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Accounting Policies of Suchitra Finance & Trading Company Ltd. Company

Mar 31, 2015

1. Summary of Significant Accounting Policies :-

a. These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India under the historical cost convention under accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting or an addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211 (3C) of Companies Act, 1956 (Companies (Accounting Standards), Rules, 2006, as amended) and other relevant provisions of the Companies Act, 2013.

b. The Company follows the Prudential Norms for Asset Classification, Income Recognition, Accounting Standards, and Provisioning for bad and doubtful debts as prescribed by the Reserve Bank of India for Non Banking Financial Companies.

c. Interest Income is recognized on a time proportion basis taking into account the amount outstanding and applicable interest rate.

d. Fixed Assets are stated at cost less depreciation. The Company capitalizes all the cost relating to acquisition and installation of fixed assets.

e. Depreciation on Fixed Assets is provided to the extent of depreciable amount on the Written Down Value Method. Depreciation is provided based on the useful life of the assets as prescribed in schedule II to the Companies Act, 2013,as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act 1956.

f. Long-term Investments are stated at cost after deducting provision made for permanent diminution in the value, if any.

g. Income-tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax asset is reviewed to reassure realization.


Mar 31, 2014

A. The financial statements are prepared on accrual basis of accounting with the generally accepted accounting principles in India., provisions of the Companies Act 1956 (the Act) and comply in material aspects with the accounting standards notified under Section 211(3C) of the Act, read with Companies (Accounting Standards) Rules, 2006. Accounting Policies not referred to otherwise are consistent with Generally Accepted Accounting Principles and are consistent with those used in the previous year.

b. The Company follows the Prudential Norms for Asset Classification, Income Recognition, Accounting Standards, and Provisioning for bad and doubtful debts as prescribed by the Reserve Bank of India for Non Banking Financial Companies.

c. Interest Income is recognized on a time proportion basis taking into account the amount outstanding and applicable interest rate.

d. Fixed Assets are stated at cost less depreciation. The Company capitalizes all the cost relating to acquisition and installation of fixed assets.

e. Depreciation on fixed assets is provided on written down value method at the rates and on the basis specified in Schedule XIV to the Companies Act, 1956.

f. Long-term Investments are stated at cost after deducting provision made for permanent diminution in the value, if any.

g. Income-tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax asset is reviewed to reassure realization.

a. The number of shares and amount outstanding at the beginning and at the end of the reporting year is same.

b. The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to same right in all the assets.

c. Detail of shares held by die holding company

-Based on information so far available with the Company, there are no dues payable to MSME as defined in the Micro, Small and Medium Enterprises Development Act,2006.

The Company is engaged solely in investment activity segment and all activities of the Company revolve around this business. As such there are no other reportable segment as defined by Accounting Standard 17 on Segment Reporting" issued by the Institute of Chartered Accountants of India.


Mar 31, 2013

A. The financial statements are prepared on accrual basis of accounting with the generally accepted accounting principles in India., provisions of the Companies Act 1956 (the Act) and comply in material aspects with the accounting standards notified under Section 211(3C) of the Act, read with Companies (Accounting Standards) Rules, 2006.Accounting Policies not referred to otherwise are consistent with Generally Accepted Accounting Principles and are consistent with those used in the previous year.

b. The Company follows the Prudential Norms for Asset Classification, Income Recognition, Accounting Standards, and Provisioning for bad and doubtful debts as prescribed by the Reserve Bank of India for Non Banking Financial Companies.

c. Fixed Assets are stated at cost less depreciation. The Company capitalizes all the cost relating to acquisition and installation of fixed assets.

d. Depreciation on fixed assets is provided on written down value method at the rates and on the basis specified in Schedule XIV to the Companies Act, 1956.

e. Long-term Investments are stated at cost after deducting provision made for permanent diminution in the value, if any.

f. Income-tax expense comprises current tax and deferred tax charge or credit. The deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax asset arising mainly on account of brought forward losses and unabsorbed depreciation under tax laws, are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax asset is reviewed to reassure realization.

a. The number of shares and amount outstanding at the beginning and at the end of the reporting year is same.

b. The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to same right in all the assets.

* In accordance with the Notification No. DNBS.222/CGM (US) - 2011 dated 17.01.2011 issued by the Reserve Bank of India (RBI) vide its directions to all NBFC''s to make a general provision of 0.25% on the standard assets, the Company has recognized Contingent Provisions against Standard Assets as at the year end aggregating Rs. 1,54,001/-(Previous Year Rs. 1,32,501/-).

1 Deferred Tax Liabilities

Major components of Deferred Tax Liability arising on account of temporary timing differences are given below:

* Based on information so far available with the Company, there are no dues payable to MSME as defined in the Micro, Small and Medium Enterprises Development Act,2006.


Mar 31, 2012

A. The financial statements are prepared on accrual basis of accounting with the generally accepted accounting principles in India, provisions of Companies Act, 1956 (The Act) and comply in material aspects with the accounting standards notified under Section 211 (3C) of the Act, read with Companies (Accounting standards )Rules, 2006. Accounting policies not referred to otherwise are consistent with the Generally Accepted Principles and are consistent with those used in the previous year.

b. The company follows the Prudential Norms for Asset Classification, Income Recognition , Accounting Standards, and Provisioning for Bad and Doubtful Debts as prescribed by the Reserve Bank of India for Non -Banking Financial companies.

c. Long Term Investments are stated at cost after deducting provisions made for permanent diminution in the value, if any.

d. Stock of quoted shares is valued at lower of cost & market price.

e. Purchase and sale of shares & other securities are accounted for on the basis of bill dates received from the Brokers.

f. Income Tax expense comprises current tax and deferred tax charge or credit. The Deferred tax asset and deferred tax liability is calculated by applying tax rate and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax Asset arising mainly on account of brought forward Losses and Unabsorbed Depreciation under Tax Laws, are recognized, only if there is a virtual certainly of its realization, supported by convincing evidences. Deferred Tax Asset on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization. At each Balance Sheet date, the carrying amount of deferred tax asset is reviewed to reassure realization.

a. The number of shares and amount outstanding at the beginning and at the end of the reporting year is same.

b- The Company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to same right in all the assets.


Mar 31, 2011

A) Accounting Concepts:

i) The Financial Statements have been prepared under the historical cost convention as a going concern in accordance with the provisions of the Companies Act, 1956 and Accounting Standards issued by the Institute of Chartered Accountants of India as adopted consistently by the Company.

ii) The Company generally follows Mercantile System of Accounting except for items of nominal value.

b) Revenue Recognition:

Income is generally recognized on accrual basis.

c) Investment

In terms of the Reserve Bank of India guideline to Non Banking Financial Companies all investments in securities are bifurcated into current investments and long term investments. The Investments acquired with the intention of short term holdings are considered as stock in trade and classified as current assets and other are considered as long term investments. Long term investments are valued at cost and provisions for diminution in value of investments of permanent nature, if any is made and diminution in value of investments of temporary nature is not made.

d) Stock-in-Trade

The Stock of shares is valued at cost or market value whichever is lower.

e) Prudential Norms:

The Company has followed during the year prudential norms for Income recognition and for provisions of Non Performing Assets prescribed by Reserve Bank of India for Non Banking Financial Companies.

f) Taxation:

Income tax comprises current tax and deferred tax charge or release. The deferred tax charge or credit is recognized using current tax rates. Where there are carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Such assets are reviewed as at each balance sheet date to reassess realization.

g) Leave Encashment:

The company does not permit leave encashment during their tenure of employment and on retirement or termination and hence there is no liability towards leave encashment.

h) Miscellaneous Expenditure:

Miscellaneous expenditure has been written off equally in Five Annual Installments.

 
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