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Accounting Policies of Som Datt Finance Corporation Ltd. Company

Mar 31, 2015

1.1 Basis of Accounting :

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards notified under Section 133 of the Companies Act, 2013 read with paragraph 7 of the Companies (Account) Rules, 2014. 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 with those used in the previous year except for the change in the accounting policy explained below.

1.2 Change in Accounting Policy Depreciation on Fixed Assets:

Till the year ended March 31, 2014 Schedule XIV to the Companies Act, 1956 prescribed requirements concerning depreciation on fixed assets was followed. From the current year, Schedule XIV has been replaced by Schedule II to the Companies Act, 2013. Effective from April 1, 2014, the Company has provided depreciation on fixed assets based on useful lives as provided in Schedule II of the Companies Act, 2013 under the Straight Line Method ( Upto March 31, 2014 the Company has provided depreciation under Written Down Value Method and for the change Rs. 14,847/- has been credited to opening balance of Retained Earnings). Had there been no change in the method of depreciation the charge to the Statement of Profit & Loss would have been lower by Rs. 49,556/-.

1.3 Fixed Assets and Depreciation

i) Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use

ii) Depreciation has been provided on Straight Line method, over the estimated useful lives of the respective assets, as specified in Schedule II of the Companies Act, 2013.

1.4 Impairment of Fixed Assets

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, the impaired, the company subjects such assets to a test of recoverability, based on discounted cash flow ow expected expected, recognized an impairment loss as the difference between the carrying value and fair value less costs to led cost to sell. None of company's the fixed assets are considered impaired as on the Balance Sheet date.

1.5 Investments

Investments are valued at their cost. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary. The said diminution is determined for each investment individually. Investments are either classified as current or long-term based on Management's intention at the time of purchase. Investments includes "Flats at Delhi" and "Flats at Jaipur" amounting Rs. 3,79,99,666/- Delhi Flats are lying vacant and used by the Co. for its own purpose and Jaipur Flats are ready for possession. However completion certificate is still awaited by developers. The Company shall take possession soon after the completion certificates are available.

1.6 Current Assets

Stock in trade is valued at cost or market price, whichever is lower, whereby the cost of each scrip is compared vis-a-vis its market value and the resultant shortfall, if any, is charged to revenue.

1.7 Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and in hand and short herm investment with an original maturity of three months or less.

1.8 Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non- cash nature, accrual of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

1.8 Taxation

Provision for tax has been made in accordance with the assessable profits determined under the provision of Income Tax Act, 1961.

Deferred Tax Assets / Liability in accordance with the AS-22 "Accounting for Tax on Income "has been recognized in the book of account. Deferred Income Tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

1.9 Revenue recognition

Revenue is primarily derived from Capital Market transactions and financing activities.

Income and Expenditure are generally recognized on Accrual basis with certain exceptions as enumerated below :

A. INCOME

i) Income from all non-performing assets are accounted for on receipt basis as per prudential norms promulgated by Reserve Bank of India.

ii) Dividend :

Accounted for on receipt basis.

iii) Lease Rentals and Hire Purchase Income :

Accounted for on accrual basis, additional finance charges and penal interest are accounted for on receipt basis.

iv) The share hedging contract of Capital Market Operations are accounted without considering STT and Stamp Duty on date of their settlement and released gain / loss in respect of settled contracts or recognized in the Profit & Loss account along with underlying transactions.

B. EXPENDITURE Employee Benefits:

Provident Fund:

i) Retirement benefits in the form of Provident Fund are accounted for on accrual basis and charged to Statement of Profit & Loss account of the year. Both the employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee's salary.

ii) Leave Encashment :

Leave Encashment is accounted in the books on payment basis and charged to Statement Profit & Loss account of the year.

iii) Gratuity:

Gratuity is provided in the accounts on accrual Basis on estimates though no actuarial valuation of gratuity liability has been made. The gratuity liability has not been actuarially calculated due to limited number of staffs. Accordingly full disclosure as per AS-15 is not considered necessary by the management.


Mar 31, 2014

1.1 Basis of Accounting

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India 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 with those used in the previous year.

1.2 Fixed Assets and Depreciation

I) Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use

ii) Depreciation has been provided on written down value method as per rates and in the manner prescribed in Schedule XIV ofthe CompaniesAct, 1956.

1.3 Impairment of Fixed Assets

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, the company subjects such assets to a test of recoverability, based on discounted cash flow expected recognized an impairment loss as the difference between the carrying value and fair value less costs to sell. None ofthe company''s fixed assets are considered impaired as on the Balance Sheet date

1.4 Investments

Investments are valued at their cost. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary. The said diminution is determined for each investment individually. Investments are either classified as current or long-term based on Management''s intention at the time of purchase. Investments includes "Flats at Delhi" and "Flats at Jaipur" amounting Rs. 3,76,84,966/-Delhi Flats are lying vacant and used by the Co. for its own purpose and Jaipur Flats are ready for possession. However completion certificate is still awaited by developers. The Company shall take possession soon after the completion certificates are available.

1.5 CurrentAssets

Stock in trade is valued at cost or market price, whichever is lower, whereby the cost of each scrip is compared vis-a-vis its market value and the resultant shortfall, if any, is charged to revenue.

1.6 Cash and Cash equivalents

Cash and cash equivalents comprise cash at bank and in hand and short herm investment with an original maturity ofthree months or less.

1.7 Cash Flow Statement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non- cash nature, accrual of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

1.8 Taxation

Provision for tax has been made in accordance with the assessable profits determined under the provision of Income TaxAct. 1961.

Deferred Tax Assets /Liability in accordance with the AS-22 "Accounting for Tax on Income "has been recognized in the book of account. Deferred Income Tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

1.9 Revenue recognition

Revenue is primarily derived from Capital Market transactions, Bill discounting services and financing activities.

Income and Expenditure are generally recognized on Accrual basis with certain exceptions as enumerated below:

A) INCOME

i) Income from all non-performing assets are accounted for on receipt basis as per prudential norms promulgated by Reserve Bank of India.

ii) Bill Discounting Services:

Accounted for according to the terms of agreement.

iii) Dividend:

Accounted for on receipt basis.

iv) Lease Rentals and Hire Purchase Income:

Accounted for on accrual basis, additional finance charges and penal interest are accounted for on receipt basis.

v) The share hedging contract of Capital Market Operations are accounted without considering STT and Stamp Duty on date of their settlement and released gain / loss in respect of settled contracts or recognized in the Profit & Loss account along with underlying transactions.

B) EXPENDITURE Employee Benefits:

i) Provident Fund:

Retirement benefits in the form of Provident Fund are accounted for on accrual basis and charged to Profit & Loss account of the year. Both the employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee''s salary.

ii) Leave Encashment:

Leave Encashment is accounted in the books on payment basis and charged to Profit & Loss account ofthe year.

iii) Gratuity:

Gratuity is provided in the accounts on Accrual Basis on estimates though no actuarial valuation of gratuity liability has been made. The gratuity liability has not been actuarially calculated due to limited number of staffs. Accordingly full disclosure as per AS-15 is not considered necessary by the management.

The company has issued only one class of shares referred to as equity shares having a par value of Rs. 10/- Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of company, the holders of equity shares will be entitled to receive any of remaining assets of the company, after distribution of all preferential amounts. However no such Preferential amounts exist currently.

Distribution will be in proportion to number of equity shares held by each shareholder.

(i) Reconciliation of number of shares outstanding and amount of share capital as at 31st March 2014 and 31st March 2013 issetoutbelow:


Mar 31, 2013

1.1 BasisofAccounting

The financial statements have been prepared to comply in all material respects with the mandatoryAccounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the CompaniesAct, 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 with those used in the previous year.

1.2 FixedAssets and Depreciation

i) Fixed assets are stated at cost less accumulated depreciation. Cost comprises the purchase price and any directly attributable costofbringing the assetto its working condition for its intended use

ii) Depreciation has been provided on written down value method as per rates and in the manner prescribed in ScheduleXIV oftheCompaniesAct,1956.

1.3 ImpairmentofFixedAssets

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, the company subjects such assets to a test of recoverability, based on discounted cash flow expected recognized an impairment loss as the difference between the carrying value and fair value less costs to sell. None ofthe company''s fixed assets are considered impairedason the Balance Sheet date

1.4 Investments

Investments are valued at their cost. Provision for diminution, if any, in the value of investments is made to recognize a decline, other than temporary. The said diminution is determined for each investment individually. Investments are either classified as current or long-term based on Management''s intention at the time of purchase. Investments includes “Flats at Delhi” and “Flats at Jaipur” amounting Rs. 4,45,80,961/-Delhi Flats are used by the Co. for its own purpose and Jaipur Flats are ready for possession. However completion certificate is still awaited by developers. The Company shall take possession soon after the completion certificates are available.

1.5 CurrentAssets

Stock in trade is valued at cost or market price, whichever is lower, whereby the cost of each scrip is compared vis-a-vis its market value and the resultant shortfall, ifany,ischargedtorevenue.

1.6 CashandCashequivalents

Cash and cash equivalents comprise cash and cash at bank and in hand and short term investment with an original maturityofthree months or less.

1.7 CashFlowStatement

Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non- cash nature, accrual of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

1.8 Taxation

Provision for tax has been made in accordance with the assessable profits determined under the provision of IncomeTaxAct.1961.

Deferred Tax Assets /Liability in accordance with the AS-22 "Accounting for Tax on Income "has been recognized in the book of account. Deferred Income Tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date.

1.9 Revenue recognition

Revenue is primarily derived from Capital Market transactions, Bill Discounting services and financing activities.

Income and Expenditure are generally recognized on Accrual basis with certain exceptions as enumerated below :

A) INCOME

i) Income from all non-performing assets are accounted for on receipt basis as per prudential norms promulgatedbyReserve Bank ofIndia.

ii) Bill Discounting Services: Accounted for according tothe termsofagreement.

iii) Dividend :

Accounted foronreceipt basis.

iv) Lease Rentals and Hire Purchase Income :

Accounted for on accrual basis, additional finance charges and penal interest are accounted for on receipt basis.

v) The share hedging contract of Capital Market Operations are accounted without considering STT and Stamp Duty on date of their settlement and released gain / loss in respect of settled contracts or recognized in the Profit& Loss account along with underlying transactions .

B) EXPENDITURE Employee Benefits:

i) Provident Fund:

Retirement benefits in the form of Provident Fund are accounted for on accrual basis and charged to Profit &Loss accountofthe year. Both the employee and the Company make monthly contributions to the provident fund plan equal toaspecified percentageofthe covered employee''s salary.

ii) LeaveEncashment:

Leave Encashment is accounted in the books on payment basis and charged to Profit & Loss account of the year.

iii) Gratuity:

Gratuity is provided in the accounts on Accrual Basis on estimates though no actuarial valuation of gratuity liability has been made. The gratuity liability has not been actuarially calculated due to limited number of staffs. Accordingly full disclosure as perAS-15 is not considered necessary by the management.


Mar 31, 2010

1.1 Basis of Accounting

The financial statements have been prepared to comply in all material respects with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India 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 with those used in the previous year.

1.2 Fixed Assets and Depreciation

i) Fixed assets are stated at cost less accumulated depreciation . Cost comprises the purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use

ii) Depreciation has been provided on written down value method as per rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956.

1.3 Impairment of Fixed Assets

Wherever events or changes in circumstances indicate that the carrying value of fixed assets may be impaired, the company subjects such assets to a test of recoverability, based on discounted cash flow expected recognized an impairment loss as the difference between the carrying value and fair value less costs to sell. None of the companys fixed assets are considered impaired as on the Balance Sheet date

1.4 Investments

Investments are valued at their cost. Provision for diminution, if any, in the value of investments is made to recognise a decline, other than temporary. The said diminution is determined for each investment individually.

1.5 Current Assets

Stock in trade is valued at cost or market price, whichever is lower, whereby the cost of each scrip is compared vis-a-vis its market value and the resultant shortfall, if any, is charged to revenue.

1.6 Amortisation

Deferred reveneue expenditure is amortized over a period often years. Public Issue expenses are amortized over a period often years.

1.7 Prior Period Items

Income & Expenditure pertaining to prior periods as well as extra ordinary items, where material are disclosed separately.

1.8 Taxation

Provision for tax has been made in accordance with the assessable profits determined under the provision of Income Tax Act, 1961.

Deferred Tax Assets / Liability in accordance with the AS-22 "Accounting for Tax on Income" has been recognized in the book of account. Deferred Income Tax reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. 1.9 Income & Expenditure

Income and Expenditure are generally recognised on Accrual basis with certain exceptions as enumerated below:

A) INCOME

i) Income from all non-performing assets are accounted for on receipt basis as per prudential norms promulgated by Reserve Bank of India.

ii) Bill Discounting Services:-

Accounted for according to the terms of agreement.

iii) Dividend :-

Accounted for on receipt basis.

iv) Lease Rentals and Hire Purchase Income :-

Accounted for on accrual basis, additional finance charges and penal interest are accounted for on receipt basis.

v) The share hedging contract of Capital Market Operations are accounted on date of their settlement and realiased gain / loss in respect of settled contracts or recognised in the Profit & Loss Account along with underlying transactions

B) EXPENDITURE Employee Benefits:-

i) Retirement benefits in the form of Provident Fund are accounted for on accrual basis and charged to Profit & Loss account of the year.

ii) Leave Encashment is accounted in the books on payment basis and charged to Profit & Loss account of the year.

iii) Gratuity is provided in the accounts on Accrual Basis on estimates though no actuarial valuation of gratuity Liability has been made. The Gratuity Liability has not been actuarially calculated due to limited number of staff. Accordingly full disclosure as perAS-15 is not considered necessary by the management.

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