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Accounting Policies of Ekam Leasing & Finance Company Ltd. Company

Mar 31, 2014

(i) Basis of preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, in accordance with applicable accounting standards issued by Institute of Chartered Accountants of India and provisions of the Companies Act, 1956.

(ii) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although, these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

(iii) Fixed Assets

Tangible fixed assets are stated at cost of acquisition including incidental expenses less depreciation. All costs including financing costs till the assets are ready to be put to use are adjusted to the carrying amount of fixed assets.

(iv) Depreciation

Depreciation has been provided on Written Down Value Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956

(v) Investments

All long term unquoted investments are valued at Cost.

(vi) Loans & Advances

Interest on loan given to M/s North East Papers Pvt. Ltd. & Shri Anil Khurana has not been provided. The loan amount of Rs. 7,00,000/- given to M/s North East Papers Pvt. Ltd. Is doubtful of recovery.

(vii) Revenue Recognition

Interest and other dues are recognized on accrual basis. Interest u/s 244A receivable on Refund Income Income Tax Department shall be accounted for on receipt basis.

(viii) Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing differences being the difference in income and accounting that originates in one period and capable of reversal in one or more subsequent period.

(ix) Employee Retirement Benefits

1. Provident Fund & ESI

Provisions of Provident Fund Act & Employee State Insurance are not applicable for the period under consideration.

2. Gratuity Fund Scheme

No provsion for gratuity is required to be made,

(x) Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

(xi) Cash Flow Statement

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 apst or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available infomation.

(Xi) RBI Directions

The Company is an NBFC. RBI guidelines and Pprudential Norms applicable on the company have duly been complied with.

(xiii) Contingent Liabilities and Contingent Assets

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on going basis and only those having a Contingent Assets are not recognized in the Financial Statement.


Mar 31, 2013

(i) Basis of preparation of Financial Statements

These financial statements are prepared under the historical cost convention on an accrual basis, in accordance with applicable accounting standards issued by Institute of Chartered Accountants of India and provisions of the Companies Act, 1956.

(ii) Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period end. Although, these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

(iii) Fixed Assets

Tangible fixed assets are stated at cost of acquisition including incidental expenses less depreciation. All costs including financing costs till the assets are ready to be put to use are adjusted to the carrying amount of fixed assets.

(iv) Depreciation

Depreciation has been provided on Written Down Value Method in accordance with the rates prescribed in Schedule XIV of the Companies Act, 1956.

(v) Investments

All long-term unquoted investments are valued at cost.

(vi) Loans & Advances

Interest on loan given to North East Papers Pvt. Ltd. has not been provided as the same is considered doubtful of recovery. The management has decided to defer the provision for doubtful debts for one more year, hoping better recovery prospects.

(vii) Inventories

Inventory of shares is valued at cost.

(viii) Revenue Recognition

Interest and other dues are recognized on accrual basis.

(ix) Taxation

Current tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognized subject to consideration of prudence in respect of deferred tax assets on timing differences being the difference in income and accounting that originates in one period and capable of reversal in one or more subsequent period.

(x) Employee Retirement Benefits

1. Provident Fund

Provisions of Provident Fund Act & Employee State Insurance are not applicable for the period under consideration.

2. Gratuity Fund Scheme

No provision for gratuity is required to be made.

(xi) Earning Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

(xii) Cash Flow Statement

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 apst 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.

(xiii) RBI Directions

The Company is an NBFC. RBI guidelines and Ppmdential Norms applicable on the company have duly been complied with.

(xiv) Contingent Liabilities and Contingent Assets

Contingent liabilities are recognized only when there is a possible obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made. Obligations are assessed on an on going basis and only those having a Contingent Assets are not recognized in the Financial Statement.


Mar 31, 2012

1 a) The Financial Statements have been prepared on the historical cost convention and in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956, as adopted consistently by the Company ' and as a going concern.

b) The Company follows the Mercantile System of Accounting and recognizes income and expenditure on accrual basis, unless specifically stated to be otherwise.

c) Fixed Assets are stated at cost less accumulated depreciation.

d) Depreciation on assets provided on the basis of Written Down Value (WDV) method.

2. REVENUE RECOGNITION

Interest and other dues are recognized on accrual basis.

3. INVESTMENTS

Investments are classified under two categories i.e. current and non current Investment.

4. STOCK / INVENTORIES :

Stock of Shares is Valued at cost as per last accounting year.

5. RBI DIRECTIONS:

The Company is an NBFC. RBI guidelines and Prudential Norms applicable to the company have duly been complied with.


Mar 31, 2010

A) The Financial Statements have been prepared on the historical cost convention and in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956, as adopted consistently by the Company and as a going concern.

b) The Company follows the Mercantile System of Accounting and recognizes income and expenditure on accrual basis, unless specifically stated to be otherwise.

c) Fixed Assets are stated at cost less accumulated depreciation.

2. STOCK / INVENTORIES :

Stock of Shares is Valued at cost as per last accounting year.

3. RBI DIRECTIONS :

The Company has followed the applicable provisions of Non Banking Financial (Non deposit accepting or holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 and accordingly a provision of 100% on Doubtful Assets amounting to Rs. 2.90 Crores has already been made up to the year 2000-01 The same has now been adjusted towards Bad Debts written off to the extent of Rs 2,89,95,776/-

6. There is no inflow & outflow of Foreign Exchange during the year.

7 Provision of Provident Fund Act & Employee State Insurance are not applicable for the period under consideration.

8. No provision for gratuity is required to be made.

9. Listing Fees of Bombay Stock Exchange, Delhi Stock Exchange & Ludhiana Stock Exchange amounting to Rs. 22,060/- is outstanding up to the year 2009-10. However the same has been provided on accrual basis

10. Calls in arrears amounting to Rs. 1,13,750/- are outstanding since the public issue made in 1995 have now been received in cash during the period.

11. Balances of the Sundry Creditors & Sundry Debtors are subject to confirmation & reconciliation from the parties concerned.

12. Stock in trade as on 31.03.1010 has been physically verified by the management. The stock of shares is held in physical form.

13. No provision for deferred Tax liability in accordance with AS-22 has been provided.

14. No interest has been provided on a Security deposit of Rs 25 Lacs with State Bank of Patiala due to difference of opinion on the applicability of interest on such deposit. The deposit was advanced on 1sl April 2009.

15. An interest free advance of Rs. 7,00,000/- given to M/s North East Paper & Industries Ltd. is over due for recovery before the financial year 2000-01.



 
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