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SENSEX NIFTY India | Accounting Policy > Finance - Investments > Accounting Policy followed by CIL Securities - BSE: 530829, NSE: N.A

CIL Securities

BSE: 530829|ISIN: INE830A01012|SECTOR: Finance - Investments
Dec 10, 15:40
-0.42 (-3.18%)
CIL Securities is not listed on NSE
Mar 14
Accounting Policy Year : Mar '15
1.1 Basis of accounting and preparation of financial statements
 The financial statements of the Company have been prepared in
 accordance with the Generally Accepted Accounting Principles in India
 (Indian GAAP) to comply with the Accounting Standards notified under
 the Companies (Accounting Standards) Rules, 2006 (as amended) and the
 relevant provisions of the Companies Act, 1956. The financial
 statements have been prepared on accrual basis under the historical
 cost convention .  The accounting policies adopted in the preparation
 of the financial statements are consistent with those followed in the
 previous year .
 1.2Use of estimates
 The preparation of the financial statements are in conformity with
 Indian GAAP which requires the Management to make estimates and
 assumptions considered in the reported amounts of assets and
 liabilities (including contingent liabilities) and the reported income
 and expenses during the year. The Management believes that the
 estimates used in preparation of the financial statements are prudent
 and reasonable.
 1.3Cash and cash equivalents (for purposes of Cash Flow Statement)
 Cash comprises of cash on hand and demand deposits with banks. Cash
 equivalents are short-term balances (with an original maturity of three
 months or less from the date of acquisition), highly liquid investments
 that are readily convertible into known amounts of cash are subject to
 insignificant risk of changes in value.
 1.4Cash flow statement
 Cash flows are reported using the indirect method, whereby profit /
 (loss) before extraordinary items and tax is adjusted for the effects
 of transactions of non- cash nature and any deferrals or accruals of
 past or future cash receipts or payments. The cash flows from
 operating, investing and financing activities of the Company are
 segregated based on the available information.
 1.5 Depreciation and amortisation
 Depreciation has been provided on the written down method as per the
 rates prescribed in Part ''C'' of Schedule II of the Companies Act, 2013.
 Intangible assets are amortised over their estimated useful life as
 Intangibles  3  6 years.
 The estimated useful life of the intangible assets and the amortisation
 period are reviewed at the end of each financial year and the
 amortisation method is revised to reflect the changed pattern.
 1.6Revenue recognition
 Income from services
 Revenues from contracts priced on a time and material basis are
 recognised when services are rendered and related costs are incurred.
 1.7Other income
 Interest income is accounted on accrual basis. Dividend income is
 accounted for on receipt basis.
 1.8Tangible Fixed Assets
 Fixed assets, are carried at cost less accumulated depreciation and
 impairment losses, if any. The cost of fixed assets includes interest
 on borrowings attributable to acquisition of qualifying fixed assets up
 to the date the asset is ready for its intended use and other
 incidental expenses incurred up to that date. Machinery spares which
 can be used only in connection with an item of fixed asset and whose
 use is expected to be irregular are capitalised and depreciated over
 the useful life of the principal item of the relevant assets.
 Subsequent expenditure relating to fixed assets is capitalised only if
 such expenditure results in an increase in the future benefits from
 such asset beyond its previously assessed standard of performance.
 Fixed assets acquired in full or part exchange for another asset are
 recorded at the fair market value or the net book value of the asset
 given up, adjusted for any balancing cash consideration. Fair market
 value is determined either for the assets acquired or asset given up,
 whichever is more clearly evident. Fixed assets acquired in exchange
 for securities of the Company are recorded at the fair market value of
 the assets or the fair market value of the securities issued, whichever
 is more clearly evident.
 The Company has not revalued its assets.
 Fixed assets retired from active use and held for sale are stated at
 the lower of their net book value and net realisable value and are
 disclosed separately in the Balance Sheet.
 1.9 Intangible assets
 Intangible assets are carried at cost less accumulated amortisation and
 impairment losses, if any. The cost of an intangible asset comprises
 its purchase price, including any import duties and other taxes (other
 than those subsequently recoverable from the taxing authorities), and
 any directly attributable expenditure on making the asset ready for its
 intended use and net of any trade discounts and rebates. Subsequent
 expenditure on an intangible asset after its purchase / completion is
 recognised as an expense when incurred unless it is probable that such
 expenditure will enable the asset to generate future economic benefits
 in excess of its originally assessed standards of performance and such
 expenditure can be measured and attributed to the asset reliably, in
 which case such expenditure is added to the cost of the asset.
 1.10 Foreign currency transactions and translations
 Transactions in foreign currencies are accounted at the exchange rates
 prevailing on the date of the transaction or at rates that closely
 approximate the rate at the date of the transaction.
 1.11 Investments
 Long-term investments (excluding investment properties), are carried
 individually at cost less provision for diminution, other than
 temporary, in the value of such investments. Current investments are
 carried individually, at the lower of cost and fair value. Cost of
 investments include acquisition charges such as brokerage, fees and
 duties. Investment properties are carried individually at cost less
 accumulated depreciation and impairment, if any. Investment properties
 are capitalised and depreciated (where applicable) in accordance with
 the policy stated for Tangible Fixed Assets. Impairment of investment
 property is determined in accordance with the policy stated for
 Impairment of Assets.
 1.12 Employee benefits
 Employee benefits include provident fund, superannuation fund, gratuity
 The Company''s contribution to provident fund is considered as defined
 contribution plan and is charged as an expense as they fall due based
 on the amount of contribution required to be made.
 The undiscounted amount of short-term employee benefits expected to be
 paid in exchange for the services rendered by employees are recognised
 during the year when the employees render the service. These benefits
 include performance incentive and compensated absences which are
 expected to occur within twelve months after the end of the period in
 which the employee renders the related service. The cost of such
 compensated absences is accounted as under :(a) in case of accumulated
 compensated absences, when employees render the services that increase
 their entitlement of future compensated absences; and(b) in case of
 non-accumulating compensated absences, when the absences occur.
 1.13 Segment reporting
 The Company identifies primary segments based on the dominant source,
 nature of risks and returns and the internal organisation and
 management structure. The operating segments are the segments for which
 separate financial information is available and for which operating
 profit/loss amounts are evaluated regularly by the executive Management
 in deciding how to allocate resources and in assessing performance.
 The accounting policies adopted for segment reporting are in line with
 the accounting policies of the Company.  Segment revenue, segment
 expenses, segment assets and segment liabilities have been identified
 to segments on the basis of their relationship to the operating
 activities of the segment. Revenue, expenses, assets and liabilities
 which relate to the Company as a whole and are not allocable to
 segments on reasonable basis have been included under unallocated
 revenue / expenses / assets / liabilities.
 1.14. 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 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.
 1.15 Taxes on income
 Current tax is the amount of tax payable on the taxable income for the
 year as determined in accordance with the provisions of the Income Tax
 Act, 1961.Minimum Alternate Tax (MAT) is paid in accordance with the
 tax laws, which gives future economic benefits in the form of
 adjustment to future income tax liability, is considered as an asset if
 there is convincing evidence that the Company will pay normal income
 tax. Accordingly, MAT is recognised as an asset in the Balance Sheet
 when it is probable that future economic benefit associated with it
 will flow to the Company.Deferred tax is recognised on timing
 differences, being the differences 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 the tax laws enacted or substantially enacted
 as at the reporting date. Deferred tax liabilities are recognised for
 all timing differences. Deferred tax assets in respect of unabsorbed
 depreciation and carry forward of losses are recognised only if there
 is virtual certainty that there will be sufficient future taxable
 income available to realise such assets. Deferred tax assets are
 recognised for timing differences of other items only to the extent
 that reasonable certainty exists that sufficient future taxable income
 will be available against which these can be realised. 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 are
 reviewed at each Balance Sheet date for their realisability. Current
 and deferred tax relating to items directly recognised in equity are
 recognised in equity and not in the Statement of Profit and Loss.
 Current and deferred tax relating to items directly recognised in
 equity and not in the Statement of Profit and Loss.
 1.16 Impairment of assets
 The carrying values of assets / cash generating units at each Balance
 Sheet date are reviewed for impairment. If any indication of impairment
 exists, the recoverable amount of such assets is estimated and
 impairment is recognised, if the carrying amount of these assets
 exceeds their recoverable amount. The recoverable amount is the greater
 of the net selling price and their value in use. Value in use is
 arrived at by discounting the future cash flows to their present value
 based on an appropriate discount factor. When there is indication that
 an impairment loss recognised for an asset in earlier accounting
 periods no longer exists or may have decreased, such reversal of
 impairment loss is recognised in the Statement of Profit and Loss,
 except in case of revalued assets.
 1.17 Provisions and contingencies
 A provision is recognised when the Company has a present obligation as
 a result of past events and it is probable that an outflow of resources
 will be required to settle the obligation in respect of which a
 reliable estimate can be made. Provisions (excluding retirement
 benefits) are not discounted to their present value and are determined
 based on the best estimate required to settle the obligation at the
 Balance Sheet date. These are reviewed at each Balance Sheet date and
 adjusted to reflect the current best estimates. Contingent liabilities
 are disclosed in the Notes.
 1.18 Derivative contracts
 The Company enters into derivative contracts in the nature of foreign
 currency swaps, currency options, forward contracts. Futures derivative
 contracts are marked-to-market and Profit & Losses are recognised in
 the Statement of Profit and Loss. Option transaction are recognised at
 cost price till the account is settled.
 1.19 Service tax input credit
 Service tax input credit is accounted for in the books in the period in
 which the underlying services are received and are accounted as and
 when there is no uncertainty in availing / utilising the credits.
 1.24 Employee benefit plans
 Defined contribution plans
 The Company makes Provident Fund contribution for qualifying employees.
 Under the Schemes, the Company is required to contribute a specified
 percentage of the payroll costs to fund the benefits.  The Company
 recognised Rs.58017/- (Year ended 31 March, 2015) for Provident Fund
 contributions and Rs.50660/- (Year ended 31 March, 2014) for
 contributions in the Statement of Profit and Loss. The contributions
 payable to these plans by the Company are at the rates specified in the
 rules of the schemes.
Source : Dion Global Solutions Limited
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