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Accounting Policies of RR Financial Consultants Ltd. Company

Jun 30, 2015

A PRINCIPLES OF CONSOLIDATION

. The consolidated financial statements (CFS) comprise the financial statements of RR Financial Consultants Ltd, And its following subsidiaries as at 30th June 2015.

COUNTRY OF PERCENTAGE SHAREHOLDING SNo NAME OF THE COMPANY INCORPORATION AND VOTING POWER

1 RR Insurance Brokers Private Limited India 100%

2 RR Fincap Private Limited India 100%

3 Arix Consultants Private Limited India 100%

4 RR Investors Capital Services Private Limited India 66.66%

5 RR Equity Brokers Private Limited India 100%

6 RR Infra Estates Private Limited India 100%

ii The consolidated financial statements have been prepared using uniform accounting policies, in accordance with the generally accepted accounting policies and as per AS 21.

iii (a) The Financial Statements of the Company and its subsidiary companies have been combined on a line by line basis by adding together the book values of the like items of assets, liabilities, income and expenses after eliminating inter group balance. The nature of business is such that that there is no unrealised profits or losses.

(b) The difference between the costs to the holding company of its investment in the subsidiary company over the holding company's portion of equity of the subsidiary at the time of acquisition of shares in subsidiaries is recognised in the financial statements as goodwill or capital reserve on consolidation, as the case may be Good will arising on account of consolidation has not been amortised.

(c) Inter Group Transactions has not been eliminated as in the opinion of management the transactions has been done in normal course of business.

iv (a) Minority interest in net results of consolidated subsidiaries for the year is identified and adjusted against the results of the group in order to arrive at the net results attributable to shareholders of the holding company.

(b) Minority interest share of net assets of consolidated subsidiaries is identified and presented in the Consolidated Financial Statements.

v The difference between the proceeds from disposal of investment in subsidiaries and the carrying amount of its assets less liabilities as of the date of disposal is recognised in the consolidated profit and Loss Account being the profit or Loss on disposal of investment in subsidiary.


Jun 30, 2014

Basis of Preparation of Financial Statements

The accounts have been prepared on a going concern basis according to the historical cost conve ntion according to the accrual system of accounting materially comply with the mandatory accounting statements and standards issued by the Institute of Chartered Accountants of India and the relevant presentational requirements of the Companies Act, 1956. The significant accounting policies followed by the company are as follows:

a Use of Estimates

The preparation of financial statements requires estimates and ass umptions 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.

b Revenue Recognition

Income is being accounted for on mercantile basis

c Fixed Assets and Depreciation

Fixed Assets are stated at cost, including freight, installation, duties and taxes, fi nance charges and other incidental expenses

i) incurred during construction or installation to bring the assets to their state of intended use.

Depreciation is provided on the Straight Line Method at the rates prescribed by Schedule XIV of the Companies Act, 1956.

ii)

iii) In respect of revalued assets, the Depreciation attributable to the amount added on revaluation, is adjusted against the Revaluation Reserve/Profit & Loss a/c (where revaluation reserve exhausted)

d Impairment of Assets

Impairment loss is provided; if any, to the extent, the carrying amount of assets exceed their recoverable amount. Recoverable amount is higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. .Such reversals are recognised as an increase in carrying amount of assets to the extent that it does not exceed the carrying amounts that would been determined (net of amortisation or depreciation) had no impairment loss been recognised in previous years.

e Valuation of Investment

Investments are valued at acquisition cost Provision is made for di minution in the value of investment which is perceived to be of permanent nature.

f Valuation of Stock

Stocks of quoted shares / debentures and other securities are valued at cost or market price whichever is less, by comparing each scrip with its market price. Market price of each scrip is determined on the basis of the closing price of the scrip prevailing at the principal stock exchange where the same is traded. Stock of Unquoted shares & debentures are valued at cost.

g Method of Accounting

Mercantile method of accounting is employed.

h Taxation

i) Provision for Income Tax for the current period is made if appl icable on the basis of estimated tax liability as per the applicable

provisions of the Income Tax Act, 1961.

ii) Deferred Tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

i Gratuity is being provided on cash basis.

j Foreign Currency Transactions

i) Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the time of transaction.

ii) Monetary items denominated in foreign currencies at the year-end are translated at the year-end rates, the resultant gain or loss will be recognized in the statement of profit and loss account.

iii) Any gain or loss arising on account of exchange difference on settlement of transaction is recognized in the statement of profit and loss account.

k Provision and contingencies

The company creates a provision when there exists a present obligation as a result of past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources, when there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

Note (i):- Income from securities trading net of (after reducing value of purchase Rs.0/- and value of opening stock Rs.98,18,421/- from value of sale Rs.0/- and value closing stock Rs.98,04,903/- in previous year Income from securities trading net of (after reducing value of purchase Rs.0/- and value of opening stock Rs.98,16,608/- from value of sale Rs.0/- and value closing stock Rs.98,18,421/-


Jun 30, 2013

A Use of Estimates

The preparation of financial statements requires es tim ates and assumptions to be m ade that affe ct the reported amount of a ssets 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.

b Revenue Recognition

Income is being accounted for on mercantile basis

c Fixed Assets and Depreciation

i) Fixed Assets are stated at cost, including freight, ins tal lation, duties and taxes, finan ce charges a nd other incidental expense s incurred during construction or installation to bring the assets to their state of intended use. ii) Depreciation is provided on the Straight Line Method at the rates prescribed by Schedule XIV of the Companies Act, 1956. iii) In respect of revalued assets, the Depreciation attributable to the amount added on revaluation, is adjusted against the Revaluation

Reserve/Profit & Loss a/c (where revaluation reseve exausted)

d Impairment of Assets

Impairment loss is provided; if any, to the extent , th e carrying amount of asset s exceed the ir recoverable amount. Re coverable amount is higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

Impairment losses recognised in prior years are reversed when there is an indication that the impairment losses recognised no longer exist or have decreased. .Such reversals are recognised as an increase in carrying amount of assets to the extent that it does not exceed the carrying amounts that would been determind (net of amortisation or depreciation) had no impairment loss been recognised in previous years.

e Valuation of Investment

Investments are valued at acquisition cost Provisio n is made for diminution in th e value of inv estment which is perceived to be of permanent nature.

f Valuation of Stock

Stocks of quoted shares / debentures and other se cu rities are valued at cost or m arket price w hichever is less, by compa ring each scrip with its market price. Market price of each scrip is determined on the basis of the closing price of the scrip prevailing at the principal stock exchange where the same is traded.Stock of Unquoted shares & debentures are valued at cost.

g Method of Accounting

Mercantile method of accounting is employed.

h Taxation

Provision for Income Tax for the current period is m ade if applicable on the ba sis of estima ted tax liability as per the applicable provisions of the Income Tax Act, 1961.

i Gratuity is being provided on cash basis.

j Provision and contingencies

The company creates a provision when there exists a present obligation as a resul t of past even t that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources, when there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provison or disclosure is made.


Jun 30, 2011

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The financial statements are prepared according to historical cost convention, on the accrual basis of accounting (except as stated below) and materially comply with the mandatory statements and Accounting Standards referred to in section 211(3C) of the Companies Act, 1956, ('the Act').

Revenue Recognition

(a) Income from operations including brokerage is accounted for on accrual basis.

(b) Lease Rentals are recognized as revenue over the lease period as per the terms of the lease agreements.

(c) Interest on fixed deposits with banks is accounted for on Accrual Basis.

Fixed Assets

Fixed assets are stated at cost, including freight, installation, duties and taxes, finance charges and other incidental expenses incurred during construction or installation to bring the assets to their state of intended use. The amounts added on revaluation are credited in Revaluation Reserve. Shop No. N-24 Connaught Place has been mortgaged against loan taken from bank by a subsidiary Company.

Depreciation

a) Depreciation on fixed assets are provided to straight - line method in accordance with and at the rate specified in schedule XIV to the Companies Act, 1956. Pro- rata depreciation is charged in respect of additions made during the year with reference to the month in which the addition takes place.

b) In respect of revalued assets, the Depreciation attributable to the amount is added on revaluation is adjusted against the Revaluation Reserve.

Investments

Investments are valued at acquisition cost Provision is made for diminution in the value of investment which is perceived to be permanent nature.

Valuation of Stocks

Stocks of quoted shares / debentures and other securities are valued at cost or market price whichever is less, by comparing each scrip with its market price. Market price of each scrip is determined on the basis of the closing price of the scrip prevailing at the principal stock exchange where the same is traded. Stock of Unquoted shares & debentures are valued at cost.

Retirement Benefits

Provident fund benefits are recorded on the basis of contributions to the fund.

Foreign Currency Transactions

There is no transaction in foreign currency during the year.

Taxation

Provision for income tax for the current period is made on the basis of estimated tax liability as per the applicable provisions of the Income-tax Act, 1961.

 
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