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SENSEX NIFTY India | Accounting Policy > Finance - General > Accounting Policy followed by Amit Securities - BSE: 531557, NSE: N.A

Amit Securities

BSE: 531557|ISIN: INE137E01014|SECTOR: Finance - General
Jul 24, 16:00
Amit Securities is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
 a Use of Estimates
 The preparation of the financial statements in conformity with GAAP
 requires management to make estimates and assumptions that affect the
 reported balances of assets and liabilities and disclosures relating to
 contingent liabilities as at the date of the financial statements and
 reported amounts of income and expenses during the period. Although
 these estimates are based on management''s best knowledge of current
 events and actions, uncertainty about these assumptions and estimates
 could result in the outcomes requiring a material adjustment to the
 carrying amounts of assets or liabilities in future period.
 b Tangible Fixed Assets
 Fixed assets are stated at cost, net of accumulated depreciation and
 accumulated impairment losses, if any. The cost comprises purchase
 price, borrowing costs if capitalization criteria are met and directly
 attributable cost of bringing the asset to its working condition for
 the intended use. Any trade discount and rebates are deducted in
 arriving at the purchase price.Subsequent expenditure related to an
 item of fixed asset is added to its book value only if it increases the
 future benefits from the existing asset beyond its previously assessed
 standard performance. All other expenses on existing fixed assets,
 including day to day repair and maintenance expenditure and cost of
 replacing parts, are charged to the statement of profit and loss for
 the period during which such expenses are incurred.
 c Depreciation
 Depreciation on Fixed Assets are provided for in accordance with
 Schedule II of the Companies Act 2013 on Straight Line Method. In
 respect of Additions made during the year, Depreciation is charged on
 prorata basis from the date of Addition.
 d Investments
 Investments, which are readily realizable and intended to be held for
 not more than one year from the date on which such investments are
 made, are classified as current investments. All other investments are
 classified as long-term investments.All investments are usually
 measured at cost. Current investments are carried in the financial
 statements at lower of the cost and fair value determined in on an
 individual investment basis. Long term investments are carried at cost.
 However, provision for diminution in value of the investments.
 e Provisions & Contingent Liability
 The Company recognized a provision when there is a present obligation
 as a result of past event, and a reliable estimate can be made of the
 amount of the obligation. Provisions are determined based on the best
 estimate required to settle the obligation at the reporting date. These
 estimates are reviewed at each reporting date and adjusted to reflect
 the current best estimates.
 f Inventories
 Stock In Trade of Shares is Valued at Cost or Realisable value which
 ever is lower on Fifo Basis g Income Tax
 Tax expenses comprise current and deferred tax.
 Current tax comprises Company''s tax liability for the current financial
 year as well as additional tax paid, if any, during the year in respect
 of earlier years on receipt of demand from the authorities. For
 computation of taxable income under the Income Tax Act, 1961, accrual
 basis of accounting has been adopted and consistently followed by the
 Deferred tax assets and liabilities are computed on the timing
 differences at the Balance Sheet date using the tax rate and tax laws
 that have been enacted or substantially enacted by the Balance sheet
 date. Deferred tax assets are recognized based on management estimates
 of reasonable certainty that sufficient taxable income will be
 available against which such deferred tax assets can be realized.
 Unrecognized deferred tax assets of earlier years are re-assessed and
 recognized to the extent that it has become reasonably certain that
 future taxable income will be available against which such deferred tax
 assets can be realized.
 h Retirement and Employee Benefits
 The Company has Defined Benefit plans namely leave encashment and
 gratuity for all employees which is accounted for by the Company on
 accrual Basis
 i Revenue Recognition
 (i) Revenues are recognized to the extent that it is probable that
 economic benefit will flow to the Company and revenue can be reliably
 (ii) Dividend income is recognised when the right to receive the
 payment is established.
 (iii) Interest income is recognised on a time proportion basis taking
 into account the amount outstanding and the interest rate applicable.
 j Earning Per Share
 Earnings per Share (EPS) are computed on the basis of net profit after
 tax for the year. The number of shares used in computing basic EPS is
 weighted average number of shares outstanding during the year. The
 diluted EPS is calculated on the same basis as basic EPS, since there
 are no dilutive equity shares.
 k Cash Flow Statement
 Cash flows are reported using the indirect method, whereby net profit/
 (loss) before tax is adjusted for the effects of transactions of a
 non-cash nature. The cash flows from regular revenue generating,
 investing and financing activities of the Company are segregated.
Source : Dion Global Solutions Limited
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