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Accounting Policies of Ad-Manum Finance Ltd. Company

Mar 31, 2015

1) BASIS OF ACCOUNTING:

These Financial. Statements have been prepared in accordance with generally accepted accounting principles and specified standards in India under the historical cost convention on accrual basis in accordance with the provisions of section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rules, 2014 along with the applicable guidelines issued by Reserve Bank of India ("RBI").

2) USE OF ESTIMATES

The preparation of financial statement requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities as of the date of financial statements and the reported income and expenses during the reporting period. Management believes that estimates used in preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

3} REVENUE RECOGNITION:

a) Income from Loan transactions is accounted for by applying the interest rate implicit in such contract on IRR basis. The interest is not recognized as income on ascertained NPAas per RBI norms.

b) Dividend income is rejcognized as Income on receipt basis.

c) In view of uncertainty of regular payment of installments by the Loan debtors, the penal interest, regular payment rebates and loss on settlement of accounts etc. are accounted for on Cash basis and adjusted in interest account.

d) Brokerage & Commission on finance is accounted for as per the terms of agreement with Brokers.

4) FIXED ASSETS:

Fixed assets are stated at cost less depreciation.

5) DEPRECIATION:

The company has adopted the overall useful life of its assets Pursuant to the provisions of section 123 read with schedule II part C of the Companies Act, 2013, and accordingly w.e.f 01/04/2014 the carrying amount of the asset as on that date is depreciated on straight line method over the remaining useful life of the asset as per the schedule II and wherever the remaining useful life of the asset is nil, after retaining the residual value, the carrying amount is also adjusted in the current year depreciation instead of adjusting the same in the opening balance of retained earnings as the amount is not material.

6} RECOGNITION OF NPA:

Non Performing Assets (NPA) is recognized as per the prudential norms of NBFC Rules and Regulations of Reserve Bank of India.

7) INVESTMENTS:

Investments classified as Long Term Investments are stated at cost. No provision against diminution in the value of Investment is made as the same are considered as long term.

8) TRADE RECEIVABLES:

The Outstanding for more than six months are shown in case where the installments are overdue and outstanding for more than six months.

9) TAXATION:

Current tax is determined as the amount of tax payable in respect of taxable income for the year. The deferred tax for timing difference between the book and tax profit for the year is accounted for at the prevailing tax rates at the Balance Sheet date. The Deferred Tax Asset is ignored as a matter of prudence.

10) RETIREMENT BENEFITS:

The company has not calculated the liability on account of Retirement Benefits as per AS 15. However the same are treated in the books as under:-

a) Retirement benefits in the form of Provident Fund & Other Fund are charged to the Statement of Profit and Loss account o f the year when contributions to the respective Funds are due.

b) Gratuity liability under the Payment of Gratuity Act is paid and charged to the Statement of Profit and Loss account for the year when contributions to the LIC Gratuity trust is due.

c) The liability on account of encashment of leave to employees is provided on estimated basis.

11) CONTINGENT LIABILITIES:

Contingent liabilities as defined in the accounting standards 29 on "Provisions, Contingent Liabilities and Contingent Assets" are disclosed by way of notes on accounts. Disclosure is not made if the possibilities of the future economic benefit/obligations, claims are remote. Provision is made if it is probable that an outflow of future economic benefit/claims will be required to settle the obligation.


Mar 31, 2014

BASIS FOR PREPARATION OF ACCOUNTS:

The financial Statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles, Accounting Standards notified under section 211(3C) of the Companies Act, 1956 and the relevant provisions thereof along with the applicable guidelines issued by Reserve Bank of India (RBI).

USE OF ESTIMATES

The preparation of financial statement requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities as of the date of financial statements and the reported income and expenses during the reporting period. Management believes that estimates used in preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

REVENUE RECOGNITION:

(a) Income from Loan transactions is accounted for by applying the interest rate implicit in such contract on IRR basis. The interest is not recognized as income on ascertained NPA as per RBI norms.

(b) Dividend income is recognized as Income on receipt basis.

(c) In view of uncertainty of regular payment of installments by the Loan debtors, the penal interest, and regular payment rebates etc. are accounted for on Cash basis and adjusted in interest account.

(d) Brokerage & Commission on finance is accounted for as per the terms of agreement with Brokers.

FIXED ASSETS:

Fixed assets are capitalized at Cost inclusive of expenses on acquisition.

DEPRECIATION:

Depreciation on fixed assets is provided on straight line method as per the rates prescribed in schedule XIV to the Companies Act, 1956 according to the period of use.

RECOGNITION OF NPA

Non performing Assets (NPA) are recognized as per the prudential norms of NBFC Rules and Regulations of Reserve Bank of India.

INVESTMENTS:

Investments are stated at cost plus expenses.

TRADE RECEIVABLES:

The Outstandings for more than six months are shown in case where the installments are over due and outstanding for more than six months.

DEFERRED TAX:

As per the AS 22 issued by the Institute of Chartered Accountants Of India the deferred Tax Liability/Assetsis accounted for in respect of Timing differences.

RETIREMENT BENEFITS:

The company has not calculated the liability on account of retirement Benefits as per AS-15. However the same are treated in the books as under:-

(a) Retirement benefits in the form of Provident Fund & Other Fund are charged to the Profit and Loss account of the year when contributions to the respective Funds are due.

(b) Gratuity Liability under the Payment of Gratutiy Act, is charged to the Profit and Loss Account of the year when contributions to the LIC Group Gratuity Funds are due.

(c) The liability on account of encashment of leave to employees is provided on estimated basis.


Mar 31, 2013

BASIS FOR PREPARATION OF ACCOUNTS

The financial Statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles, Accounting Standards notified under section 211(3C) of the Companies Act, 1956 and the relevant provisions thereof along with the applicable guidelines issued by Reserve Bank of India ("RBI").

USE OF ESTIMATES

The preparation of financial statement requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities as of the date of financial statements and the reported income and expenses during the reporting period. Management believes that estimates used in preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

REVENUE RECOGNITION:

(a) Income from Loan transactions is accounted for by applying the interest rate implicit in such contract on IRR basis. The interest is not recognized as income on ascertained NPA as per RBI norms.

(b) Dividend income and interest on debentures are recognized as Income on receipt basis.

(c) In view of uncertainty of regular payment of installments by the Loan debtors, the penal interest, and regular payment rebates etc. are accounted for on Cash basis and adjusted in interest account.

(d) Brokerage & Commission on finance is accounted for as per the terms of agreement with Brokers.

FIXED ASSETS

Fixed assets are capitalized at Cost inclusive of expenses on acquisition.

DEPRECIATION:

Depreciation on fixed assets is provided on straight line method as per the rates prescribed in schedule XIV to the Companies Act, 195 6 according to the period of use.

RECOGNITION OF NPA:

Non performing Assets (NPA) are recognized as per the prudential norms of NBFC Rules and Regulations of Reserve Bank of India.

INVESTMENTS:

Investments are stated at cost plus expenses.

TRADE RECEIVABLES:

The Outstandings for more than six months are shown in case where the installments are due and outstanding for more than six months.

DEFERRED TAX:

As per the accounting standard-22 issued by the Institute of CharteredAccountants Of India the deferred Tax Liability/Assets is accounted for in respect of Timing differences.

RETIREMENT BENEFITS:

The company has not calculated the liability on account of retirement benefits as per AS-15. However the same are treated in the books as under:-

1) Retirement benefits in the form of Provident Fund & Other Fund are charged to the Profit and Loss account of the year when contributions to the respective Funds are due.

2) Gratuity liability under the Payment of Gratuity Act, is charged to the Profit and Loss account of the year when contributions to the LIC Group Gratuity trust is due.

3) The liability on account of encashment of leave to employees is provided on estimated basis.

2 In accordance with accounting standard (AS) 13 the long term investments held by the company are to De carried at cost. All the investments of the Company have been considered by the management to be of long-term nature.

3 The company has identified doubtful debtof Rs.3.95crore( Pr.yr.Rs.2.31crore) and the re against made NPA Prov.s.on of Rs.53.35 Lacs(Pr. Yr. Rs. 37.95 Lacs) as per prudential normsof RBI Act and rules.

4 The Company has taken Corporate Guarantees from Agarwal Coal Corporation Pvt. Ltd. of Rs. 100 Crores (Pr. Yr. Rs.70 Crores) and from Agarwal Transport Corporation Pvt.Ltd. ofRs. 100Crores(Pr.Yr.Rs.70Crores) under stipulation with the lending banks.


Mar 31, 2012

BASIS FOR PREPARATION OF ACCOUNTS:

The financial Statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted accounting principles' Accounting Standards notified under section 211(3C) of the Companies Act' 1956 and the relevant provisions thereof along with the applicable guidelines issued by Reserve Bank of India (‘ ’RBI”).

PRESENTAION AND DISCLOSURE OF FINANCIAL STATEMENTS

During the year ended March 31'2012' the revised Schedule VI notified under Companies Act 1956' has become applicable to Company' for the preparation and presentation of its financial statement. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statement. However' it has significant impact on presentation and disclosures made in financial statements. The company has also reclassified/regrouped the previous year figures in accordance with requirements applicable in the current year.

USE OF ESTIMATES

The preparation of financial statement requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities as of the date of financial statements and the reported income and expenses during the reporting period. Management believes that estimates used in preparation of financial statements are prudent and reasonable. Future results could differ from these estimates.

REVENUE RECOGNITION:

(a) Income from Loan transactions is accounted for by applying the interest rate implicit in such contract on IRR basis. The interest is not recognized as income on ascertained NPA as per RBI norms.

(b) Bill discounting charges are accounted for on Time Accrual basis.

(c) Dividend income and interest on debentures are recognized as Income on receipt basis.

(d) In view of uncertainty of regular payment of installments by the Loan debtors' the penal interest' and regular payment rebates etc. are accounted for on Cash basis and adjusted in interest account.

(e) Brokerage & Commission on finance is accounted for as per the terms of agreement with Brokers.

FIXED ASSETS:

Fixed assets are capitalized at Cost inclusive of expenses on acquisition.

DEPRECIATION:

Depreciation on fixed assets is provided on straight line method as per the rates prescribed in schedule XIV to the Companies Act' 1956 according to the period of use.

FOREIGN EXCHANGE:

Transactions in foreign currencies are accounted for under the appropriate heads at spot exchange rates prevailing on the date of transaction. Loss/gain on account of outstanding FCNRB loan is accounted for at the year end date covered by forward exchange insurance.

RECOGNITION OF NPA:

Non performing Assets (NPA) are recognized as per the NBFC Rules and Regulations of Reserve Bank of India. As per prudential norms of RBI Act and rules.

INVESTMENTS:

Investments are stated at cost plus expenses.

LOAN DEBTORS:

The Outstanding for more than six months are shown in case where the installments are due and outstanding for more than six months.

DEFERRED TAX:

As per the accounting standard-22 issued by the Institute of Chartered Accountants Of India the deferred Tax Liability is accounted for in respect of Timing differences.

RETIREMENT BENEFITS:

The company has not calculated the liability on account of retirement benefits as per AS- 15. However the same are treated in the books as under: -


Mar 31, 2010

BASIS FOR PREPARATION OF ACCOUNTS :

The accounts have been prepared to comply in all the material aspects with applicable accounting principles in India. The accounting standards issued by The Institute of Chartered Accountants of India and relevant provisions of the companies Act, 1956 , further, the company follows directions issued by the Reserve Bank of India for non banking financial companies.

REVENUE RECOGNITION :

(a) Income from Loan transaction is accounted for by applying the interest rate implicit in such contract on IRR basis. The interest is not recognized as income on ascertained NPA as per RBI norms.

(b) Bill discounting charges are accounted for on Time Accrual basis.

(c) Dividend income and interest on debentures are recognized as Income on receipt basis.

(d) In view of uncertainty of regular payment of installments by the Loan debtors, the penal interest and regular payment rebates etc. are accounted for on Cash basis and adjusted in interest account.

(e) Brokerage & Commission on finance is accounted for as per the terms of agreement with Brokers.

FIXED ASSETS :

Fixed assets are Capitalized at Cost inclusive of expenses on acquisition.

DEPRECIATION :

Depriciation on fixed assets is provided on straight line method as per the rates prescribed in schedule XIV to the Companies Act, 1956 according to the period of use.

FOREIGN EXCHANGE :

Transactions in foreign currencies are accounted for under the appropriate heads at spot exchange rates prevailing on the date of transaction. Loss/gain on account of outstanding FCNRB loan is accounted for at the year end date covered by forward exchange insurance.

RECOGNITION OF NPA

Non performing Assets (NPA) are recognized as per the NBFC Rules and Regulations of Reserve Bank of India.

INVESTMENTS

Investments are stated at cost plus expenses.

HIRE PURCHASE/LOAN DEBTORS :

The Outstanding for more than six months are shown in case where the installment is due and outstanding for more than six months.

DEFERRED TAX :

As per the accounting standard 22 issued by the Institute of Chartered Accountants of India the deferred Tax Liability is accounted for in respect of timing differences.

RETIREMENT BENEFITS

The company has not calculated the liability on account of retirement benefits as per AS-15. However the same are treated in the books as under :-

1) Retirement benefits in the form of Provident Fund & Other Fund are charged to the Profit and Loss account of the year when contributions to the respective Funds are due.

2) Gratuity liability under the Payment of Gratuity Act, is charged to the Profit and Loss account of the year when contributions to the LIC Group Gratuity trust is due.

3) The liability on account of encashment of leave to employees is provided on estimated basis.

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