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

Accounting Policies of Stanrose Mafatlal Investments & Finance Ltd. Company

Mar 31, 2015

A. BASIS OF 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 Accounting Standards notified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule, 2014. The Financial Statement 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.

b. USE OF ESTIMATES:

The presentation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions considered in the reported amount of assets and liabilities ( including Contingent Liabilities ) and the reported income and expense 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 period in which the results are known/materialize.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no signifi- cant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

iii. Interest income is accounted on accrual basis.

d. INVESTMENTS:

Non-current Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc., acquired in the ordinary course of business are stated as Stock-in-trade. Stock- in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) which- ever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an asset''s net selling price and value in use.

h. DEPRECIATION:

Depreciation on Fixed Assets is provided on Written Down Value (WDV) method as per the useful life prescribed in Schedule II of the Companies Act, 2013.

i. RETIREMENT BENEFITS:

Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date. Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Statement of Profit and Loss for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Statement of Profit and Loss for the period in which such leave were earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Financial Statements.

Contingent assets are neither recognized nor disclosed in financial statements.

k. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of long- term investments and such amount is credited to General Reserve II.

l. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

m. OPERATING LEASE:

Lease where significant portion of risk and reward of ownership are retained by the Lessor are classified as Operating Lease and rentals thereon are charged to the Statement of Profit and Loss.


Mar 31, 2013

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Financial Statements in the Company have been prepared in accordance with the Generally Awe pled Accounting Principle in Indie (Indian GAAP) to comply with Accounting Standards notified under the Companies (Accounting Standards) Rules. 3006 (as amended} and the relevant provisions of the Companies Act. 1956.The Financial Statement have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the Financial Stablemen''s are consistent with those followed in the- previous year.

b. USE OF ESTIMATES;

The presentation at financial statements in conformity with Indian GAAP requires management to makh estimates and es-sumptiona considered in the reported amount of assets and liabilities ( including Contingent Liabilities ) and the reported income and expense during the year. The Management believes that the estimates used in preparation of the Financial Statement are and reasonable. Future results could differ due to these estimates and the differences between the adult results and the estimates are recognized in the period in which the resets are known/matenali2e.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no Significant uncertainly as to the measurability or collectability exists,

ii. Dividend income is accounted for when the right to receive payment is established.

iii. Interest income Is accounted on accrual basis,

d. INVESTMENTS:

Non-current Investments are Stated at Cost less any provision for diminution in value other than temporary.

e) STOCK IN-TRADE:

Current Investments in Shares and Securities, etc., acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued al cost or Fair Value / Net Asset Value (NAV} whichever Is lower.

I. FIXED ASSETS:

Fixed Assess are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS-:

Fixed Assets are reviewed for impairment losses wherever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an access net soling price and value in use.

h. DEPRECIATION:

Depredation on fixed assets is provided on Written Down Value (WDV) method at the roles and in the manner provided for under Schedule XIV of the Companies Act, 1956.

L RETIREMENT BENEFITS:

Gratuity ;

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created hy the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rale relevant to Government Securities at the Balance Sheet Dale. Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Statement of Profit and Loss for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave if the employee is estimated at the end of every year and expensed to the Statement of Profit and Loss for the period in which such have were earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement art recognized when there is a preset obligation as a result Of past events end it is$ probable that there will an outflow of resources.

Liberties which are of contingent nature are not provided but disposed al their astir mated amount in the Notes to the Financial Statements.

Contingent assets are neither recognized nor disclosed in financial statements,

k. GENERAL RESERVE I;

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for tree diminution in the value of long-term investments and such amount is credited to General Reserve II.

I. TAXATION:

Provision fit Currant Income tax is made on the basis of estimated taxable income for the period. Deterred Tax is recognized. subject to consideration of prudence, on liming differences between taxable income and accounting income for tine period that originates in one period and is capably of reversal m one or more subsequent periods.

m OPERATING LEASE:

Lease where significant portion of risk and reward of ownership are retainer by the Less or is classified as Operating Lease and rentals thereon are charged to the Statement of Profit and Loss.


Mar 31, 2012

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company has applied provisions of the Companies Act, 1956 for preparation of its financial statements. The Financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. Accounting policies not specifically referred to otherwise have been followed consistently.

b. USE OF ESTIMATES:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions 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 result and estimates are recognized in the period in which the results are known / materialized.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

d. INVESTMENTS:

Non-current Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc., acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) whichever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an assets' net selling price and value in use.

h. DEPRECIATION:

Depreciation on fixed assets is provided on Written Down Value (WDV) method at the rates and in the manner provided for under Schedule XIV of the Companies Act, 1956.

i. RETIREMENT BENEFITS:

Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date.

Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Statement of Profit and Loss for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Statement of Profit and Loss for the period in which such leave was earned as Personnel Costs. j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Financial Statements.

Contingent assets are neither recognized nor disclosed in financial statements.

k. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of non- current investments and such amount is credited to General Reserve II.

l. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing difference between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

m. OPERATING LEASE:

Lease where significant portion of risk and reward of ownership is retained by the Lessor is classified as Operating Lease and rentals thereon are charged to the Statement of Profit and Loss.


Mar 31, 2011

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company has applied provisions of the Companies Act, 1956 for preparation of its financial statements. The Financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. Accounting policies not specifically referred to otherwise have been followed consistently.

b. USE OF ESTIMATES:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions 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 result and estimates are recognized in the period in which the results are known / materialized.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

d. INVESTMENTS:

Long Term Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc, acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) whichever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an assets' net selling price and value in use.

h. DEPRECIATION:

Depreciation on fixed assets is provided on Written Down Value (WDV) method at the rates and in the manner provided for under Schedule XIV of the Companies Act, 1956.

i. RETIREMENT BENEFITS:

Gratuity :

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date.

Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined contribution schemes, are charged to the Profit and Loss Account for the period, in which the contributions to the respective funds accrue.

Leave Encashment :

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Profit and Loss Account for the period in which such leave was earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Accounts.

Contingent assets are neither recognized nor disclosed in financial statements.

k. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of long- term investments and such amount is credited to General Reserve II.

l. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

m. OPERATING LEASE:

Lease where significant portion of risk and reward of ownership are retained by the Lessor are classified as Operating Lease and rentals thereon are charged to Profit and Loss account.


Mar 31, 2010

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The Company has applied provisions of the Companies Act, 1956 for preparation of its financial statements. The Financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. Accounting policies not specifically referred to otherwise have been followed consistently.

b. USE OF ESTIMATES:

The presentation of financial statements requires certain estimates and assumptions. These estimates and assumptions 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 result and estimates are recognized in the period in which the results are known / materialized.

c. REVENUE RECOGNITION:

i. Revenue is recognized when no significant uncertainty as to the measurability or collectability exists.

ii. Dividend income is accounted for when the right to receive payment is established.

d. INVESTMENTS:

Long Term Investments are stated at cost less any provision for diminution in value other than temporary.

e. STOCK-IN-TRADE:

Current Investments in Shares and Securities, etc, acquired in the ordinary course of business are stated as Stock-in-trade. Stock-in-trade for each category is valued at cost or Fair Value / Net Asset Value (NAV) whichever is lower.

f. FIXED ASSETS:

Fixed Assets are stated at historical cost less accumulated depreciation.

g. IMPAIRMENT OF FIXED ASSETS:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount, which is the higher of an assets net selling price and value in use.

h. DEPRECIATION:

Depreciation on fixed assets is provided on Written Down Value (WDV) method at the rates and in the manner provided for under Schedule XIV of the Companies Act, 1956.

i. RETIREMENT BENEFITS:

Gratuity:

The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees through Gratuity Trust Fund created by the Company. The Company Accounts for the liability for the gratuity benefits payable in future based on an independent actuarial valuation carried out using Projected Unit Credit Method considering discounting Rate relevant to Government Securities at the Balance Sheet Date.

Provident Fund :

Retirement Benefits in the form of Provident Fund and Family Pension Fund, which are defined benefit contribution schemes, are charged to the Profit and Loss Account for the period, in which the contributions to the respective funds accrue.

Leave Encashment:

Cost of earned leave of the employee is estimated at the end of every year and expensed to the Profit and Loss Account for the period in which such leave was earned as Personnel Costs.

j. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Liabilities which are of contingent nature are not provided but disclosed at their estimated amount in the Notes to the Accounts.

Contingent assets are neither recognized nor disclosed in financial statements.

k. GENERAL RESERVE II:

The Company sets apart adequate amount for contingencies for doubtful debts and advances as also for the diminution in the value of long- term investments and such amount is credited to General Reserve II.

l. TAXATION:

Provision for Current Income tax is made on the basis of estimated taxable income for the period. Deferred Tax is recognized, subject to consideration of prudence, on timing differences between taxable income and accounting income for the period that originates in one period and is capable of reversal in one or more subsequent periods.

m. OPERATING LEASE:

Lease where significant portion of risk and reward of ownership is retained by the Lessor is classified as Operating Lease and rentals thereon are charged to Profit and Loss Account.

 
Subscribe now to get personal finance updates in your inbox!