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Accounting Policies of CFL Capital Financial Services Ltd. Company

Mar 31, 2015

COMPANY PROFILE

A CFL Capital Financial Services Limited was incorporated in 1983 as Samudra Mahal Investments Limited as Public Company and was engaged in the business of Non Banking Financial Business under valid permissions for the same from Reserve Bank of India (RBI) granted in 1998. Due to the poor financial condition of the Company on account of dot.om burst of 1998-99 and subsequent impact thereof which lead to inter alia Capital Risk Adequacy Ratio (CRAR) going below the prescribed limit, RBI cancelled its Certificate of Registration w.e.f 18-May-2004. The RBI also directed that the Company continues to be governed by the relevant provisions of the Act (RBI Act, 1934) and various directions/instructions issued by RBI from time to time until such time the entire amount of public deposits held by the company are repaid with interest and the entire financial assets are disposed of or the Company is converted to a non-banking non-financial company. As per its assets and income, the Company continues to be a Non Banking Financial Company. CFL has its registered office in Kolkata, West Bengal. Its Company Identification Number as given by Registrar of Companies, West Bengal, is L67120WB1983PLC036805. Its equity shares are listed on the Bombay Stock Exchange Limited.

B In view of the above, the Company cannot carry on any fresh Non Banking Financial activities. Hence these financial statements show the results of these operations / activities.

C Going Concern

The net worth of the Company has become negative due to the accumulated losses in the previous years. The Company had drawn a plan to liquidate assets, borrow money including from shareholders / promoters etc for meeting the liabilities of the financial year ending 31st March, 2015.

Hence, the Accounts have been drawn up on a going concern basis. The winding up petition filed by a depositor in the previous year is pending before the Hon'ble Calcutta High Court.

However, in view of the net worth of the Company being negative and in view of the accumulated losses for the last few years aggregating to Rs. 85183,83069.82 till March 2015, the Company's ability to maintain the status is dependent on concessions from stakeholders' and others' support Substantial support is reflected in the earlier years from creditors and shareholders.

A Pursuant to Section 133 of the Companies Act, 2013 and Rule 7 of the Companies (Accounts) Rules, 2014, till the standards of accounting and addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under Companies Act, 1956 shall continue to apply. Consequently, the financial statements are prepared under historical cost and on accrual basis and in accordance with the Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 referred to in section 211(3C) of the Companies Act, 1956, other relevant provisions of Companies Act, 2013 and within the terms of Prudential Norms mandated by the Reserve Bank of India subject to note 1 .C above.

B Non-Current & Current Liabilities

A liability is classified as Current when it satisfies any of the following:-

a. It is expected to be settled in normal operating cycle or

b. it is held primarily for the purpose of being traded or

c. It is due to be settled within twelve months of the Balance Sheet date or

d. the Company does not have the unconditional right to defer the settlement of the liability for at least 12 months after the Balance Sheet date

All other liabilities are Non-Current.

C Non-Current & Current Assets

An asset is classified as Current when it satisfies any of the following:-

a. It is expected to be realized in or is intended for sale or consumption

in normal operating cycle or

b. it is held primarily for the purpose of being traded or

c. It is due to be realized within twelve months of the Balance Sheet date or

d. It is Cash or Cash Equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the Balance

All other assets are Non-Current

D Normal Operating cycle is assumed to be twelve months.

E Fixed Assets

(i) Tangible Assets : Fixed Assets are stated at cost net of accumulated depreciation and accumulated impairment losses if any. The cost comprises of cost of acquisition, borrowing cost and any attributable cost of bringing the asset to the condition for its intended use. Costs also include direct expenses incurred up to the date of capitalization / commissioning.

Subsequent expenditure related to an existing item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond the previous. It assessed standards of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred.

(ii) Intangible Assets - Intangible assets are reflected at cost of acquisition of such assets and are carried at cost less accumulated amortization and impairment, if any.

F Income & Expenditure

Income and Expenditure are generally accounted on accrual basis except to the extent restricted by Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.

There has been no fund based lending since 1.4.2001. The income recognized during the year is on account of additional charges recovered on account of defaults and delays in repayment of dues on Leasing, Hire Purchase, Bill Discounting and other Funding activities, Other items, except dividends, are accounted on accrual basis. Dividend is accounted when the same is received or the Company is entitled to its receipt.

G Depreciation on assets under finance lease was provided based on the Primary Lease period of asset. On all other assets including operating leases (when in operating leases (when in force), depreciation has been provided on the straight line basis at the rates as per Schedule XIV of the Companies Act, 1956. Effective 1st April, 2014, the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 2013.

H Investments

Long term investments are valued at weighted average cost of acquisition and provision is made in the accounts for permanent diminution in the value of long term investments. Current investments are valued at lower of Cost or Market Value or Net Asset Value. As per the Accounting Standard AS 30 these investments would all fall under 'Available for Sale" category.

I Foreign Currency Transactions. Expenses and Income are recorded at the

exchange rate prevalent on the date of transaction. Assets and Liabilities are restated , to the extent the Company is not covered against exchange fluctuation, at the exchange rate prevailing on the Balance Sheet date. There is no exposure on account of Foreign Currency Transaction during the year under review or in the previous year.

J The Company accounts follows RBI Prudential Norms for charging delayed payment charges on overdue Lease and Hire Purchase Contracts. These are booked on realization or on entering into a settlement agreement with the party.

K Retirement Benefits. The Company's employees are entitled to the following retirement benefits

i) Provident Fund contributions are being made to the Regional Provident Fund Organization.

ii) The Gratuity Scheme is a defined benefit plan for which the Company has taken a policy from Life Insurance Corporation of India (LIC).

iii) The Superannuation Scheme is a defined contribution scheme and contribution is paid to the LIC as per the Scheme.

iv) Liability on account of leave earned is provided on the basis of the actuarial certificate as on the date of the Balance Sheet as per Revised AS 15, notified by the Companies (Accounting Standards) Rules 2006

L Provision & Contingencies

A provisions is recognized when the Company has a legal and constructive obligation as a result of past event, for which it is probable that cash outflow will be required and the reliable estimate can be made. A contingent liability is disclosed when the Company has a present or a possible obligation where it is not probable that an outflow or resources will be required for settlement. Contingent assets are not recognized or disclosed

M Use of Estimates

In preparing the Company's Financial Statements in conformity with the accounting principles generally accepted in India, the management is required to make estimates and assumptions that affect the reported amounts of assets & liabilities, revenues and expenses and other disclosures in these statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognized in the period it is determined.

N Taxes on Income

Current Tax is provided on the basis of provision of the Income Tax Act, 1961. Deferred Tax is recognized on timing difference between the accounting income and taxable income for the year and quantified using tax rate and laws enacted on Balance Sheet date as per the Accounting Standard prescribed

O Impairments 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 assets is less than the book value of the impaired asset the recoverable amount of the asset is stated as the revised value of the impaired asset in the books of account and consequential reduction is recognized in the statement of profit and loss. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

An assessment is made at each Balance Sheet date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset's recoverable amount. A previously recognized impairment loss is reversed only if there has been change of assumptions used to determine the asset's recoverable amount since the last impairment loss was recognized. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized in the statement of profit and loss.


Mar 31, 2014

A. The financial statements are prepared under historical cost and on accrual basis and in accordance with the Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 referred to in section 211(3C) of the Companies Act, 1956 and within the terms of Prudential Norms mandated by the Reserve Bank of India subject to note 1.C above.

B. Non-Current & Current Liabilities

A liability is classified as Current when it satisfies any of the following:-

a. It is expected to be settled in normal operating cycle or

b. it is held primarily for the purpose of being traded or

c. It is due to be settled within twelve months of the Balance Sheet date or

d. the Company does not have the unconditional right to defer the settlement of the liability for at least 12 months after the Balance Sheet date

All other liabilities are Non-Current.

C. Non-Current & Current Assets

An asset is classified as Current when it satisfies any of the following:-

a. It is expected to be realised in or is intended for sale or consumption in normal operating cycle or

b. it is held primarily for the purpose of being traded or

c. It is due to be realised within twelve months of the Balance Sheet date or

d. It is Cash or Cash Equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the Balance Sheet date.

All other assets are Non-Current

D. Normal Operating cycle is assumed to be twelve months.

E. Fixed Assets

(i) Tangible Assets : Fixed Assets are stated at cost net of accumulated depreciation and accumulated impairment losses if any. The cost comprises of cost of acquisition, borrowing cost and any attributable cost of bringing the asset to the condition for its intended use. Costs also include direct expenses incurred upto the date of capitalisation / commissioning.

Subsequent expenditure related to an existing item of fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond the previous lt assessed standards of performance. All other expenses on existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the Statement of Profit and Loss for the period during which such expenses are incurred.

(ii) Intangible Assets - Intangible assets are reflected at cost of acquisition of such assets and are carried at cost less accumulated amortisation and impairment, if any.

F. Income & Expenditure

Income and Expenditure are generally accounted on accrual basis except to the extent restricted by Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.

There has been no fund based activity since 1.4.2001. The income recognised during the year is on account of additional charges recovered on account of defaults and delays in repayment of dues on Leasing, Hire Purchase, Bill Discounting and other Funding activities, Other items, except dividends, are accounted on accrual basis. Dividend is accounted when the same is received or the Company is entitled to its receipt.

G. Depreciation on assets under finance lease was provided based on the

Primary Lease period of asset. On all other assets including operating leases (when in force), depreciation has been provided on the straight line basis at the rates as per Schedule XIV of the Companies Act, 1956. All leases have completed their terms. However, some of the leased assets which are under dispute continue to appear in the books on the Balance Sheet Date though at nil value.

H. Investments

Long term investments are valued at weighted average cost of acquisition and provision is made in the accounts for permanent diminution in the value of long term investments. Current investments are valued at lower of Cost or Market Value or Net Asset Value As per the Accounting Standard AS 30, these investments would all fall under "Available for Sale" category.

I. Foreign Currency Transactions. Expenses and Income are recorded at the exchange rate prevalent on the date of transaction. Assets and Liabilities are restated , to the extent the Company is not covered against exchange fluctuation, at the exchange rate prevailing on the Balance Sheet date. There is no exposure on account of Foreign Currency Transaction during the year under review or in the previous year.

J. The Company follows RBI Prudential Norms for charging delayed payment charges on overdue Lease and Hire Purchase Contracts. These are booked on realisation or on entering into a settlement agreement with the party

K. Retirement Benefits. The Company''s employees are entitled to the following retirement benefits

i) Provident Fund contributions are being made to the Regional Provident Fund Organisation.

ii) The Gratuity Scheme is a defined benefit plan for which the Company has taken a policy from Life Insurance Corporation of India (LIC).

iii) The Superannuation scheme is a defined contribution scheme and contribution is paid to the LIC as per the scheme.

iv) Liability on account of leave earned is provided on the basis of the actuarial certificate as on the date of the Balance Sheet. as per Revised AS 15. notified by the Companies (Accounting Standards) Rules 2006

L. Provision & Contingencies

A provisions is recognised when the Company has a legal and constructive obligation as a result of past event, for which it is probable that cash outflow will be required and the reliable estimate can be made. A contingent liability is disclosed when the Company has a present or a possible obligation where it is not probable that an outflow or resources will be required for settlement. Contingent assets are not recognised or disclosed

M. Use of Estimates

In preparing the Company''s Financial Statements in conformity with the accounting principles generally accepted in India, the management is required to make estimates and assumptions that affect the reported amounts of assets & liabilities, revenues and expenses and other disclosures in these statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognised in the period it is determined.

N. Taxes on Income

Current Tax is provided on the basis of provision of the Income Tax Act, 1961. Deferred Tax is recognised on timing difference between the accounting income and taxable income for the year and quantified using tax rate and laws enacted on Balance Sheet date as per the Accounting Standard prescribed

O. Impairments 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 assets is less than the book value of the impaired asset, the recoverable amount of the asset is stated as the revised value of the impaired asset in the books of account and consequential reduction is recognised in the statement of profit and loss. After impairment, depreciation is provided on the revised carrying amount of the impaired asset over its remaining useful life.

An assessment is made at each Balance Sheet date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists,the Company re-estimates the asset''s recoverable amount. A previouslyrecognised impairment loss is reversed only if there has been change of assumptions used to determine the asset''s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised in the statement of profit and loss.


Mar 31, 2013

A. The financial statements are prepared under historical cost and on accrual basis and comply with the Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 referred to in section 211(3C) of the Companies Act, 1956 and within the terms of Prudential Norms mandated by the Reserve Bank of India.

B. Non-Current & Current Liabilities

A liability is classified as Current when it satisfies any of the following:-

a. it is expected to be settled in normal operating cycle or

b. it is held primarily for the purpose of being traded or

c. it is due to be settled within twelve months of the Balance Sheet date or

d. the Company does not have the unconditional right to defer the settlement of the liability for at least 12 months after the Balance Sheet date. All other liabilities are Non-Current.

C. Non-Current & Current Assets

An asset is classified as Current when it satisfies any of the following:-

a. It is expected to be realized in or is intended for sale or consumption in normal operating cycle or

b. it is held primarily for the purpose of being traded or

c. It is due to be realized within twelve months of the Balance Sheet date or

d. It is Cash or Cash Equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the Balance Sheet date. All other assets are Non-Current

D. Normal Operating cycle is assumed to be twelve months.

E. Fixed Assets

Fixed Assets are recorded at cost of acquisition or construction including cost of installation, transfer costs etc. They are stated at lower of historical cost less accumulated depreciation plus /minus impairment adjustments (i.e. written down value) or realizable value. There are no intangible assets.

F. Income & Expenditure

Income and Expenditure are generally accounted on accrual basis except to the extent restricted Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.

There has been no fund based activity since 1.4.2001. The income recognized during the year is on account of additional charges recovered on account of defaults and delays in repayment of dues on Leasing, Hire Purchase, Bill Discounting and other Funding activities, Other items, except dividends, are accounted on accrual basis. Dividend is accounted when the same is received or the Company is entitled to its receipt.

G. Depreciation on assets under finance lease was provided based on the Primary Lease period of asset. On all other assets including operating leases (when in force), depreciation has been provided on the straight line basis at the rates as per Schedule XIV of the Companies Act, 1956. All leases have completed their terms. However. some of the leased assets which are under dispute continue to appear in the books on the Balance Sheet Date though at nil value.

H. Investments

Long term investments are valued at weighted average cost of acquisition and provision is made in the accounts for permanent diminution in the value of long term investments. Current investments are valued at lower of Cost or Market Value or Net Asset Value As per the Accounting Standard AS 30 these investments would all fall under "Available for Sale" category.

I. Foreign Currency Transactions. Expenses and Income are recorded at the exchange rate prevalent on the date of transaction. Assets and Liabilities are restated , to the extent the Company is not covered against exchange fluctuation, at the exchange rate prevailing on the Balance Sheet date. There is no exposure on account of Foreign Currency Transaction during the year under review or in the previous year.

J. The Company accounts follows RBI Prudential Norms for charging delayed payment charges on overdue Lease and Hire Purchase Contracts. These are booked on realization or on entering into a settlement agreement with the party

K. Retirement Benefits.

The Company''s employees are entitled to various retirement benefits Provident Fund contributions are made to a Fund approved by the appropriate authorities. The shortfall in the return is borne by the Company. Gratuity and Superannuation are covered by schemes with Life Insurance Corporation (LIC)

The Gratuity Scheme is a defined benefit plan and funded accordingly as per certificate given by the LIC in this regard. The Superannuation scheme is a defined contribution scheme and contribution is paid to the LIC as per the scheme. Liability on account of leave earned is provided on the basis of the actuarial certificate as on the date of the Balance Sheet. as per Revised AS 15. notified by the Companies (Accounting Standards) Rules 2006

L. Provision & Contingencies

A provisions is recognized when the Company has a legal and constructive obligation as a result of past event, for which it is probable that cash outflow will be required and the reliable estimate can be made. A contingent liability is disclosed when the Company has a present or a possible obligation where it is not probable that an outflow or resources will be required for settlement. Contingent assets are not recognized or disclosed

M. Use of Estimates

In preparing the Company''s Financial Statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets & liabilities, revenues and expenses and other disclosures in these statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognized in the period it is determined.

N. Taxes on Income

Current Tax is provided on the basis of provision of the Income Tax Act, 1961. Deferred Tax is recognized on timing difference between the accounting income and taxable income for the year and quantified using tax rate and laws enacted on Balance Sheet date as per the Accounting Standard prescribed

i. Rights of equity shareholders

Equity shareholders have the rights as provided under the Companies Act, 1956 and the Memorandum and Articles of Association of the Company.

Statutory Reserve was created as per the provisions of Section 45-IC of the Reserve Bank of India Act, 1934 (RBI) based of the profits earned by the Company for the years ended 31-Mar-97 and 31-Mar-98. This reserve cannot be utilized without the permission of RBI.


Mar 31, 2012

A The financial statements are prepared under historical cost and on accrual basis and comply with the Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 referred to in section 211(3C) of the Companies Act, 1956 and within the terms of Prudential Norms mandated by the Reserve Bank of India.

B Non-Current & Current Liabilities

A liability is classified as Current when it satisfies any of the following:-

a. It is expected to be settled in normal operating cycle or

b. it is held primarily for the purpose of being traded or

c. It is due to be settled within twelve months of the Balance Sheet date or

d. The Company does not have the unconditional right to defer the settlement of the liability for at least 12 months after the Balance Sheet date All other liabilities are Non-Current.

C Non-Current & Current Assets

An asset is classified as Current when it satisfies any of the following:-

a. It is expected to be realised in or is intended for sale or consumption in normal operating cycle or

b. it is held primarily for the purpose of being traded or

c. It is due to be realised within twelve months of the Balance Sheet date or

d. It is Cash or Cash Equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the Balance Sheet date. All other assets are Non-Current

D Normal Operating cycle is assumed to be twelve months.

E Fixed Assets

Fixed Assets are recorded at cost of acquisition or construction including cost of installation, transfer costs etc. They are stated at lower of historical cost less accumulated depreciation plus /minus impairment adjustments or realisable value. There are no intangible assets.

F Income & Expenditure

Income and Expenditure are generally accounted on accrual basis except to the extent restricted Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.

There has been no fund based activity since 1.4.2001. The income recognised during the year is on account of additional charges recovered on account of . defaults and delays in repayment of dues on Leasing, Hire Purchase, Bill Discounting and other Funding activities, Other items, except dividends, are accounted on accrual basis. Dividend is accounted when the same is received or the Company is entitled to its receipt.

G Depreciation on assets under finance lease was provided based on the Primary Lease period of asset. On all other assets including operating leases (when in force), depreciation has been provided on the straight line basis at the rates as per Schedule XIV of the Companies Act, 1956. All leases have completed their terms. However, some of the leased assets which are under dispute continue to appear in the books on the Balance Sheet Date though at nil value.

H Investments

Long term investments are valued at weighted average cost of acquisition and- provision is made in the accounts for permanent diminution in the value of long term investments. Current investments- are valued at lower of Cost or Market Value or Net Asset Value

I Foreign Currency Transactions. Expenses and Income are recorded at the exchange rate prevalent on the date of transaction. Assets and Liabilities are restated , to the extent the Company is not covered against exchange fluctuation, at the exchange, rate prevailing on the Balance Sheet date. There is no exposure on account of Foreign Currency Transaction during the year under review or in the previous year.

J The Company accounts follows RBI Prudential Norms for charging delayed payment charges on overdue Lease and Hire Purchase Contracts. These are booked on realisation or on entering into a settlement agreement with the party

K Retirement Benefits. The Company's employees are entitled to various retirement benefits Provident Fund contributions are made to a Fund approved by the appropriate authorities.The shortfall in the return is borne by the Company. Gratuity and Superannuation are covered by schemes with Life Insurance Corporation (LIC)

The Gratuity Scheme is a defined benefit plan and funded accordingly as per certificate given by the LIC in this regard. The Superannuation scheme is a defined contribution scheme and contribution is paid to the LIC as per the scheme. Liability on account of leave earned is provided on the basis of the acturial certifcate as on the date of the Balance Sheet, as per Revised AS 15. notified by the Companies (Accounting Standards) Rules 2006

L Provision & Contingencies

A provisions is recognised when the Company has a legal and constructive obligation as a result of past event, for which it is probable that cash outflow will be required and the reliable estimate can be made. A contingent liability is disclosed when the Company has a present or a possible obligation where it is not probable that an outflow or resouces will be required for settlement. Contingent assets are not recognised or disclosed

M Use of Estimates

In preparing the Company's Financial Statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets & liabilities, revenues and expenses and other disclosures in these statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognised in the period it is determined.

N Taxes on Income

Current Tax is provided on the basis of provision of the Income Tax Act, 1961. Deferred Tax is recognised on timing difference between the accounting income and taxable income1 for the year and quantified using tax rate and laws enacted on Balance Sheet date.


Mar 31, 2011

1 The financial statements are prepared under historical cost and on accrual basis and comply with the Accounting Standards notified by the Companies (Accounting Standards) Rules 2006 referred to in Section 211(3C) of the Companies Act, 1956.

2 Fixed Assets

Fixed Assets are recorded at cost of acquisition or construction including cost of installation, transfer costs etc. They are stated at lower of historical cost less accumulated depreciation plus impairment loss or realisable value. There are no intangible assets.

3 Income & Expenditure

Income and Expenditure are generally accounted on accrual basis. There has been no fund based activity since 1.4.2001. The income recognised during the year is on account of additional charges recovered on account of defaults and delays in repayment

Other items, except dividends, are accounted on accrual basis. Dividend is accounted when the same is received or the Company is entitled to its receipt.

4 Depreciation on assets under finance lease was provided based on the Primary Lease period of asset. On all other assets including operating leases (when in force), depreciation has been provided on the straight line basis at the rates as per Schedule XIV of the Companies Act, 1956. All leases have completed their terms. However, some of the leased assets which are under dispute continue to appear in the books on the Balance Sheet Date though at nil value.

5 Investments

Long term investments are valued at weighted average cost of acquisition and provision is made in the accounts for permanent diminution in the value of long term investments. Current investments are valued at lower of Cost or Market Value or Net Asset Value.

As per the Accounting Standard AS 30 these investments would all fall under "Available for Sale" category.

6 Foreign Currency Transactions. Expenses and Income are recorded at the exchange rate prevalent on the date of transaction. Assets and Liabilities are restated , to the extent the Company is not covered against exchange fluctuation, at the exchange rate prevailing on the Balance Sheet date. There is no exposure on account of Foreign Currency Transaction during the year under review or in the previous year.

7 The Company accounts follows RBI Prudential Norms for charging delayed payment charges on overdue Lease and Hire Purchase Contracts. These are booked on realisation or on entering into a setllement agreement with the party.

8 Retirement Benefits. The Company's employees are entitled to various retirement benefits.

Provident Fund contributions are made to a Fund approved by the appropriate authorities. The shortfall in the return is borne by the Company. Gratuity and Superannuation are covered by schemes with Life Insurance Corporation (LIC).

The Gratuity Scheme is a defined benefit plan and funded accordingly as per certificate given by the LIC in this regard.

The Superannuation scheme is a defined contribution scheme and contribution is paid to the LIC as per the scheme.

Liability on account of leave earned is provided on the basis of the actuarial certifcate as on the date of the Balance Sheet as per Revised AS 15. notified by the Companies (Accounting Standards) Rules, 2006.

9 Provision & Contingencies

A provisions is recognised when the Company has a legal and constructive obligation as a result of past event, for which it is probable that cash outflow will be required and the reliable estimate can be made. A contingent liability is disclosed when the Company has a present or a possible obligation where it is not probable that an outflow or resouces will be required for settlement. Contingent assets are not recognised or disclosed

10 Use of Estimates

In preparing the Company's Financial Statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets & liabilities, revenues and expenses and other disclosures in these statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognised in the period it is determined.

11 Taxes on Income

Current Tax is provided on the basis of provision of the Income Tax Act, 1961. Deferred Tax is recognised on timing difference between the accounting income and taxable income for the year and quantified using tax rate and laws enacted on Balance Sheet date.


Mar 31, 2010

1 The financial statements are prepared under historical cost and on accrual basisand comply with the accounting standards issued by the Institute of Chartered Accountants of India referref to in section 211(3C) of the Companies Act, 1956.

2 Fixed Assets

Fixed Assets are recorded at cost of acquisition or construction including cost of installation, transfer costs etc. They are stated at lower of historical cost less accumulated depreciation plus impairment loss or realisable value. There are no intangible assets.

3 Income & Expenditure

Income and Expenditure are generally accounted on accrual basis.

There has been no fund based activity since 1.4.2001. The income recognised during the year is on account of additional charges recovered on account of defaults and delays in repayment Other items, except dividends, are accounted on accrual basis. Dividend is accounted when the same is received or the Company is entitled to its receipt.

4 Depreciation on assets under finance lease was provided based on the Primary Lease period of asset. On all other assets including , operating leases (when in force), depreciation has been provided on the straight line basis at the rates as per Schedule XIV of the Companies Act, 1956. All leases have completed their terms. However, some of the leased assets which are under dispute continue to appear in the books on the Balance Sheet Date though at nil value.

5 Investments

Long term investments are valued at weighted average cost of acquisition and provision is made in the accounts for permanent diminution in the value of long term investments. Current investments are valued at lower of Cost or Market Value or Net Asset Value.

As per the Accounting Standard AS 30 these investments would all fall under "Available for Sale" category.

6 Foreign Currency Transactions. Expenses and Income are recorded at the exchange rate prevalent on the date of transaction. Assets and Liabilities are restated , to the extent the Company is not covered against exchange fluctuation, at the exchange rate prevailing on the Balance Sheet date. There is no exposure on account of Foreign Currency Transaction during the year under review or in the previous year.

7 The Company accounts follows RBI Prudential Norms for charging delayed payment charges on overdue Lease and Hire Purchase Contracts These are booked on realisation or on entering into a setllement agreement with the party

8 Retirement Benefits. The Companys employees are entitled to various retirement benefitsProvident Fund contributions are made to a Fund approved by the appropriate authorities.The shortfall in the returnis borne by the Company. Gratuity and Superannuation are covered by schemes with Life Insurance Corporation (LIC)The Gratuity Scheme is a defined benefit plan and funded accordingly as per certificate given by the LIC in this regard.The Superannuation scheme is a defined contribution scheme and contribution is paid to the LIC as perthe scheme. Liability on account of leave earned is provided on the basis of the acturial certifcate as on the date of the Balance Sheet, as per Revised AS 15. of ICAI

9 Provision & Contingencies

A provisions is recognised when the Company has a legal and constructive obligation as a result of past event, for which it is probable that cash outflow will be required and the reliable estimate can be made. A contingent liability is disclosed when the Company has a present or a possible obligation where it is not probable that an outflow or resouces will be required for settlement. Contingent assets are not recognised or disclosed

10 Use of Estimates

In preparing the Companys Financial Statements in conformity with the accounting principles generally accepted in.lndia, management is required to make estimates and assumptions that affect the reported amounts of assets & liabilities revenues and expenses and other disclosures in these statements. Actual results could differ from these estimates. Any revision to accounting estimates is recognised in the period it is determined. *

11. Taxes on Income

Current Tax is provided on the basis of provision of the Income Tax Act 1961. Deferred Tax is recognized on timing difference between the accounting income and taxable income for the year and quantified using tax rate and laws enacted on Balance Sheet date.

 
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