Accounting Policies of Vikalp Securities Ltd. Company

Mar 31, 2025

A. Accounting Conventions:

The financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 and with
Companies (Indian Accounting Standards) (Amendment) Rules, 2017 and comply in all material aspects
with the relevant provisions of the Companies Act’2013 to the extent applicable to it.

For all periods up to and including the year ended 31 March 2018, the Company prepared its financial
statements in accordance with accounting standards notified under the section 133 of the Companies
Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

The Financial Statements have been prepared on a historical cost basis except the following assets and
liabilities which have been measured at fair values:

• Certain Financial Assets and Liabilities that are measured at Fair Value

• Investments forming part of financial assets

The accounting policies are applied consistently to all the periods reported in the financial statements
unless otherwise stated.

B. Use of Estimates:

The preparation of financial statements requires management to make estimates and assumptions that
are believed to be reasonable under the circumstances and such estimates and assumptions may affect
the reported amount of assets and liabilities, classification of assets and liabilities into non-current and
current and disclosures relating to contingent liabilities as at the date of financial statements and the
reported amounts of income and expenses during the reporting period. Although the financial
statements have been prepared based on the management’s best knowledge of current events and
procedures/actions, the actual results may differ on the final outcome of the matter/transaction to
which the estimates relate.

C. Judgments:

Information about judgments made in applying accounting policies that have the most significant effects
on the amounts recognised in the financial statements is included in the following notes:

• Assessment of useful life of Property, plant and equipment

• Provisions and contingent liabilities

• Income taxes

• Inventory valuation

D. Assumptions and estimation of uncertainties:

Information about assumptions and estimation uncertainties that have a significant impact on the
financial statements are as mentioned below:

• Recognition and measurement of provisions and contingencies: key assumptions about the
likelihood and magnitude of an outflow of resources.

• Impairment test of non-financial assets: key assumptions underlying recoverable amounts

• Impairment of financial assets

• Fair value measurement

• Recognition of deferred tax assets: Availability of future taxable profits against which such
Deferred tax assets can be adjusted

E. Property, Plant and Equipment (PPE):

Under the previous GAAP (Indian GAAP), Property, plant and equipment (PPE) were carried in the
balance sheet at their respective carrying value. Using the deemed cost exemption available as per Ind
AS 101, the company has elected to carry forward the carrying value of PPE under Indian GAAP as on 31
March 2016 as book value of such assets under Ind AS as at the transition date ("1 April 2016").

The cost of an item of property, plant and equipment is recognized as an asset if, and only if:

(a) It is probable that future economic benefits associated with the item will flow to the entity; and

(b) The cost of the item can be measured reliably.

Property, plant and equipment held for use in the supply of goods or services, or for administrative
purposes, are stated in the balance sheet at cost less accumulated depreciation and accumulated
impairment losses.

The Company capitalized its Property, Plant and Equipment at a value net of GST/ Other Tax Credits
received/receivable during the year in respect of eligible item of Property, Plant and Equipment.
Subsequent costs are included in the carrying amount of respective Property, Plant and Equipment or
recognized as separate assets as appropriate, only if such costs increase the future benefits from the
existing items beyond their previously assessed standard of performance and cost of such items can be
measured reliably.

Subsequent Costs

The cost of replacing a part of an item of property, plant and equipment is recognised in the carrying
amount of the item of property, plant and equipment, if it is probable that the future economic
benefits embodied within the part will flow to the Company and its cost can be measured reliably with
the carrying amount of the replaced part getting derecognised. The cost for day-to-day servicing of
property, plant and equipment are recognised in Statement of Profit and Loss as and when incurred.
Gains or losses arising from de-recognition of fixed assets are measured as the difference between the

net disposal proceeds and the carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized.

Derecognition of Property, Plant and Equipment:

An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the
disposal or retirement of an item of property, plant and equipment is determined as the difference
between the sales proceeds and the carrying amount of the asset and are recognised net within “other
income / other expenses” in the Statement of profit and loss. The residual values, useful lives and
methods of depreciation of property, plant and equipment are reviewed at each financial year end and
adjusted prospectively, if appropriate.

Depreciation & Amortization:

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful
lives as prescribed under Part C of Schedule II to the Companies Act 2013, using the straight-line
method. The estimated useful lives, residual values and depreciation method are reviewed at the end of
each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.
Depreciation for assets purchased/sold during a period is proportionately charged for the period of use.

property, plant and equipment having values less than INR 5,000 are fully depreciated in the year in
which it is put to use. The residual values, useful lives and method of depreciation are reviewed at the
end of each financial year.

F. Inventories:

Inventories are measured at the lower of cost and net realisable value. The cost of inventories includes
expenditure incurred in acquiring the inventories, production or conversion costs and other costs
incurred in bringing them to their present location and condition.

Net realisable value is the estimated selling price in the ordinary course of business, less the estimated
costs of completion and selling expenses.

The company is in business of trading of Goods so it does not hold any inventory, the inventory
reflecting in the financial statement are either goods in transit or the risk and reward of ownership of
the goods are not transferred to the buyer of the goods.

G. Revenue Recognition:

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the
Company and the revenue can be reliably measured, regardless of when the payment is being made.
The following specific recognition criteria must also be met before revenue is recognised: -

Dividend

Dividend on investment in shares & securities are accounted for on receipt basis.

Income From dealing in shares

Income From dealing in shares/securities is recognized on the basis of matched contract of similar
deliveries dates for purchase & sales entered during the year

Income from Future and Option

Future and option transactions are recorded at the final of squaring up the relevant related transactions

H. Expenses:

All expenses are accounted on accrual basis

I. Employee Benefits:

1. Short Term Obligations:

Liabilities for salaries, including other monetary and non-monetary benefits that are expected to be
settled wholly within 12 months after the end of the period in which the employees render the related
service are recognised in respect of employees’ services up to the end of the reporting period and are
measured at the amounts expected to be paid when the liabilities are settled.

2. Post-Employment and Other Long-Term Employee Benefits:

Post-Employment and Other Long-Term Employee Benefits schemes are not applicable to the company.

J. Borrowing Costs:

There is no present balance outstanding of borrowings hence no borrowing costs incurred during the
year.

Borrowing costs include

(i) Interest expense calculated using the effective interest rate method,

(ii) Finance charges in respect of finance leases, and

(iii) Exchange differences arising from foreign currency borrowings to the extent that they are regarded
as an adjustment to interest costs.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets,
which are assets that necessarily take a substantial period of time to get ready for their intended use or
sale, are added to the cost of those assets, until such time as the assets are substantially ready for their
intended use or sale.

Interest income earned on the temporary investment of specific borrowings pending their expenditure
on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in the statement of profit and loss in the period in which they
are incurred.

K. Exceptional Items:

Exceptional items refer to items of income or expense within the income statement from ordinary
activities which are non-recurring and are of such size, nature or incidence that their separate
disclosure is considered necessary to explain the performance of the company.

L. Operating Segment:

Since the Company engages in trading operations, which by their very nature are all subject to the same
risks and rewards, these activities have been combined into a single segment, the results of which are

shown in the financial statements.

So, the disclosure requirements pursuant to Ind AS-108- “Operating Segments” are not applicable.

M. Taxes On Income:

1. Current Tax:

The provision for current tax is made as per the provisions of the Income Tax Act, 1961.

Taxes on income have been determined based on the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. The current tax liabilities and assets are measured at
the amounts expected to be paid or to be recovered from the taxation authorities as at the balance
sheet date.

The current tax liabilities and assets are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis or to realise the assets and settle the liabilities
simultaneously.

The current income tax relating to items recognized outside profit or loss is recognized either in the
Other Comprehensive Income or in Other Equity Directly.

2. Deferred Tax:

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities as per
the provisions of the Income Tax Act, 1961 and their carrying amounts for financial reporting purposes
as at the balance sheet date.

Deferred tax liabilities are recognized for all taxable temporary timing differences. Deferred tax assets
are recognized for all deductible taxable temporary timing differences, the carry forward of unused tax
losses and unused tax credits to the extent to which future taxable profits are expected to be available
against which the deductible temporary differences and the carry forward of unused tax losses and
unused tax credits can be utilized/set-off.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting
date and are recognised to the extent that it has become probable that future taxable profits will allow
the deferred tax asset to be recovered

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is
settled or the asset is realised based on the tax rates and tax laws that have been enacted or
substantially enacted by the end of the reporting period.

A deferred tax asset is not recognised for the carry forward of unused tax losses to the extent that it is
not probable that future taxable profit will be available against which the unused tax losses will be
utilised.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss
(either in OCI or equity). Deferred tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity. Deferred tax assets and deferred tax liabilities are offset if a legally
enforceable right exists to set off current tax assets against current tax liabilities and the deferred
taxes relate to the same taxable entity and the same taxation authority.

N. Impairment of Non-Financial Assets:

The Company assesses, at each reporting date, whether there is an indication that an asset may be
impaired. If any indication exists, or when annual impairment testing for an asset is required, the
company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an
asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable
amount is determined for an individual asset, unless the asset does not generate cash inflows that are
largely independent of those from other assets or groups of assets.

Impairment loss is recognized when the carrying amount of an asset exceeds recoverable amount

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Mar 31, 2013

1.1 ACCOUNTING CONVENTION

The Financial statements are prepared on going concern concept under historical cost convention on accrual basis and are in accordance with the applicable accounting standard issued by the Institute of Chartered Accounts of India notified under section 211 (3C) and the other relevant provisions of the Companies Act 1956.

1.2 FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation Cost comprises the purchase price or construction cost including any attributable cost of bringing the assets to its working condition for its use

1.3 DEPRECIATION

Depreciation is provided on straight line method as per schedule XIV of the companies Act 1956.on prorate basis.

1.4 STOCK IN TRADE

1. Share, debentures, units & Securities are accounted under Stock in trade on trade dates.

2. The cost of stock in trade includes brokerage but does not include stamp duty which was charged to revenue.

1.5 VALUATION OF STOCK IN TRADE

Stock has been valued at cost instead of cost or market value which ever is lower because the company is doing business of shares & securities.

1.6 INVESTMENT

The Investments are longterm i.e. non current investment and are valued at cost since the company is doing business of shares & securities therefore no provision is being made for dimunition in the Investments.

1.7 INCOME

(a) In respect of contracts relating to shares without taking or giving deliveries profit or Losses are accounted for on squaring updates.

(b) Income from dealing in shares / Securities is recognized on the basis of matched contract of similar deliveries dales for purchase & sales entered during the year

(c) Dividend on investment in shares & Securities are accounted for on receipt basis

1.8 EXPENSES

All expenses are accounted on accrual basis

1.9 TAXATION

The expense comprises of current tax and differed tax charge or credit Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. The deferred tax charge or credit is recognized using prevailing enacted or substantively enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/1 labilities are reviewed as at each balance sheet data based on developments during the period and available case law to re-assess realization/liabiiities

2.0. CONTINGENT LIABILITY 2012-2013 2011-2012

To the extent known NIL NIL

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Mar 31, 2010

1.1 ACCOUNTING CONVENTION

The accounts have been prepared under the historical cost convention and on going concern basis.

1.2 FIXED ASSETS

Fixed Assets are stated at cost less depreciation.

1.3 DEPRECIATION

Depreciation is provided on straight line method as per schedule XIV of the companies Act 1956.

1.4 STOCK IN TRADE

1. Share, debentures, units & Securities are accounted under Stock in trade on trade dates.

2. The cost of stock in trade includes brokerage but does no tinclude stamp duty which was charged to revenue.

1.5 VALUATION OF STOCK IN TRADE

Stock has been valued at cost instead of cost or market value which ever is lower because the company is doing business of shares & securities as broker of Stock Exchange.

1.6 INVESTMENT

- The Investments are long term investment and are valued at cost since the company is doing business of shares & securities in share market therefore no provision is being made for dimunition in the investments.

1.7 INCOME

(a) In respect of contracts relating to shares without taking or giving deliveries profit or Losses are accounted for on squaring updates.

(b) Income from dealing in shares / Securities is recognized on the basis of matched contract of similar deliveries dates for purchase & sales entered during the year.

(c) Dividend on investment in shares & Securities are accounted for on receipt basis.

1.8 EXPENSES

All expenses are accounted on accrual basis.