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Moneycontrol.com India | Accounting Policy > Finance - Leasing & Hire Purchase > Accounting Policy followed by S I Capital and Financial Services - BSE: 530907, NSE: N.A
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S I Capital and Financial Services

BSE: 530907|ISIN: INE417F01017|SECTOR: Finance - Leasing & Hire Purchase
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S I Capital and Financial Services is not traded in the last 30 days
S I Capital and Financial Services is not listed on NSE
Mar 13
Accounting Policy Year : Mar '14
1 Basis of Preparation
 
 The financial statements are prepared in accordance with Indian
 Generally Accepted Accounting Principles (GAAP) under the historical
 cost convention on accrual basis and comply in all material aspects
 with the accounting standards notified under Section 211(3C), Companies
 (Accounting Standards) Rules, 2006, the provisions of the Companies 
 Act, 1956 and guidelines issued by the Securities and Exchange Board of
 India (SEBI) / RBI. The company follows mercantile system of accounting
 and recognises income and expenditure on accrual basis. The accounting 
 policies adopted in the preparation of the financial statements are 
 consistent with those followed in the previous year.
 
 2 Inter Branch Transfers 
 
 Inter Branch Transfers of currency are at cost. 
 
 3 Valuation of Inventories 
 Currencies in stock are valued at cost. 
 
 4 Use of Estimates  
 
 The preparation of financial statements requires the Management to make
 estimates and assumptions considered in the reported amounts of assets 
 and liabilities (including contingent liabilities) as of the date of 
 the financial statements and the reported income and expenses during 
 the reporting period like provision for employee benefit provisioning 
 for receivables, provision for credit enhancement for assets 
 de-recognised, net realizable value of repossessed assets, useful lives
 of fixed assets. Management believes that the estimates used in the 
 preparation of the financial statemetns are prudent and reasonable. 
 Future results may vary from these estimates.
 
 5.Provision, Contigencies Liabilities & Assets - AS 29 
 
 Provisions are recognised only when the Company has present or legal or
 constructive obligations as a result of past events, for which it is 
 probable that an outflow of economic benefit will be required to settle
 the transaction and a reliable estimate can be made for the amount of 
 the obligation. Contingent liability is disclosed for (i) Possible
 obligations which will be confirmed only by future events not wholly
 within the control of the Company or (ii) Present obligations arising 
 from past events where it is not probable that an outflow of resources
 will be required to settle the obligation or a reliable estimate of the
 amount of the obligation cannot be made. Contingent assets are not
 recognised in the financial statements.
 
 A contingent provision against standard assets has been created at
 0.25% of the outstanding standard assets in terms of the RBI circular
 Ref. No.DNBS(PD) CC No.225/03.02.001/ 2011-12 dated July 1,2011.
 
 6 Fixed Assets and Depreciation
 
 Fixed assets are stated at cost less Depreciation on Written Down Value
 Method at the rates and in the manner specified in the Schedule XIV to
 The Companies Act, 1956. No depreciation is provided on assets sold
 during the year.
 
 7 Investments 
 
 Investments which are readily realisable and intended to be held for
 not more than one year from the date on which such investments are made
 are classified as current investments in accordance with the RBI
 guidelines and Accounting Standard 13 on Accounting for investments''
 as notified under the Companies (Accounting Standards) Rules, 2006.
 Current investments also include current maturities of long-term
 investments.
 
 8 Loans
 
 In accordance with the RBI guidelines, all loans are classified under
 any of four catagories i.e (i) standard assets (ii) sub-standard assets
 (iii) doubtful assets and (iv) loss assets.
 
 9 Revenue Recognition
 
 Interest on loans and advances are recognised on accrual basis. In
 respect of loans under litigation, it is the company''s policy to
 recognise interest on realisation basis.
 
 10 Retirement Benefits
 
 Contribution to Provident Fund is funded as a percentage of salary.
 Adequate provisions have been made in the accounts for the liability
 for Gratuity of employees.
 
 11 Impairment of Assets
  
 The company assesses at each balance sheet date whether there
 is any indication that an asset may be impaired. If any such indication
 exists, the company estimates the recoverable amount of the asset. If
 such recoverable amount of the asset or the recoverable amount of the
 cash generating unit to which the assets belongs is less than its
 carrying amount, the carrying amount is reduced to its recoverable
 amount. The reduction is treated as an impairment loss and is
 recognized in the profit and loss account. If at the balance sheet
 date, there is an indication that if a previously assessed impairment
 loss no longer exists, the recoverable amount is reassessed and the
 asset is reflected at the recoverable amount subject to a maximum of
 depreciated historical cost.
 
 12 Cash and Cash Equivalents 
 
 Cash and Cash Equivalents for the purpose of the cash flow statement
 comprises of cash on hand,cash in bank, fixed deposits and other short
 term highly liquid investments with an original maturity of three
 months or less, that are readily convertible into known amount of cash
 and which are subject to an insignificant risk of exchange in value.
 
 13 Cash Flow Statement 
 
 Cash Flows are reported using the indirect method whereby cash flows
 from operating, investing and financing activities of the Group are
 segregated and profit before tax is adjusted for the effects of
 transactions of non - cash nature and any deferrals or accruals of
 past or future cash receipts or payments.
Source : Dion Global Solutions Limited
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