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Accounting Policies of Amit Securities Ltd. Company

Mar 31, 2015

A Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Although these estimates are based on management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b Tangible Fixed Assets

"Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs 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 expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred."

c Depreciation

Depreciation on Fixed Assets are provided for in accordance with Schedule II of the Companies Act 2013 on Straight Line Method. In respect of Additions made during the year, Depreciation is charged on prorata basis from the date of Addition.

d Investments

"Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments."All investments are usually measured at cost. "Current investments are carried in the financial statements at lower of the cost and fair value determined in on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value of the investments.

e Provisions & Contingent Liability

"The Company recognized a provision when there is a present obligation as a result of past event, and a reliable estimate can be made of the amount of the obligation. Provisions 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.

f Inventories

Stock In Trade of Shares is Valued at Cost or Realisable value which ever is lower on Fifo Basis g Income Tax

"Tax expenses comprise current and deferred tax.

Current tax comprises Company''s tax liability for the current financial year as well as additional tax paid, if any, during the year in respect of earlier years on receipt of demand from the authorities. For computation of taxable income under the Income Tax Act, 1961, accrual basis of accounting has been adopted and consistently followed by the Company.

Deferred tax assets and liabilities are computed on the timing differences at the Balance Sheet date using the tax rate and tax laws that have been enacted or substantially enacted by the Balance sheet date. Deferred tax assets are recognized based on management estimates of reasonable certainty that sufficient taxable income will be available against which such deferred tax assets can be realized. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

h Retirement and Employee Benefits

The Company has Defined Benefit plans namely leave encashment and gratuity for all employees which is accounted for by the Company on accrual Basis

i Revenue Recognition

(i) Revenues are recognized to the extent that it is probable that economic benefit will flow to the Company and revenue can be reliably measured.

(ii) Dividend income is recognised when the right to receive the payment is established.

(iii) Interest income is recognised on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

j Earning Per Share

"Earnings per Share (EPS) are computed on the basis of net profit after tax for the year. The number of shares used in computing basic EPS is weighted average number of shares outstanding during the year. "The diluted EPS is calculated on the same basis as basic EPS, since there are no dilutive equity shares."

k 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. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.


Mar 31, 2014

Basis of Preparation

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1 Accounting Policies

a Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Although these estimates are based on management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b Tangible Fixed Assets

"Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs 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 expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred."

c Depreciation

Depreciation on Fixed Assets are provided for in accordance with Schedule XIV of the Companies Act 1956 on Straight Line Method. In respect of Additions made during the year, Depreciation is charged on prorata basis from the date of Addition.

d Investments

"Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments."All investments are usually measured at cost. "Current investments are carried in the financial statements at lower of the cost and fair value determined in on an individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the Investments.

e Provisions & Contingent Liability

"The Company recognized a provision when there is a present obligation as a result of past event, and a reliable estimate can be made of the amount of the obligation. Provisions 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.""The liabilities or obligations, which cannot be crystallized but loom in horizon, are disclosed as contingent liabilities.

f Inventories

Stock In Trade of Shares is Valued at Cost on Fifo Basis

g Income Tax

"Tax expenses comprise current and deferred tax. "Current tax comprises Company''s tax liability for the current financial year as well as additional tax paid, if any, during the year in respect of earlier years on receipt of demand from the authorities. For computation of taxable income under the Income Tax Act, 1961, accrual basis of accounting has been adopted and consistently followed by the Company."Deferred tax assets and liabilities are computed on the timing differences at the Balance Sheet date using the tax rate and tax laws that have been enacted or substantially enacted by the Balance sheet date. Deferred tax assets are recognized based on management estimates of reasonable certainty that sufficient taxable income will be available against which such deferred tax assets can be realized. Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.""

h Retirement and Employee Benefits

The Company has Defined Benefit plans namely leave encashment and gratuity for all employees which is accounted for by the Company on payment Basis

i Revenue Recognition

Revenues are recognized to the extent that it is probable that economic benefit will flow to the Company and revenue can be reliably measured. It is accounted for net of trade discounts.

j Earning Per Share

"Earnings per Share (EPS) are computed on the basis of net profit after tax for the year. The number of shares used in computing basic EPS is weighted average number of shares outstanding during the year. "The diluted EPS is calculated on the same basis as basic EPS, since there are no dilutive equity shares."

k 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. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.

c Terms / Rights Attached to Shares Equity Shares

The Company has only one class of Equity shares having a par value of 10/-. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees if any.

During the Year Ended 31st March 2014 the amount per share dividend recognized as distributions to equity shareholders was Rs. NIL( For 31st March 2013 was Rs NIL)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.


Mar 31, 2013

A. Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Although these estimates are based on management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

b. Tangible Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs 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 expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

c. Depreciation

Depreciation on Fixed Assets are provided for in accordance with Schedule XIV of the Companies Act 1956 on Straight Line Method. In respect of Additions made during the year, Depreciation is charged on prorata basis from the date of Addition.

d. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

All investments are usually measured at cost.

Current investments are carried in the financial statements at lower of the cost and fair value determined in on and individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the Investments.

e. Provisions & Contingent Liability

The Company recognized a provision when there is a present obligation as a result of past event, and a reliable estimate can be made of the amount of the obligation. Provisions 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.

f. Inventories

Stock In Trade of Shares is Valued at Cost on Fifo Basis

g. Income Tax

Tax expenses comprise current and deferred tax.

Current tax comprises Company''s tax liability for the current financial year as well as additional tax paid, if any, during the year in respect of earlier years on receipt of demand from the authorities. For computation of taxable income under the Income Tax Act, 1961, accrual basis of accounting has been adopted and consistently followed by the Company. Deferred tax assets and liabilities are computed on the timing differences at the Balance Sheet date using the tax rate and tax laws that have been enacted or substantially enacted by the Balance sheet date. Deferred tax assets are recognized based on management estimates of reasonable certainty that sufficient taxable income will be available against which such deferred tax assets can be realized. Unrecognized deferred tax assets of earlier years are re- assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

h. Retirement and Employee Benefits

The Company has Defined Benefit plans namely leave encashment and gratuity for all employees which is accounted for by the Company on payment Basis.

i. Revenue Recognition

Revenues are recognized to the extent that it is probable that economic benefit will flow to the Company and revenue can be reliably measured. It is accounted for net of trade discounts.

j. Earning Per Share

Earnings per Share (EPS) are computed on the basis of net profit after tax for the year. The number of shares used in computing basic EPS is weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, since there are no dilutive equity shares.

k. 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. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.


Mar 31, 2012

A. Use of Estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Although these estimates are based on management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of asses or liabilities in future period.

b. Tangible Fixed Assets

Fixed assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs 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 expenditure related to an item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard performance. All other expenses on existing fixed assets, including day to day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

c. Depreciation

Depreciation on Fixed Assets are provided for in accordance with Schedule XIV of the Companies Act 1956 on Straight Line Method. In respect of Additions made during the year, Depreciation is charged on prorata basis from the date of Addition.

d. Investments

Investments, which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.

All investments are usually measured at cost.

Current investments are carried in the financial statements at lower of the cost and fair value determined in on and individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the Investments.

e. Provisions & Contingent Liability

The Company recognized a provision when there is a present obligation as a result of past event, and a reliable estimate can be made of the amount of the obligation. Provisions 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.

f. Inventories

Stock In Trade of Shares is Valued at Cost on Fifo Basis

g. Income Tax

Tax expenses comprise current and deferred tax.

Current tax comprises Company's tax liability for the current financial year as well as additional tax paid, if any, during the year in respect of earlier years on receipt of demand from the authorities. For computation of taxable income under the Income Tax Act, 1961, accrual basis of accounting has been adopted and consistently followed by the Company. Deferred tax assets and liabilities are computed on the timing differences at the Balance Sheet date using the tax rate and tax laws that have been enacted or substantially enacted by the Balance sheet date. Deferred tax assets are recognized based on management estimates of reasonable certainty that sufficient taxable income will be available against which such deferred tax assets can be realized. Unrecognized deferred tax assets of earlier years are re- assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

h. Retirement and Employee Benefits

The Company has Defined Benefit plans namely leave encashment and gratuity for all employees which is accounted for by the Company on payment Basis.

i. Revenue Recognition

Revenues are recognized to the extent that it is probable that economic benefit will flow to the Company and revenue can be reliably measured. It is accounted for net of trade discounts.

j. Earning Per Share

Earnings per Share (EPS) are computed on the basis of net profit after tax for the year. The number of shares used in computing basic EPS is weighted average number of shares outstanding during the year. The diluted EPS is calculated on the same basis as basic EPS, since there are no dilutive equity shares.

k. 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. The cash flows from regular revenue generating, investing and financing activities of the Company are segregated.


Mar 31, 2011

A) Basis of Accounting:

The accounts are prepared under historical cost convention on mercantile system of Accounting.

B) Fixed Assets :

The Fixed Assets are recorded at cost less depreciation.

C) Depreciation :

Depreciation on Fixed Assets are provided for in accordance with Schedule XIV of the Companies Act, 1956 on the straight-line method. In respect of additions made during the year, Depreciation is charged "on prorate basis from the date of addition.

D) Investments :

Undiluted Investments are stated at cost. Quoted Investments are stated at cost and are Long Term. However provision for Diminution in value is made to recognized for a decline other than temporary in nature

E) Share Issue Expenses :

Share Issue Expenses are written off over a period of Ten years.

F) Contingent Liability :

Contingent Liability is not provided for and is disclosed in notes to the account.

G) Stock in trade :

Stock in trade of shares is valued at cost.

H) Income Tax :

Income Tax expenses is accrued in accordance with AS 22 "Accounting on taxes on income" which includes current taxes and deferred taxes, Unrecognized Deferred Tax assets of earlier years and current year are recognized to the extent it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

I) Retirement Benefits :

Liabilities in respect of retirement benefits of employees i.e. gratuity and encashment of earned leave on retirement are accounted over payment basis .


Mar 31, 2010

A) Basis of Accounting:

The accounts are prepared under historical cost convention on mercantile system| of Accounting.

B) Fixed Assets :

The Fixed Assets are recorded at cost less depreciation.

C) Depreciation :

Depreciation on Fixed Assets are provided for in accordance with Schedule XIV of the Companies Act, 1956 on the straight-line method. In respect of additions made during the year, Depreciation is charged on provate basis from the udition.

D) Investments:

Unquoted Investments are stated at cost. Quoted Investments are stated at cost and are Long Term. However provision for Diminution in value is made to recognized for a decline other than temporary in nature.

E) Share Issue Expenses:

Share Issue Expenses are written off over a period of Ten years.

F) Contingent Liability:

Contingent Liability is not provided for and is disclosed in notes to the account!

G) Stock in trade:

Stock in trade of shares is valued at cost.

H) Income Tax:

Income Tax-expenses is accrued in accordance with AS 22 "Accounting on taxes on income" which includes current taxes and deferred taxes, Unrecognized Deferred Tax assets of earlier years and current year are recognized to the extent it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

I) Retirement Benefits:

Liabilities in respect of retirement benefits of employees i.e. gratuity and encashment of earned leave on retirement are accounted on payment basis.

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