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SENSEX NIFTY India | Accounting Policy > Finance - Investments > Accounting Policy followed by Shree Nath Commercial & Finance - BSE: 512105, NSE: N.A

Shree Nath Commercial & Finance

BSE: 512105|ISIN: INE490J01032|SECTOR: Finance - Investments
Dec 03, 16:00
Shree Nath Commercial & Finance is not listed on NSE
Mar 13
Accounting Policy Year : Mar '14
a) Basis of preparation of financial statements
 The financial statements are prepared in accordance with Generally
 Accepted Accounting Principles (GAAP) in India under the historical
 cost convention, on accrual basis. GAAP comprises mandatory Accounting
 Standards issued by the Companies (Accounting Standards) Amendment
 Rules, 2008 and the relevant provisions of the Companies Act, 1956. The
 accounting policies have been consistently applied by the Company and
 are consistent with those used in the previous year.
 b) Use of Estimates
 The Preparation of financial statements in conformity with generally
 accepted accounting principles requires management to make estimates
 and assumptions that affect the reported amounts of assets and
 liabilities and disclosure of contingent liabilities at the date of the
 financial statements and the results of operations during the reporting
 period. Although these estimates are based upon management''s best
 knowledge of current events and actions, actual results could differ
 from these estimates. Any revision to the accounting estimates is
 recognized prospectively.
 c) Revenue recognition
 1.  Income from Operation is recognised upon transfer of significant
 risks and rewards of ownership to the buyer.
 2.  Other Income is recognized to the extent that it is probable that
 the economic benefits will flow to the Company and the revenue can be
 reliably measured.
 3.  Dividend is recognised when the shareholders'' right to receive
 payment is established at the balance sheet date.
 d) Fixed Assets
 Fixed assets are stated at cost, less accumulated depreciation and
 impairment losses if any. Cost comprises the purchase price and any
 attributable cost of bringing the asset to its working condition for
 its intended use. Borrowing costs relating to acquisition of fixed
 assets which takes substantial period of time to get ready for its
 intended use are also included to the extent they relate to the period
 till such assets are ready to be put to use. Capital work in progress
 includes expenditure incurred till the assets are put into intended
 e) Depreciation
 Depreciation is provided using the Straight Line Method at the rates
 and in the manner as prescribed under schedule XIV of the Companies
 Act, 1956. In case of Software, the same is amortized over a period of
 five years.
 f) Impairment of assets
 The carrying amounts of assets are reviewed at each balance sheet dates
 and if there is any indication of impairment based on internal/external
 factors. An impairment loss is recognized wherever the carrying amount
 of an asset exceeds its recoverable amount. The recoverable amount is
 the greater of the asset''s net selling price and value in use. In
 assessing value in use, the estimated future cash flows are discounted
 to their present value at the weighted average cost of capital. If at
 the balance sheet date, there is an indication that a previously
 assessed impairment loss no longer exists, then such loss is reversed
 and the asset is restated to extent of the carrying value of the asset
 that would have been determined (net of amortization / depreciation),
 had no impairment loss been recognized.
 After impairment, depreciation is provided on the revised carrying
 amount of the asset over its remaining useful life.
 g) Investments
 Investments that are readily realizable and intended to be held for not
 more than one year are classified as current investments. All other
 investments are classified as long-term investments. Current
 investments are carried at lower of cost or fair value determined on
 individual investment basis. Long-term investments are carried at cost.
 However, provision for diminution in value is made to recognize a
 decline other than temporary decline in the value of the investments.
 h) Taxation
 Tax expense comprises of current income tax and deferred income tax.
 Current income tax is measured at the amount expected to be paid to the
 tax authorities in accordance with the Indian Income Tax Act. Deferred
 income taxes reflects the impact of current year timing differences
 between taxable income and accounting income for the year and reversal
 of timing differences of earlier years. Deferred tax is measured based
 on the tax rates and the tax laws enacted or substantively enacted at
 the balance sheet date. Deferred tax assets are recognised only to the
 extent that there is reasonable certainty that sufficient future
 taxable income will be available against which such deferred tax assets
 can be realised. In situations where the company has unabsorbed
 depreciation or carry forward tax losses, all deferred tax assets are
 recognised only if there is virtual certainty supported by convincing
 evidence that they can be realised against future taxable profits. At
 each balance sheet date, the Company re-assesses unrecognised deferred
 tax assets. It recognizes unrecognized deferred tax assets to the
 extent that it has become reasonably certain, as the case may be, that
 sufficient future taxable income will be available against which such
 deferred tax assets can be realized. Minimum Alternative Tax (MAT)
 credit is recognised as an asset and carried forward only if there is a
 reasonable certainty of it being set off against regular tax payable
 within the stipulated statutory period.
 i) Earnings Per Share
 Basic earnings per share is calculated by dividing the net profit or
 loss for the year attributable to equity shareholders (after deducting
 preference dividends and attributable taxes) by the weighted average
 number of equity shares outstanding during the year. The weighted
 average number of equity shares outstanding during the year is adjusted
 for events of bonus issue, bonus element in a rights issue to existing
 shareholders, share split and reverse share split (consolidation of
 For the purpose of calculating diluted earnings per share, the net
 profit or loss for the year attributable to equity shareholders and the
 weighted average number of shares outstanding during the year are
 adjusted for the effects of all dilutive potential equity shares.
 j) Provisions, Contingent Liabilities and Contingent Assets
 A provision is recognized when an enterprise has a present obligation
 as a result of past event 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 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
 Possible future obligations or present obligations that may but will
 probably not require outflow of resources or where the same cannot be
 reliably estimated, is disclosed as contingent liabilities in the notes
 to accounts of financial statements.
 Contingent Assets are neither recognized nor disclosed in the financial
 k) Cash Flow Statement
 Cash flow statement has been prepared under the ''Indirect Method''. Cash
 and cash equivalents, in the cash flow statement comprise unencumbered
 cash and bank balances.
Source : Dion Global Solutions Limited
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