Page 46 - Cgtmse

23 Annual Report 2022-23
rd

Schedule Forming Part of the Balance Sheet and

Income and Expenditure Account

Schedule: 9: - NOTES ON ACCOUNTS: the Fixed Assets as per the Straight-Line Method
based on the basis of estimated useful lives as
1. Significant Accounting Policies
prescribed under the Companies Act, 2013.
a) Accounting Conventions
d) Investments
The accompanying financial statements have
been prepared keeping in view the generally Investments of the Trust comprise investments in
accepted accounting principles including historical Fixed Deposits with Banks / Financial Institutions
cost accounting. and Investments in Mutual Funds. Investments
in mutual funds are stated at weighted average
b) Recognition of Income and Expenditure cost less impairment, if any, during the year or
The Trust follows mercantile basis of accounting, market value, whichever is lower. Investments in
unless otherwise mentioned. The income Fixed Deposits have been stated at cost along with
recognition of major sources of income of the accrued interest thereon. Investments in Fixed
Trust are as under: Deposits with Banks relating to fund received from
the offices of DC (Handloom), DC (Handicraft),
Guarantee Fee PM SVANidhi Fund received from Ministry of
Income from Guarantee Fee is recognized Housing and Urban Affairs, GoI, CGSSD Scheme
when the payment from the respective Member Fund from Ministry of MSME, GoI and several
Lending Institutions is received / credited in the state funds have been identified and stated as
Bank Account on proportionate basis. Guarantee such in the Balance Sheet. Refer Schedule 4.
Fee received is allocated on proportionate basis
towards income for the year and income received e) Retirement Benefits
in advance considering period of Guarantee cover. Retirement benefits are provided by SIDBI for its
employees on deputation to the Trust and charged
Interest Income on Fixed Deposits to revenue account annually on reimbursement
Interest income on Fixed Deposits is recognized basis.
on accrual basis.
2. (` in Crores)
Recoveries from MLIs on claim paid Particulars As on As on
st
st
Income from recoveries made from Member 31 March, 2023 31 March, 2022
Lending Institutions is recognized when the Guarantee
amount is recovered. approval 4,19,665 3,14,883
Income from Mutual Fund Outstanding 1,72,582 1,24,618
Guarantee
The cost of the mutual fund, for the purpose of
calculating capital gains at the time of redemption Overall Liability of
of units of the mutual fund is computed on CGTMSE out of 1,22,326 88,979
O/s Guarantee
weighted average basis. The gains are recognized
on redemption. Liability of
CGTMSE 91,745 66,734
c) Fixed Assets towards first
claim Instalment
Fixed Assets have been recognized in the financial
statements at cost. Cost includes the cost of Over and above the provision for claims held, the Trust
purchase, freight, transportation and all other is contingently liable for guarantee given/sanctioned
costs incurred to bring the asset to its present in the event of non-performance of the MSE for whose
location and condition. Depreciation is charged on protection such guarantee is given/ sanctioned.

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