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Accounting Policies of Alacrity Securities Ltd. Company

Mar 31, 2015

1.1 Basis of preparation

The financial statement have been prepared to comply in all material respect with the Accounting Standards notified under section 133 of the Companies Act, 2013 ("the Act"), read with rule 7 of the Companies (Accounts) Rules,2014 The Financial statement have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the company and are consistent with those in the previous year.

1.2 Use of Estimates

The preparation of financial statement in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumption that affect the reported amounts of assets, liabilities and contingent liabilities at the reported date and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on the management best knowledge of current events and actions, actual results could differ from these estimates. Any revision in accounting estimates is recognised prospectively in current and future periods.

1. Fixed Assets:

Fixed Assets have been stated at original cost of acquisition including taxes duties freight and other incidental expenses related to acquisition and installation of the assets concerned.

2. Depreciation:

Depreciation on all tangible and intangible fixed assets is provided on the straight line method ( SLM ) upto 95% of the total cost of the basis of estimated useful lives as specified in Schedule II to the Companies Act 2013.

3. Investments:

Long-term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary.

4 Inventory

Stock in trade in shares is valued at lower of cost and market value.

5. Revenue Recognition:

Brokerage are recognized when the transaction of sale and purchase of securities takes place.

6. Taxes on Income:

Tax on income for the current period is determined on the basis of Income Tax Act, 1961.Deferred tax is recognized on timing difference between the accounting income and taxable income for the year and quantified using the tax rate and laws enacted or substantively enacted as on the Balance Sheet Date. Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

7. Employees Benefit

Contribution to Provident Fund, Family Pension Fund are provided on accrual basis. Gratuity is being accounted on payment basis,

Leave Encashment

Leave Encashment is being accounted on payment basis.

8 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. 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.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

1. Basis of accounting and preparation of financial statements

The Company adopts the historical cost concepts and accrual basis in accordance with generally accepted accounting principles for the preparation of its accounts and complies with the applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provision of the Companies Act,1956, except gratuity which is being accounted on cash basis consistently.

2. Fixed Assets:

Fixed Assets have been stated at original cost of acquisition including taxes duties freight and other incidental expenses related to acquisition and installation of the assets concerned.

3. Depreciation:

Depreciation has been provided on straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

4. Investments:

Long-term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary.

5. Revenue Recognition:

Brokerage are recognized when the transaction of sale and purchase of securities takes place.

6. Taxes on Income:

Tax on income for the current period is determined on the basis of Income Tax Act, 1961.

Deferred tax is recognized on timing difference between the accounting income and taxable income for the year and quantified using the tax rate and laws enacted or substantively enacted as on the Balance Sheet Date.

Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized

7. Employees Benefit

Contribution to Provident Fund, Family Pension Fund are provided on accrual basis. Gratuity is being accounted on payment basis,

Leave Encashment

As per the policy of the Company, employees are required to avail their annual leave by the end of the respective financial year and leave is not allowed to be en-cashed and hence no provision is considered necessary


Mar 31, 2013

1. Basis of accounting and preparation of financial statements

The Company adopts the historical cost concepts and accrual basis in accor- dance with generally accepted accounting principles for the preparation of its accounts and complies with the applicable accounting standards issued by the Institute of Chartered Accountants of India and relevant provision of the Compa- nies Act, 1956, except gratuity which is being accounted on basis consistently.

2. Fixed Assets:

Fixed Assets have been stated at original cost of acquisition including taxes duties freight and other incidental expenses related to acquisition and installa- tion of the assets concerned.

3. Depreciation:

Depreciation has been provided on straight Line Method at the rates pre- scribed in Schedule XIV of the Companies Act, 1956 on pro-rata basis.

4. Investments:

Long-term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary.

5. Revenue Recognition:

Brokerage are recognized when the transaction of sale and puechase of Secu- rities takes place.

6. Taxes on Income:

Tax on income for the current period is determined on the basis of Income Tax Act, 1961. Deferred tax is recognized on timing difference between the ac- counting income and taxable income for the year and quantified using the tax rate and laws enacted or substantively enacted as on the Blance Sheet Date. Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be avail- able against which such deferred tax assets can be realized

7. Employees Benefit:

Contribution to Provident Fund, Family Pension Fund are provided on accrual basis. Gratuity is being accounted on payment basis,

8. Leave Encashment:

As per the policy of the Company, employees are required to avail their annual leave by the end of the respective financial year and leave is not allowed to be en-cashed and hence no provision is considered necessary.

Other Information:

The company has only one class of shares referred to as equity shares having a face value of RS. 10/-. Each holder of equity shares is entitled to one vote per shares.

 
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