Accounting Policies of NDA Securities Ltd. Company

Mar 31, 2015

1 Back ground

NDA Securities Limited is Formed on 21.09.1992 vide Registraton No. L74899DL1992PLC050366.The Company has trading membership in National Stock Exchange, Bombay Stock Exchange, and it is also a Depository Participant of National Securities Depositaries Ltd. The Script of the company are listed on Bombay Stock Exchange

2.1 Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting except for certain financial instruments which are measured at fair values and comply with the Accounting Standards prescribed by Companies (Accounting Standards) Rules, 2006, as amended, other pronouncements of the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 2013 to the extent applicable. Revenue/ Incomes and Expenditures are generally accounted on accrual as they are earned or incurred.

2.2 Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles ('GAAP') in India requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, assets and liabilities and disclosures relating to contingent liabilities as of the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in future periods.

2.3 Fixed Assets And Depreciation

2.3.1 Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use. Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Straight Line value (SLM) Depreciation is provided based on revised useful life of the assets as prescribed in Schedule II to the Companies Act 2013.

2.3.3 The cost of leasehold land is amortised over the period of the lease. Leasehold improvements and assets acquired on finance lease are amortised over the lease term or useful life, whichever is lower.

2.3.4 "Impairment of Assets: The carrying amounts of Assets are reviewed at each balance Sheet Date if there is any indication of impairment based on internal/ external factors. An asset is impaired when the carrying amount of the asset exceeds the recovarable amount. An impairment loss is charged to the statement of Profit and loss in the year in which an asset is identified as impaired."

2.4 Investments

2.4.1 Long-term investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis

2.4.2 Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is carried out separately in respect of each investment.

2.4.3 Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment.

2.5 Inventories

2.5.1 Inventories if any are/will stated at cost.

2.6 Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprises cash in hand and balance in bank in current accounts, Bank overdraft , fixed deposits.

2.7 Tax Expenses

Income tax expense comprises current tax as per Income Tax Act, 1961, fringe benefit tax and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably / virtually certain, as the case may be, to be realized. 2.7 Employee Benenits Pursuant to the requirements of AS 15 (revised 2005) on "Employee Benefits", issued by the Institute of Chartered Accountants of India (the standard), which has become effective from April 1, 2007, the Company provided for employee benefits as per the revised requirements of the standard for the current Year . In respect of the employee benefits up to Mar 31, 2015, leave encashment and bonus has been paid to employees and long term provision has been made for gratuity Payable as per acturian Certificate.

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Mar 31, 2014

1.1 Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting except for certain financial instruments which are measured at fair values and comply with the Accounting Standards prescribed by Companies (Accounting Standards) Rules, 2006, as amended, other pronouncements of the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956 to the extent applicable. Revenue/ Incomes and Expenditures are generally accounted on accrual as they are earned or incurred except Gratuity Provision which is accounted for on payment basis

2.2 Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (''GAAP'') in India requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, assets and liabilities and disclosures relating to contingent liabilities as of the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in future periods.

2.3 Fixed Assets And Depreciation

2.3.1 Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use.

2.3.2 Depreciation on fixed assets is provided on Straight Line Value Method based at the rates specified in Schedule XIV to the Companies Act, 1956 or the rates determined as per the useful lives of the respective assets, whichever is higher.

2.3.3 Fixed assets individually costing Rs 5,000 or less are fully depreciated in the year of purchase/ installation. Depreciation on additions and disposals during the period is provided on a pro-rata basis.

2.3.4 The cost of leasehold land is amortised over the period of the lease. Leasehold improvements and assets acquired on finance lease are amortised over the lease term or useful life, whichever is lower.

2.3.5 Impairment of Assets: The carrying amounts of Assets are reviewed at each balance Sheet Date ifthere is any indication of impairment based on internal/ external factors. An asset is impaired when the carrying amount of the asset exceeds the recovarable amount.An impairment loss is charged to the statement of Profit and loss in the year in which an asset is identified as impaired.

2.4 Investments

2.4.1 Long-term investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis.

2.4.2 Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is carried out separately in respect of each investment.

2.4.3 Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment.

2.5 Inventories

2.5.1 Inventories are stated at cost.

2.6 Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprises cash in hand and balance in bank in current accounts, Bank overdraft , deposit accounts and in margin money deposits.

2.7 Tax Expenses

Income tax expense comprises current tax as per Income Tax Act, 1961, fringe benefit tax and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably / virtually certain, as the case may be, to be realized.

2.7 Employee Benenits Pursuant to the requirements of AS 15 (revised 2005) on "Employee Benefits", issued by the Institute of Chartered Accountants of India (the standard), which has become effective from April 1, 2007, the Company provided for employee benefits as per the revised requirements of the standard for the current Year . In respect of the employee benefits up to March 31, 2014, the actuarial valuation is being carried out by the management for the recognition of leave encashment liability but gratuity has not been provided on the basis of provision of Gratuity Act 1972 it is accounted on payment basis.

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Mar 31, 2013

1.1 Basis of preparation of financial statements

The financial statements have been prepared and presented under the historical cost convention on the accrual basis of accounting except for certain financial instruments which are measured at fair values and comply with the Accounting Standards prescribed by Companies (Accounting Standards) Rules, 2006, as amended, other pronouncements of the Institute of Chartered Accountants of India (ICAI) and the relevant provisions of the Companies Act, 1956 to the extent applicable.

1.2 Use of estimates

The preparation of financial statements in conformity with the generally accepted accounting principles (''GAAP'') in India requires management to make estimates and assumptions that affect the reported amounts of income and expenses of the period, assets and liabilities and disclosures relating to contingent liabilities as of the date of the financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in future periods.

1.3 Fixed Assets And Depreciation

1.3.1 Fixed assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Financing costs relating to acquisition of fixed assets are also included to the extent they relate to the period till such assets are ready to be put to use.

1.3.2 Depreciation on fixed assets is provided on Straight Line Value Method based at the rates specified in Schedule XIV to the Companies Act, 1956 or the rates determined as per the useful lives of the respective assets, whichever is higher.

1.3.3 Fixed assets individually costing Rs 5,000 or less are fully depreciated in the year of purchase/ installation. Depreciation on additions and disposals during the period is provided on a pro-rata basis.

1.3.4 The cost of leasehold land is amortised over the period of the lease. Leasehold improvements and assets acquired on finance lease are amortised over the lease term or useful life, whichever is lower.

1.4 Investments

1.4.1 Long-term investments are carried at cost less any other-than-temporary diminution in value, determined on the specific identification basis.

1.4.2 Current investments are carried at the lower of cost and fair value. The comparison of cost and fair value is carried out separately in respect of each investment.

1.4.3 Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of investment.

1.5 Cash and cash equivalents

Cash and cash equivalents in the cash flow statement comprises cash in hand and balance in bank in current accounts, Bank overdraft , deposit accounts and in margin money deposits.

1.6 Tax Expenses

Income tax expense comprises current tax as per Income Tax Act, 1961, fringe benefit tax and deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably / virtually certain, as the case may be, to be realized.

1.7 Pursuant to the requirements of AS 15 (revised 2005) on "Employee Benefits", issued by the Institute of Chartered Accountants of India (the standard), which has become effective from April 1, 2007, the Company provided for employee benefits as per the revised requirements of the standard for the current Year . In respect of the employee benefits up to March 31, 2013, the actuarial valuation is being carried out by the management for the recognition of gratuity and leave encashment liability.

Gratuity has not been provided on the basis of provisions of gratuity act 1972 .

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Mar 31, 2012

A. REVENUE RECOGNITION

(a) Income from trading of Shares and Debentures, Brokerage, Issue management fee, underwriting commission and other services are accounted on accrual basis.

(b) Income from Dividends on shares and interest on Debentures / Bonds are accounted on receipt basis.

B. FIXED ASSETS AND DEPRECIATION

(a) Fixed Assets are stated at cost less depreciation.

(b) Depreciation is provided on straight line basis as per rates prescribed under Schedule XIV of the Companies Act, 1956

(c) Depreciation is provided on pro-rate basis with respect to the period of use.

(d) Fixed Assets are capitalized at cost inclusive of duties, freights, taxes and installation expenses.

C. EXPENDITURES

a) All expenses are accounted on accrual basis (except Gratuity, leave encashment, which is being accounted on payment basis).

b) The Company generally follows Mercantile systems of accounting and recognizes significant items of Income & Expenditures on accrual basis.

D. INVESTMENTS

a) Investments are states at cost (without transfer expenses)

b) Investment in membership of OTCEI is stated at cost price.

c) Investment in property are stated at cost including the interest capitalized.

E. INVENTORIES

The stock of Shares and Debentures has been valued scrip wise at cost price.

F. MISCELLANEOUS EXPENDITURES

The Preliminary expenses and Share issue expenses are written off in equal installments over 10 years.

G. PROVISION FOR TAXATION

Provision for Current Tax is made as per the provision of Income Tax Act, 1961 and adjustment for Deferred Tax is made in accordance with Accounting Standard - 22 issued by ICAI.

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Mar 31, 2010

A. REVENUE RECOGNITION

(a) Income from trading of Shares and Debentures, Brokerage, Issue management fee, underwriting commission and other services are accounted on accrual basis.

(b) Income from Dividends on shares and interest on Debentures / Bonds are accounted on receipt basis.

B. FIXED ASSETS AND DEPRECIATION

(a) Fixed Assets are stated at cost less depreciation.

(b) Depreciation is provided on straight line basis as per rates prescribed under Schedule XIV of the Companies Act, 1956

(c) Depreciation is provided on pro-rate basis with respect to the period of use.

(d) Fixed Assets are capitalized at cost inclusive of duties, freights, taxes and installation expenses

C. EXPENDITURES

a) All expenses are accounted on accrual basis (except Gratuity, which is being accounted on payment basis).

b) The Company generally follows Mercantile systems of accounting and recognizes significant items of Income & Expenditures on accrual basis.

D. INVESTMENTS

a) Investments are states at cost (without transfer expenses)

b) Investment in membership of OTCEI is stated at cost price.

c) Investment in property are stated at cost including the interest capitalized.

E. INVENTORIES

The stock of Shares and Debentures has been valued scrip wise at cost price.

F. MISCELLANEOUS EXPENDITURES

The Preliminary expenses and Share issue expenses are written off in equal installments over 10 years.

G. PROVISION FOR TAXATION

Provision for Current Tax is made as per the provision of Income Tax Act, 1961 and adjustment for Deferred Tax is made in accordance with Accounting Standard – 22 issued by ICAI.