Home  »  Company  »  KIFS Financial Serv  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of KIFS Financial Services Ltd. Company

Mar 31, 2015

A) Corporate Information :

KFSL incorporated under the provisions of the Companies Act, 1956 on 29th March, 1995 [CIN: L67990GJ1995PLC025234] is a Non Banking Financial Company registered with the Reserve bank of India (RBI) under the provisions of section 45-IA of the RBI Act, 1934 as a Loan Company (RBI registration no. 01.00007 dated 18.02.1998). KFSL is a public limited company and is listed on Bombay Stock Exchange Ltd. It offers capital market products like Margin Trading, Loan against shares (LAS) and Funding Primary Market issues for the retail investors. It is proposing to enter into the business of Investment Adviser and has obtained registration with SEBI as "Investment Adviser" under SEBI (Investment Advisers) Regulations, 2013 vide registration no. INA000001852 dated 13th June, 2014.

b) Basis of Preparation of Financial Statements:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. The financial statements are prepared in accordance with the accounting standards notified by the Central Government, in terms of section 133 of the companies act, 2013 read with Rule 7 and guidelines issued by the Securities and Exchange Board of India (SEBI) and the guidelines issued by the Reserve Bank of India ('RBI') as applicable to a Non Banking Finance Company (NBFC). The accounting policies have been consistently applied by the company and are consistent with those used in the previous year.

c) Use of Estimates:

The preparation of financial statements in conformity with the India GAAP requires the management of the company to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and reported income and expenses during the year. The management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

d) Revenue Recognition :

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured.

Income from operations which comprises interest income, advisory fees and other income are all accounted for on accrual basis.


Mar 31, 2014

A) Basis of Preparation of Financial Statements:

The financial statements have been prepared on an accrual basis, on a historical cost convention and are materially in compliance with the requirements of the Companies Act, 1956 as well as the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the data of the financial statements and the reported amount revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialised.

c) Income from Operations:

Income from operations which comprises interest income, brokerage income, dividend income and other income are all accounted for on accrual basis.

d) Expenses:

The Company provides for all expenses comprising of Salary to Employees, Financial Expenses and Administrative Expenses on accrual basis.

e) Fixed Assets:

Fixed assets are stated at cost of acquisition. Cost includes attributable cost incurred for bringing the assets to its working condition for its intended use. They are stated at historical cost less accumulated depreciation.

Depreciation on assets is provided on written down value basis (WDV) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

f) Investment:

The investments made by the Company are catagorised as long term investment and are stated at cost.

g) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

h) Taxes on Income:

Tax on income for the current period is determined on the basis of the Income Tax Act,1961.

h) Taxes on Income:

Tax on income for the current period is determined on the basis of the Income Tax Act, 1961.

Deferred tax is recognised on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i) Contingent Liabilities and Contingent Assets:

Provision is made for all known liabilities. Contingent Liabilities, if any are disclosed in the account by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

j) Impairment of Assets:

Impairment of assets is recognized when there is an indication of impairment. On such indication the recoverable amount of assets is estimated and if such estimation is less then its carrying amount, the carrying amount is adjusted to its recoverable amount.

k) Retirement Benefits:

No provision for gratuity has been made as no employees has put the qualifying period of service for the entitlement of this benefit

l) Earning Per Shares:

The Company reports basic and diluted earnings per share (EPS) in accordance with accounting standard - 20 on earning per share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.


Mar 31, 2013

A) Basis of Preparation of Financial Statements:

The Financial statements have been prepared on an accrual basis, on a historical cost convention and are materially in compliance with the requirements of the Companies Act 1956 as well as the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the data of the financial statements and the reported amount of revenues and expenses during the reporting period, Difference between the actual result and estimates are recognized in the period in which the results are known/materialised.

c) Income form Operations:

Income form operations which comprises interest income, brokerage income, dividend income and other income are all accounted for on accrual basis.

d) Expenses:

The Company provides for all expenses comprising of Salary to Employees, Financial Expenses and Administrative Expenses on accrual basis.

e) Fixed Assets:

Fixed assets are stated at cost of acquisition. Cost includes attributable cost incurred for bringing the assets to its working condition for its intended use. They are stated at historical cost less accumulated depreciation.

Depreciation on assets Is provided on written down value basis (WDV) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

f) Investment:

The investments made by the Company are catagorised as long term investment and are stated at cost.

g) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

h) Taxes on Income:

Tax on income forthe current period is determined on the basis of the IncomeTax Act 1961. Deferred tax assets are recognised on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

i) Contingent Liabilities and Contingent Assets:

Provision is made for all known liabilities. Contingent Liabilities, if any are disclosed in the account by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

j) Impairment of Assets:

Impairment of assets is recognized when there is an indication of impairment. On such indication the recoverable amount of assets is estimated and if such estimation is less then its carrying amount, the carrying amount is adjusted to its recoverable amount.

k) Retirement Benefits:

No provision for gratuity has been made as no employees has put the qualifying period of service forthe entitlement of this benefit.

I) Earning per Shares :

The Company reports basic and diluted earnings per share (EPS) in accordance with accounting standard - 20 on earning per share. Basic EPS is computed by dividing the net profit or loss forthe year by the weighted average number of equity shares outstanding duringtheyear.


Mar 31, 2012

A) Basis of Preparation of Financial Statements:

The financial statements have been prepared on an accrual basis, on a historical cost convention and are materially in compliance with the requirements of the Companies Act, 1956 as well as the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b) Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the data of the financial statements and the reported amount f revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialised.

c) Income from Operations:

Income from operations which comprises interest income, brokerage income, dividend income and other income are all accounted for on accrual basis.

d) Expenses:

The Company provides for all expenses comprising of Salary to Employees, Financial Expenses and Administrative Expenses on accrual basis.

e) Fixed Assets:

Fixed assets are stated at cost of acquisition. Cost includes attributable cost incurred for bringing the assets to its working condition for its intended use. They are stated at historical cost less accumulated depreciation.

Depreciation on assets is provided on written down value basis (WDV) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

f) Investment:

The investments made by the Company are catagorised as long term investment and are stated at cost.

g) Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowing costs are charged to revenue.

h) Taxes on Income:

Tax on income for the current period is determined on the basis of the Income Tax Act 1961.

Deferred tax is recognised on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

i) Contingent Liabilities and Contingent Assets:

Provision is made for all known liabilities. Contingent Liabilities, if any are disclosed in the account by way of a note. Contingent assets are neither recognized nor disclosed in the financial statements.

j) Impairment of Assets:

Impairment of assets is recognized when there is an indication of impairment. On such indication the recoverable amount of assets is estimated and if such estimation is less then its carrying amount, the carrying amount is adjusted to its recoverable amount.

k) Retirement Benefits:

No provision for gratuity has been made as no employees has put the qualifying period of service for the entitlement of this benefit.

1) Earning Per Shares:

The Company reports basic and diluted earnings per share (EPS) in accordance with accounting standard - 20 on earning per share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

(iii) The Company has issued only one class of shares referred to as Equity Shares having a par value of Rs 10/-. All Equity Shares carry one vote per share wthout restrictions and are entitled to Dividend, as and when declared. All shares rank equally with regard to the Company''s residual assets.

Notes:-

(m) Over Draft is primarily secured by way of first charge over the Fixed Deposit in the name of the company.


Mar 31, 2011

A) Basis of Accounting:

The financial statements have been prepared on an accrual basis, on a historical cost convention and are materially in compliance with the requirements of the Companies Act, 1956 as well as the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

b) Income from Operations:

Income from operations which comprises interest income, brokerage income, dividend income and other income are all accounted for on accrual basis.

c) Expenses:

The Company provides for all expenses comprising of Salary to Employees, Financial Expenses and Administrative Expenses on accrual basis.

d) Fixed Assets:

Fixed assets are stated at cost of acquisition including attributable cost incurred for bringing the assets to its working condition for its intended use.

Depreciation on assets is provided on written down value basis (WDV) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

e) Investment:

The investments made by the Company are catagorised as long term investment and arc stated at cost.

f) Amortization of preliminary & public issue expenses:

Preliminary and public issue expenses are deferred to be amortised over a period of 10 years by charging one tenth of such expenses to revenue every year.

g) Taxes on Income:

Tax on income for the current period is determined on the basis of the Income Tax Act 1956.

Deferred tax is recognised on liming differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

h) Contingent Liabilities:

Provision is made for all known liabilities. Contingent Liabilities, if any are disclosed in the account by way of a note.

i) Impairment of Assets:

Impairment of assets is recognized when there Is an indication of impairment. On such indication the recoverable amount of assets is estimated and if such estimation is less than its carrying amount, the carrying amount is adjusted to its recoverable amount,

j) Retirement Benefits:

No provision for gratuity has been made as no employees has put the qualifying period of service for the entitlement of this benefit.

k) Earning Per Shares:

The Company reports basic and diluted earnings per share (EPS) in accordance with accounting standard - 20 on earning per share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.


Mar 31, 2010

(a) Basis of accounting :

The financial statements have been prepared on an accrual basis, on a historical cost convention and are materially in compliance with the requirements of the Companies Act, 1956 as well as the mandatory accounting standards issued by the Institute of Chartered Accountants of India.

(b) Income from operations :

Income from operations which comprises interest, brokerage and other income are all accounted for on accrual basis.

(c) Expenses:

The Company provides for all expenses comprising of administrative and others on accrual basis.

(d) Fixed assets :

Fixed assets are stated at cost of acquisition including attributable cost incurred for bringing the assets to its working condition for its intended use.

Depreciation on assets is provided on written down value basis(WDV) at the rates and in the manner prescribed in schedule XIV of the Companies Act, 1956.

(e) Investment:

The investments made by the Company are catagorised as long term investment and are stated at cost.

(f) Amortisation of preliminary & public issue expenses:

Preliminary and public issue expenses are deferred to be amortised over a period of 10 years by charging one tenth of such expenses to revenue every year.

(g) Taxes on Income :

Tax on income for the current period is determined on the basis of the Income Tax Act 1961.

Deferred tax is recognised on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

(h) Contingent Liabilities:

Provision is made for all known liabilities. Contingent Liabilities, if any are disclosed in the account by way of a note.

(i) Impairment of Assets:

Impairment of assets is recognized when there is an indication of impairment. On such indication the recoverable amount of assets is estimated and if such estimation is less then its carrying amount, the carrying amount is adjusted to its recoverable amount.

(j) Retirement Benefits:

No provision for gratuity has been made as no employees has put the qualifying period of service for the entitlement of this benefit.

(k) Earning Per Shares: The Company reports basic and diluted earning per share in accordance with accounting standard - 20 on earning per share. Basic EPS is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year.

 
Subscribe now to get personal finance updates in your inbox!