity).Current tax items are recognized in correlationto the underlying transaction either in othercomprehensive income or directly in equity.
Deferred tax is provided using the liability methodon temporary differences between the tax basesof assets and liabilities and their carrying amountsfor financial reporting purposes at the reportingdate. Deferred tax assets are recognized to theextent that it is probable that the underlyingtax loss or deductible temporary difference willbe utilized against future taxable income. Thisis assessed based on the Company''s forecast offuture operating results, adjusted for significantnon-taxable income and expenses and specificlimits on the use of any unused tax loss or credit.The carrying amount of deferred tax assets isreviewed at each reporting date and reducedto the extent that it is no longer probable thatsufficient taxable profit will be available to allowall or part of the deferred tax asset to be utilized.Un-recognized deferred tax assets are re-assessedat each reporting date and are recognized to theextent that it has become probable that futuretaxable profits will allow the deferred tax asset tobe recovered. Deferred tax assets and liabilitiesare measured at the tax rates that are expectedto apply in the year when the asset is realized, orthe liability is settled, based on tax rates (and taxlaws) that have been enacted or substantivelyenacted at the reporting date. Deferred taxrelating to items recognized outside profit or lossis recognized outside profit or loss (either in othercomprehensive income or in equity).
m) Provisions, contingent liabilities and contingent assets:
Provisions are recognized only when thereis a present obligation, as a result of pastevents, and when a reliable estimate of theamount of obligation can be made at thereporting date. These estimates are reviewedat each reporting date and adjusted to reflectthe current best estimates. Provisions arediscounted to their present values, where thetime value of money is material.
Contingent liability is disclosed for:
⢠Possible obligations which will beconfirmed only by future events not whollywithin the control of the Company or
⢠Present obligations arising from pastevents where it is not probable that anoutflow of resources will be required tosettle the obligation or a reliable estimateof the amount of the obligation cannotbe made.
Contingent assets are neither recognizednor disclosed. However, when realization ofincome is virtually certain, related asset isrecognized.
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.
Cash flows are reported using the indirect method, whereby net profit/(loss) before tax is adjusted for the effects of transactions of a 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.
Basic earnings per share is calculated bydividing the net profit or loss for the periodattributable to equity shareholders (afterdeducting attributable taxes) by the weightedaverage number of equity shares outstandingduring the period. The weighted averagenumber of equity shares outstanding duringthe period is adjusted for events including abonus issue.
For calculating diluted earningsper share, the net profit or loss for the periodattributable to equity shareholders and theweighted average number of shares outstandingduring the period are adjusted for the effects ofall dilutive potential equity shares.
Mar 31, 2019
1. Significant Accounting Policies:
This note provides a list of the significant accounting policies adopted in the preparation of these separate financial statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
a) Basis of preparation:
These separate financial statements are prepared in accordance with Ind AS under the historical cost convention on accrual basis except for certain financials instruments which are measured at fair value, the provisions of the Companies Act, 2013 (to the extent notified). The Ind AS are prescribed under Section 133 of the Act read with Companies (Indian Accounting Standards) Rules, 2015.
Accounting policies have been consistently applied except where the change is required by an Ind AS or change results in the financial statements providing reliable and more relevant information about the effects of transactions, other events or condition on the entityâs financial position, performance or cash flow.
b) Use of estimates and judgements:
The preparation of the financial statements in conformity with Ind AS required management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Difference between the actual results and estimates are recognized in the year in which results are known/materialized.
Although these estimates are based upon managementâs best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.
c) Fair value measurement:
The Company measures certain financial instruments at fair value at each reporting date.
Certain accounting policies and disclosures require the measurement of fair values, for both financial and nonfinancial asset and liabilities.
Fair value is the price that would be received to sell an asset or paid to settle a liability in an ordinary transaction between market participants at the measurement date. The fair value of an asset or a liability is measured using the assumption that market participants would use when pricing an asset or liability acting in their best economic interest. The Company uses valuation techniques, which are appropriate in circumstances and for which sufficient data is available considering the expected loss/ profit in case of financial assets or liabilities.
d) Property, plant and equipment:
i. Recognition and initial measurement:
Property, plant and equipment are stated in the balance sheet at their carrying value being the cost of acquisition less accumulated depreciation. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.
Subsequent costs are included in the assetâs 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. All other repair and maintenance costs are recognized in statement of profit or loss as incurred.
ii. Depreciation, estimated useful lives and residual value:
Depreciation on property, plant and equipment is provided on written down value method, computed on the basis of useful lives as estimated by management which coincides with rates prescribed in Schedule II to the Companies Act, 2013.
The residual values, useful lives and method of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.
iii. De-recognition:
An item of property, plant and equipment and any significant part initially recognized is de-recognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the income statement when the asset is derecognized.
iv. Transition to Ind AS:
On transition to Ind AS, the company has elected to continue with the carrying value of all its property, plant and equipment recognized as at April 01, 2016 measured as per the provisions of Previous GAAP and use that carrying value as the deemed cost of property, plant and equipment.
e) Intangible Assets:
i. Recognition and initial measurement:
Intangible assets (software) are stated in the balance sheet at their carrying value being the cost of acquisition less accumulated depreciation. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discount and rebates are deducted in arriving at the purchase price.
ii. Amortization and estimated useful lives:
Amortization on intangible assets is provided on written down value method, computed on the basis of useful lives as estimated by management which coincides with rates prescribed in Schedule II to the Companies Act, 2013.
The residual values, useful lives and method of depreciation of are reviewed at each financial year end and adjusted prospectively, if appropriate.
iii. Transition to Ind AS:
On transition to Ind AS, the company has elected to continue with the carrying value of all its intangible assets recognized as at April 01, 2016 measured as per the provisions of Previous GAAP and use that carrying value as the deemed cost of intangible assets.
g) Impairment of assets:
At each reporting date, the Company assesses whether there is any indication that an asset may be impaired, based on internal or external factors. If any such indication exists, the Company estimates the recoverable amount of the asset or the cash generating unit. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If, at the reporting date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed, and the asset is reflected at the recoverable amount.
Impairment losses previously recognized are accordingly reversed in the statement of profit and loss.
h) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment net of taxes or duties collected on behalf of the government.
The specific recognition criteria described below must also be met before revenue is recognized.
Trading income is recognized when a legally binding contract is executed.
Brokerage income and transaction charges are recognized on the trade date of the transaction upon confirmation of the transaction by the exchanges.
Interest income is recognized using the effective interest rate method. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the gross carrying amount of a financial asset. While calculating the effective interest rate, the company estimates the expected cash flows by considering all the contractual terms of the financial instruments but does not consider the expected credit losses.
Depository transaction charges are recognized on completion of respective transaction. Annual maintenance charges for depository accounts are accounted as and when the services are rendered.
Income from portfolio management fees are recognized on the basis of agreements entered into with the clients and when the right to receive income is established.
Dividends are recognized in the statement of profit and loss only when the right to receive payment is established, it is probable that the economic benefits associated with the dividend will flow to the company and the amount of the dividend can be measured reliably.
i) Leases:
Where the lessor effectively retains all risk and benefits of ownership of the leased items, such leases are classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis.
j) Financial Instruments:
a. Financial Assets
Initial recognition and measurement
The company recognizes financial assets when it becomes a party to the contractual provisions of the instrument. All financial assets are recognized at fair value on initial recognition. Transaction costs that are directly attributable to the acquisition of financial assets that are not at fair value through profit or loss, are added to the fair value on initial recognition. Transaction costs of financial assets carried at fair value through profit and loss are expensed in the statement of profit and loss. Regular way purchase and sale of financial assets are accounted for at trade date.
Subsequent measurement
a. Debt instruments at amortized cost - A âdebt instrumentâ is measured at the amortized cost if both the following conditions are met:
- The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
- Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (EIR) method.
b. Equity investments - All equity investments in scope of Ind-AS 109 are measured at fair value. Equity instruments which are held for trading are generally classified as at fair value through profit and loss (FVTPL). For all other equity instruments, the Company decides to classify the same either as at fair value through other comprehensive income (FVOCI) or fair value through profit and loss (FVTPL). The Company makes such election on an instrument by instrument basis. The classification is made on initial recognition and is irrevocable.
c. Mutual funds - All mutual funds in scope of Ind-AS 109 are measured at fair value through profit and loss (FVTPL).
Investments in subsidiaries, associates and joint ventures
Investment in subsidiaries, associates and joint ventures is carried at cost in the separate financials statements.
De-recognition of financials assets
A financial asset (or, where applicable, a part of a financial asset or part of a group of a similar financial asset) is primarily de-recognized (i.e., removed from the companyâs separate balance sheet) when:
- The rights to receive cash flows from the asset have expired, or
- The company has transferred its rights to receive cash flows from the asset.
b. Financial Liabilities
Initial recognition and measurement
The company recognizes financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial liabilities are recognized at fair value on initial recognition. T ransaction costs that are directly attributable to the issue of financial liabilities, that are not at fair value through profit or loss, are reduced from the fair value on initial recognition. Transaction costs that are directly attributable to the issue of financial liabilities at fair value through profit and loss are expensed in the statement of profit and loss.
Subsequent measurement
These liabilities include borrowings and deposits. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the effective interest rate (EIR) method. Gains and losses are recognized in the statement of profit and loss when the liabilities are de-recognized as well as through the EIR amortization process.
Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.
De-recognition of financial liabilities
A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.
c. Offsetting financials instruments
Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the group or the counterparty.
k) Borrowing costs:
General and specific borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset are capitalized during the period of time that is required to complete and prepare the asset for its intended use or sale. Qualifying asset are assets that necessarily take a substantial period of time to get ready for their intended use or sale.
Other borrowing costs are expensed in the period in which they are incurred.
l) Employee Benefits:
a. Short-term benefit plans
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognized and measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.
b. Defined contribution plans
The company pays provident fund contributions to publicly administered provident funds as per local regulations. The company has no further payment obligations once the contributions have been paid. The contributions are accounted for as defined contribution plans and the contributions are recognized as employee benefit expense when they are due. Prepaid contributions, if any, are recognized as an asset to the extent that a cash refund or a reduction in the future payments is available.
c. Defined benefit plans
The companyâs gratuity plan is a defined benefit plan. The present value of gratuity obligation under such defined benefit plans is determined based on actuarial valuations carried out by an independent actuary using the Projected Unit Credit Method [PUCM], which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit separately to build up the final obligation. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on government securities as at the balance sheet date, having maturity periods approximately to the terms of related obligations. Actuarial gains and losses are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.
The company has subscribed to a group gratuity scheme of Life Insurance Corporation [LIC]. Under the said policy, the eligible employees are entitled for gratuity upon their resignation, retirement or in the event of death in lumpsum after deduction of necessary taxes upto a maximum limit of liabilities in respect of the Gratuity Plan are determined by an actuarial valuation, based upon which the Company makes contributions to the Gratuity Fund.
m) Income Taxes:
Tax expense recognized in statement of profit or loss comprises the sum of deferred tax and current tax except the ones recognized in other comprehensive income or directly in equity.
Calculation of current tax is based on tax rates and tax laws that have been enacted for the reporting period. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity.
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax assets are recognized to the extent that it is probable that the underlying tax loss or deductible temporary difference will be utilized against future taxable income. This is assessed based on the Companyâs forecast of future operating results, adjusted for significant non-taxable income and expenses and specific limits on the use of any unused tax loss or credit. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized, or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss (either in other comprehensive income or in equity).
n) Provisions, contingent liabilities and contingent assets:
Provisions are recognized only when there is a present obligation, as a result of past events, and when a reliable estimate of the amount of obligation can be made at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material.
Contingent liability is disclosed for:
- Possible obligations which will be confirmed only by future events not wholly within the control of the Company or
- Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
Contingent assets are neither recognized nor disclosed. However, when realization of income is virtually certain, related asset is recognized.
o) Cash and cash equivalents:
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.
p) Cash flow statement:
Cash flows are reported using the indirect method, whereby net profit/(loss) before tax is adjusted for the effects of transactions of a 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.
q) Earnings per share:
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue.
For calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2017
1. Corporate Information:
B.N.Rathi Securities Limited (âBNRSLâ or âthe Companyâ) was incorporated under the Companies Act, 1956 (âthe Actâ) on September 30, 1985.
The Company is primarily engaged in the business of broking in securities. The Company also deals in depository operations and institutional equities. The Company is listed on Bombay Stock Exchange Limited (âBSEâ).
Basis of preparation of financial statements
The financial statements are prepared with generally accepted accounting principles in India under the historical cost convention and on an accrual basis of accounting.
These financial statements are prepared in accordance with Indian Accounting Standards (AS) under the historical cost convention on the accrual basis, the provisions of the Companies Act, 2013 (''Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI) and pronouncements of The Institute of Chartered Accountants of India (''ICAI'').
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
2. Significant Accounting Policies:
Use of estimates
The preparation of Financial Statements requires estimates and assumptions to be made that affect 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 year in which results are known / materialized.
Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.
a) Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
Income from Brokerage
Brokerage income on securities is recognized as per contracted rates at the execution of transactions on behalf of the clients on the trade date
Other operating revenue
Other operating revenue includes income from business related to brokerage and is recognized based on the terms agreed with the clients when the services are rendered.
Interest income:
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head âOther incomeâ in the statement of profit and loss.
Dividends
Dividend income is recognized when the unit holder''s right to receive dividend is established by the reporting date.
b) Property, plant and equipment
Tangible Assets:
Property, plant and equipment are stated at cost less accumulated depreciation and impairment. Subsequent expenditure related to items of Property, plant and equipment is added to its book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance. Losses arising from the retirement of, and gains or losses arising from disposal of tangible assets which are carried at cost are recognized in the Statement of Profit and Loss.
Intangible Assets:
Intangible Assets are recognized only if it is probable that the future economic benefits that are attributable to assets will flow to the enterprise and the cost of the assets can be measured reliably. Intangible assets are recorded at cost and carried at cost less accumulated amortization and impairment. Intangible assets are amortized over their estimated useful lives.
c) Depreciation and Amortization
Depreciation and Amortization on Property, plant and equipment is provided on Written down value method at the rates specified in Schedule II of the Companies Act, 2013 on prorata basis.
Individual Property, plant and equipment costing Rs. 5,000 and below are fully depreciated in the year of purchase.
d) Employee Benefits Provident Fund:
Contributions paid/ payable under defined contribution plans are recognized in the Statement of Profit and Loss in each year. Contribution plans primarily consists of Provident Fund administered and managed by the Government of India. The Company makes monthly contributions and has no further obligations under the plan beyond its contributions. Gratuity:
The Company operates a defined benefit plan for its employees, viz., gratuity. The cost of providing benefits under this plan is determined on the basis of actuarial valuation at each year-end. Actuarial valuation is carried out for the plan using the projected unit credit method. Actuarial gains and losses for the defined benefit plan are recognized in full in the period in which it occurs in the statement of profit and loss.
e) Leases
Assets acquired under Leases where a significant portion of the risks and rewards of the ownership are retained by the lessor are classified as Operating Leases. The rentals and all the other expenses of assets under operating lease for the period are treated as revenue expenditure.
f) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
g) Taxation:
(i) Current tax is determined based on the amount of tax payable in respect of taxable income for the year.
(ii) Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax asset, on timing differences, being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent years. Deferred Tax Assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
(iii) Provision for taxation for the period(s) is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961.
(iv) 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. At each Balance Sheet date, the Company re-assesses unrecognized deferred tax assets, if any.
(v) Current tax assets and liabilities are offset when there is a legally enforceable right to set off the recognized amount and there is intention to settle the assets and the liabilities on a net basis.
(vi) Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off assets against liabilities representing the current tax and where the deferred tax and liabilities relate to taxes on income levied by the same governing taxation laws.
h) Provisions
A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
i) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
j) Impairment
Assets are reviewed for impairment at each balance sheet date. In case, events and circumstances indicate any impairment, the recoverable amount of these assets is determined. An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the period in which an asset is defined as impaired. An impairment loss recognized in prior accounting periods is adjusted/ reversed if there has been a change in the estimate of the recoverable amount and such loss either no longer exists or has decreased.
k) Dividends
Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company''s Board of Directors.
l) Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.
1. Corporate Information:
B.N. Rathi Comtrade Private Limited (âBNRCPLâ or âthe Companyâ) was incorporated under the Companies Act, 1956 (âthe Actâ) on July 10, 2008.
The Company is primarily engaged in the business of broking in commodities.
Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reported year. Actual results could differ from those estimates.
2. Significant Accounting Policies:
Basis of preparation of financial statements
The financial statements are prepared in line with the generally accepted accounting principles in India under the historical cost convention and on an accrual basis of accounting. These financial statements are prepared in accordance with Indian Accounting Standards (AS) under the historical cost convention on the accrual basis, the provisions of the Companies Act , 2013 (''Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI) and pronouncements of The Institute of Chartered Accountants of India (''ICAI'').
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
a) Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:
Income from Brokerage
Brokerage income on commodities broking business is recognized as per contracted rates at the execution of transactions on behalf of the clients on the trade date.
Interest income:
Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head âOther incomeâ in the statement of profit and loss.
b) Property, plant and equipment Tangible assets:
Tangible Property, plant and equipment are stated at cost less accumulated depreciation. Cost comprises purchase price and other costs attributable for bringing the asset to its working condition for its intended use.
c) Depreciation
Depreciation on Property, plant and equipment is provided on Straight line method at the rates specified in Schedule II of the Companies Act, 2013 on pro-rata basis. Individual Fixed Assets costing Rs.5,000 and below are fully depreciated in the year of purchase.
d) Investments
Investments are classified into current and long term 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 recognize a decline, other than temporary, separately for each individual long term investments. Investments that are readily realizable and are intended to be held for not more than one year from the date on which such investments are made, are classified as âCurrent investmentsâ. All other investments are classified as âLong-term investmentsâ.
e) Leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating leases.
f) Earnings per share
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.
g) Taxation:
(i) Current tax is determined based on the amount of tax payable in respect of taxable income for the year.
(ii) Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax asset, on timing differences, being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent years. Deferred Tax Assets are recognized and carried forward only to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
(iii) Provision for taxation for the period(s) is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income Tax Act, 1961.
(iv) 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. At each Balance Sheet date, the Company re-assesses unrecognized deferred tax assets, if any.
(v) Current tax assets and liabilities are offset when there is a legally enforceable rights to set off the recognized amount and there is intention to settle the assets and the liabilities on a net basis.
(vi) Deferred tax assets and liabilities are offset when there is a legally enforceable rights to set off assets against liabilities representing the current tax and where the deferred tax and liabilities relate to taxes on income levied by the same governing taxation laws.
h) Provisions
A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
i) Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
j) Impairment
Assets are reviewed for impairment at each balance sheet date. In case, events and circumstances indicate any impairment, the recoverable amount of these assets is determined. An asset is impaired when the carrying amount of the asset exceeds its recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the period in which an asset is defined as impaired. An impairment loss recognized in prior accounting periods is adjusted/ reversed if there has been a change in the estimate of the recoverable amount and such loss either no longer exists or has decreased.
k) Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.
1. Corporate Information:
B.N.Rathi Industries Private Limited (âBNRIPLâ or âthe Companyâ) was incorporated under the Companies Act, 1956 (âthe Actâ) on August 13, 2012.
The Company is involved in the business of property development and sale.
Use of estimates
The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amounts of revenue and expenses during the reported year. Actual results could differ from those estimates.
2. Significant Accounting Policies:
a) Basis of Preparation:
These financial statements are prepared in accordance with Indian Accounting Standards (AS) under the historical cost convention on the accrual basis, the provisions of the Companies Act, 2013 (''Act'') (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI) and pronouncements of The Institute of Chartered Accountants of India (''ICAI'').
The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.
b) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Revenue on sale of property is recognized based on percentage completion method and upon transferring significant risks and rewards of ownership associated with the real estate property.
c) Leases
Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term are classified as operating leases.
d) Investments
Investments are classified into current and long term 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 recognize a decline, other than temporary, separately for each individual long term investments. Investments that are readily realizable and are intended to be held for not more than one year from the date on which such investments are made, are classified as âCurrent investmentsâ. All other investments are classified as âLong-term investmentsâ.
e) Earnings Per Share
The Company reports basic and diluted earnings per share in accordance with Accounting Standard (AS) 20, Earnings Per Share. Basic earnings per equity share is computed by dividing the net profit for the year attributable to the Equity Shareholders by the weighted average number of equity shares outstanding during the year.
f) Taxation
Current Tax is the amount of tax payable on taxable income for the period determined in accordance with the provisions of Income Tax Act, 1961.
Deferred Tax - Deferred tax resulting from âtiming differencesâ between book profit 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. Deferred tax assets are recognized only to the extent that there is a virtual certainty that such assets will be realized in future. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability.
g) Impairment of assets
The carrying amount of assets is reviewed at each balance sheet date to determine whether there is any indication of impairment, if any such indication exists; the recoverable amount of the assets is estimated. The recoverable amount is the greater of the asset''s net selling price and value in use, which is determined, based on the estimated future cash flow discounted to their present values. An impairment loss is recognized whenever the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. Impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount.
h) Provisions, contingent liabilities and contingent assets
The company recognizes provisions when there is present obligation as a result of past event and it is probable that there will be an outflow of resources embodying economic benefits and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or a present obligation where it is not probable that an outflow of resources embodying economic benefits will be required or a reliable estimate cannot be made. Contingent assets are neither recognized nor disclosed in the financial statements.
i) Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.
Mar 31, 2015
Use of estimates
The preparation of Financial Statements requires estimates and
assumptions to be made that affect 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 year in which
results are known / materialized.
Although these estimates are based upon management''s best knowledge of
current events and actions, actual results could differ from these
estimates. Any revision to accounting estimates is recognized
prospectively in the current and future periods.
a) Change in accounting policy
Depreciation on fixed assets
The Schedule XIV to the Companies Act, 1956, prescribed requirements
relating to depreciation of fixed assets till the year ended March
31,2014. From the current year, Schedule XIV has been replaced by
Schedule II to the Companies Act, 2013. The applicability of Schedule
II has resulted in the following changes related to depreciation of
fixed assets.
Useful lives/ depreciation rates
Depreciation rates prescribed under Schedule XIV were treated as
minimum rates and the Company was not allowed to charge depreciation at
lower rates even if such lower rates were justified by the estimated
useful life of the asset. Schedule II to the Companies Act 2013
prescribes useful lives for fixed assets which, in many cases, are
different from lives prescribed under the erstwhile Schedule XIV.
However, Schedule II allows companies to use higher/ lower useful lives
and residual values if such useful lives and residual values can be
technically supported and justification for difference is disclosed in
the financial statements.
Considering the applicability of Schedule II, the management has
re-estimated useful lives of all its fixed assets. The management
believes that depreciation rates currently used fairly reflect its
estimate of the useful lives and residual values of fixed assets,
though these, in certain cases are different from, the lives
prescribed under Schedule II.
The Company has used transitional provisions of Schedule II to adjust
the impact of useful lives/ depreciation rates arising on its first
application. If a fixed asset has zero remaining useful life on the
date of Schedule II becoming effective, i.e., April 01, 2014, its
carrying amount, after retaining any residual value, is charged to the
opening balance of retained earnings. The carrying amount of other
fixed assets, i.e., fixed assets whose remaining useful life is not Nil
on April 01, 2014, is depreciated over their remaining useful life. The
Company has adjusted Rs. 3,13,598 (net of deferred tax of Rs.
1,50,613) with the opening balances of retained earnings and i.e.
Surplus in the statement of profit and loss. Had the Company continued
to follow the earlier useful life, the depreciation expense for the
year would have been higher by Rs. 4,64,211, profit before tax would
have been lower by Rs.4,64,211 and the impact on net block of fixed
assets would have been immaterial.
b) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:
Income from Brokerage: Brokerage income on securities is recognised as
per contracted rates at the execution of transactions on behalf of the
clients on the trade date
Other operating revenue: Other operating revenue includes income from
business related to brokerage and is recognized based on the terms
agreed with the clients when the services are rendered.
Interest Income: Interest income is recognized on a time proportion
basis taking into account the amount outstanding and the applicable
interest rate. Interest income is included under the head "Other
income" in the statement of profit and loss.
Dividends: Dividend income is recognized when the unit holder''s right
to receive dividend is established by the reporting date.
c) Fixed Assets
Tangible Assets:
Tangible assets are stated at cost less accumulated depreciation.
Subsequent expenditure related to items of tangible assets is added to
its book value only if it increase the future benefits from the
existing assets beyond its previously assessed standard of performance.
Losses arising from the retirement of, and gains or losses arising from
disposal of tangible assets which are carried at cost are recognised in
the Statement of Profit and Loss.
Intangible Assets:
Intangible Assets are recognized only if it is probable that the future
economic benefits that are attributable to assets will flow to the
enterprise and the cost of the assets can be measured reliably.
Intangible assets are recorded at cost and carried at cost less
accumulated depreciation. Intangible assets are amortised over their
estimated useful lives.
d) Depreciation and Amortisation
Depreciation and Amortization on fixed assets is provided on Written
down value method at the rates specified in Schedule II of the
Companies Act, 2013 on pro-rata basis.
Individual Fixed Assets costing Rs.5,000 and below are fully
depreciated in the year of purchase.
e) Employee Benefits
Provident Fund:
Contributions paid/ payable under defined contribution plans are
recognized in the Statement of Profit and Loss in each year.
Contribution plans primarily consists of Provident Fund administered
and managed by the Government of India. The Company makes monthly
contributions and has no further obligations under the plan beyond its
contributions.
Gratuity:
The Company operates a defined benefit plan for its employees, viz.,
gratuity. The cost of providing benefits under this plan is determined
on the basis of actuarial valuation at each year-end. Actuarial
valuation is carried out for the plan using the projected unit credit
method. Actuarial gains and losses for the defined benefit plan are
recognized in full in the period in which it occurs in the statement of
profit and loss.
f) Leases
Assets acquired under Leases where a significant portion of the risks
and rewards of the ownership are retained by the lessor are classified
as Operating Leases. The rentals and all the other expenses of assets
under operating lease for the period are treated as revenue
expenditure.
g) Earnings per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
h) Taxation:
(i) Current tax is determined based on the amount of tax payable in
respect of taxable income for the year.
(ii) Deferred tax is recognized, subject to the consideration of
prudence in respect of deferred tax asset, on timing differences, being
the differences between taxable incomes and accounting income that
originate in one period and are capable of reversal in one or more
subsequent years. Deferred Tax Assets are recognised and carried
forward only to the extent that there is a reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realised.
(iii) Provision for taxation for the period(s) is ascertained on the
basis of assessable profits computed in accordance with the provisions
of the Income Tax Act, 1961.
(iv) 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. At each Balance Sheet date, the Company
re-assesses unrecognised deferred tax assets, if any.
(v) Current tax assets and liabilities are offset when there is a
legally enforceable rights to set off the recognised amount and there
is intention to settle the assets and the liabilities on a net basis.
(vi) Deferred tax assets and liabilities are offset when there is a
legally enforceable rights to set off assets against liabilities
representing the current tax and where the deferred tax and liabilities
relate to taxes on income levied by the same governing taxation laws.
i) Provisions
A provision is recognized when the Company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date. These estimates are reviewed at each reporting date and
adjusted to reflect the current best estimates.
j) Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its existence in the
financial statements.
k) Impairment
Assets are reviewed for impairment at each balance sheet date. In case,
events and circumstances indicate any impairment, the recoverable
amount of these assets is determined. An asset is impaired when the
carrying amount of the asset exceeds its recoverable amount. An
impairment loss is charged to the Statement of Profit and Loss in the
period in which an asset is defined as impaired. An impairment loss
recognized in prior accounting periods is adjusted/ reversed if there
has been a change in the estimate of the recoverable amount and such
loss either no longer exists or has decreased.
l) Cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short-term investments with an
original maturity of three months or less.
Mar 31, 2013
A. GENERAL: The financial statements are prepared on historical cost
convention, on basis of a going concern, on an accrual basis and in
accordance with the applicable accounting standards.
B. FIXED ASSETS: Fixed Assets are stated at cost less accumulated
depreciation.
C. DEPRECIATION: Depreciation has been provided on written down value
of the Assets as per the rates specified in Schedule XIV of the
Companies Act, 1956. Fixed Assets costing rupees Five thousand
orlessorless are fully depreciated in the year of acqusiation.
D. VALUATION OF STOCK OF SECURITIES: Securities disclosed under ''Stock
in Trade is stated at cost.
E. RETIRMENT BENEFITS: The Company contributes to Group Policy with
Life Insurance Corporation of India to cover its liabilities towards
Employees Gratuity.
F. RECOGNITION OF INCOME AND EXPENDITURE: Items of Income and
expenditure are on accrual basis subject to the notes on accounts.
G. INVESTMENT IN SUBSUDIARY COMPANIES: B N Rathi Comtrade Private
Limited and B N Rathi
Industries Private Limited are the 100% subsidiary of the Companies.
H. TAXATION: Current tax is determined on taxable income for the
period. 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. Deferred Tax
assets on difference between WDV of assets as per Companies Act and
Income tax Act is Rs 196735 /-
Mar 31, 2012
A. General:
The financial statements are prepared on historical cost convention, on
basis of a going concern, on an accrual basis and in accordance with
the applicable accounting standards.
B. Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation.
C. Depreciation:
Depreciation has been provided on written down value of the Assets as
per the rates specified in Schedule XIV of the Companies Act, 1956.
Fixed Assets costing rupees Five thousand or less are fully depreciated
in the year of acquisition.
D. Valuation of Stock of Securities:
Securities Disclosed under Stock in Trade is stated at cost.
E. Retirements Benefits:
The Company contributes to Group Policy with Life Insurance Corporation
of India to cover its liabilities towards Employees Gratuity.
F. Recognition of income and expenditure:
Items of Income and expenditure are on accrual basis subject to the
notes on accounts.
G. Investment in Subsidiary company:
B N Rathi Comrade Private Limited is the 100% subsidiary of the
Company.
H. Taxation:
Current tax is Determined on taxable income for the period. 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. Deferred Tax assets on difference between
WDV of assets as per Companies Act and Income tax Act is Rs 83269/-
Mar 31, 2011
1. GENERAL : The financial statements are prepared on historical cost
convention, on basis of a going concern, on an accrual basis and in
accordance with the applicable accounting standards.
2. FIXED ASSETS : Fixed Assets are stated at cost less accumulated
depreciation.
3. DEPRECIATION : Depreciation has been provided on written down value
of the Assets as per the rates specified in Schedule XIV of the
Companies Act, 1956. Depreciation on Fixed assets added/disposed off
during the year on pro-rata basis.
4. VALUATION OF STOCK OF SECURITIES : Securities disclosed under Stock
in Trade are stated at cost.
5. RETIREMENT BENEFITS : The Company contributes to Group policy with
Life Insurance Corporation of India to cover its liabilities towards
Employees Gratuity.
6. RECOGNITION OF INCOME AND EXPENDITURE : Items of Income and
Expenditure are on accrual basis subject to the notes on accounts.
7. INVESTMENTS: B N Rathi Comtrde Private Limited is the 100%
subsidiary of the Company.
Mar 31, 2010
1. GENERAL : The financial statements are prepared on historical cost
convention, on basis of a going concern, on an accrual basis and in
accordance with the applicable accounting standards.
2. FIXED ASSETS : Fixed Assets are stated at cost less accumulated
depreciation.
3. DEPRECIATION : Depreciation has been provided on written down value
of the Assets as per the rates specified in Schedule XIV of the
Companies Act, 1956. Depreciation on Fixed assets added/disposed off
during the year on pro-rata basis.
4. VALUATION OF STOCK OF SECURITIES : Securities disclosed under Stock
in Trade are stated at cost.
5. RETIREMENT BENEFITS : The Company contributes to Group policy with
Life Insurance Corporation of India to cover its liabilities towards
Employees Gratuity.
6. RECOGNITION OF INCOME AND EXPENDITURE : Items of Income and
Expenditure are on accrual basis subject to the notes on accounts.
7. INVESTMENTS: During the year.the company has acquired 999980 fully
paid equity shares of Rs 10/- each of M/s B N Rathi Comtrade Private
Ltd consequent to which M/s B N Rathi Comtrade Privat Limited has
become 100% subsidiary of the Company.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article
More Information on B N Rathi Securities Ltd.
-
B N Rathi Securities Ltd. Tools
- Bulk Deals
-
B N Rathi Securities Ltd. Company Details
- Company Profile
- Company History
- Management Team
- Capital Structure
- Product Mix
- Banker/Auditor/Registrar
-
Company History
- Bonus
- Rights
- BSE Price History
-
B N Rathi Securities Ltd. Key Financial Ratios
- Ratios
-
B N Rathi Securities Ltd. Results
- Quarterly Results
- Half Yearly Results
- Nine Months Results
- Annual Results
-
B N Rathi Securities Ltd. Financial Data
- Audited Results
- Cash Flow
- Balance Sheet
-
B N Rathi Securities Ltd. Reports
- Accounting Policies
- Auditors Report
- Directors Report
- Notes To Account
-
B N Rathi Securities Ltd. Corporate Announcements
- Book Closure
- Dividend
- Board Meetings
- Change of Name
-
Stocks To Buy Today, Dec 19: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Stocks To Buy Today, Dec 18: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday -
Stocks To Buy Today, Dec 17: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
Stocks To Buy Today, Dec 16: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
India Stock Market Weekly Review: Nifty and Sensex Fall as Caution Spreads -
Stocks To Buy Today, Dec 15: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday
-
Stocks To Buy Today, Dec 12: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Friday -
Market Outlook 2026: Kotak Securities Sees Nifty 50 at 30,000; THESE 4 Sectors Lead Rally, Gold To Stay Strong -
Stocks To Buy Today, Dec 10: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Wednesday -
D-Street Bleeds For 2nd Day! Sensex Slumps 678 Pts; Nifty Cracks 25,800; Why Stock Market Is Falling Today? -
Stocks To Buy Today, Dec 9: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Tuesday -
Stocks To Buy Today, Dec 8: Top 4 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Monday -
Stock Market Alert! Major Pre-Open Session Change From Dec 8: Full Timings, Rules & All You Need To Know -
Bank Nifty Surges: RBI’s 25 bps Rate Cut Triggers Strong Upside in Major Banking Stocks -
Closing Bell: Sensex Ends 158 pts Higher, Nifty Climbs Above 26,000; Hero MotoCorp, HAL Up 2% Each -
Stocks To Buy Today, Dec 4: Top 2 Picks By Riyank Arora of Mehta Equities For Profitable Trading On Thursday
-
Block for 8 hours
-
Block for 12 hours
-
Block for 24 hours
-
Don't block
Sign in with Google- Male
- Female
- Others
- Under 18
- 18 to 25
- 26 to 35
- 36 to 45
- 45 to 55
- 55+