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Accounting Policies of VCK Capital Market Services Ltd. Company

Mar 31, 2015

[A] BASIS OF ACCOUNTING

The Financial Statements of the Company have been prepared in accordance with generally accepted Accounting Principles in India, Mandatory Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 [as amended] and the relevant provisions of the Companies Act, 1956 read with General Circular 8/2014 dated April 04, 2014 issued by the Ministry of Corporate Affairs. The Financial Statements have been prepared under the historical cost convention on an accrual basis. The Accounting Policies applied by the Company are consistent with those used in the Previous Year. All the Assets and Liabilities have been classified as Current or Non-Current as per the Company's normal operating cycle and other criteria set out in Revised Schedule III to the Companies Act, 2013 read with General Circular 8/2014 dated April 04, 2014 issued by the Ministry of Corporate Affairs. Mercantile System of Accounting is generally followed except for Income on account of Insurance and other such claims receivable, which are accounted for only on receipt basis on account of uncertainties.

The accounts for the relevant year have been prepared on a going concern basis.

[B] USE OF ESTIMATES

The preparation of the Financial Statements in conformity with the generally accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amount of Assets and Liabilities and the disclosures relating to Contingent Assets and Liabilities as on the date of Financial Statements and the reported amount of Revenues and Expenses during the reporting period. Management believes that the estimates used in the preparation of the Financial Statements are prudent and reasonable. Actual results could differ from these estimates.

[C] OPERATING CYCLE

Based on the nature of business, the time between the acquisition of assets for the purpose of the business and their realization in cash and cash equivalents, the Company has ascertained its Operating Cycle as 12 [Twelve] Months for the purpose of classification of its Assets and Liabilities as Current and Non-Current.

[D] FIXED ASSETS

Fixed Assets are valued at Cost less Depreciation.

[E] DEPRECIATION

Depreciation is provided on original cost of Fixed Assets on the Straight Line Method at the rates prescribed in Schedule II to the Companies Act, 2013.

[F] INVESTMENTS

(a) Classification

Investments are classified into the following category

Long Term Investments

All investments in securities, where such investments are intended [at the time of purchase or acquisition thereof] to be held for a period exceeding one year are classified as Long Term Investments.

(b) Valuation

Long Term Investments are valued at cost. However, as a matter of prudent accounting, major diminution in the value of the investments are charged off in the accounts and shown as an extraordinary item.

[G] INVENTORIES

Stock-in-Trade [Securities] is valued at lower of cost or net realizable value. The net realizable value for quoted shares is determined based on the last quoted price at a recognized Stock Exchange. For unquoted shares, the net realizable value is taken as the Fair Market Value, determined on the basis of Rule 11U and 11UA of the Income Tax Rules. However, where the Fair Market Value of unquoted shares and securities are not readily determinable, the same are taken at the cost price.

[H] REVENUE RECOGNITION

(a) Fees for Management of Issues and Placement of Securities, if any, are accounted for in accordance with the payment schedule as agreed in the Memorandum of Understanding entered into with the Issuer Companies or the Letter of Mandate accepted/signed by them.

(b) Dividends and Interest on Debentures are accounted for as and when received.

(c) Service Charges for Fund Syndication, if any, are accounted for on completion of Syndication.

(d) All expenses are accounted for on an accrual basis, except statutory payments which are accounted for as and when paid.

[I] INCOME TAXES

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.

[J] DEFERRED TAX

Deferred tax is recognized on timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and tax laws enacted or subsequently enacted as on the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for timing differences as well as for unabsorbed carry forward losses and depreciation, if any, only if there is virtual certainty that there will be sufficient future taxable income available to realize the assets. 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 would be reviewed at each Balance Sheet date for their realisability

[K] RETIREMENT GRATUITY BENEFITS

Retirement Benefits in the form of Gratuity is provided in the Profit and Loss Account. Gratuity Liability is a defined benefit/obligation and in the current year such provision has been made on the basis of an actuarial valuation. Such actuarial valuation has been made on the basis of Projected Unit Cost method.

Provident Fund contribution is made to the Employees Provident Fund Scheme of the Government of India. The Company does not have Superannuation Pension Plan since the same is covered by contributions to the Pension Scheme under Employees Provident Fund Act. The Company has not made any investment in Plan Assets towards the Gratuity Liability.

[L] SEGMENT REPORTING

The Company has income from one segment only (Retail Mobilization Services) and accordingly, AS 17 relating to Segment Reporting is not applicable to the Company for the relevant year.

[M] EARNINGS PER SHARE

Basic Earnings Per Share is computed by dividing the Profit/(Loss) After Tax [including the post tax effect of Extra-Ordinary Items, if any] by the weighted average number of equity shares outstanding during the year.

Diluted Earnings Per Share is computed by dividing the Profit / (Loss) After Tax (including the post tax effect of Extra-Ordinary Items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.

[N] PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent Liabilities are not recognized, but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

DISCLOSURE OF RIGHTS

The Company has issued only one class of equity shares having a par value of '10/-. Each holder of equity shares is entitled to one vote per share. Dividends declared in Indian Rupees and when proposed by the Board of Directors is subject to the approval ofthe shareholders at the Annual General Meeting, except in the case of interim dividend, if any. In the event of liquidation ofthe Company, the holders of equity shares will be entitled to receive remaining assets ofthe Company. The distribution will be in proportion to the number of equity shares held by the shareholders.


Mar 31, 2014

A. BASIS OF ACCOUNTING :

The Financial Statements of the Company have been prepared under the historical cost convention and in accordance with ap- plicable Accounting Standards except where otherwise stated. The Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956 (which continue to be applicable in respect of Section 133 of the Companies Act 2013 in terms of General Circular 15/2013 dated 13th September, 2013 of the Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act/2013 Act. Mercantile system of accounting is generally followed except for statutory payments.

Accounting policies not specifically referred to herein below are consistent and in consonance with generally accepted account- ing principles prevalent in India and comply with the accounting standards notified by the Central Government under the Compa- nies (Accounting Standards) Rules 2006

The accounts for the relevant year have been prepared on a go- ing concern basis

B. USE OF ESTIMATES :

The preparation of the financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and the disclosures relating to contingent assets and liabilities as on the date of financial statements and the reported amount of revenues and expenses during the report- ing period. Management believes that the estimates used in the preparation of the financial statements are prudent and reason- able. Actual results could differ from these estimates.

C. OPERATING CYCLE :

Based on the nature of business the time between the acquisition of assets for the purpose of the business and their realization in cash and cash equivalents, the Company has ascertained its oper- ating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.

D. FIXED ASSETS :

Fixed Assets are valued at Cost less Depreciation.

E. DEPRECIATION :

Depreciation on Other Fixed Assets installed after December 16, 1993, is provided on Straight Line basis at the rates and in the manner specified in the Schedule XIV to the Companies Act, 1956 (As Amended). In respect of the Fixed Assets installed prior to the above date, Depreciation is provided on Straight Line basis at the rates applicable in the respective year of Addition. Statutory Depreciation in respect of Assets where the actual cost does not exceed Rs.5,000/- is provided at the rate of 100% in the year of Purchase/Installation.

F. INVESTMENTS :

(i) CLASSIFICATION :

Investments are classified into the following category :

Long Term Investments : All Investments in Securities, where such investments are intended (at the time of pur- chase or acquisition thereof) to be held for a period exceed- ing one year, are classified as Long Term Investments.

(ii) VALUATION :

Long Term Investments are valued at cost. However, as a matter of prudent accounting, major diminution in the value of the investments are charged off in the accounts and shown as an extraordinary item.

G. REVENUE RECOGNITION :

(i) Fees for Management of Issues and Placement of Securities, if any, are accounted for in accordance with the payment schedule as agreed in the Memorandum of Understanding entered into with the Issuer Companies or the Letter of Man- date accepted/signed by them.

(ii) Dividends and Interest on Debentures are accounted for as and when received.

(iii) Service Charges for Fund Syndication, if any, are accounted for on completion of Syndication.

(iv) All expenses are accounted for on an accrual basis, except statutory payments which are accounted for as and when paid.

H. TAXATION :

Provision for Income Tax, if any, is made after considering exemp- tions, deductions and allowances available as per the provisions of the Income Tax Act, 1961.

I. RETIREMENT GRATUITY BENEFITS :

Retirement benefits in the form of Gratuity is provided in the Profit and Loss Account. Gratuity Liability is a defined benefit/ obligation and in the current year such provision has been made on the basis of an actuarial valuation. Such actuarial valuation has been made on the basis of Projected Unit Cost method.

Provident Fund contribution is made to the Employees Provident Fund Scheme of the Government of India. The Company does not have Superannuation Pension Plan since the same is covered by contributions to the Pension Scheme under Employees Provident Fund Act. The Company has not made any investment in Plan Assets towards the Gratuity Liability.

J. SEGMENT REPORTING :

The Company has income from one segment only (Retail Mobili- sation Services) and accordingly, AS 17 relating to segment re- porting is not applicable to the Company for the relevant year.

K. EARNINGS PER SHARE :

Basic earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares out- standing during the year. Diluted earnings per share is computed by dividing the profit/(loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of eq- uity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The di- lutive potential equity shares are adjusted for the proceeds re- ceivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive poten- tial equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits/reverse share splits and bonus shares, as appropriate.

L. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT AS- SETS :

Provisions involving substantial degree of estimation in measure- ment are recognized when there is a present obligation as a re- sult of past events and it is probable that there will be outflow of resources. Contingent Liabilities are not recognised, but are dis- closed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2013

A. BASIS OF ACCOUNTING :

The Financial Statements of the Company have been prepared under the historical cost convention and in accordance with applicable Accounting Standards except where otherwise stated. The Financial Statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956. Mercantile system of accounting is generally followed except for statutory payments.

Accounting policies not specifically referred to herein below are consistent and in consonance with generally accepted accounting principles prevalent in India and comply with the accounting standards notified by the Central Government under the Companies (Accounting Standards) Rules 2006.

The accounts for the relevant year have been prepared on a going concern basis.

B. FIXED ASSETS :

Fixed Assets are valued at Cost less Depreciation.

C. DEPRECIATION :

Depreciation on Other Fixed Assets installed after 16.12.1993, is provided on Straight Line basis at the rates and in the manner speci- fied in the Schedule XIV to the Companies Act, 1956 (As Amended). In respect of the Fixed Assets installed prior to the above date, Depreciation is provided on Straight Line basis at the rates applicable in the respective year of Addition. Statutory Depreciation in respect of Assets where the actual cost does not exceed Rs.5,000/- is provided at the rate of 100% in the year of Purchase/ Installation.

D. INVESTMENTS :

(a) CLASSIFICATION :

Investments are classified into the following category :

Long Term Investments :

All Investments in Securities, where such investments are intended (at the time of purchase or acquisition thereof) to be held for a period exceeding one year, are classified as Long Term Investments.

(b) VALUATION :

Long Term Investments are valued at cost. However, as a matter of prudent accounting, the diminution in the value of the invest- ments has been charged off in the accounts and has been shown as an extraordinary item in the profit and loss account for the financial year 2012-13.

E. REVENUE RECOGNITION :

(a) Fees for Management of Issues and Placement of Securities, if any, are accounted for in accordance with the payment schedule as agreed in Memorandum of Understanding entered into with the Issuer Companies or the Letter of Mandate accepted/signed by them.

(b) Dividends and Interest on Debentures are accounted for as and when received.

(c) Service Charges for Fund Syndication, if any, are accounted for on completion of Syndication.

(d) All expenses are accounted for on an accrual basis, except statutory payments which are accounted for as and when paid.

F. TAXATION :

Provision for Income Tax, if any, is made after considering exemptions, deductions and allowances available as per the provisions of the Income Tax Act, 1961.

G. RETIREMENT GRATUITY BENEFITS :

Retirement benefits in the form of Gratuity is provided in the Profit and Loss Account. Gratuity Liability is a defined benefit/obligation and in the current year such provision has been made on the basis of an actuarial valuation. Such actuarial valuation has been made on the basis of Projected Unit Cost method

Provident Fund contribution is made to the Employees Provident Fund Scheme of the Government of India. The Company does not have Superannuation Pension Plan since the same is covered by contributions to the Pension Scheme under Employees Provident Fund Act. The Company has not made any investment in Plan Assets towards the Gratuity Liability.

H. SEGMENT REPORTING :

The Company has income from one segment only (Retail Mobilisation Services) and accordingly, AS 17 relating to segment reporting is not applicable to the Company for the relevant year.

I. EARNINGS PER SHARE :

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the pro- ceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive poten- tial equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.

J. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent Liabilities are not recognised, but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

A) BASIS OF ACCOUNTING :

The Company prepares its Accounts on accrual basis, except otherwise stated, in consonance with the Generally Accepted Accounting Policies.

B) FIXED ASSETS:

Fixed Assets are valued at Cost less Depreciation.

C) DEPRECIATION:

Depreciation on Other Fixed Assets installed after 16.12.1993, is provided on Straight Line basis at the rates and in the manner specified in the Schedule XIV to the Companies Act, 1956 (As Amended). In respect of the Fined Assets installed prior to the above date, Depreciation is provided on Straight Line basis at the rates applicable in the respective year of Addition. Statutory Depreciation in respect of Assets where the actual cost does not exceed Rs.5,000/- is provided at the rate of 100% in the year of Purchase/ Installation.

D) IMPAIRMENT OF ASSETS:

There has been no impairment during the Current Financial Year 2011-12 i.e. the carrying amount of the assets does not exceed the realizable value of the Assets.

E) INVESTMENTS:

i) CLASSIFICATION : Investments are classified into the following category :

Long Term Investments: All Investments in Securities, where such investments are intended (at the time of purchase or acquisition thereof) to be held for a period exceeding one year, are classified as Long Term Investments.

ii) VALUATION:

i) Long-Term Investments are valued at cost. Diminution in their values is however, not provided for, since not permanent in nature.

F) REVENUE RECOGNITION:

i) Fees for Management of Issues and Placement of Securities, if any, are accounted for in accordance with the payment schedule as agreed in Memorandum of Understanding entered into with the Is- sue Companies or the Letter of Mandate accepted/signed by them.

ii) Dividends and Interest on Debentures are accounted for sand when received.

iii) Service Charges for Fund Syndication, if any, are accounted for on completion of Syndication.

G) TAXATION:

Provision for Income Tax, if any, is made after considering exemptions, deductions and allowances avail- able as per the provisions of the Income Tax Act, 1961.

H) RETIREMENT/GRATUITY BENEFITS:

Retirement benefits in the form of Gratuity is provided in the Profit and Loss Account. Gratuity Liability is a defined benefit/obligation and in the current year such provision has been made on the basis of an actuarial valuation. Such actuarial valuation has been made on the basis of Projected Unit Cost method.


Mar 31, 2011

I) BASIS OF ACCOUNTING :

The Company prepares its Accounts on accrual basis, except otherwise stated, in consonance with the Generally Accepted Accounting Policies.

ii) FIXED ASSETS :

Fixed Assets are valued at Cost less Depreciation.

iii) DEPRECIATION :

Depreciation on Other Fixed Assets installed after 16.12.1993, is provided on Straight Line basis at the rates and in the manner specified in the Schedule XIV to the Companies Act, 1956 (As Amended). In respect of the Fixed Assets installed prior to the above date, Depreciation is provided on Straight Line basis at the rates applicable in the re- spective year of Addition. Statutory Depreciation in respect of Assets where the actual cost does not exceed Rs. 5,000/- is provided at the rate of 100% in the year of Purchase/Installation.

iv) IMPAIRMENT OF ASSETS :

There has been no impairment during the Current Financial Year 2010-11 i.e. the carrying amount of the assets does not exceed the realizable value of the Assets.

v) INVESTMENTS:

a) CLASSIFICATION : Investments are classified into the following category :

Long Term Investments : All Investments in Securities, where such investments are intended (at the time of purchase or acquisition thereof) to be held for a period exceeding one year, are classified as Long Term In- vestments.

b) VALUATION :

i) Long Term Investments are valued at cost. Diminution in their values is however, not provided for, since not permanent in nature.

vi) REVENUE RECOGNITION :

a) Fees for Management of Issues and Placement of Securities, if any, are accounted for in accordance with the payment schedule as agreed in Memorandum of Understanding entered into with the Issuer Companies or the Letter of Mandate accepted/signed by them.

b) Dividends and Interest on Debentures are accounted for as and when received.

c) Service Charges for Fund Syndication, if any, are accounted for on completion of Syndication.

vii) TAXATION :

Provision for Income Tax, if any, is made after considering exemptions, deductions and allowances available as per the provisions of the Income Tax Act, 1961.

viii) RETIREMENT/GRATUITY BENEFITS :

Retirement benefits in the form of Gratuity is provided in the Profit and Loss Account. Gratuity Liability is a defined benefit/obligation and in the current year such provision has been made on the basis of an actuarial valuation. Such actuarial valuation has been made on the basis of Projected Unit Cost method.

Provident Fund contribution are made to the Employees Provident Fund Scheme of the Government of India. The Company does not have Superannuation Pension Plan since the same is covered by contributions to the Pension Scheme under Employees Provident Fund Act. The Company has not made any investment in Plan Assets towards the Gratuity Liability.


Mar 31, 2010

I) BASIS OF ACCOUNTING:

The Company prepares its Accounts on accrual basis, except otherwise stated, in consonance with the Generally Accepted Accounting Policies.

ii) FIXED ASSETS :

Fixed Assets are valued at Cost less Depreciation.

iii) DEPRECIATION :

Depreciation on Other Fixed Assets installed after 16.12.1993, is provided on Straight Line basis at the rates and in the manner specified in the Schedule XIV to the Companies Act, 1956 (As Amended). In respect of the Fixed Assets installed prior to the above date, Depreciation is provided on Straight Line basis at the rates applicable in the re- spective year of Addition. Statutory Depreciation in respect of Assets where the actual cost does not exceed Rs. 5,000/- is provided at the rate of 100% in the year of Purchase/Installation.

iv) IMPAIRMENT OF ASSETS:

There has been no impairment during the Current Financial Year 2009-10 i.e. the carrying amount of the assets does not exceed the realizable value of the Assets.

v) INVESTMENTS :

a) CLASSIFICATION : Investments are classified into the following category :

Long Term Investments : All Investments in Securities, where such investments are intended (at the time of purchase or acquisition thereof) to be held for a period exceeding one year, are classified as Long Term In- vestments.

b) VALUATION :

i) Long Term Investments are valued at cost. Diminution in their values is however, not provided for, since not permanent in nature.

vi) REVENUE RECOGNITION :

a) Fees for Management of Issues and Placement of Securities, if any, are accounted for in accordance with the payment schedule as agreed in Memorandum of Understanding entered into with the Issuer Companies or the Letter of Mandate accepted/signed by them.

b) Dividends and Interest on Debentures are accounted for as and when received.

c) Service Charges for Fund Syndication, if any, are accounted for on completion of Syndication.

vii) TAXATION :

Provision for Income Tax, if any, is made after considering exemptions, deductions and allowances available as per the provisions of the Income Tax Act, 1961.

viii) RETIREMENT/GRATUITY BENEFITS:

Retirement benefits in the form of Gratuity is provided in the Profit and Loss Account. Gratuity Liability is a defined benefit/obligation and in the current year such provision has been made on the basis of an actuarial valuation. Such actuarial valuation has been made on the basis of Projected Unit Cost method.

Provident Fund contribution are made to the Employees Provident Fund Scheme of the Government of India. The Company does not have Superannuation Pension Plan since the same is covered by contributions to the Pension Scheme under Employees Provident Fund Act. The Company has not made any investment in Plan Assets towards the Gratuity Liability.

 
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