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Accounting Policies of Hind Securities & Credits Ltd. Company

Mar 31, 2015

Accounting Convention

The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

1. Basis for preparation of Financial Statements

The financial statements are prepared on historical cost basis to comply in all material aspects with applicable Accounting Principles India and comply with the accounting standards issued by the Institute of Chartered Accountants of India ('ICAI') and provisions of the Companies Act, 2013 to the extent applicable.

2. Use of estimates

The preparation of financial statements in conformity with the Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities is recognized prospectively in current and future periods.

3. Fixed Assets:

a) Fixed Assets are shown on historical cost basis less depreciation.

b) Depreciation will be provided by the company according to Written Down Value Basis as per Schedule II of the Companies Act, 2013.

c) Depreciation will be provided on assets used for business purposes whereas no depreciation will be charged on assets given on rent.

4. Inventory

The stock of shares is valued at cost or market value, whichever is lower.

5. Recognition of Income & Expenses

Recognition of Income & Expenses is based on accrual system of accounting.

6. No provision for gratuity has been made as per Provisions of payment of Gratuity Act, 1972 as the same is not applicable.

7. Amortization

Capital issue expenses are amortized over a period of 10 years.

8. Tax on Income

Provision for Income Tax is made in accordance with the Income Tax Act, 1961. Deferred Tax as required by AS-22 'Accounting for Taxes on Income' resulting from timing difference between the book and the tax profit is accounted for, at the current rate of tax to the extent timing differences are expected to crystallize. Deferred Tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future.

9. Impairment of Assets

An impairment occurs where the carrying value exceed the present value of future cash flows expected to arise from the continuing use of the assets & its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset's net sale price or present value as determined above.

10. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized for liabilities that can be measured only be using a substantial degree of estimation if: The company has no present obligation as a result of past event.

A probable outflow of resources is expected to settle the obligation and the amount of obligation can be reliably estimated. Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

11. Earnings per share

Basic Earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders after tax by the weighted average number of Equity Shares in accordance with AS-20 as issued by The Institute of Chartered Accountants of India.

12. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effect of transaction of non-cash nature and deferrals of accruals of past or future cash receipts or payments. The cash flows from regular generating, investing and financing activities are segregated.

13. Segment Reporting

There is only one business segment of the company. Hence, as per Accounting Standard Interpretation 20 issued by ICAI, AS 17 Segment Reporting is not applied in this company.

14. The Company does not have any pending litigations which would impact its financial position.

15. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

16. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company.


Mar 31, 2014

1. Basis for preparation of Financial Statements

The financial statements are prepared on historical cost basis to comply in all material aspects with applicable Accounting Principles India and comply with the accounting standards issued by the Institute of Chartered Accountants of India (''ICAI'') and provisions of the Companies Act, 1956 to the extent applicable.

2. Use of estimates

The preparation of financial statements in conformity with the Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities is recognized prospectively in current and future periods.

3. Fixed Assets :

a) Fixed Assets are shown on historical cost basis less depreciation.

b) Depreciation will be provided by the company according to Written Down Value Basis as per Schedule XIV of the Companies Act, 1956.

c) Depreciation will be provided on assets used for business purposes whereas no depreciation will be charged on assets given on rent.

4. Inventory

The stock of shares is valued at cost or market value, whichever is lower.

5. Recognition of Income & Expenses

Recognition of Income & Expenses is based on accrual system of accounting.

6. No provision for gratuity has been made as per Provisions of payment of Gratuity Act, 1972 as the same is not applicable.

7. Amortization

Capital issue expenses are amortized over a period of 10 years.

8. Tax on Income

Provision for Income Tax is made in accordance with the Income Tax Act, 1961. Deferred Tax as required by AS- 22 ''Accounting for Taxes on Income'' resulting from timing difference between the book and the tax profit is accounted for, at the current rate of tax to the extent timing differences are expected to crystallize. Deferred Tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future.

9. Impairment of Assets

An impairment occurs where the carrying value exceed the present value of future cash flows expected to arise from the continuing use of the assets & its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset''s net sale price or present value as determined above.

10. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized for liabilities that can be measured only be using a substantial degree of estimation if: The company has no present obligation as a result of past event.

A probable outflow of resources is expected to settle the obligation and the amount of obligation can be reliably estimated. Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

11. Earning per share

Basic Earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders after tax by the weighted average number of Equity Shares in accordance with AS-20 as issued by The Institute of Chartered Accountants of India.

12. Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effect of transaction of non-cash nature and deferrals of accruals of past or future cash receipts or payments. The cash flows from regular generating, investing and financing activities are segregated.

13. Segment Reporting

There is only one business segment of the company. Hence, as per Accounting Standard Interpretation 20 issued by ICAI, AS 17 Segment Reporting is not applied in this company.


Mar 31, 2011

1 Basis for preparation of Financial Statements

The financial statements are prepared on historical cost basis to comply in all material aspects with applicable Accounting Principles India and comply with the accounting standards issued by the Institute of Chartered Accountants of India (''ICAI'') and provisions of the Companies Act, 1956 to the extent applicable.

Use of estimates

The preparation of financial statements in conformity with the Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities is recognized prospectively in current and future periods

2. Fixed Assets :

a) Fixed Assets are shown on historical cost basis less depreciation.

b) Depreciation will be provided by the company according to Written Down Value Basis as per Schedule XIV of the Companies Act, 1956.

c) Depreciation will be provided on assets used for business purposes whereas no depreciation has been charged on assets given on rent.

3. Inventory:

The stock of shares are valued at cost or market value, whichever is lower.

4. Recognition of Income & Expenses

Recognition of Income & Expenses is based on accrual system of accounting.

5. No provision for gratuity has been made as per Provisions of payment of Gratuity Act, 1972 as the same is not applicable.

6. Amortization

Capital issue expenses are amortized over a period of 10 years.

7. Tax on Income

Provision for Income Tax is made in accordance with the Income Tax Act, I961. Deferred Tax as required by AS-22 ''Accounting for Taxes on Income'' resulting from timing difference between the book and the tax profit is accounted for, at the current rate of tax to the extent timing differences are expected to crystallize. Deferred Tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future.

8. Impairment of Assets

An impairment occurs where the carrying value exceed the present value of future cash flows expected to arise from the continuing use of the assets & its eventual disposal. The impairment loss to be expensed is determined as the excess of the carrying amount over the higher of the asset''s net sale price or present value as determined above.

9 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized for liabilities that can be measured only be using a substantial degree of estimation if The company has no present obligation as a result of past event. A probable outflow of resources is expected to settle the obligation and the amount of obligation can be reliably estimated. Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

10. Earning per share

Basic Earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders after tax by the weighted average number of Equity Shares.

11) Cash Flow Statement

Cash flows are reported using the indirect method, whereby net profits before tax is adjusted for the effect of transaction of non-cash nature and deferrals of accruals of past or future cash receipts or payments. The cash flows from regular generating, investing and financing activities are segregated.

12) Segment Reporting

There is only one business segment of the company. Hence, as per Accounting Standard Interpretation 20 issued by ICAI, AS 17 Segment Reporting is not applied in this company.

 
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