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Accounting Policies of Focus Industrial Resources Ltd. Company

Mar 31, 2015

A. BASIC OF PREPARATION OF FINANCIAL STATEMENTS:

The accompanying financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting unless otherwise stated and comply with the accounting standard referred to in Section 133 of the Companies Act 2013 read with Rule 7 of Company (Accounts) Rules 2014, to the extent applicable.

The Company complies in all material respects, with the prudential norms relating to income recognition asset classification and provisioning for bad and doubtful debts and other matters, specified in the directions issued by the Reserve Bank of India in terms of Non- Banking Financial Companies Prudential Norms (Reserve Bank) Directions 2007 as applicable to it.

B. USE OF ESTIMATES:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

C. REVENUE RECOGNITION:

i) Interest Income:

Interest income is recognized as it accrues on a time proportion basis taking into account the amount outstanding and the rate applicable except in the case of nonperforming assets ('NPAs') where is recognized, upon realization.

ii) Dividend income:

Dividend income is recognized when the right to received payment is established.

iii) Income from investments:

Profit earned from sale of securities is recognized on trade date basis. The cost of securities is computed based on weighted average basis.

iv) Discount on investments:

The Difference between the acquisition cost and face value of debt instruments are recognized as interest income over the tenor of the instrument on straight line basis.

v) Loan processing fee income:

Loan processing fee income is recognized as and when it becomes due.

vi) Management fee income:

Management fee income toward support services is accounted as and when it becomes due on contractual terms with the parties.

D. FIXED ASSETS:

Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment loss if any. Cost includes all expenses incidental to the acquisition of the fixed assets.

E. DEPRECIATION:

Depreciation on straight method over the useful life of assets.

F. IMPAIRMENT 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 asset is less that the carrying amount. The carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss if at the balance sheet date there is an indication that a previously assessed impairment loss no longer exits the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

G. INVESTMENTS:

Investments are classified as long term or current based on intention of the management at the time of purchase. Current investments are valued scrip wise at cost or fair value whichever is lower.

H. REPOSSESSED ASSETS:

Assets repossessed against the settlement of loans are carried in the balance sheet at outstanding loans amount or market value whichever is lower. The difference between the outstanding loan amount and the market value is charged to statement of profit and loss in the year of repossession of assets.

I. LOAN ORIGINATION/ACQUITION COST:

All direct cost incurred for the origination is amortized over the average tenure of the loan.

J. SECURITY OF LOAN GIVEN:

Housing loans/loans against property granted are secured by equitable registered mortgage of property and / or undertaking to create secured loans are secured against the hypothecation of respective assets.

K. BORROWING COST:

Borrowing cost: which are directly attributable to the acquisition/construction of fixed assets, till the time assets are ready for intended use, are capitalized as part of the cost of the assets Other borrowing costs are recognized as expenses in the year in which they are incurred. Borrowing cost directly attributable to borrowing are expense over the tenure of the borrowing.

L. EARNING PER SHARE:

The basic earning per shares is computed by dividing the net profit/loss attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reported year. Diluted earning per share reflects the potential dilution that could occur if securities or other contract to issue equity shares were exercised or converted during the year. Diluted earning per share is computed by dividing the net profit after tax by weighted average number of equity shares and dilutive potential equity shares outstanding during the year. In computing dilutive earning per share, only potential equity shares that are dilutive and that reduce profit/increase loss per share are included.

M. PROVISION FOR NON-PERFORMING ASSET (NPA) AND DOUBTFUL DEBTS:

NPA includes loans and advances receivable are identified as bad/doubt full bases on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management assessment of the degree of impairment and the level of provisioning meets the NBFC prudential norms prescribed by the Reserve Bank of

N. PROVISION FOR STANDARD ASSETS:

Provisions for standard assets are made as per the reserve bank of India notification DNBS.PD.CC NO. 207/03.02.2002/2010-11 dated January 17,2011.

O. TAXATION:

i) Current Tax:

Provision for current tax made after taking into consideration benefit admissible under the provision of the income tax act, 1961. Minimum alternate tax (MAT) credit entitlement is recognized where there is convincing evidence that the same can be realized in future.

ii) Deferred Tax:

The deferred tax charge or credit and the corresponding deferred tax liability or assets are recognized using the tax rate that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future however where there is unabsorbed depreciation or carried forward loss under taxation laws. Deferred tax assets are recognized only if there is virtual certainty or realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/ virtual certain (as the case may be)to be realized.

3. During the year effective from 1st April 2014, the Company has revised estimated useful life of all of its fixed assets as per the Schedule II of the Companies Act 2013. Based on current estimates of assets whose useful life has already been exhausted as on 01.04.2014, has been adjusted and there not been any change in the useful life of the fixed assets.

The financial statement for the period ended march 31, 2015 had been prepared as per the then applicable. Schedule III to the companies act, 2013.Consequent to the notification to the Schedule III under the companies act, 2013, the financial statement for the period ended march 31,2015 have been prepared as per Schedule III. Accordingly the previous year's figures does not impact recognition and measurement principle followed for preparation of financial statement.


Mar 31, 2013

A. Basic of preparation of financial statements

The accompanying financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting unless otherwise stated and comply with the accounting standard prescribed by the companies (accounting Standards ) Rules, 2006 and the relevant provisions of the companies Act, 1956 to the extent applicable.

The company complies in all material respects, with the prudential norms relating to income recognition asset classification and provisioning for bad and doubtful debts and other matters, specified in the directions issued by the Reserve Bank of India in terms of Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions 2007 as applicable to it.

B. Use of estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

C. Revenue Recognition: i) Interest Income:

Interest income is recognized as it accrues on a time proportion basis taking into account the amount outstanding and the rate applicable except in the case of non performing assets (NPAs1) where is recognized, upon realization.

ii) Dividend income:

Dividend income is recognized when the right to received payment is established.

iii) Income from investments:

Profit earned from sale of securities is recognizeci on trade date basis. The cost of securities is computed based on weighted average basis.

iv) Discount on investments:

The Difference between the acquisition cost and face value of debt instruments are recognized as interest income over the tenor of the instrument on straight line basis.

v) Loan processing fee income:

Loan processing fee income is recognized as and when it becomes due.

vi) Management fee income:

Management fee income toward support services is accounteci as and when it becomes due on contractual terms with the parties.

D. Fixed assets

Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment loss if any. Cost includes all expenses incidental to the acquisition * of the fixed assets.

E. Depreciation:

Depreciation on straight method over the useful life of assets.

F. Impairment 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 asset is less that the carrying amount. The carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss if at the balance sheet date there is an indication that a previously assessed impairment loss no longer exits the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

G. investments:

Investments are classified as long term or current based on intention of the management at the time of purchase. Current investments are valued scrip wise at cost or fair value whichever is lower.

H. Repossessed assets:

Assets repossessed against the settlement of loans are carried in the balance sheet at outstanding loans amount or market value whichever is lower. The difference between the outstanding loan amount and the market value is charged to statement of profit and loss in the year of repossession of assets.

I. Loan origination/acquit ion cost:

All direct cost incurred for the origination is amortized over the average tenure of the loan.

J. Security of loan given:

Housing loans/loans against property granted are secured by equitable registered mortgage of property and / or undertaking to create secured loans are secured against the hypothecation of respective assets.

K. Borrowing cost:

Borrowing cost: which are directly attributable to the acquisition/ construction of fixed assets, till the time assets are ready for intended use, are capitalized as part of the cost of the assets Other borrowing costs are recognized as expenses in the year in which they are incurred. Borrowing cost directly attributable to borrowing are expense over the tenure of the borrowing.

L. Earning Per Share:

The basic earning per shares is computed by dividing the net profit/loss attributable to the equity shareholder for the period by the weighted average number of equity shares outstanding during the reported year. Diluted earning per share reflects the potential dilution that could occur if securities or other contract to issue equity shares were exercised or converted during the year. Diluted earning per share is computed by dividing the net profit after tax by weighted average number of equity shares and dilutive potential equity shares outstanding during the year. In computing dilutive earning per share, only potential equity shares that are dilutive and that reduce profit/increase Joss per share are included.

M. Provision for Non-performing Asset (NPA) and Doubtful Debts:

NPA includes loans and advances receivable are identified as bad/doubtful bases on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management assessment of the degree of impairment and the level of provisioning meets the NBFC prudential norms prescribed by the Reserve Bank of India.

N. Provision for standard assets:

Provisions for standard assets are made as per the reserve bank of India notificationDNBS.PD.CC NO. 207/03.02.2002/2010-11 dated January 17,2011.

O. Taxation:

i) Current Tax:

Provision for current tax made after taking into consideration benefit admissible under the provision of the income tax act, 1961. Minimum alternate tax (MAT) credit entitlement is recognized where there is convincing evidence that the same can be realized in future.

ii) Deferred Tax:

The deferred tax charge or credit and the corresponding deferred tax liability or assets are recognized using the tax rate that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future however where there is unabsorbed depreciation or carried forward loss under taxation laws. Deferred tax assets are recognized only if there is virtual certainty or realization of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/ virtual certain (as the case mav be) to be realized.


Mar 31, 2011

1.01 Basis of Accounting

The financial statements are prepared to comply in all material aspects with Indian Accounting Standards as notified by the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956. The Financial Statements has been prepared under historical cost conventions, on accrual basis. The Accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.02 ACCOUNTING POLICIES:

The Company is regulated as a Non-Banking Financial Company (NBFC) by the RBI. Accordingly, Investments are classified under two categories i.e. Current and Long Term and are valued in accordance with the RBI guidelines and Accounting Standard 13 on ''Accounting for Investments'' as notified by the Companies (Accounting Standards) Rules, 2006.

a. FIXED ASSETS

(i) All fixed assets are valued at cost less depreciation.

(ii) If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured at the highest of the net selling price and the value in use determined by the present value of estimated future cash flow.

b. REVENUE RECONGNITION

(i) Interest and other dues are accounted and accrual basis except in the case of non-performing assets ("NPAs") where they are recognised upon realisation, as per the income recognition and assets classification norms prescribed by the RBI.

(ii) Income and discounted instruments is recognised over the tenure of the instrument on straight line method.

(iii) Dividend is accounted on an accrual basis when the right to receive is established.

(iv) Front end fees on processing of loans are recognised upfront as income.

(v) All fess are recognised when reasonable right of recovery is established, revenue can be reliably measured and as and when they become due except commission income on guarantees, is recognised pro-data over the residual period of the guarantee.

(vi) Premium on interest rate deduction is accounted on accrual basis over the residual life of the loan.

(vii) Profit on securitization is recognised over the residual life of the loan in terms of the RBI guidelines. Profit on sale of loans assets through direct assignment, without any recourse obligation, is recognised at the time of sale. Net loss arising on account of securitisation and direct assignment of loan assets is recognised at the time of sale.

c. DEPRECIATION

Depreciation is provided on straight line method at the rates specified in Schedule XIV of The Companies Act, 1956 on pro-rata basis. Land including site development is not depreciated.

d. INVESTMENTS

The Company is regulated as a Non-Banking Financial Company (NBFC) by the RBI. Accordingly, Investments are classified and valued in accordance with the RBI guidelines and Accounting Standard 13 on ''Accounting for Investments'' as notified by the Companies (Accounting Standards) Rules, 2006.

e. PROVISION FOR INCOME TAX

The Income Tax liability is ascertained on the basis of assessable income in accordance with the provisions of the Income Tax Act, 1961.Provision for current income tax is made in accordance with the provisions of Income Tax Act, 1961. In accordance with Accounting Standard (AS)-22 "Accounting for Taxes on Income", Deferred Tax resulting from timing differences between book & tax profit is accounting for at the current rate of tax to the extent that the timing differences are expected to crystallize. Deferred Tax Assets are recognized only when there is virtual certainty of sufficient future profits available to realize such assets.

f. INTANGIBLE ASSETS

Intangible Assets comprising of system software as are stated at cost of acquisition, including any cost attributable for bringing the asset to its working condition, less accumulated amortization. Any technology support cost or annual maintenance cost for such software is charges annually to the Profit and Loss Account.

g. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Contingent liability if any is disclosed by way of notes on accounts. Provision is made in account in respect of those contingencies which are likely to materialize in to liabilities after the year end till the adoption of accounts by Board of Directors and which have material effect on the position stated in the balance sheet. Contingent Assets are neither recognized nor disclosed in the financial statements.

 
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