Home  »  Company  »  Sarvottam Finvest  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Sarvottam Finvest Ltd. Company

Mar 31, 2015

(A) Nature of operations:

The main business of the Company is Trading and Investment in Financial Instruments and financing activities.

(i) System of Accounting

The Financial Statements are prepared under the historical cost convention on accrual basis of accounting, in accordance with Generally Accepted Accounting Principles in India, including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013.

(ii) Use of Estimates

The Preparation of Financial Statements in conformity with Generally Accepted Accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

(iii) Applicability of RBI Regulations

The Company is a RBI registered Non-Banking Financial Company and it has followed guidelines issued by the RBI relating to Income Recognisation , Assets Clarification and provisioning for NBFC Companies.

(C) Revenue Recognition :

i) Sales comprise sale of financial instruments. Revenue from sale is recognized:

a) when all the significant risks and rewards of ownership are transferred to the buyer which coincides with delivery and are recorded net of expenses incurred in this behalf or the contract for the same is executed through recognized stock exchanges.

b) no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale.

ii) Income from Investments is taken into account when the same are sold and the certainty of transaction is confirmed.

iii) Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

iv) Dividend income is recognized on receipt basis.

(D) Fixed Assets and Depreciation :

All fixed assets are stated at cost, comprising of purchase price, duty, levies and direct attributable cost of bringing the assets to their working condition for the intended use. Depreciation on fixed asset is provided using the straight line method based on rates specified in Schedule II of the Companies Act, 2013.

Till the year ended March 31, 2014, Schedule XIV to the Companies Act, 1956, prescribed requirement concerning depreciation of Fixed Asset. From the current year, Schedule XIV has been replaced by Schedule II to the Companies Act, 2013.

(E) Investments:

Long Term Investments are stated at cost. The company provides for diminution, other than temporary, in the value of long term investments. Current Investments, if any are valued at cost or fair market value whichever is lower.

(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 fall within the purview of the same in the year under review.

(G) Inventories:

Inventories are valued at cost arrived at FIFO basis or net realizable value whichever is lower.

(H) Earning Per Share:

The Basic and Diluted Earning Per Share ("EPS") is computed by dividing the net profit after tax for the year by weighted average number of equity shares outstanding during the year.

(I) Provisions for Taxation:

The expenses comprises of current tax (i.e. amount of tax for the period determined in accordance with the Income Tax Act, 1961) and deferred tax charges or credit (reflecting the tax effects of timing difference between accounting income and taxable income for the period).

The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the Balance Sheet date.

Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however. where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date to reassess realization.

(J) Provisions and Contingencies :

i) Provision is recognized (for liabilities that can be measured by using a substantial degree of estimation) when:

a) The Company has a present obligation as a result of a past event.

b) A probable outflow of resources embodying economic benefits is expected to settle the obligation; and

c) The amount of the obligation can be reliably estimated.

ii) 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 possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

iii) Provision against Standard Assets has been made as per RBI guidelines.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X