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Accounting Policies of Crescent Leasing Ltd. Company

Mar 31, 2016

1.1 Basis of Accounting and preparation of Financial Statements

These financial statements have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards prescribed under Section 133 of the Companies Act, 2013 (''Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014, till the Standards of Accounting or any other addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act 1956 (the Act) shall continue to apply. Consequently, these financial statements are prepared to comply in all material aspects with the Accounting Standards notified under sub section (3C) of Section 211 of the Act {Companies (Accounting Standards) Rules, 2006} and other relevant provisions of the Companies Act 2013.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known/materialized.

1.3 Inventories

Inventories are valued at the lower of cost (on FIFO basis) and the net realizable value after providing for obsolescence and other losses, where considered necessary.

1.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known of cash and which are subject to insignificant risk of changes in value.

1.5 Cash Flow Statements

Cash flows are reported using the Indirect method, whereby profit/ (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

1.6 Revenue Recognition

All incomes and expenditure are recognized as per ''Accounting Standard - 9'' accounted on accrual basis except where stated otherwise. Dividends on investments are accounted for when the right to receive the dividend is established.

1.7 Employee Benefits

a. P.F. and E.S.I.C. Scheme is not applicable to the company.

b. Provision of Gratuity is done when an employee works for more than 6 months.

1.8 Segment Reporting:

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identifies to segments on the basis of their relationship to the operating activities of the segment.

Inter-segment revenue is accounted on the basis of transactions which are primarily determined based on market/ fair value factors.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities"

1.9 Investments:

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

Current investments are carried individually, at the lower of cost and fair value. Costs of investments include acquisition charges such as brokerage, fees and duties.

1.10 Borrowing Cost:

Borrowing costs directly attributable to the acquisition and construction fo qualifying fixed assets are capitalized as part of the cost of the assets, up to the date the asset is put to use. Other borrowing costs are charged to the Profit and Loss Account.

1.11 Taxes on Income:

Current Tax is determined as the tax payable in respect of taxable income for the year, if any. Deferred tax for the year is recognized on timing difference; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax Assets and Liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred Tax Assets are recognized and carried forward only if there is a reasonable/virtual certainty of realization.

1.12 Provisions and Contingencies:

A provision is recognized when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

1.13 Impairment of Assets:

At the end of each years, the Company assesses whether any impairment loss may have occurred in respect of its Assets in accordance with Accounting Standard - 28 "Impairment of Assets" issued by the Institute of Chartered Accountants of India, and Impairment Losses if any are accounted for by the Company in accordance with the Standard applicable.


Mar 31, 2011

1) The financial statements have been prepared in accordance with the historical cost convention of a going concern on mercantile basis,

2) Accounting policies not specifically disclosed are consistent and in accordance with generally accepted accounting practice.

3) The company follows the mercantile system of accounting and recognizes Income and expenditure on accrual basis except dividend income which is accounted for on cash basis.

4) Investments in shares & securities are valued at cost.

5) Fixed assets are stated at cost of acquisition plus all expenses incurred for this purpose.

6) Depreciation on fixed assets have been provided for written down value method on the basis of the rates as provided in companies act, 1956.

7) Contingent liabilities: provision is made in accounts in respect of those which are likely to materialize after the year end till the finalization of accounts and have material effect on the position stated in balance sheet.

8) Taxes on income: tax expense comprise both current tax applicable enacted rates. Current tax represents the amount of Income Tax Payable / recoverable in respect of taxable income/ loss for the reporting period.

Deferred Tax represents the effect of timing differences between taxable & accounting income for the reporting period that originate in period and are capable of reversal in one or more subsequent period.

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