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Accounting Policies of Swarna Securities Ltd. Company

Mar 31, 2015

1) INCOME RECOGNITION:

a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on loans on accrual basis.

b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

c) Additional Finance Charges and Dividends are accounted for as and when received. Dividend on Chit Subscription is accounted for on due basis.

2) FIXED ASSETS:

All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes and cost of installation as applicable.

3) DEPRECIATION:

Depreciation is provided on Written Down Value Method on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

4) INVESTMENTS: Investments are stated at cost.

5) STOCK OF SHARES IN TRADE:

Stocks of shares in trade, where quoted, are valued scrip-wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are valued at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

6) There is a fall in the ratio of the financial income to the total income during the financial year ended 31st March, 2015; and also the financial assets to total assets ratio as on that date. Beyond the principal business criteria for holding the certificate of registration as specified in the Circular DNBS (PD) C.C.No. 81/03.05.002/2006-07 dated 19/10/2006 issued by the Reserve Bank of India. However, the Board informs that it is seeking to prove the ratios in the coming year. Further, it is informed that the Board is planing to diversify its activities towards other upcoming sectors.

7) CONTINGENT LIABILITIES:

There are no contingent liabilities.

8) Fees, Licenses & Taxes debited to the Profit & Loss Account includes Rs.5.00 lakhs of penalty imposed by the Reserve Bank of India under section 58B(5)(aa) of the RBI Act, 1934.

9) The Balances on account of Lease, Hire Purchase, Other Debtors and Sundry Creditors are subject to confirmation. There are no dues to any SSI as on 31.03.2015.

10) MANAGERIAL REMUNERATION:

No Remuneration is paid to the Managing Director.

11) PROVISION FOR NON-PERFORMING ASSETS:

In pursuance to the Non-Banking Financial Companies (Non-Deposit Accepting or Holding) Prudential Norms (Reserve Bank) Directions, 2007 provision for NPAs amounting to Rs.2.33 Lakhs was made during the year 2014-15.

12) TRANSFER TO RESERVE FUND

The Company transferred an amount of Rs.2.44 lakhs to the Statutory Reserve Fund as per Section 45-IC of the Reserve Bank of India Act, 1934.

13) The Company has recognized Deferred Tax Liability of an amount of Rs.2,410/- towards difference in the depreciation allowable under the Companies Act and the Income Tax Act.

14) SEGMENT REPORTING:

The Company, as of now, is engaged only in finance business. As such the Company's activity falls within a single business and therefore there are no additional disclosures to be provided under Accounting Standard (AS-17) "Segment Reporting", other than those already provided in the financial statements.

15) RELATED PARY TRANSACTIONS:

There are no transactions during the year with any of the related parties, to be disclosed in accordance with the Accounting Standard AS-18: "Related Party Disclosures" issued by The Institute of Chartered Accountants of India.

16) EARNING PER SHARE:

In determining earnings - per share, the Company considers the net profit after tax and includes the post tax effect of any extra-ordinary/exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share, and also the weighted average number of equity shares that could have been issued on the conversion of all dilutive potential equity shares.

17) There was no expenditure on employees who are in receipt of remuneration covered in terms of the provisions of Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 to furnish the particulars mentioned in Rule 5(1) there of.

18) There was no consumption of imported raw materials, components or spare parts during the year.

19) There was no expenditure in foreign currency during the year.

20) There were no earnings in foreign currency.

21) Previous Year's Figures are regrouped wherever necessary

22) Paises are rounded off to the nearest rupee.


Mar 31, 2013

1) INCOME RECOGNITION:

a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on loans on accrual basis.

b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

c) Additional Finance Charges and Dividends are accounted for as and when received. Dividend on Chit Subscription is accounted for on due basis.

2) FIXED ASSETS:

All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes and cost of installation as applicable.

3) DEPRECIATION:

Depreciation is provided on Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.

4) INVESTMENTS: Investments are stated at cost.

5) STOCK OF SHARES IN TRADE:

Stocks of shares in trade, where quoted, are valued scrip-wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are value, at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

6) CONTINGENT LIABILITIES:

There are no contingent liabilities.

7) The Balances on account of Lease, Hire Purchase, Other Debtors and Sundry Creditors are subject to confirmation. There are no dues to any SSI as on 31.03.2013.

8) MANAGERIAL REMUNERATION: No Remuneration is paid to the Managing Director.

9) PROVISION FOR NON-PERFORMING ASSETS:

In pursuance to the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 provision for NPAs amounting to Rs. 2.02 Lakhs was made during the year 2012-13.

10) TRANSFER TO RESERVE FUND:

An avnount of Rs. 1.20 Lakhs is transferred to Reserve Fund in accordance with the provisions of Section 45(I)C of the RBI Act, 1934, for the current year.

11) The difference between the net profit as shown in the Profit & Loss Account and the net income as per the Income Tax Act, 1961 not being substantial, no deferred tax asset has been recognized for the year.

12) SEGMENT REPORTING:

The Company, as of now, is engaged only in finance business. As such the Company''s activity falls within a single business and therefore there are no additional disclosures to be provided under Accounting Standard (AS-17) "Segment Reporting", other than those already provided in the financial statements.


Mar 31, 2012

1) INCOME RECOGNITION :

a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on loans on accrual basis.

b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

c) Additional Finance Charges and Dividends are accounted for as and when received. Dividend on Chit Subscription is accounted for on due basis.

2) FIXED ASSETS: All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes and cost of installation as applicable.

3) DEPRECIATION : Depreciation is provided on Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.

4) INVESTMENTS : Investments are stated at cost.

5) STOCK OF SHARES IN TRADE :

Stocks of shares in trade, where quoted, are valued scrip-wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are valued at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

6) CONTINGENT LIABILITIES : There are no contingent liabilities.

7) The Balances on account of Lease, Hire Purchase, Other Debtors and Sundry Creditors are subject to confirmation. There are no dues to any SSI as on 31:03.2012.

8) MANAGERIAL REMUNERATION : No Remuneration is paid to the Managing Director.

9) PROVISION FOR NON-PERFORMING ASSETS : In pursuance to the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998 provision for NPAs amounting to Rs. 3.17 Lakhs was made during the year 2011-12.

10) TRANSFER TO RESERVE FUND: An amount of Rs.0.49 Lakhs is transferred to Reserve Fund in accordance with the provisions of Section 45(I)C of the RBI Act, 1934, for the current year.


Mar 31, 2011

01. INCOME RECOGNITION .

(a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on loans on accrual basis. Income for the year from Hire Purchase represents the income reversed during earlier years, now recognized on receipt basis.

(b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

(c) Additional Finance Charges and Dividends are accounted for as and when received. Dividend on Chit Subscription is accounted for on due basis.

02. FIXED ASSETS

All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes and cost of installation as applicable.

03. DEPRECIATION

Depreciation is provided on Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.

04. INVESTMENTS :

Investments are stated at cost.

05. STOCK OF SHARES IN TRADE :

Stock of shares in trade, where quoted are valued scrip wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are valued at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

06. CONTINGENT LIABILITIES :

There are no contingent liabilities.

07. The Balances on account of Lease, Hire Purchase, Other Debtors and Sundry Creditors are subject to confirmation. There are no dues to any SSI as on 31.03.2011.

08. MANAGERIAL REMUNERATION

No Remuneration is paid to the Managing Director.


Mar 31, 2010

01. INCOME RECOGNITION :

(a) The Company recognises Hirepurchase Finance Charges, Interest on Hypothecation Loans on equal spread method and interest on Loans on accrual basis. Income for the year from Hire Purchase represents the income reversed during earlier years, now recognised on receipt basis.

(b) In pursuance to the Non-Banking Finance Companies Prudential Norms (Reserve Bank) Directions, 1998, the Income on Hire Purchase, Lease and other Loan Accounts which have been classified as Non-Performing Assets has been accounted for on realisation basis.

(c) Additional finance Charges and Dividends are accounted for as and when received. Dividend on chit Subscription is accounted for on due basis.

02. FIXED ASSETS

All the Fixed Assets including assets given on lease are stated in the Balance Sheet at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of insurance, compensation charges, freight, duties, taxes, cost of installation as applicable.

03. DEPRECIATION

Depreciation is provided on Written Down Value Method at the rates specified in Schedule XIV to the Companies Act, 1956.

04. INVESTMENTS :

Investments are stated at cost.

05. STOCK OF SHARES IN TRADE :

Stock of shares in trade, where quoted are valued scrip wise at cost or market value as per quotations available as on the Balance Sheet date, whichever is less. Unquoted equity shares are valued at cost or break-up value, whichever is lower. Where the balance sheet of the invested company is not available, such shares are valued at one rupee.

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