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Accounting Policies of Kreon Financial Services Ltd. Company

Mar 31, 2015

BRIEF DESCRIPTION OF THE COMPANY AND ITS BUSINESS

M/s. KREON FINNANCIAL SERVICES LIMITED was incorporated in India, and is engaged primarily into financing activities along with investing in to long term and short term projects, securities, debts related instruments etc.

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1. The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions as specified under section 133 of the Companies Act, 2013 read with rule 7 of the companies (Accounts) Rules ,2014 and other relevant provisions of the Companies Act 2013 and/or Companies Act, 1956 as applicable.

2. Method ofAccounting - The Company maintains its accounts under mercantile basis of accounting.

3. The Accounting Standards recommended by The Institute of Chartered Accountants of India have been followed wherever applicable to the Company.

4. Use of Estimates:-The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income

B. REVENUE RECOGNITION

1. Interest Income are recognized on the date which they have become due or up on receipt whichever is earlier. The Interest income is recognized on gross basis.

2. In respect of other incomes, accrual system of accounting is followed.

C. FIXED ASSETS, DEPRECIATION & IMPAIRMENT

1. The Fixed Assets are stated at cost of their acquisition less depreciation.

2. Depreciation is provided on fixed assets, on written down value method based on the estimated life and residual value of assets.

3. All the cost associated till the installation/fixation of the assets is capitalized with the cost of the assets wherever applicable.

D. VALUATION OF CLOSING STOCK

The company does not hold any inventories during the year under review and hence the valuation is dispensed with.

E. INVESTMENTS & DEPOSITS

Investments/Deposits are classified as long-term wherever applicable and are shown and valued at cost, there are no current investments in the company.

F. RETIREMENT BENEFITS

Contribution of Provident fund, Gratuity and Leave encashment benefits wherever applicable is being accounted on actual liability basis.

G. FOREIGN CURRENCYTRANSACTION

There are no reportable Foreign Currency related transaction in the company during the year under review.

H. TAXON INCOME

a. Tax on income for the current period is determined on the basis of Taxable Income computed in accordance with the provisions of the Income Tax Act 1961.

b. Deferred Tax 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 as per the Accounting Standard (AS 22) laid down by the Institute of Chartered Accountants of India (ICAI).


Mar 31, 2014

Brief description of the Company and its Business

KREON FINNANCIAL SERVICES LIMITED was incorporated in India, and is engaged primarily into financing activities along with investing in to long term and short term projects, securities, debts related instruments etc.

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1. The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

2. Method of Accounting - The Company maintains its accounts on accrual basis.

3. The Accounting Standards recommended by The Institute of Chartered Accountants of India have been followed wherever applicable to the Company.

B. REVENUE RECOGNITION

In respect of income from financing, the Company has accounted on a accrual basis the interest due from the respective parties.

C. FIXED ASSETS, DEPRECIATION & IMPAIRMENT

1. The Fixed Assets are stated at cost of their acquisition less depreciation.

2. Depreciation is provided on fixed assets, on written down value method, as per the Income Tax Act, 1961.

D. VALUATION OF CLOSING STOCK

There are no inventories in the company

E. INVESTMENTS

Investments are classified as Long-term investments and current investment including the share application made by the company. Long-term investments are shown at cost. Current Investment have been valued at cost In case of both investments temporary diminution in the value has not been recognized.

F. RETIREMENT BENEFITS

Contribution of Provident fund, Gratuity and Leave encashment benefits wherever applicable is being accounted on actual liability basis as and when arises. However the above referred provisions are not applicable to the company as it does not have employees who have served minimum period to become eligible for retirement benefits.

G TAX ON INCOME

Tax on income for the current period is determined on the basis of Taxable Income computed in accordance with the provisions of the Income Tax Act 1961.

Deferred Tax 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 as per the Accounting Standard (AS 22) laid down by the Institute of Chartered Accountants of India (ICAI) .

H.EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the Company''s earnings per share is net profit after tax. The earnings per share for the year is Rs. 0.06 as compared to the previous year of Rs. 0.17. The EPS reported is basic and diluted.

J. IMPAIRMENT OF ASSETS

As required by AS-28 issued by the Institute of Chartered Accountants of India, provision for hurt loss of Assets is not required to be made as the estimated realizable value of such assets will be more or equal to the carrying amount stated in the Balance Sheet.

K. SEGMENTAL REPORTING

The company is engaged primarily in the business of financing and investments and accordingly there are no separate reportable segment as per the accounting standard 17 (Segmental Reporting) issue by the Institute of Chartered Accountants of India.

L. DUES TO SME''S

Management has determined that there were no balances outstanding as at the beginning of the year and no transactions entered with micro, small and medium enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, during the current year, based on the information available with the company as at March 31, 2014


Mar 31, 2013

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956. Method of Accounting -

1. The Company maintain its accounts on accrual basis.

2. The Accounting Standards recommended by The Institute of Chartered Accountants of India have been followed wherever applicable to the Company.

B. REVENUE RECOGNITION

In respect of income from financing, the Company has accounted on a accrual basis the interest due from the respective parties.

In respect of other incomes, accrual system of accounting is followed.

C. FIXED ASSETS, DEPRECIATION & IMPAIRMENT

1. The Fixed Assets are stated at cost of their acquisition less depreciation.

2. Depreciation is provided on fixed assets, on straight line method, as per the rates specified in Schedule XIV of the Companies Act, 1956

D. VALUATION OF CLOSING STOCK

There are no inventories in the company

E. MISCELLANEOUS EXPENSES

Deferred revenue expenses fully written off the year.

F. INVESTMENTS

Investments are classified as Long-term investments and current investment including the share application made by the company. Long-term investments are shown at cost .Current investment have been valued at cost In case of both investments temporary diminution in the value has not been recognized.

G. RETIREMENT BENEFITS

Contribution of Provident fund, Gratuity and Leave encashment benefits wherever applicable is being accounted on actual liability basis as and when arises. However the above referred provisions are not applicable to the company as it does not have employees who have served minimum period to become eligible for retirement benefits.

H. TAX ON INCOME

Tax on income for the current period is determined on the basis of Taxable Income computed in accordance with the provisions of the Income Tax Act 1961.

Deferred Tax 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 as per the Accounting Standard (AS 22) laid down by the Institute of Chartered Accountants of India (ICAI) .

I.EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the Company''s earnings per share is net profit after tax. The earnings per share for the year is Basic Rs. 0.33 and Dilution Rs 0.17 as compared to the previous year of Rs. 0.10. and dilution Rs. Nil.

J. RELATED PARTY DISCLOSURES

The Company had no transactions with the related parties during the year under review other than temporary current account transactions.

K. IMPAIRMENT OF ASSETS

As required by AS-28 issued by the Institute of Chartered Accountants of India ,provision for hurt loss of Assets is not required to be made as the estimated realizable value of such assets will be more or equal to the carrying amount stated in the Balance Sheet.

L. SEGMENTAL REPORTING

The company is engaged primarily in the business of financing and investments and accordingly there are no separate reportable segment as per the accounting standard 17 (Segmental Reporting ) issue by the Institute of Chartered Accountants of India.

M.DUES TO SME''S

Management has determined that there were no balances outstanding as at the beginning of the year and no transactions entered with micro, small and medium enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, during the current year, based on the information available with the company as at March 31,2013

O.GENERAL

The figures for the previous year have been regrouped / reclassified / rearranged where ever necessary with the conformity with the current year figures for facilitating proper comparisons.

The company has followed prudential norms, except otherwise stated, prescribed by Reserve Bank of India for Non-Banking Finance Companies-financial statements.

The figures have been rounded off to the nearest rupee.


Mar 31, 2011

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1. The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles ad the provisions of the company act, 1956.

2. Method of accounting - The Company maintains its accounts on accrual basis.

3. The accounting standards recommended by The Institue of Chartered Accountants of India have been followed wherever applicable to the Company.

4. During the year under review the company has converted some of its Investments into stock in trade and the differential amount between cost of acquisition and fair market value on the date of conversion has been charged and adjusted in the Profit and Loss Account of the year.

B.REVENUE RECOGNITION

1. In respect of income from financing, the Company has accounted on a accrual basis the interest due from the respective parties.

2. In respect of other incomes, accrual system of accounting is followed.

C. FIXED ASSETS, DEPRECIATION & IMPAIRMENT

1. The Fixed Assets are stated at cost of their acquisition less depreciation.

2. Depreciation is provided on fixed assets, on straight line method, as per the rates specified in Schedule XIV of the Companies Act, 1956.

D. VALUATION OF CLOSING STOCK

There are no closing stock of inventory, hence valuation dispensed with.

E. MISCELLANEOUS EXPENSES

Miscellaneous expenditure incurred by the company are being written off over a period of 5 years.

F . INVESTMENTS

Investments are classified as Long-term investments and current investment including the share application made by the company. Long-term investments are shown at cost .Current investment have been valued at cost In case of both investments temporary diminution in the value has not been recogonised.

G . RETIREMENT BENEFITS

Contribution of Provident fund, Gratuity and Leave encashment benefits wherever applicable is being accounted on actual liability basis as and when arises. However the above referred provisions are not applicable to the company as it does not have employees who have served minimum preiod to become eligible for retirement benefits.

H. TAX ON INCOME

a. Tax on income for the current period is determined on the basis of Taxable Income computed in accordance with the provisions of the Income Tax Act 1961.

b. Deferred Tax 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 as per the Accounting Standard (AS 22) laid down by the Institute of Chartered Accountants of India (ICAI) .

I.EARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the Company's earnings per share is net profit after tax. The earnigs per share for the year is Rs 0.06 as compared to the previous year of Rs 1.16 The EPS reported is basic and diluted.

J. RELATED PARTY DISCLOSURES

The Company had no transactions with the related parties during the year under review other than following temporary current account transactions.

Name of the Persons Nature of payment Amount S. Pannalal Tatia Director Remunaration Rs. 50,000/- p.m Tatia Global Vennture Invesments Rs.14,062,500 Limited

K. IMPAIRMENT OF ASSETS

As required by AS-28 issued by the Institute of Chartered Accountants of India ,provision for impairment loss of Assets is not required to be made as the estimated realizable value of such assets will be more or equal to the carrying amount stated in the Balance Sheet.

L. SEGMENTAL REPORTING

The company is engaged primarily in the business of financing and investments and accordingly there are no separate reportable segment as per the accounting standard 17 (Segmental Reporting) issue by the Institute of Chartered Accountants of India.

M.DUES TO SME'S

Management has determined that there were no balances outstanding as at the beginning of the year and no transactions entered with micro, small and medium enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, during the current year, based on the information available with the company as at March 31,2011.


Mar 31, 2010

Brief description of the Company and its Business

KREON FINNANCIAL SERVICES LIMITED was incorporated in India, and is engaged primarily into financing and securities trading activities along with investing in to long term and short term projects, securities, debts related instruments etc.

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared to comply in all material respects with the standards notified under the Companies (Accounting Standards) Rules,2006 and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the company and except for the changes in accounting policy discussed ore fully blow if any, are consistent with those used in previous year.

During the year under review the company has converted its stock in trade in to Investments after valuing the inventories as per Accounting Standard 2 on year end. The investments were valued in the books on its carrying amount after valuing the same as referred above. The difference between the cost of acquisition and market price was already considered in the profit and loss account on account of valuation of inventories and the investments were fairly valued on the market realizable values.

REVENUE RECOGNITION

1. In respect of income from financing, the Company has accounted on a accrual basis the interest due from the respective parties.

2. In respect of other incomes, accrual system of accounting is followed.

B. USE OF ESTIMATES

The preparation of financial statement sin conformity with the Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, disclosures relating to contingent liabilities and assets as at the balance sheet date and the reported amounts of income and expenses during the year. Difference between the actual amounts and the estimates are recognized in the year in which the events become known / are materialized.

C. FIXED ASSETS, DEPRECIATION & IMPAIRMENT

1. The Fixed Assets are stated at cost of their acquisition less depreciation.

2. Depreciation is provided on fixed assets, on written down value method, as per the rates specified in Schedule XIV of the Companies Act, 1956. Depreciation on fixed assets added /disposed off/discarded during the year has been provided on pro-rata basis with reference to the date of addition/discarding.

P. VALUATION OF CLOSING STOCK

The company does hold shares as stock in trade as on year end date as the same were valued as per Accounting Standard 2 and later converted in to investment and the said investment were recorded in the books as determined on the valuation basis during the year under review The stock have been valued at the cost price (after effecting the differential value on account of conversion of investment in to stock) or Market realizable value which ever is less

E. MISCELLANEOUS EXPENSES

Deferred revenue expenses incurred by the company are being written off over a period from the year operation of business activities.

F. INVESTMENTS

Investments are classified as Long-term investments and current investment including the share application made by the company. Long-term investments are shown at cost Current investment have been valued at cost In case of both investments temporary diminution in the value has not been recogonised.

During the year under review the stock of shares held by the company on year end were converted in to investment after duly effecting the valuation difference in the books of the company. The valuation of the shares held by the company were being arrived at considering the lower of cost of acquisition or market price which ever was lower on that given date. The valuation so derived were fairly valued in terms of market realizable value of the said share and there were no major variation these were required to be made considering the applicability of Accounting Standard 13 relating to valuation of Investment.

G RETIREMENT BENEFITS

Contribution of Provident fund, Gratuity and Leave encashment benefits wherever applicable is being accounted on actual liability basis as and when arises. However the above referred provisions are not applicable to the company as it does not have employees who have served minimum preiod to become eligible for retirement benefits.

H. TAX ON INCOME

a. Tax on income for the current period is determined on the basis of Taxable Income computed in accordance with the provisions of the Income Tax Act 1961.

b. Deferred Tax 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 as per the Accounting Standard (AS 22) laid down by the Institute of Chartered Accountants of India (ICAI).

LEARNINGS PER SHARE (EPS)

The earnings considered in ascertaining the Companys earnings per share is net profit after tax. The earnigs per share for the year is Rs 1.16 as compared to the previous year of Rs - 2.13 The EPS reported is basic and diluted.




Mar 31, 2009

Brief description of the Company and its Business

KREON FINNANCIAL SERVICES LIMITED was incorporated in India, and is engaged primarily into financing activities along with investing in to long term and short term projects, securities, debts related instruments etc.

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

1. The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

2. Method of Accounting - The Company maintains its accounts on accrual basis.

3. The Accounting Standards recommended by The Institute of Chartered Accountants of India have been followed wherever applicable to the Company.

4. During the year under review the company has converted some of its investment in to stock in trade and the differential amount between the cost of acquisition and fair market value on the date of conversion has been charged and adjusted in the profit and loss account of the year.

B. REVENUE RECOGNITION

1. In respect of income from financing, the Company has accounted on a accrual basis the interest due from the respective parties.

2. In respect of other incomes, accrual system of accounting is followed.

C. FIXED ASSETS, DEPRECIATION & IMPAIRMENT

1. The Fixed Assets are stated at cost of their acquisition less depreciation.

2. Depreciation is provided on fixed assets, on straight line method, as per the rates specified in Schedule XIV of the Companies Act, 1956

D. VALUATION OF CLOSING STOCK

The company does hold shares as stock in trade during the year under review. The stock have been valued at the cost price (after effecting the differential value on account of conversion of investment in to stock) or Market realizable value which ever is less.

E. MISCELLANEOUS EXPENSES

Deferred revenue expenses incurred by the company are being written off over a period from the year operation of business activities.

 
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