Mar 31, 2016
Brief description of the Company and its Business
SRESTHA FINVEST LIMITED formerly M.S.INVESTMENTS LIMITED was incorporated in Chennai in the year 1985. The company is a registered Non- Banking (non-deposit accepting) Finance company. The principle business of the company is finance, Investments, Loans and Trading in Securities.
A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1. The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles and the provisions as specified under section 133 of the Companies Act, 2013 read with rule 7 of the companies (Accounts) Rules ,2014 and other relevant provisions of the Companies Act 2013 and/or Companies Act ,1956 as applicable.
2. Method of Accounting - The Company maintains its accounts under mercantile basis of accounting.
3. The Accounting Standards recommended by The Institute of Chartered Accountants of India have been followed wherever applicable to the Company.
4. Use of Estimates :- The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income
B. REVENUE RECOGNITION
1. Interest Income are recognized on the date which they have become due or up on receipt whichever is earlier. The Interest income is recognized on gross basis.
2. In respect of other incomes, accrual system of accounting is followed.
C. FIXED ASSETS, DEPRECIATION & IMPAIRMENT
1. The Fixed Assets are stated at cost of their acquisition less depreciation.
2. Depreciation is provided on fixed assets, on written down value method based on the estimated life and residual value of assets.
3. All the cost associated till the installation/fixation of the assets is capitalized with the cost of the assets wherever applicable.
D. VALUATION OF CLOSING STOCK
The company does not hold any closing inventories during the year under review and hence the valuation is dispensed with.
E. INVESTMENTS & DEPOSITS
Investments/Deposits are classified as long-term wherever applicable and are shown and valued at cost, there are no current investments in the company.
F. RETIREMENT BENEFITS
Contribution of Provident fund, Gratuity and Leave encashment benefits wherever applicable is being accounted on actual liability basis.
G. FOREIGN CURRENCY TRANSACTION
There are no reportable Foreign Currency related transaction in the company during the year under review.
H. TAX ON INCOME
a. Tax on income for the current period is determined on the basis of Taxable Income computed in accordance with the provisions of the Income Tax Act 1961.
b. Deferred Tax on timing differences between the accounting income and taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date as per the Accounting Standard (AS 22) laid down by the Institute of Chartered Accountants of India (ICAI).
I. EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Company''s earnings per share is net profit after tax. The earnings per share for the year is Rs. 0.06/- (Basic & Diluted) as compared to the previous year of Rs. 0.02/- (Basic & Diluted).
J. CONTINGENT LIABILITIES AND CAPITAL CONTRACTS
The company as on date have not provided for any contingent liability (Previous Year NIL) and there are no unexecuted capital contracts which are outstanding or remaining to be performed.
K. IMPAIRMENT OF ASSETS
As required by accounting standard 28 issued by the Institute of Chartered Accountants of India, provision for impairment loss of Assets is not required to be made as the estimated realizable value of such assets will be more or equal to the carrying amount of the respective assets as stated in the Balance Sheet.
L. Business Segment
The Company is engaged primarily in one segment, accordingly there are no separate reportable segment as per the accounting standard 17 (Segmental Reporting) issued by Institute of Chartered Accountants of India.
M. RELATED PARTY DISCLOSURES
The Company had following related party transactions:-
S. No Name of Related Person Nature of Transaction Amount (Rs.)
1 Ramesh Kumar (HUF) Interest 625617/
2 Great Meera Finlease Pvt Ltd Interest 3672315/-
N. PERSONNEL
During the year under review, no employee was in receipt of remuneration in excess of limits laid down under the companies act other than below:-
There are no employees employed throughout the financial year were in receipt of remuneration which in aggregate was more that Rs.6000000/- per annum Rs.500000/- per month.
O. RECEIVABLES AND PAYABLES
The receivables and payables as stated in Current Assets, Loans and Advances and Current Liabilities and in the opinion of the management have a value and realization equal to the amount at which they are stated in the Balance Sheet and provision for all known liabilities if any has been made by the company.
P.PAYMENT TO AUDITORS 2015-2016 2014-2015
Audit fees 25000/- 25000/-
Q. DUES TO SME''S
Management has determined that there were no balances outstanding as at the beginning of the year and no transactions entered with micro, small and medium enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, during the current year, based on the information available with the company as at March 31, 2016.
R.CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances, (with original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
S. CASH FL OW STATEMENT
Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.
T. GENERAL
a. The figures for the previous year have been regrouped / reclassified / rearranged where ever necessary with the conformity with the current year figures for facilitating proper comparisons.
b. The figures have been rounded off to the nearest rupee.
As per our Report of even date attached
Mar 31, 2015
Brief description of the Company and its Business
M.S. INVESTMENTS LIMITED was incorporated in Chennai in the year 1985.
The company is a registered Non- Banking (non-deposit accepting)
Finance company. The principle business of the company is finance,
Investments, Loans and Trading in Securities.
A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
1. The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and the provisions as specified under section 133 of the
Companies Act, 2013 read with rule 7 of the companies (Accounts) Rules
,2014 and other relevant provisions of the Companies Act 2013 and/or
Companies Act ,1956 as applicable.
2. Method of Accounting - The Company maintains its accounts under
mercantile basis of accounting.
3. The Accounting Standards recommended by The Institute of Chartered
Accountants of India have been followed wherever applicable to the
Company.
4. Use of Estimates :- The preparation of the financial statements in
conformity with Indian GAAP requires the Management to make estimates
and assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) and the reported income
B. REVENUE RECOGNITION
1. Interest Income are recognized on the date which they have become
due or up on receipt which ever is earlier. The Interest income is
recognised on gross basis.
In respect of other incomes, accrual system of accounting is followed.
C. FIXED ASSETS, DEPRECIATION & IMPAIRMENT
1. The Fixed Assets are stated at cost of their acquisition less
depreciation.
2. Depreciation is provided on fixed assets, on written down value
method based on the estimated life and residual value of asses.
3. All the cost associated till the installation/fixation of the
assets is capitalized with the cost of the assets wherever applicable.
D. VALUATION OF CLOSING STOCK
The company does not hold any inventories during the year under review
and hence the valuation is dispensed with.
E. INVESTMENTS & DEPOSITS
Investments/Deposits are classified as long-term wherever applicable
and are shown and valued at cost, there are no current investments in
the company.
F. RETIREMENT BENEFITS
Contribution of Provident fund, Gratuity and Leave encashment benefits
wherever applicable is being accounted on actual liability basis.
G. FOREIGN CURRENCY TRANSACTION
There are no reportable Foreign Currency related transactions in the
company during the year under review.
H. TAX ON INCOME
a. Tax on income for the current period is determined on the basis of
Taxable Income computed in accordance with the provisions of the Income
Tax Act 1961.
b. Deferred Tax on timing differences between the accounting income
and taxable income for the year and quantified using the tax rates and
laws enacted or substantively enacted as on the Balance Sheet date as
per the Accounting Standard (AS 22) laid down by the Institute of
Chartered Accountants of India (ICAI).
I. EARNINGS PER SHARE (EPS)
The earnings considered in ascertaining the Company's earnings per
share is net profit after tax. The earnings per share for the year is
0.004/- (Basic & Diluted) as compared to the previous year of
Rs.0.023/- (Basic & Diluted).
J. CONTINGENT LIABILITIES AND CAPITAL CONTRACTS
The company as on date has not provided for any contingent liability
(Previous Year NIL) and there are no unexecuted capital contracts which
are outstanding or remaining to be performed.
K. IMPAIRMENT OF ASSETS
As required by accounting standard 28 issued by the Institute of
Chartered Accountants of India, provision for impairment loss of Assets
is not required to be made as the estimated realizable value of such
assets will be more or equal to the carrying amount of the respective
assets as stated in the Balance Sheet.
L. Business Segment
The Company is engaged primarily in one segment, accordingly there are
no separate reportable segment as per the accounting standard 17
(Segmental Reporting) issued by Institute of Chartered Accountants of
India.
M. RELATED PARTY DISCLOSURES
The Company has no reportable related party transactions during the
year under review.
N. PERSONNEL
There are no employees employed throughout the financial year were in
receipt of remuneration which in aggregate was more that Rs.6000000/-
per annum Rs.500000/- per month.
O. RECEIVABLES AND PAYABLES
The receivables and payables as stated in Current Assets, Loans and
Advances and Current Liabilities and in the opinion of the management
have a value and realisation equal to the amount at which they are
stated in the Balance Sheet and provision for all known liabilities if
any has been made by the company.
P. PAYMENT TO AUDITORS 2014-2015 2013-2014
Audit fees 25000/- 15000/-
Q. DUES TO SME'S
Management has determined that there were no balances outstanding as at
the beginning of the year and no transactions entered with micro, small
and medium enterprises as defined under Micro, Small and Medium
Enterprises Development Act, 2006, during the current year, based on
the information available with the company as at March 31, 2015.
R. CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances, (with original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
S. CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
T. GENERAL
a. The figures for the previous year have been regrouped /
reclassified / rearranged where ever necessary with the conformity with
the current year figures for facilitating proper comparisons.
b. The figures have been rounded off to the nearest rupee.
Mar 31, 2014
Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as a
Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income
Inventories
Inventories are valued at the lower ofcost and the net realisable value
after providing for obsolescene and other losses, where considered
necessary. Cost includes all charges in bringing the goods to the point
of sale.
Cash and cash equivalents
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amount
Cash Flow Statement
Cash Flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions of non- cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash
Fixed Assets
During the year there were no fixed assets held by the company and in
our opinion it has no affect on the going concern assumption.
Revenue Recognition
Interest income is accounted on accrual basis.
Other Revenue recognised on accrul basis and transfer of significant
risks and rewards.
Investments
Long term Non Current Investments are carried individually at the cost
less provision for dimution, other than temporary , in the value of
such investments. Current investments are carried individually , at the
lower of cost and fair value. Cost of invest
Segment Reporting
The company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for
Retirement Benefits
Contribution of Provident fund, Gratutity and Leave encashment benefits
whrever applicable is being accounted on actual liability basis as and
when arises. However the above referred provisions are not applicable
tohte company as it does not have employees who have served minimum
stipulated period for being eligible under the plans.
Earnings Per Share
Basic Earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year.
Impairment of Assets
As required under AS-28 issued by the Institute of Chartered
Accountants of India , provision for loss of assets or intrinsic value
is not required to be made as the estimated realisable value of such
assets will be more or equal to the carrying amount as stated n the
Balance sheet of the company.
Dues to SME'S
Management has determined that there were no balances outstanding as at
the beginning of the year and no transactions entered with micro, small
and medium enterprises as defined under Micro, Small and Medium
Enterprises Development Act,2006, during the current year , based on
the information available with the company as at March 2014.
Auditors Remuneration Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternative Tax (MAT)
Minimum Alternate Tax paid in accordance with the tax
Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate
Mar 31, 2013
Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year.
Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
Inventories
Inventories - for the unsold flat are valued at the lower ofcost and
the net realisable value after providing for obsolescene and other
losses, where considered necessary. Cost includes all charges in
bringing the goods to the point of sale, including octroi and other
levies, transit insurance and receving charges.
Cash and cash equivalents
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short- term balances (with an original maturity of
three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and
which are subject to insignificant risk of changes in value.
Cash Flow Statement
Cash Flows are reported using the indirect method, whereby
profit/(loss) before extraordinary items and tax is adjusted for the
effects of transactions of non- cash nature and any deferrals or
accruals of past or future cash receipts or payments. The cash flows
from operating, investing and financing activities of the company are
segregated based on the available information.
Fixed Assets
During the year there were no fixed assets held by the company and in
our opinion it has no affect on the going concern assumption.
Revenue Recognition
Interest income is accounted on accrual basis.
Revenue from construction contracts recognised on transfer of
significant risks and rewards of ownership to the buyer.
Investments
Long term Non Current Investments are carried individually at the cost
less provision for dimution , other than temporary , in the value of
such investments. Current investments are carried individually , at the
lower of cost and fair value. Cost of investments include acquisition
charges such as brokerage , fees and duties.
Segment Reporting
The company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive management
in deciding how to allocate resources and in assessing performance.
Earnings Per Share
Basic Earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year.
Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternative Tax (MAT)
Minimum Alternate Tax paid in accordance with the tax laws, which gives
future economic benefits in the form of adjustment to future income tax
liability, is considered as an asset if there is convincing evidence
that the company will pay normal income tax. Accordingly, MAT is
recognised as an asset in the balance sheet when it is probable that
future economic benefit associated with it will flow to the company.
Deferred Tax
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred Tax
Assets / Liabilities are recognised for all timing differences.
However, there is no deferred tax asset / liability during the year.
Provisions and contingencies
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates.
Mar 31, 2012
1.1 Basis of accounting and preparation of financial statements
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention. The accounting policies adopted in the preparation of
the financial statements are consistent with those followed in the
previous year except for change in the accounting policy for the
investments acquired in previous years were converted to stock at book
value, as more fully described in Note 15.
2.2 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known / materialise.
2.3 Inventories
Inventories - for the unsold flat are valued at the lower of cost and
the net realisable value after providing for obsolescence and other
losses, where considered necessary. Cost includes all charges in
bringing the goods to the point of sale, including octroi and other
levies, transit insurance and receiving charges.
Stock on Hire is stated at the gross installments receivable from the
borrower. The unmatured finance charges are included in other current
liabilities.
Certain Investments acquired in previous years were converted to stock
at book value
2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short- term balances (with an original maturity of
three months or less from the date of acquisition), highly liquid
investments that are readily convertible into known amounts of cash and
which are subject to insignificant risk of changes in value.
2.5 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
2.6 Fixed Assets
During the year the fixed assets have been disposed off by the Company
in its entirety and such disposal, in our opinion, has not affected the
going concern status of the Company.
2.7 Revenue recognition
Interest income is accounted on accrual basis.
Revenue from construction contracts recognised on transfer of
significant risks and rewards of ownership to the buyer.
2.8 Investments
Long-term - Non - Current - investments, are carried individually at
cost less provision for diminution, other than temporary, in the value
of such investments. Current investments are carried individually, at
the lower of cost and fair value. Cost of investments include
acquisition charges such as brokerage, fees and duties.
2.9 Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organisation and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/loss amounts are evaluated regularly by the executive Management
in deciding how to allocate resources and in assessing performance.
Hire Purchase & Loan financing is the primary activities of the
company. No other segments have been identified as reporting.
2.10 Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year.
2.11 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred tax assets and liabilities are offset if such items
relate to taxes on income levied by the same governing tax laws and the
Company has a legally enforceable right for such set off. Deferred tax
assets are reviewed at each Balance Sheet date for their realisability.
During the year the Deferred Tax Liability arising in previous year on
account of difference between Depreciation as per Books & IT was
reversed in the current year as the Fixed assets in its entirety were
disposed off.
2.12 Provisions
A provision is recognised when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which 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 Balance Sheet date. These are reviewed at
each Balance Sheet date and adjusted to reflect the current best
estimates.