Mar 31, 2018
1. Summary of Significant Accounting Policies Corporate Information:
Summit Securities Limited ("the Company") is registered as Non-Banking Financial Company u/s 45IA of Reserve Bank of India Act, 1934. The Company is principally engaged in the Investing Activities.
1.1 Basis of Preparation
These financial statements have been prepared to comply with Generally Accepted Accounting Principles in India (Indian GAAP), the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 and Reserve Bank of India Regulations in relation to Non Banking Finance Companies to the extend applicable to the Company.
The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the nearest rupees in Lakhs.
1.2 Use of Estimates
The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialized.
1.3 Fixed Assets Tangible
Fixed Assets are stated at Cost less accumulated depreciation and Impairment loss, if any. All Costs, including finance costs till the date asset is ready for use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Fixed Assets are capitalized.
Intangible
Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses if any.
1.4 Depreciation
Depreciation on tangible fixed assets is provided on straight-line method and based on useful life of the assets as prescribed in Schedule II to the
Companies Act 2013
1.5 Investments
Long Term Investments
Long term investments are stated at cost as per Accounting Standard (AS 13) on "Accounting for Investments". Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.
Current Investments
Current Investments are stated at the lower of cost or market value.
1.6 Revenue Recognition
Interest income is recognized in the Statement of Profit and Loss as it accrues except in the case of Non Performing Assets (NPA) where it is recognized, upon realization.
Dividend on investments is accounted when the right to receive payment is established.
Profit earned from sale of securities is recognized on a trade date basis. The cost of securities is computed based on a weighted average basis.
1.7 Provisions for Non Performing Assets (NPA) and Doubtful Debts
Sundry debtors, loans and advances and receivables are identified as bad/ doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management''s assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.
1.8 Taxes on Income
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual/reasonable certainty that the asset will be realized in future.
1.9 Employee Benefits
(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.
(ii) Post employment and other long term benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit and Loss.
1.10 Provisions, Contingent Liabilities And Contingent Assets
A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on 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. Contingent liabilities are not recognized but disclosed in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements.
1.11 Special Reserve
Company creates and maintains Special Reserve every year out of its profit in terms of Section 45 1C (1) of Reserve Bank of India Act 1934.
1.12 Impairment of Assets
An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.
1.13 Earning Per Share
The earnings per share have been computed in accordance with Accounting Standards (AS - 20) on, "Earning per Share" and are also shown in the Statement of Profit and Loss.
|
All amounts in Rs Lakhs |
|
As at March 31, 2018 |
As at arch 31, 2017 |
|
2. Share Capital |
||
Authorised: |
||
1 4,20,00,000 (Previous year 14,20,00,000) Equity Shares of Rs 10 each |
14,200.00 |
14,200.00 |
25,00,000 (Previous year 25,00,000) Preference shares of Rs 100 each |
2,500.00 |
2,500.00 |
1,50,00,000 (Previous year 1,50,00,000) Preference shares of Rs10 each |
1,500.00 |
1,500.00 |
18,200.00 |
18,200.00 |
|
Issued: |
||
1,09,01,987 (Previous year 1,09,01, 987) Equity Shares of Rs. 10 each (includes 206 Equity Shares kept in abeyance) |
1,090.20 |
1,090.20 |
1 ,090.20 |
1,090.20 |
|
Subscribed And Paid Up: |
||
1 ,09,01 ,781 (Previous year 1 ,09,01 ,781 ) Equity Shares of Rs. 10 each |
1,090.18 |
1,090.18 |
1,090.18 |
1,090.18 |
(a) Reconciliation of shares outstanding at the beginning and at the end of the reporting period
Equity Shares |
As at March 31, 2018 |
As at March 31, 2017 |
||
No. |
Rs. Lakhs |
No. |
Rs. Lakhs |
|
Shares outstanding at the beginning of the year |
1,09,01,781 |
1,090.18 |
1,09,01,781 |
1,090.18 |
Shares Issued during the year |
- |
- |
- |
- |
Shares bought back during the year |
- |
- |
- |
- |
Shares outstanding at the end of the year |
1,09,01,781 |
1,090.18 |
1,09,01,781 |
1,090.18 |
(b) Terms / rights attached to equity shares
Equity shares : The Company has issued one class of equity shares having face value of Rs. 10/- per share. Each share holder is eligible for one vote per share held.
The dividend recommended by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.
The shareholders have all other rights as available to the Equity Shareholders as per the provisions of Companies Act, 2013 read together with the Memorandum of Association and Articles of Association of the Company, as applicable.
(c) Details of shares held by shareholders holding more than 5% of the aggregate shares in the Company (as certified by the management).
As at March |
31,2018 |
As at March |
131,2017 |
|
No. of Shares held |
% of Holding |
No. of Shares held |
% of Holding |
|
Swallow Associates LLP |
7,622,815 |
69.92 |
7,622,815 |
69.92 |
Mar 31, 2016
1. Summary of Significant Accounting Policies Corporate Information:
Summit Securities Limited (âthe Companyâ) is registered as Non Banking Financial Company u/s 45IA of Reserve Bank of India Act, 1934. The Company is principally engaged in Investing Activities.
1.1 Basis of Preparation
These financial statements have been prepared to comply with Generally Accepted Accounting Principles in India (Indian GAAP), the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 and Reserve Bank of India Regulations in relation to Non Banking Finance Companies to the extend applicable to the Company.
The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the nearest rupees in Lakhs.
1.2 Use of Estimates
The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.
1.3 Fixed Assets Tangible
Fixed Assets are stated at Cost less accumulated depreciation and Impairment loss, if any. All Costs, including financing costs till the date asset is ready for use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Fixed Assets are capitalized.
Intangible
Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses if any.
1.4 Depreciation
Depreciation on tangible fixed assets is provided on a straight-line basis at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013 over their useful life.
1.5 Investments
Long Term Investments
Long term investments are stated at cost as per Accounting Standard (AS 13) on âAccounting for Investmentsâ. Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments.
Current Investments
Current Investments are stated at the lower of cost or market value.
1.6 Revenue Recognition
Interest income is recognized in the Statement of Profit and Loss as it accrues except in the case of Non Performing Assets (NPA) where it is recognized, upon realization.
Dividend on investments is accounted when the right to receive payment is established.
Profit earned from sale of securities is recognized on a trade date basis. The cost of securities is computed based on a weighted average basis.
1.7 Provisions for Non Performing Assets (NPA) and Doubtful Debts
Sundry debtors, loans and advances and receivables are identified as bad/ doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management''s assessment of the degree of impairment and the level of provisioning meets the prudential norms prescribed by the Reserve Bank of India.
1.8 Taxes on Income
Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from âtiming differenceâ between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a virtual/reasonable certainty that the asset will be realized in future.
1.9 Employee Benefits
(i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss of the year in which the related service is rendered.
(ii) Post employment and other long term benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit &Loss.
1.10 Provisions, Contingent Liabilities And Contingent Assets
A provision is recognized when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its present value and are determined based on 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. Contingent liabilities are not recognized but disclosed in the financial statements. A contingent asset is neither recognized nor disclosed in the financial statements.
Mar 31, 2015
1.1 Basis of Preparation
These financial statements have been prepared to comply with Generally
Accepted Accounting Principles in India (Indian GAAP), the Accounting
Standards notified under the relevant provisions of the Companies Act,
2013 and Reserve Bank of India Regulations in relation to Non Banking
Finance Companies to the extend applicable to the Company.
The financial statements are prepared on accrual basis under the
historical cost convention. The financial statements are presented in
Indian rupees rounded off to the nearest rupees in Lakhs.
1.2 Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires judgments, estimates and assumptions to be made that affect
the reported amount of assets and liabilities, disclosure of contingent
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results are known/materialized.
1.3 Fixed Assets Tangible
Fixed Assets are stated at Cost less accumulated depreciation and
Impairment loss, if any. All Costs, including financing costs till the
date asset is ready for use, net charges on foreign exchange contracts
and adjustments arising from exchange rate variations attributable to
the Fixed Assets are capitalized.
Intangible
Intangible assets are carried at cost less accumulated amortization and
accumulated impairment losses if any.
1.4 Depreciation
Depreciation on tangible fixed assets is provided on a straight-line
basis at the rates and in the manner prescribed in Schedule II to the
Companies Act, 2013 over their useful life.
1.5 Investments
Long Term Investments
Long term investments are stated at cost as per Accounting Standard (AS
13) on "Accounting for Investments". Provision for diminution is
made to recognize a decline, other than temporary, in the value of such
investments.
Current Investments
Current Investments are stated at the lower of cost or market value.
1.6 Revenue Recognition
Interest income is recognized in the Statement of Profit and Loss as it
accrues except in the case of Non Performing Assets (NPA) where it is
recognized, upon realization.
Dividend on investments is accounted when the right to receive payment
is established.
Profit earned from sale of securities is recognized on a trade date
basis. The cost of securities is computed based on a weighted average
basis.
1.7 Provisions for Non Performing Assets (NPA) and Doubtful Debts
Sundry debtors, loans and advances and receivables are identified as
bad/ doubtful based on the duration of the delinquency. The duration
is set at appropriate levels for each product. NPA provisions are made
based on the management's assessment of the degree of impairment and
the level of provisioning meets the prudential norms prescribed by the
Reserve Bank of India.
1.8 Taxes on Income
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income Tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the Balance Sheet date. The
deferred tax asset is recognised and carried forward only to the extent
that there is a virtual/reasonable certainty that the asset will be
realized in future.
1.9 Employee Benefits
(i) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit & Loss of the year in
which the related service is rendered.
(ii) Post employment and other long term benefits are recognized as an
expense in the Statement of Profit & Loss for the year in which the
employee has rendered services. The expense is recognized at the
present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to Statement of
Profit &Loss.
1.10 Provisions, Contingent Liabilities And Contingent Assets
A provision is recognised when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which reliable
estimate can be made. Provisions (excluding retirement benefits) are
not discounted to its present value and are determined based on 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. Contingent liabilities are not recognised
but disclosed in the financial statements. A contingent asset is
neither recognised nor disclosed in the financial statements.
(b) Terms / rights attached to equity shares
The company has one class of equity shares having a par value of Rs. 10
per share. Each shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend. In the event of liquidation, the
equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion
to their shareholding.
Mar 31, 2014
1.1 Basis of Preparation
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211 (3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956 and Reserve Bank of India Regulations in
relation to Non Banking Finance Companies to the extent applicable to
the Company.
1.2 Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management of the Company to make estimates and
assumptions that affect the reported balances of assets and
liabilities, revenues and expenses and disclosures relating to the
contingent liabilities. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Future results could differ from these estimates. Any revision to
accounting estimates is recognized prospectively in the current and
future periods.
1.3 Fixed Assets
Tangible
Fixed Assets are stated at Cost less accumulated depreciation and
Impairment loss, if any. All Costs, including financing costs till the
date asset is ready for use, net charges on foreign exchange contracts
and adjustments arising from exchange rate variations attributable to
the Fixed Assets are capitalized.
Intangible
Intangible assets are carried at cost less accumulated amortization and
accumulated impairment losses if any.
1.4 Depreciation
Depreciation on tangible fixed assets is provided on a straight-line
basis at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956. Intangible assets are amortised over a period of
six years which is the useful life of the asset.
All capital assets with individual value less than Rs. 5,000 are
depreciated fully in the month in which they are purchased.
1.5 Investments
Long Term Investments
Long term investments are stated at cost as per Accounting Standard (AS
13) on "Accounting for Investments". Provision for diminution is made
to recognize a decline, other than temporary, in the value of such
investments.
Current Investments
Current Investments are stated at the lower of cost or market value.
1.6 Revenue Recognition
Interest income is recognized in the Statement of Profit and Loss as it
accrues except in the case of Non Performing Assets (NPA) where it is
recognized, upon realization.
Dividend on investments is accounted when the right to receive payment
is established.
Profit earned from sale of securities is recognized on a trade date
basis. The cost of securities is computed based on a weighted average
basis.
1.7 Provisions for Non Performing Assets (NPA) and Doubtful Debts
Sundry debtors, loans and advances and receivables are identified as
bad/ doubtful based on the duration of the delinquency. The duration
is set at appropriate levels for each product. NPA provisions are made
based on the management''s assessment of the degree of impairment and
the level of provisioning meets the prudential norms prescribed by the
Reserve Bank of India.
1.8 Taxes on Income
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit or loss for the
period. Current tax is measured at the amount expected to be paid to
the tax authorities in accordance with the taxation laws prevailing in
the respective jurisdictions.
Deferred tax is recognized for all the timing differences, subject to
the consideration of prudence in respect of deferred tax assets.
Deferred tax assets are recognized and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realized.
1.9 Employee Benefits
(i) Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Statement of Profit & Loss of the year in
which the related service is rendered.
(ii) Post employment and other long term benefits are recognized as an
expense in the Statement of Profit & Loss for the year in which the
employee has rendered services. The expense is recognized at the
present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to Statement of
Profit & Loss.
1.10 Provisions, Contingent Liabilities And Contingent Assets
A provision is recognised when the Company has a present obligation as
a result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which reliable
estimate can be made. Provisions (excluding retirement benefits) are
not discounted to its present value and are determined based on 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. Contingent liabilities are not recognised
but disclosed in the financial statements. A contingent asset is
neither recognised nor disclosed in the financial statements.
(b) Terms / rights attached to equity shares
The company has one class of equity shares having a par value of Rs. 10
per share. Each shareholder is eligible for one vote per share held.
The dividend proposed by the Board of Directors is subject to the
approval of the shareholders in the ensuing Annual General Meeting,
except in case of interim dividend. In the event of liquidation, the
equity shareholders are eligible to receive the remaining assets of the
Company after distribution of all preferential amounts, in proportion
to their shareholding.
The Shareholders have all other rights as available to Equity
Shareholders as per the provisions of the companies Act, 1956, read
together with the Memorandum of Association and Articles of Association
of the Company, as applicable.
Mar 31, 2013
1.1 Basis of preparation
These fnancial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These fnancial statements have been
prepared to comply in all material aspects with the accounting
standards notifed under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956.
1.2 Tangible Assets
Tangible Assets are stated at acquisition cost, net of accumulated
depreciation
Depreciation is provided on the Straight Line Method, at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
1.3 Investments
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classifed as current investments. All other investments are
classifed as long term investments. Current investments are carried at
cost or fair value, whichever is lower. Long-term investments are
carried at cost plus brokerage and other relevant charges. Provision
against diminution in the value of investments is made in case
diminution is considered as other than temporary, as per criteria laid
down by the Board of Directors after considering that such investments
are strategic in nature.
1.4 Inventories
Traded Goods are valued at lower of Cost or Net Realisable value (NRV).
1.5 Revenue Recognition
Interest income is recognised in the Proft and Loss Account as it
accrues except in the case of Non Performing Assets (NPA) where it is
recognised, upon realisation.
Dividend on investments is accounted when the right to receive payment
is established.
Proft earned from sale of securities is recognised on a trade date
basis. The cost of securities is computed based on a weighted average
basis.
1.6 Provisions for Non Performing Assets (NPA) and Doubtful Debts
Sundry debtors, loans and advances and receivables are identifed as
bad/ doubtful based on the duration of the delinquency. The duration
is set at appropriate levels for each product. NPA provisions are made
based on the management''s assessment of the degree of impairment and
the level of provisioning meets the prudential norms prescribed by the
Reserve Bank of India.
1.7 Taxes on Income
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net proft or loss for the
period. Current tax is measured at the amount expected to be paid to
the tax authorities in accordance with the taxation laws prevailing in
the respective jurisdictions.
Deferred tax is recognised for all the timing differences, subject to
the consideration of prudence in respect of deferred tax assets.
Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty that suffcient future
taxable income will be available against which such deferred tax assets
can be realised.
1.8 Employee Benefts
(i) Short-term employee benefts are recognized as an expense at the
undiscounted amount in the Proft & Loss account of the year in which
the related service is rendered.
(ii) Post employment and other long term benefts are recognized as an
expense in the Proft & Loss Account for the year in which the employee
has rendered services. The expense is recognized at the present value
of the amounts payable determined using actuarial valuation techniques.
Actuarial gains and losses in respect of post employment and other long
term benefts are charged to Proft &Loss Account.
Mar 31, 2012
1.1 Basis of preparation
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis. These financial statements have been
prepared to comply in all material aspects with the accounting
standards notified under Section 211(3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956.
1.2 Tangible Assets
Tangible Assets are stated at acquisition cost, net of accumulated
depreciation
Depreciation is provided on the Straight Line Method, at the rates
prescribed in Schedule XIV of the Companies Act, 1956; Asset Rates:
Office Equipment - 4.75%, Computer & Systems - 16.21%
1.3 Investments
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. Current investments are carried at
cost or fair value, whichever is lower. Long-term investments are
carried at cost plus brokerage and other relevant charges. Provision
against diminution in the value of investments is made in case
diminution is considered as other than temporary, as per criteria laid
down by the Board of Directors after considering that such investments
are strategic in nature.
1.4 Revenue Recognition
Interest income is recognised in the Profit and Loss Account as it
accrues except in the case of Non Performing Assets (NPA) where it is
recognised, upon realisation.
Dividend on investments is accounted when the right to receive payment
is established.
Profit earned from sale of securities is recognised on a trade date
basis. The cost of securities is computed based on a weighted average
basis.
1.5 Provisions for Non Performing Assets (NPA) and Doubtful Debts
Sundry debtors, loans and advances and receivables are identified as
bad/ doubtful based on the duration of the delinquency. The duration is
set at appropriate levels for each product. NPA provisions are made
based on the management's assessment of the degree of impairment and
the level of provisioning meets the prudential norms prescribed by the
Reserve Bank of India.
1.6 Taxes on Income
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit or loss for the
period. Current tax is measured at the amount expected to be paid to
the tax authorities in accordance with the taxation laws prevailing in
the respective jurisdictions.
Deferred tax is recognised for all the timing differences, subject to
the consideration of prudence in respect of deferred tax assets.
Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised.
Mar 31, 2011
A) Basis of Accounting
The financial statements are prepared on the accrual basis of
accounting and in accordance with the standard on accounting notifi ed
by the Companies (Accounting Standards) Rules, 2006 and referred to in
section 211 (3C) of the Companies Act, 1956.
b) Fixed Assets
Fixed assets are stated at cost. Cost comprises cost of acquisition,
cost of improvements and any attributable cost of bringing the asset to
the condition for its intended use.
c) Depreciation
Depreciation is provided on the Straight Line Method, at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
d) Revenue Recognition
Interest income is recognised in the Profit and Loss Account as it
accrues except in the case of Non Performing Assets (NPA) where it is
recognised, upon realisation.
Dividend on investments is accounted when the right to receive payment
is established.
Profit earned from sale of securities is recognised on a trade date
basis. The cost of securities is computed based on a weighted average
basis.
e) Investments
i) Investments being long term are stated at cost plus brokerage and
other relevant charges. Provision against diminution in the value of
investments is made in case diminution is considered as other than
temporary, as per criteria laid down by the Board of Directors after
considering that such investments are strategic in nature.
ii) Current investments are stated at lower of cost or fair value.
f) Provisions for Non Performing Assets (NPA) and Doubtful Debts
Sundry debtors, loans and advances and receivables are identified as
bad/doubtful based on the duration of the delinquency. The duration is
set at appropriate levels for each product. NPA provisions are made
based on the management's assessment of the degree of impairment and
the level of provisioning meets the prudential norms prescribed by the
Reserve Bank of India.
g) Taxes on Income
a. Current Tax: Provision for Income Tax is determined in accordance
with the provision of Income Tax Act, 1961.
b. Deferred Tax: Deferred tax is recognized on timing differences
between the accounting income and the taxable income for the year, and
quantifi ed using tax rates and laws enacted or substantively enacted
on the Balance Sheet date.
Deferred tax assets are recognized and carried forward to the extent
there is a reasonable certainty that suffi cient future taxable income
will be available against which such deferred tax assets can be
realized.
Mar 31, 2010
A) Fixed Assets
Fixed assets are stated at cost. Cost comprises cost of acquisition,
cost of improvements and any attributable cost of bringing the asset to
the condition for its intended use.
b) Depreciation
Depreciation is provided on the Straight Line Method, at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
c) Revenue Recognition
Interest income is recognised in the Profit and Loss Account as it
accrues except in the case of Non Performing Assets (NPA) where it is
recognised, upon realisation.
Dividend on investments is accounted when the right to receive payment
is established.
Profit earned from sale of securities is recognised on a trade date
basis. The cost of securities is computed based on a weighted average
basis.
d) Investments
i) Investments being long term are stated at cost. Provision against
diminution in the value of investments is made in case diminution is
considered as other than temporary, as per criteria laid down by the
Board of Directors after considering that such investments are
strategic in nature.
ii) Current investments are stated at lower of cost or fair value.
e) Provisions for Non Performing Assets (NPA) and Doubtful Debts
Sundry debtors, loans and advances and receivables are identified as
bad /doubtful based on the duration of the delinquency. The duration is
set at appropriate levels for each product. NPA provisions are made
based on the managements assessment of the degree of impairment and
the level of provisioning meets the prudential norms prescribed by the
Reserve Bank of India.
f) Lease Transactions
i) In respect of lease rentals, a matching annual charge is made to the
Profit and Loss Account, representing recovery of net investment of
leased during the year. The said charges is calculated by deducting
finance income for the year (arrived at by applying the interest rate
implicit in the lease to the net investment in the lease during the
year) from the lease rental. This annual charge comprises of book
depreciation (as per policy stated in paragraph
(b) above) and a lease equalization charge, where the annual lease
charge is more than the book depreciation. Where the annual lease
charge is less than the book depreciation, lease equalization is taken.
ii) The amount of lease equalisation charge for the year (whether in
debit or credit) is adjusted against the amount of lease rentals.
g) Taxes on Income
a. Current Tax: Provision for Income Tax is determined in accordance
with the provision of Income Tax Act, 1961.
b. Deferred Tax: Deferred tax is recognized on timing differences
between the accounting income and the taxable income for the year, and
quantified using tax rates and laws enacted or substantively enacted on
the Balance Sheet date.
Deferred tax assets are recognized and carried forward to the extent
there is a reasonable certainty that sufficient future taxable income
will be available against which such deferred tax assets can be
realized.
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