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Accounting Policies of Baid Leasing and Finance Company Ltd. Company

Mar 31, 2016

SIGNIFICANT ACCOUNTING POLICIES

1. General

A. Accounts have been prepared on historical cost basis following the mercantile system -of accounting.

B. All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due installments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management.

c. Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

2. Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known. .

3. Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

4. Depreciation

Depreciation has been provided for following Straight Line Method, at the rates and in the manner specified in Section 123 read with Schedule II of the Companies Act, 2013.

5. Inventories

Inventories of shares have been valued at lesser of cost ascertained following first-in-first-out method and the respective market values of individual shares.

Stock on hire has been valued at cost.

6. Investments

All Investments have been stated at cost.

Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the long-term nature of such investments and existence of adequate underlying assets.

Market value of quoted mutual funds has been separately disclosed in the relevant note.

Long term deposits for securing finance or for deriving such other benefits have been classified as Investments.

Dividend and capital gain from sale of shares held as investments and Interest income from security deposits of investment nature have been disclosed separately in the relevant note.

7. Provision for NPA under Hire-Purchase and Loans & Advances

Company is a R.B.I. approved non deposit taking NBFC. It has followed the policy of making provision for the Non-performing-assets in respect of its Hire -Purchase and Loans & Advances assets in accordance with the ‘provisioning norms''; and accounting for the hire and interest incomes following the ''income recognition and prudential norms’ as laid down by the RBI as per its circular no. DNBR (PD) CC.No.044/03.10.119/2015-16 dated July 1,2015.

8. Staff Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company''s directors and other staff hence they would be accounted for in the year they are actually paid.


Mar 31, 2015

1.) General

A. Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B. All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due installments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management.

c. Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

2) Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

3) Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

Amount spent during the year on acquisition of an application software rendering benefit of enduring nature has been capitalized and treated as an intangible fixed asset.

4) Depreciation

Depreciation has been provided for following Straight Line Method, at the rates and in the manner specified in Section 123 read with Schedule II of the Companies Act, 2013.

Due to revision of useful life as prescribed in Schedule li of the Companies Act, 2013, the rates of depreciation on company''s assets have got changed. Cumulative effect of so retrospectively enhanced depreciation allowance amounting to Rs. 5,18,749/, has been separately disclosed in the relevant schedule and charged to revenue this year, in compliance to the guidance contained in AS 6.

5) Inventories

Inventories of shares have been valued at lesser of cost ascertained following firstinfirstout method and the respective market values of individual shares.

Stock on hire has been valued at cost.

6) Investments

All Investments have been stated at cost.

Provision for diminution in shares of private limited companies, wherever so, has been ignored in view of the longterm nature of such investments and existence of adequate underlying assets.

Market value of quoted mutual funds has been separately disclosed in the relevant note.

Long term deposits for securing finance or for deriving other such benefits have been classified as Investments.

Dividend and capital gain from sale of shares held as investments and Interest income from security deposits of investment nature have been disclosed separately in the relevant note.

7) Provision for NPA under HirePurchase and Loans & Advances

Company is a R.B.I. approved non deposit taking N.B.F.C. of asset size less than Rs. 100 crore. It follows the policy of making provision for the Nonperformingassets in respect of its Hire -Purchase and Loans & Advances assets in accordance with the ''provisioning norms''; and accounting for the hire and interest incomes following the ''income recognition and prudential norms'' as laid down by the R. B. I. for such companies having asset size exceeding Rs. 100 crore.

8) Staff Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company''s directors and other staff hence they would be accounted for in the year they are actually paid.


Mar 31, 2014

1) General

A. Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B. All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due installments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management.

c. Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

2) Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

3) FixedAssets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

4) Depreciation

Depreciation has been provided for following Straight Line Method, at the rates and in the manner specified in Schedule IVX of the CompaniesAct, 1956.

5) Inventories

Inventories have been valued at cost or market value whichever is less.

6) Investments

Investments have been stated at cost in view of their long-term nature. Market value of quoted Investments as on 31st March, 2014 however is separately disclosed in the relevant schedule.

7) Provision for N PA under Hire-Purchase and Loans &Advances

Company is a R.B.I, approved Non-banking-finance-company, hence it has made provision for the Non-performing-assets in respect of its Hire -Purchase and Loans & Advances assets in accordance with the ''provisioning norms''; and hire and interest incomes have been accounted for following the ''prudential norms'' laid down by the Reserve Bank of India.

8) Staff Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company''s directors and other staff hence they would be accounted for in the yearthey are actually paid.


Mar 31, 2013

1.) General

A. Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B. All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a. Accrued hire charges in cases where number of due installments exceed 12 months.

b. Interest on Loans and Advances considered as sticky by the management. c Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

2) Use of Estimates

Preparation of financial statements requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities and reported amounts of income and expenditure during the period. Actual results might differ from such estimates. Difference between the actual results and estimates are recognized in the period in which the results are known.

3) Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

4) Depreciation

Depreciation has been provided for following Straight Line Method, at the rates and in the manner specified in Schedule IVXof the Companies Act, 1956.

5) Inventories

Inventories have been valued at cost or market value whichever is less.

6) Investments

Investments have been stated at cost in view of their long-term nature. Market value of quoted Investments as on 31sl March, 2013 however is separately disclosed in the relevant schedule.

7) Provision for NPA under Hire-Purchase and Loans & Advances

Company is a R.B.I, approved Non-banking-finance-company, hence it has made provision for the Non-performing-assets in respect of its Hire-Purchase and Loans & Advances assets in accordance with the ''provisioning norms'' and hire and interest incomes have been accounted for following the ''prudential norms'' laid down by the Reserve Bank of India.

8) Staff Benefits

There is no quantifiable contractual obligation to pay the retirement benefits to company''s directors and other staff hence they would be accounted for in the year they are actually paid.


Mar 31, 2012

1.) General

A) Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B) All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a) hire charges due at the yearend for a period exceeding 12 months.

b) Interest on Loans and Advances considered to be sticky by the management.

c) Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

C) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

2) Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

3) Assets under Hire-Purchase and Loans & Advances

Company is a R.B.I. approved Non-Banking Finance Company, hence Hire-Purchase and Loans &Advances assets have been stated after making provision for Non Performing Assets in accordance with the provisioning norms and hire income has been accounted for following the prudential norms laid down by the Reserve Bank of indian.

4) Depreciation

Depreciation has been provided for on Straight Line Method, at the rates and in the manner specified in Schedule IVX of the Companies Act, 1956.

5) Inventories

Inventories have been valued at cost or market value whichever is less.

6) Investments

Investments have been stated at cost in view of their long-term nature. Market value of quoted Investments as on 31st March, 2012 however is separately disclosed in the relevant schedule.

7) Staff Benefits:

Gratuity would be accounted for as and when it becomes payable under the provisions of payment of Gratuity Act, 1972


Mar 31, 2010

1.) General

A) Accounts have been prepared on historical cost basis following the mercantile system of accounting.

B) All expenses and income, to the extent considered payable and receivable respectively are accounted for on accrual basis, subject to the following heads, which have been accounted for on cash basis:

a) hire charges due at the year end for a period exceeding 12 months.

b) Interest on Loans and Advances considered to be sticky by the management. .

c) Penal interest chargeable on delayed installments of hire charges and payable in respect of delayed payment of taxes.

C) Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles.

2) Fixed Assets

Fixed assets are stated at cost. Taxes, duties, freight and other expenses incidental to acquisition or installments thereof are included in the cost.

3) Assets under Hire-Purchase and Loans & Advances

Hire-Purchase and Loans & Advances assets have been stated after making provision for Non Performing Assets in accordance with the provisioning norms laid down by the Reserve Bank of india.

4) Depreciation

Depreciation has been provided for on Straight Line Method, at the rates and in the manner specified in Schedule IVX of the Companies Act, 1956.

5) Inventories

Inventories have been valued at cost or market value whichever is less.

6) Investments

Investments have been stated at cost in view of their long-term nature. Market value of quoted Investments as on 31st March, 2010 however is separately disclosed in the relevant schedule.

7) Staff Benefits:

Gratuity would be accounted for as and when it becomes payable under the provisions of payment of Gratuity Act, 1972

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