Accounting Policies of Amit Securities Ltd. Company

Mar 31, 2024

2.2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a) Property, Plant and Equipment (PPE)

i) Property, plant and equipment are stated at cost, net of recoverable taxes, trade discount and rebates less accumulated
depreciation and impairment losses, if any. Such cost includes purchase price, borrowing cost and any cost directly
attributable to bringing the assets to its working condition for its intended use, net charges on foreign exchange contracts
and adjustments arising from exchange rate variations attributable to the assets.

ii) Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the entity and the cost can be measured
reliably. In the carrying amount of an item of PPE, the cost of replacing the part of such an item is recognized when that
cost is incurred if the recognition criteria are met. The carrying amount of those parts that are replaced is derecognized in
accordance with the derecognition principles.

iii) "Depreciation on property, plant and equipment is provided using straight line method. Depreciation is provided based on
useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 . Each part of an item of Property, Plant
& Equipment with a cost that is significant in relation to total cost of the Machine is depreciated separately, if its useful
life is different than the life of the Machine.''

iv) 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.

v) Gains or losses arising from derecognition of a property, plant and equipment are measured as the difference between the
net disposal proceeds and the carrying amount of the asset and are recognised in the Statement of Profit and Loss when the
asset is derecognised.

b) Leases

i) Leases are classified as finance leases whenever the terms of the lease, transfers substantially all the risks and rewards of
ownership to the lessee. All other leases are classified as operating leases.

ii) Leased assets: Assets held under finance leases are initially recognised as assets of the Company at their fair value at the
inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the
lessor is included in the balance sheet as a finance lease obligation.

iii) Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in Statement of Profit
and Loss, unless they are directly attributable to qualifying assets, in which case they are capitalized. Contingent rentals are
recognised as expenses in the periods in which they are incurred.

iv) A leased asset is depreciated over the useful life of the asset. However, if there is no reasonable certainty that the Company
will obtain ownership by the end of the lease term, the asset is depreciated over the shorter of the estimated useful life of
the asset and the lease term.

v) Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the
lease term except where another systematic basis is more representative of time pattern in which economic benefits from
the leased assets are consumed.

c) Finance Cost

i) Borrowing costs include exchange differences arising from foreign currency borrowings to the extent they are regarded as
an adjustment to the interest cost. Borrowing costs directly attributable to the acquisition, construction or production of an
asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the

cost of the asset. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

ii) 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.

iii) All other borrowing costs are expensed in the period in which they occur.

d) Inventories

i) Securities Shown as Inventories are valued scrip wise at Market Value of securities.

e) Impairment of non-financial assets - property, plant and equipment and intangible assets

i) The Company assesses at each reporting date as to whether there is any indication that any property, plant and equipment
and intangible assets or group of assets, called Cash Generating Units (CGU) may be impaired. If any such indication
exists the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not
possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the
CGU to which the asset belongs.

ii) An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset''s carrying amount exceeds its
recoverable amount. The recoverable amount is higher of an asset''s fair value less cost of disposal and value in use. Value
in use is based on the estimated future cash flows, discounted to their present value using pre-tax discount rate that reflects
current market assessments of the time value of money and risk specific to the assets.

iii) The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of
recoverable amount.

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Mar 31, 2015

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 Company.

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 measured.

(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.

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Mar 31, 2014

Basis of Preparation

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1 Accounting Policies

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 XIV of the Companies Act 1956 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 is made to recognize a decline other than temporary in the 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.""The liabilities or obligations, which cannot be crystallized but loom in horizon, are disclosed as contingent liabilities.

f Inventories

Stock In Trade of Shares is Valued at Cost 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 Company."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 payment Basis

i Revenue Recognition

Revenues are recognized to the extent that it is probable that economic benefit will flow to the Company and revenue can be reliably measured. It is accounted for net of trade discounts.

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.

c Terms / Rights Attached to Shares Equity Shares

The Company has only one class of Equity shares having a par value of 10/-. Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian rupees if any.

During the Year Ended 31st March 2014 the amount per share dividend recognized as distributions to equity shareholders was Rs. NIL( For 31st March 2013 was Rs NIL)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2013

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 XIV of the Companies Act 1956 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 and individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the 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 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 Company. 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 payment Basis.

i. Revenue Recognition

Revenues are recognized to the extent that it is probable that economic benefit will flow to the Company and revenue can be reliably measured. It is accounted for net of trade discounts.

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.

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Mar 31, 2012

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 asses 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 XIV of the Companies Act 1956 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 and individual investment basis. Long term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the 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 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 Company. 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 payment Basis.

i. Revenue Recognition

Revenues are recognized to the extent that it is probable that economic benefit will flow to the Company and revenue can be reliably measured. It is accounted for net of trade discounts.

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.

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Mar 31, 2011

A) Basis of Accounting:

The accounts are prepared under historical cost convention on mercantile system of Accounting.

B) Fixed Assets :

The Fixed Assets are recorded at cost less depreciation.

C) Depreciation :

Depreciation on Fixed Assets are provided for in accordance with Schedule XIV of the Companies Act, 1956 on the straight-line method. In respect of additions made during the year, Depreciation is charged "on prorate basis from the date of addition.

D) Investments :

Undiluted Investments are stated at cost. Quoted Investments are stated at cost and are Long Term. However provision for Diminution in value is made to recognized for a decline other than temporary in nature

E) Share Issue Expenses :

Share Issue Expenses are written off over a period of Ten years.

F) Contingent Liability :

Contingent Liability is not provided for and is disclosed in notes to the account.

G) Stock in trade :

Stock in trade of shares is valued at cost.

H) Income Tax :

Income Tax expenses is accrued in accordance with AS 22 "Accounting on taxes on income" which includes current taxes and deferred taxes, Unrecognized Deferred Tax assets of earlier years and current year are recognized to the extent it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

I) Retirement Benefits :

Liabilities in respect of retirement benefits of employees i.e. gratuity and encashment of earned leave on retirement are accounted over payment basis .

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Mar 31, 2010

A) Basis of Accounting:

The accounts are prepared under historical cost convention on mercantile system| of Accounting.

B) Fixed Assets :

The Fixed Assets are recorded at cost less depreciation.

C) Depreciation :

Depreciation on Fixed Assets are provided for in accordance with Schedule XIV of the Companies Act, 1956 on the straight-line method. In respect of additions made during the year, Depreciation is charged on provate basis from the udition.

D) Investments:

Unquoted Investments are stated at cost. Quoted Investments are stated at cost and are Long Term. However provision for Diminution in value is made to recognized for a decline other than temporary in nature.

E) Share Issue Expenses:

Share Issue Expenses are written off over a period of Ten years.

F) Contingent Liability:

Contingent Liability is not provided for and is disclosed in notes to the account!

G) Stock in trade:

Stock in trade of shares is valued at cost.

H) Income Tax:

Income Tax-expenses is accrued in accordance with AS 22 "Accounting on taxes on income" which includes current taxes and deferred taxes, Unrecognized Deferred Tax assets of earlier years and current year are recognized to the extent it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realized.

I) Retirement Benefits:

Liabilities in respect of retirement benefits of employees i.e. gratuity and encashment of earned leave on retirement are accounted on payment basis.