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Accounting Policies of Platinum Corporation Ltd. Company

Mar 31, 2011

The Financial Statements are prepared under the historical cost convention on the accrual basis of accounting and in accordance with accounting principals generally accepted in India and comply with the accounting standards notified by the Central Government of India, under the Companies (Accounting Standards) rules 2006 and relevant provisions of the Companies Act, 1956. The significant accounting polices are as follows:

1. Accounting Standards

1.1 Disclosure of accounting policies:

The accounts are maintained on accrual basis as a going concern.

1.2 Valuation of inventories

There being no inventory, not applicable.

1.3 Cash flow statements:

The cash flow statement is prepared under "Indirect method" and the same is annexed.

1.4 FIXED ASSETS / Depreciation:

Assets are stated at cost of acquisition, less accumulated depreciation there on.

The Company has adopted the practice to provide deprecation on the straight-line method (S.L.M). at the rates prescribed in Schedule: XIV to the Companies Act, 1956. However for the current year, there being no business, deprecation has not been provided in the accounts.

With regard to Company's 2 vehicles ( motor cars ), against which the Company had taken loans from HDFC bank, those 2 vehicles have been taken away by the said Bank due to non-payment of loan installments. Against outstanding loan amounts, the details regarding what amounts have been received by the said Bank on sale of those vehicles and what amounts are then payable / receivable by the company are not known by the Company and hence the necessary entries are not recorded in the books of accounts of the Company. Thus, though the said vehicles are not in possession of the Company, due to above reason, it has been continue to show as Fixed Assets.

During the year, the Company lost one vehicle in accident. The W.D.V as per books of accounts of the said vehicle has been written off and shown as Loss of Vehicle in accident, as the same was not insured ( due to non-payment of insurance premium).

Further, due to suspension of some activities, there was some Fixed Assets which not usable and become scrap. Hence the W. D. V. of such Fixed Assets have been written off by debiting Profit & Loss Account.

1.6 Revenue recognition / Provision for Expenses

1.6.1 The Company has no income in current year.

1.6.2 The revenue and expenditure are accounted on a going concern basis. How ever, the accounts are subject to following matters :

The Company has taken the Loan from a Co-op Bank as shown in Schedule -2. Due to nonpayment of Loan amount as well as interest there on, the said loan account has been declared / considered as N.P. Account.

1.6.3.1 As reported in the accounts of the last year, the Company requested to the said Bank for settlement, which was accepted by the Bank and as a result a sum of Rs. 1,58,70,046/- has been taken credit in the account of earlier years. There after the company could not pay the money to the bank in terms of settlement. Under the circumstances, the said bank has not given credit for the above said amount in the bank statement and thus, against ledger balance in the account of the said bank amounting to Rs.5,70,40,644-00., the outstanding balance as per Bank Statement was Rs.7,29,10,690-00. The such difference will be accounted in the books of accounts in the year of final payment / settlement with the said bank. Based on the Bank Statement received by the Company, during the period from 1-4-2010 to 14-08-2010, the bank has debited bank charges of Rs. 55,000/- which has been accounted in the books of accounts of the company. The bank charges and the bank interest for rest of the period is not known to the company and hence the same is not accounted in the accounts.

Again as per the new scheme of Settlement the Company has made the Application for one time settlement which is pending

1.6.3.2 Like last year, this year also the company had not paid the loan installments for the loans taken from banks and as a result such banks had not given the bank statements. Thus, the amounts of interest on such loans are not known to the company under the circumstances, no provision for such interest has been made in the accounts and to that extent the loss of the year has been under stated.

1.6.3.3 The amounts of interest payable to HDFC Bank, Punjab National Bank and Tata Capital Ltd. in respect of Car Loans taken by the company has been not charged to this year's account, as the said bank has not given the statement of account due to non-payment of loan installments. Thus, the quantum of interest amounts are also not known to the company and to that extent the loss of the year has been under stated.

1.7 Accounting for effects in foreign exchange rates

There being no business relating to the transaction in foreign exchange, this matter is not applicable.

1.8 Accounting for retirement benefits:

Retirement benefits will be provided on cash basis, if any. However the matter relating to provident fund & E.S.I. are not applicable in the current financial year.

1.9 Accounting for intangible assets

The company has adopted the practice to written of 1/10*. Of deferred/ long benefit expenditure considering the benefit to be availed over a period of 10 years. However, due to no business in current year, the same not charged to Profit & Loss Account of current year.

1.10 Provision, contingent Liability & Contingent Assets:- As on 31-03-2011 Rs. NIL (P.Y. Rs. NIL)


Mar 31, 2010

1. Accounting Standards

1.1 AS - 1 Disclosure of accounting policies :

The accounts are maintained on accrual basis as a going concern.

1.2 AS - 2 Valuation of inventories

There being no inventory, not applicable.

1.3 AS - 3 Cash flow statements :

The cash flow statement is prepared under "Indirect method" and the same is annexed.

1.4 AS - 4 There being no prior period item, not applicable.

1.5 AS - 5 FIXED ASSETS / Depreciation :

Assets are stated at cost of acquisition, less accumulated depreciation there on. Deprecation is provided on the straight-iine method (S.L.M). at the rates prescribed in Schedule XIV to the Companies Act, 1956. However for the current year, there being no business, deprecation has not been provided in the accounts.

1.6 AS - 6 Revenue recognition / Provision for Expenses

1.6.1 The income of the company is the Profit from the sale of shares in which the company invested the funds.

1.6.2 The Company has taken the Loan from a Co-op Bank as shown in Schedule -2. Due to non payment of Loan amount as well as interest there on, the said loan account has been declared / considered as N.P. Account.

As reported in the accounts of the] last year, the Company requested to the said Bank for settlement, which was accepted by the Bank and as a result a sum of Rs. 1,58,70,046/- has been taken credit in the account of last year. There after the company could not pay the money to the bank in terms of settlement. Under the circumstances, the said bank has not given credit for the above said amount in the bank statement and thus, against ledger balance in the account of the said bank amounting to Rs.5,70,40,644-00., the out standing balance as per Bank Statement is Rs. 7,29,10,690-00 The such difference will be accounted in the books of accounts in the year of final payment / settlement with the said bank. .

1.6.3 As the company had not paid the loan installments for the loans taken from banks, such banks had not given the bank statements and thus, the amounts of interest on such loans are not known to the company Under the circumstances, no provision for such interest has been made in the accounts.

1.6.4 The revenue and expenditure are accounted on a going concern basis. However, the amounts of interest payable to HDFC Bank, Punjab National Bank and Tata Capital Ltd. in respect of Car Loans taken by the company has been not charged to this years account, as the said bank has not given the statement of account due to non-payment of loan installments. Thus, the quantum of interest amounts are also not known to the company.

As per the statement of loan installments repayment schedule of the said bank, the company has paid Rs. 1,98,800-00 during the year as loan installments against Rs. 2,92,500-00 (24375X12).

1.7 AS - 7 Accounting for effects in foreign exchange rates

There being no business relating to the transaction in foreign exchange, not applicable fixed assets this matter is not applicable.

1.8 AS-8 Accounting for retirement benefits :

Retirement benefits will be provided on cash basis. However the matter relating to provident fund & E.S.I, are not applicable in the current financial year.

1.9 AS -9 Accounting for intangible assets

The company has adopted the practice to written of 1/loth. Of differed / long benefit expenditure considering the benefit to be availed over*a period of 10 years. How ever, due to no business in current year, the same not charged to Profit & Loss Account of current year.

1.10 AS- 10 Provision . contingent Liability & Contingent Assets ;-

As on 31-03-2010 Rs. NIL (P.Y. Rs. NIL)

2. Loans and advances - Rs. 21.26,31.714 I- includes : -

(a) Loans to companies amounting to Rs. 17,43,60,565-00.

(The above amount includes a sum of Rs, 68,17,898/- out standing from a company in respect of sale of Land before 2 years and a sum of Rs. 69,50,000/- to a company for the purchase of property). .

(b) Loans to others Rs. 3,82,71,149-00

(The above amount includes a sum of Rs. 3,40,20,000-00 paid to a party during the year).

All the above loan amounts have been given for the business purpose/outstanding for business transaction only, and hence they are non-bearing interest. The repayment schedules have not been fixed up & they all are subject to balance confirmations. In the opinion of management , all such loan amounts as well as amount outstanding for the sale of Land are good of recovery.

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