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SENSEX NIFTY India | Accounting Policy > Miscellaneous > Accounting Policy followed by Steel City Securities - BSE: 0, NSE: STEELCITY

Steel City Securities

BSE: 0|NSE: STEELCITY|ISIN: INE395H01011|SECTOR: Miscellaneous
Steel City Securities is not listed on BSE
Steel City Securities is not traded in the last 30 days
Accounting Policy Year : Mar '18

Notes on Standalone Financial Statements

Note No.1 : Company Over View

Steel City Securities Limited (the Company) was incorporated on 22 February 1995. The Company is primarily engaged in the business as stock broker in securities trading in various stock exchanges and acting as a depository participant. The Company also offers Services of E-Covernance and offering services as EA for UIDAI. The Shares of the Company are listed on National Stock Exchange SME platform, i.e. NSE EMERGE.

Note No.2 : Significant Accounting Policies

a Basis of Preparation of Financial Statements

The financial statements are prepared on the basis of historical cost convention and are in accordance with the accounting principles generally accepted in India and are in line with the applicable accounting Standards as prescribed under the Companies Act, 2013

b Use of Estimates

The Preparation and Presentation of Financial Statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the Financial Statements and reported amounts of Revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialised.

c Revenue Recognition

i. Operating Income

Income from Trading Operations, which comprises of Brokerage is accounted for up to the date of last settlement in the reporting period, TINFC''s Operations and UIDAI EA Operations are accounted on transaction basis.

ii. Interest Income

Revenue is recognized on a time proportion basis taking into account the amount of deposit and a rate applicable

iii. Dividend Income

Revenue is recognized when the shareholders right to receive payment is established by the balance sheet date. Dividend from subsidiaries is recognized even if the same are declared after the balance sheet date but pertains to period on or before the date of balance sheet as per the requirements of the schedule III to the Act.

d Expenses

Expenses are accounted on accrual basis and Provisions made for all known liabilities and losses on available information.

Trading losses arising out of communication & computer disruptions and other operational reasons are treated as trading expenses

e Fixed Assets (Tangible / Intangible)

Fixed Assets are valued at cost less accumulated Depreciation/amortisation and impairment losses. Cost include all expenses incurred to bring the asset to its present location and condition

f Depreciation / Amortisation

Depreciation on Tangible Fixed Assets is provided under straight-line method over the useful life of assets as prescribed in Schedule II to the Companies Act, 2013.

Computer software, an intangible asset, is amortised under straight-line method over the estimated useful life of 3 years.

g Cash and Cash Equivalents

Cash and Cash Equivalents includes cash in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less that are readily convertible into known amount of cash and which are subject to insignificant risk of changes in value.

h Taxes on Income

(i) current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of Income Tax Act, 1961 and other applicable Tax Laws.

(ii) Deferred Tax on account of timing difference between taxable and accounting income is provided using the tax rates and tax laws enacted or substantially enacted by the Balance Sheet Date. Deferred Tax Asset are reviewed at each Balance Sheet date for their realisability.

i Investments

(i) Investments that are intended to be held for more than a year are classified as Long-term Investments. All other investments are classified as current investments.

(ii) Long-term investments are carried at cost, unless there is diminution other than temporary in their value.

(iii) Current Investments are valued at lower of cost or market value. j Retirement Benefits

i. The Company''s contribution to Provident Fund is recognized on accrual basis.

ii. In accordance with applicable Indian laws, the Company provides for gratuity a defined benefit retirement plan (Gratuity plan) covering all employees. The Gratuity plans provides a lumpsum payment to vested employees, at retirement or termination of employment, an amount based on the respective employees last drawn salary and the years of employment with the Company. The Company has an employees'' gratuity fund managed by LIC of India.

iii. Leave encashment liability is provided on the basis of actual valuation made by the management at the end of each calendar year.

k Borrowing Cost

Borrowing Cost include interest and amortisation of ancillary cost such as loan processing charges etc. incurred in connection with the arrangement of borrowings to the extent they regarded as an adjustment to the interest cost.

I Provisions and Contingencies

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 reasonable estimate can be made. Contingent Liabilities are disclosed in the notes. Contingent Assets are not recognised in the financial statements

m Earnings per Share

The Basic earnings per share is computed by dividing the net profit/ loss attributable to the Equity Shareholders for the year by the weighted average no of equity shares outstanding during the reporting year

For the purpose of calculating diluted earnings per share the net profit/loss for the year attributable to equity shareholders and weighted average no of shares outstanding during the reporting year is adjusted for the effect of all dilutive potential equity shares. In considering whether potential equity shares are dilutive or antidilutive, each issue of series of potential equity shares is considered separately rather than aggregate.

Source : Dion Global Solutions Limited
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