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Accounting Policies of CFSL Ltd. Company

Mar 31, 2015

I. Basis of preparation of financial statements:

These financial statements have been prepared to comply with Accounting Principles Generally accepted in India (Indian GAAP), the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees.

II. Income and Expenditure

Income and Expenditure are accounted for on accrual basis except finance charges and interest on bad & doubtful debts which is recognized as per IRAC norms of RBI guidelines.

III. Tangible & Intangible Fixed Assets & Depreciation

a) Fixed Assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in their acquisition, construction / installation.

b) Depreciation / amortization on tangible and intangible fixed assets is provided to the extent of depreciable amount on the straight line (SLM) Method. Depreciation is provided at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013.

IV. Investments

Investment has been bifurcated into 'long term' and 'current' categories as per RBI Norms. Long term investment is valued at cost and current investment at cost or market value whichever is less. However, provision is being made where diminution in the value of long term investment other than temporary.

V. INVENTORIES

Inventories of shares have been valued at cost or market price whichever is less.

VI. LOANS & ADVANCES

Loans and Advances are classified in accordance with IRAC norms issued by RBI.

VII. Dividend is accounted for as and when it is declared.

VIII. Cash and cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less

IX. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

X. Unless specifically stated to be otherwise, these policies are consistently followed.


Mar 31, 2013

I. Basis of Accounting

The Company has prepared its financial statements in accordance with applicable Accounting Standards, generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

II. Income and Expenditure

Income and Expenditure are accounted for on accrual basis except finance charges and interest on bad & doubtful debts which is recognized as per IRAC norms of RBI guidelines.

III. Fixed Assets & Depreciation

a) Fixed Assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in their acquisition, construction / installation.

b) Depreciation is charged on W.D.V. Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

IV. Investments

Investment has been bifurcated into ''long term'' and ''current'' categories as per RBI Norms. Long term investment is valued at cost and current investment at cost or market value whichever is less. However, provision is being made where diminution in the value of long term investment other than temporary.

V. LOANS & ADVANCES

Loans and Advances are classified in accordance with IRAC norms issued by RBI.

VI. Dividend is accounted for as and when it is declared.

VII. Cash and cash equivalents

Cash and cash equivalents lor the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less

VIII. Provision. Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.

IX. Unless specifically stated to be otherwise, these policies are consistently followed.


Mar 31, 2010

1. REVENUE RECONGNITION

Revenue is being recognized on accrual basis except finance charges and interest on bad and doubtful debts which is recognized as per IRAC norms of RBI guidelines.

2. VALUATION OF INVESTMENT

Investment has been bifurcated into long term and current categories as per RBI Norms. Long term investment is valued at cost and current investment at cost or market value which ever is less. However, provision is being made where diminution in the value of long term investments other than temporary.

3. LOANS & ADVANCES

Loans and Advances are classified in accordance with IRAC norms issued by RBI.

4. HIRE PURCHASE

(a) Hire purchase stock is valued at agreement values less instalment due.

(b) Finance charges on hire purchase business are computed on Straight line method.

5. FIXED ASSETS

Fixed Assets are carried at historical cost less accumulated depreciation.

6. DEPRECIATION ON FIXED ASSETS

Depreciation is provided on written down value method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

7. PROVISION

Diminution in the value of investment and provision on loans and advances have been-made as RBI Norms.

8. INCOME TAXES

Tax expense comprises both current and deferred taxes. Deferred tax is measured based oh the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognised only to the extent, there is reasonable certainty of sufficient future taxable income against which such deferred tax assets can be realised. Unrecognised deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain that future taxable income will be available against which such deferred tax assets can be realised.

 
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