Accounting Policies of Vikalp Securities Ltd. Company

Mar 31, 2013

1.1 ACCOUNTING CONVENTION

The Financial statements are prepared on going concern concept under historical cost convention on accrual basis and are in accordance with the applicable accounting standard issued by the Institute of Chartered Accounts of India notified under section 211 (3C) and the other relevant provisions of the Companies Act 1956.

1.2 FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation Cost comprises the purchase price or construction cost including any attributable cost of bringing the assets to its working condition for its use

1.3 DEPRECIATION

Depreciation is provided on straight line method as per schedule XIV of the companies Act 1956.on prorate basis.

1.4 STOCK IN TRADE

1. Share, debentures, units & Securities are accounted under Stock in trade on trade dates.

2. The cost of stock in trade includes brokerage but does not include stamp duty which was charged to revenue.

1.5 VALUATION OF STOCK IN TRADE

Stock has been valued at cost instead of cost or market value which ever is lower because the company is doing business of shares & securities.

1.6 INVESTMENT

The Investments are longterm i.e. non current investment and are valued at cost since the company is doing business of shares & securities therefore no provision is being made for dimunition in the Investments.

1.7 INCOME

(a) In respect of contracts relating to shares without taking or giving deliveries profit or Losses are accounted for on squaring updates.

(b) Income from dealing in shares / Securities is recognized on the basis of matched contract of similar deliveries dales for purchase & sales entered during the year

(c) Dividend on investment in shares & Securities are accounted for on receipt basis

1.8 EXPENSES

All expenses are accounted on accrual basis

1.9 TAXATION

The expense comprises of current tax and differed tax charge or credit Current tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. The deferred tax charge or credit is recognized using prevailing enacted or substantively enacted tax rate. Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/1 labilities are reviewed as at each balance sheet data based on developments during the period and available case law to re-assess realization/liabiiities

2.0. CONTINGENT LIABILITY 2012-2013 2011-2012

To the extent known NIL NIL

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Mar 31, 2010

1.1 ACCOUNTING CONVENTION

The accounts have been prepared under the historical cost convention and on going concern basis.

1.2 FIXED ASSETS

Fixed Assets are stated at cost less depreciation.

1.3 DEPRECIATION

Depreciation is provided on straight line method as per schedule XIV of the companies Act 1956.

1.4 STOCK IN TRADE

1. Share, debentures, units & Securities are accounted under Stock in trade on trade dates.

2. The cost of stock in trade includes brokerage but does no tinclude stamp duty which was charged to revenue.

1.5 VALUATION OF STOCK IN TRADE

Stock has been valued at cost instead of cost or market value which ever is lower because the company is doing business of shares & securities as broker of Stock Exchange.

1.6 INVESTMENT

- The Investments are long term investment and are valued at cost since the company is doing business of shares & securities in share market therefore no provision is being made for dimunition in the investments.

1.7 INCOME

(a) In respect of contracts relating to shares without taking or giving deliveries profit or Losses are accounted for on squaring updates.

(b) Income from dealing in shares / Securities is recognized on the basis of matched contract of similar deliveries dates for purchase & sales entered during the year.

(c) Dividend on investment in shares & Securities are accounted for on receipt basis.

1.8 EXPENSES

All expenses are accounted on accrual basis.