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Accounting Policies of Richfield Financial Services Ltd. Company

Mar 31, 2015

A) Basis of Preparation of Financial Statements:

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

The financial statements are prepared on accrual basis under the historical cost convention and are consistent with those applied in previous year.

B) Use of Estimates

The Preparation of financial statements in Conformity with the Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the result are known / materialised.

C) Fixed Asset Tangible Assets :

Tangible Assets are stated at cost inclusive of all incidental expenses, net of accumulated depreciation and impairment loss, if any.

Intangible Assets :

Intangible Assets are stated at cost of acquisition net of accumulated amortisation/depletion and impairment loss, if any.

D) Depreciation & Amortisation

Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value (WDV) method. Depreciation is provided based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

E) Impairment

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

F) Tax Expense

Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realise the same.

G) Investments

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non Current investments are stated at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary.

H) Revenue Recognition

Revenue is recognised only when it can be reliably measured and it is reasonable to expect ultimate collection. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Dividend Income is accounted for on receipt basis.

I) Expenditure

All expenses have been accounted for on accrual basis.

J) Inventories

Inventories i.e. stock of shares are valued at cost or market value whichever is lower.

K) Employee Benefits

Short Term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

L) Provisions. Contingent Liabilities and Contingent Assets

Provision is recognised in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made. Provisions are not discounted to their present value and 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.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

A) Basis of Preparation of Financial Statements:

The financial statements are prepared under historical cost convention and on an accrual basis to comply with the accounting standards issued by The Institute of Chartered Accountants of India referred to in Section 211(3C) of the Companies Act, 1956.

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 date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the result are known / materialised.

C) Fixed Asset

The Company capitalises Fixed assets at cost inclusive of all incidental expenses incurred in the acquisition of such assets.

Fixed assets both tangible and intangible assets are tested for impairment every year and impairment loss if any is provided/adjusted as applicable.

D) Depreciation & Amortisation

Depreciation has been provided on assets in accordance with the provision of the Schedule XIV of the Companies Act, 1956, on a straight line method to ensure that the cost of such assets is depreciated over the primary period of its use. Depreciation has been provided on Pro-rata basis with respect to the period of use.

E) Provision for Current and Deffered Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

F) Investments

Investments are capitalised at cost including brokerage and stamp duty. In terms of the Reserve Bank of India guidelines to NBFC, all investments are bifurcated into current investments and long term investments. The investments acquired with the intention of short term holding are considered as stock in trade and classified as Current Assets and others are considered as Long term Investments. Decline in value of long term Investments are not provided for unless it is considered other than temporary in nature.

G) Revenue Recognition

Revenue is recognised only when it can be reliably measured and it is reasonable to expect ultimate collection. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Dividend Income is accounted for on receipt basis.

H) Expenditure

All expenses have been accounted for on accrual basis.

I) Inventories

Inventories i.e. stock of shares are valued at cost or market value whichever is lower.

J) Employee Benefits

Short Term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

K) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.




Mar 31, 2013

A) Basis of Preparation of Financial Statements:

The financial statements are prepared under historical cost convention and on an accrual basis to comply with the accounting standards issued by The institute of Chartered Accountants of India referred to in Section 211 (3C) of the Companies Act, 1956,

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 date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the result are known / materialised.

C) Fixed Asset

The Company capitalises Fixed assets at cost inclusive of all incidental expenses incurred in the acquisition of such assets.

Fixed assets both tangible and intangible assets are tested for impairment every year and impairment loss if any is provided/adjusted as applicable.

D) Depreciation & Amortisation

Depreciation has been provided on assets in accordance with the provision of the Schedule XIV of the Companies Act, 1956, on a straight line method to ensure that the cost of such assets is depreciated over the primary period of its use.

Depreciation has been provided on Pro-rata basis with respect to the period of use.

E) Provision for Current and Deffered Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

F) Investments

Investments are capitalised at cost including brokerage and stamp duty. In terms of the Reserve Bank of India guidelines to NBFC, all investments are bifurcated into current investments and long term investments. The investments acquired with the intention of short term holding are considered as stock in trade and classified as Current Assets and others are considered as Long term Investments. Decline in value of long term Investments are not provided for unless it is considered other than temporary in nature.

G) Revenue Recognition

Revenue is recognised only when it can be reliably measured and it is reasonable to expect ultimate collection. Interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Dividend Income is accounted for on receipt basis.

H) Expenditure

All expenses have been accounted for on accrual basis.

I) Inventories

Inventories i.e. stock of shares are valued at cost or market value whichever is lower.

J) Employee Benefits

Short Term employee benefits are recognised as an expense at the undiscounted amount in the statement of profit and loss of the year in which the related service is rendered.

K) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2012

A) Basis of Preparation of Financial Statements:

The financial statements are prepared under historical cost convention and on an accrual basis to comply with the accounting standards issued by The Institute of Chartered Accountants of India referred to in Section 211(3C) of the Companies Act, 1956.

B) Fixed Asset

The Company capitalises Fixed assets at cost inclusive of ail incidental expenses incurred in the acquisition of such assets.

Fixed assets both tangible and intangible assets are tested for impairment every year and impairment loss if any is provided/adjusted as applicable.

C) Depreciation & Amortisation

Depreciation has been provided on assets in accordance with the provision of the Schedule XIV of the Companies Act. 1956, on a straight line method to ensure that the cost of such assets is depreciated over the primary period of its use.

Depreciation has been provided on Pro-rata basis with respect to the period of use.

D) Provision for Current and Deffered Tax

Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income-tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date.Deferred tax asset is recognised and carried forward only to the extent that there is a virtual certainty that the asset will be realised in future.

E) Investments

investments are capitalised at cost including brokerage and stamp duty, in terms of the Reserve Bank of India guidelines to NBFC, all investments are bifurcated into current investments and long term investments. The investments acquired with the intention of short term holding are considered as stock in trade and classified as Current Assets and others are considered as Long term Investments. Decline in value of long term Investments are not provided for unless it is considered other than temporary in nature.

F) Revenue Recognition

Revenue is recognised only when it can be reliably measured and it is reasonable to expect ultimate collection, interest income is recognized on time proportion basis taking into account the amount outstanding and rate applicable. Dividend Income is accounted for on receipt basis.

G) Expenditure

Ail expenses have been accounted! for on accrual basis.

H) Inventories

inventories i.e. stock of shares are valued at cost or market value whichever is lower.


Mar 31, 2011

1.1 Fixed Assets:

a) The Company capitalises Fixed assets at cost inclusive of all incidental expenses incurred in the acquisition of such assets.

b) Depreciation has been provided on assets in accordance with the provision of the Schedule XIV of the Companies Act, 1956, on a straight line method to ensure that the cost of such assets is depreciated over the primary period of its use.

c) Depreciation has been provided on Pro-rata basis with respect to the period of use.

1.2 Income:

a) Dividend is accounted for on receipt basis.

b) All other incomes has been recognised on accrual basis.

1.3 Expenses :

All expenses have been accounted for on accrual basis.

1.4 Contingent Liabilities :

Contingent Liabilities are not accounted for and are disclosed separately by way of notes.

1.5 Inventories :

Inventories i.e. stock of shares are valued at cost or market value whichever is lower.

1.6 Investments :

Investments are capitalised at cost including brokerage and stamp duty. In terms of the Reserve Bank of India guidelines to NBFC, all investments are bifurcated into current investments and long term investments. The investments acquired with the intention of short term holding are considered as stock in trade and classified as Current Assets and others are considered as Long term Investments. Decline in value of long term Investments are not provided for unless it is considered other than temporary in nature.

 
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