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SENSEX NIFTY India | Accounting Policy > Finance - Housing > Accounting Policy followed by SRG Housing Finance - BSE: 534680, NSE: N.A

SRG Housing Finance

BSE: 534680|ISIN: INE559N01010|SECTOR: Finance - Housing
Jul 23, 16:00
SRG Housing Finance is not listed on NSE
Mar 16
Accounting Policy Year : Mar '18

1. Basis of Preparation

The Financial Statements are prepared and presented under the historical cost convention in accordance with the Generally Accepted Accounting Principles (GAAP), and provisions referred to in Section 133 of The Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other relevant provisions of The Companies Act, 2013 and accounting standards issued by The Institute of Chartered Accountants of India (ICAI) as applicable. The Company also follows the directions prescribed by the National Housing Bank (NHB) to the extent applicable.

2. Income Recognition

Interest income on housing / other loans and other dues are accounted on accrual basis. Housing / other loans are classified into “Performing and non- performing assets” in terms of the directions issued by the NHB from time to time. Income recognition on non-performing advances are made in accordance with the NHB guidelines. Fees and additional interest income on delayed EMI/Pre-EMI are recognized on receipt basis.

3. Interest on Loans

Repayment of the Loans are by way of equated monthly installments (EMIs) comprising principal and interest. The interest is calculated on the outstanding balances at the beginning of the month. EMIs commence once the entire loan is disbursed. Pending commencement of EMI, pre-equated monthly installment interest is payable every month. Interest on loan assets classified as “NonPerforming” is recognized only on actual receipt.

4. Income from Investment

Interest income from investment is accounted on an accrual basis. Dividend Income on investments is recognized when the right to receive the same is established.

5. Property, Plant and Equipment

- Property, Plant and Equipment (PPE) are stated at cost less accumulated depreciation and impaired losses, if any.

- Depreciation on PPE is provided on pro-rata basis on “Written Down Value Method” from the date of installation based on life assigned to each asset in accordance with Schedule II of The Companies Act, 2013.

6. Intangible Assets & Amortization:

- Intangibles Assets are stated at cost of acquisition (including any cost attributable to bringing the same in its working condition) less accumulated amortization.

- Intangible assets are amortized over their estimated useful life oRs. 3 years on Written Down Value Method. The amortization period and the amortization method for intangible assets with a finite useful life are reviewed at each reporting date.

7. Impairment of Assets

Impairment losses (if any) on Assets are recognised in accordance with the Accounting Standard on ‘Impairment of Assets’ (AS 28). 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 assets. An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value.

8. Leases

In accordance with the Accounting Standard on Leases (AS 19), the following disclosures in respect of operating leases are made:

The company has taken office premises under operating leases which are generally cancellable and have no specific obligation for renewal. The total lease payments are recognised as per lease terms in the Statement of Profit and Loss under ‘Rent Expenses’ under note 19.

9. Provision on Non-Performing Assets & for Diminution in Investment Value

Non-performing assets are identified and categorized into Sub-standard, Doubtful and Loss Category based on the guidelines and directions issued by NHB. Provisions for non-performing assets and for diminution in investment value are made in the accordance with the NHB guidelines.

Management also makes assessment of its portfolio and creates additional provision to meet unforeseen contingencies.

10. Investments

In accordance with Accounting Standard (AS 13) on “Accounting for Investments” and the guidelines issued by the National Housing Bank, investments are either classified as current or long term based on management’s intention at the time of purchase. On initial recognition, all investments are measured at cost. The cost comprises of purchase price and directly attributable acquisition charges such as brokerage, fees and stamp duty.

Current Investments are stated at lower of cost and fair value. However provision for diminution in value of investment is made to recognize a decline in value other than temporary in nature.

On sale of an investment, the difference between its carrying value and net sale proceeds is charged or credited in the Statement of Profit and Loss.

11. Employee Benefits

a) Short Term Employee Benefits

Short Term Employee Benefits are recognized during the period when the services are rendered.

b) Post-Employment Benefits

Defined Contribution Plan-Provident Fund

The Company contributes to a Government administered Provident Fund in accordance with the provisions of Employees Provident Fund Act.

Defined Benefit Plan Gratuity:

The Company makes an annual contribution to Gratuity Fund administered by Trustees and managed by LIC.

12. Borrowing Costs

Borrowing costs include interest and other cost that the Company incurs in connection with the borrowing of funds. Other cost in connection with the borrowings are amortized to the Statement of Profit and Loss over the tenure of the loan.

13. Accounting For Taxes on Income

The accounting treatment for the Income Tax in respect of Company’s Income is based on the Accounting Standard on “Accounting for taxes on Income” (AS 22). Income tax expenses is the aggregate amount of current tax and deferred tax charge, taxes on income are accrued in the same period as the revenue and expenses to which they relate. Current Tax is determined in accordance with the Income Tax Act 1961, on the amount of tax payable in respect of income for the year.

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences arising between the carrying value of assets and liabilities. Deferred tax assets are recognized only after giving due consideration to prudence. Deferred tax assets and liabilities are measured using tax retards and tax laws that have been enacted (or) substantially enacted by the balance sheet date.

Deferred Tax Liability on deduction claimed in earlier years u/s 36(1)(viii) of the Income Tax Act, 1961 has been provided in terms of National Housing Bank (NHB) policy circular.

14. Earnings Per Share

The Company reports basic and diluted earnings per equity share in accordance with (AS 20), Earnings per share issued by The Institute of Chartered Accountants of India. Basic earnings share have been computed by divided net income by the weighted average number of equity shares outstanding for the period. Diluted earnings per equity shares have been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding during the period.

Earnings per share (EPS) is calculated as follows:

15. Goods and Service tax/Service Tax Input Credit

Goods and Service Tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is reasonable certainty in availing /utilising the credits.

16. Net Profit

The Company calculates Net Profit or Loss for the period and changes in accounting policies, if any, in accordance with (AS 5) issued by The Institute of Chartered Accountants of India and other applicable laws.

Aggregate number of shares allotted as fully paid-up by way of Bonus Shares (During 5 years immediately preceding March 31, 2018) :

During the year 2014-15, pursuant to approval of shareholders at the Extra-Ordinary General Meeting (EOGM) of SRG Housing Finance Limited held on May 12, 2014, the Company allotted 3,232,200 Bonus Equity Shares of Rs. 10/- each fully paid up shares in the proportion oRs. 2:5 i.e. two shares for every five shares held.

Source : Dion Global Solutions Limited
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