Election 2014
SENSEX NIFTY
Moneycontrol.com India | Accounting Policy > Finance - Investments > Accounting Policy followed by Inani Securities - BSE: 531672, NSE: N.A
YOU ARE HERE > MONEYCONTROL > MARKETS > FINANCE - INVESTMENTS > ACCOUNTING POLICY - Inani Securities
Inani Securities
BSE: 531672|ISIN: INE224C01014|SECTOR: Finance - Investments
SET ALERT
|
ADD TO PORTFOLIO
|
WATCHLIST
LIVE
BSE
Apr 15, 17:00
10.90
0
VOLUME 2
Inani Securities is not listed on NSE
Mar 12
Accounting Policy Year : Mar '13
I.  Basis of preparation of financial statements:
 
 The accompanying financial statements are prepared under the historical
 cost convention in accordance with the Indian Generally Accepted
 Accounting Principles (GAAP) comprising the mandatory accounting
 standards issued by the Institute of Chartered Accountants of India and
 the provisions of the Companies Act, 1956, on accrual basis. These
 accounting policies have been consistently applied except where a newly
 issued accounting standard is initially adopted by the company.
 
 All assets and liabilities have been classified as current or
 noncurrent as per the Company''s normal operating cycle and other
 criteria set out in the Schedule VI to the companies Act, 1956.
 
 II.  Use of Estimates:
 
 The presentation of 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 on the date of the financial statements and the reported
 amount of revenues and expenses during the reporting period. Difference
 between the actual result and estimates are recognized in the period in
 which the results are known/materialized.
 
 III.  Fixed Assets:
 
 All Fixed Assets are stated at cost of acquisition, less accumulated
 depreciation. Cost is inclusive of freight, installation cost, duties,
 taxes and other direct incidental expenses.
 
 Subsequent expenditure relating to an item of fixed asset are added to
 its book value only if they increase the future benefits from the
 existing asset beyond its previously assessed standard of performance.
 
 Intangible assets are stated at cost of acquisition, net of accumulated
 amortization and accumulated impairment loss if any. Intangible assets
 are amortised on straight line basis over their estimated useful lives.
 
 IV.  Capital Work-in-progress
 
 Capital Work-in-progress is carried at cost, comprising direct cost and
 related incidental expenses.
 
 V.  Impairment:
 
 The carrying amount of assets is reviewed at each balance sheet date
 for any indication of impairment based on internal/external factors. An
 impairment loss is recognized wherever the carrying amount of an asset
 materially exceeds its recoverable amount. The recoverable amount is
 the greater of the assets net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital.
 
 VI.  Depreciation:
 
 Depreciation has been provided on straight line method on pro-rata
 basis at the rates prescribed in Schedule XIV of the Companies Act,
 1956.
 
 VII.  Inventories:
 
 Stocks of Shares are valued at lower of Cost or Estimated Net
 realisable Value.
 
 Estimated Net Realisable Value: In case realisable value is not
 ascertainable due to non-availability of Quotation in the Stock
 Markets, the value of such Shares is adopted at Rs.1.00 per Share.
 
 Cost: In case, Cost is not ascertainable due to non availability of lot
 details and its cost, the cost of such shares are adopted at previous
 year value.
 
 VIII. Investments:
 
 Unquoted Investments: In the opinion of the management Investment in
 the Unquoted Investment in Associates and other Companies are of Long
 Term nature meant to be held permanently and any diminution in the
 latest available book value as compared to the ost of such shares is
 considered temporary by the management and hence not provided (not
 ascertained).
 
 IX.  Revenue Recognition :
 
 Revenue is recognized to the extent it is probable that the economic
 benefits will flow to the company and the revenue can be reliably
 measured.
 
 a.  Brokerage income earned on Secondary market operations is accounted
 (inclusive method) on trade dates.
 
 b.  Depository & related income is accounted on accrual basis.
 
 X.  Other Income:
 
 a.  Interest income is recognized on time proportion basis taking into
 account the amount outstanding and the rate applicable.
 
 b.  Dividend income is recognized when right to receive dividend is
 established.
 
 XI.  Employee Benefits :
 
 a) Short term employee benefits:
 
 Employee Benefits such as salaries, allowances, Provident fund and
 non-monetary benefits which fall due for payment within a period of
 twelve months after rendering of services, are charged as expense to
 the profit and loss account in the period in which the service is
 rendered.
 
 b) Post- employment benefits :
 
 Employee Benefits under defined benefit plans, such as gratuity which
 falls due for payment after a period of twelve months from rendering
 services or after completion of employment, are measured by projected
 unit credit method, on the basis of actuarial valuations carried out by
 third party actuaries at each balance sheet date. The Company''s
 obligation recognized in the balance sheet represents the present value
 of obligations as reduced by the fair value of plan assets, where
 applicable.  Actuarial Gains and losses are recognized immediately in
 the statement of Profit and Loss.
 
 c) Termination benefits:
 
 Termination benefits in the nature of voluntary retirement benefits are
 recognized in the statement of profit and loss as and when incurred.
 
 XII.  Taxation :
 
 Tax expenses comprises of current, and deferred. Current Tax is
 measured at the amount expected to be paid to the tax authorities in
 accordance with the Indian Income Tax Act, 1961.  Provision for current
 tax is made on the basis of Taxable Income of the Current Accounting
 Year in accordance with Income Tax Act, 1961.
 
 Deferred Tax is recognized for all the timing differences. The Company
 is providing and recognizing deferred tax on timing differences between
 taxable income and accounting income subject to consideration of
 prudence.
 
 Current tax assets and current tax liabilities are offset when there is
 a legally enforceable right to set off the recognized amounts and there
 is an intention to settle the asset and liability on a net basis.
 Deferred tax assets and deferred tax liability are offset when there is
 legally enforceable right to set off assets against liabilities
 representing current tax and where the deferred tax assets and the
 deferred tax liabilities relate to taxes on income levied by the same
 governing taxation laws.
 
 XIII. Provisions and Contingent Liabilities:
 
 The Company recognizes a provision when there is a present obligation
 as a result of a past event that probably requires an outflow of
 resources and a reliable estimate can be made of the amount of the
 obligation.
 
 A disclosure for a contingent liability is made when there is a
 possible obligation or a present obligation that may, but probably will
 not, require an outflow of resources. Where there is a possible
 obligation or a present obligation that the likelihood of outflow of
 resources is remote, no provision or disclosure is made.
 
 XIV.  Earnings per share:
 
 In determining Earnings per share, the company considers the net profit
 after tax and includes the post tax effect of any extra ordinary items.
 The number of shares used in computing basic earnings per share is the
 weighted average number of shares outstanding during the period.
Source : Dion Global Solutions Limited
Quick Links for inanisecurities
Explore Moneycontrol
Stocks     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | Others
Mutual Funds     A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
Copyright © e-Eighteen.com Ltd. All rights reserved. Reproduction of news articles, photos, videos or any other content in whole or in part in any form or medium without express written permission of moneycontrol.com is prohibited.