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Accounting Policies of Galada Finance Ltd. Company

Mar 31, 2015

A) Basis of preparation of Financial Statements

The Financial Statements of the Company has been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act") as applicable & the Regulations as applicable to the Non Banking Finance Companies, issued by the RBI.

b) 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 amounts 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. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates.

c) Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises of purchase price and other attributable costs , if any , in bringing the assets to its working condition for its intended use.

d) Depreciation

(I) Depreciation is provided for on Written Down Value method based on useful life of the assets as specified in Part C of Schedule II of the Companies Act,2013 (ii) In respect of addition of assets during the year, depreciation have been provided on pro- rata basis

e) Revenue Recognition

i) The company accounts for income and expenditure on accrual basis except otherwise stated.

ii) Finance Charges in respect of Hire Purchase, Vehicle loan & Hypothecation transactions are apportioned over the period of agreement by Internal Rate of Return basis.

iii) The company has followed the Prudential norms prescribed by the Reserve Bank of India for Non-Banking Financial Companies.

iv) Interest on overdue Lease rentals, loans and hire purchase instalments accounted for on receipt basis.

f) Investments:

Investments in Shares and Debentures are stated at cost. However, any decline in the value of such investments which in the opinion of the management, is not temporary, is provided for.

g) Taxation

Provision for taxation comprises of the current tax provision, and the net change in the deferred tax asset or liability during the year. Provision for deferred tax is made on the timing diferrences arising between the taxable income and accouting income computed using the tax rates and laws that has been enacted or substantively enacted as of the balance sheet date.

h) Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event 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 are not discounted to its present value and are determined based on 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.

i) Contingent Liabilities and Contingent Assets

Contingent liabilities and contingent assets are not recognized in the financial statements.

j) Earnings 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.

Earning per share, both basic and diluted, are calculated in accordance with the Accounting Standard - 20 issued by the Institute of Chartered Accountants of India.

k) Disclosure requirement regarding Micro, Small & Medium Scale Enterprises

The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence, disclosure, if any , relating to amount unpaid at the year end together with interest paid/ payable as required under the said Act have not been given.




Mar 31, 2014

A) Basis of preparation of Financial Statements

The accounts have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and the Regulations, as applicable to the Non Banking Finance Companies, issued by the RBI.

b) Recognition of Income and Expenditure

i) The company accounts for income and expenditure on accrual basis except otherwise stated.

ii) Finance Charges in respect of Hire Purchase, Vehicle loan & Hypothecation transactions are apportioned over the period of agreement by Internal Rate of Return basis.

iii) Lease transactions entered after 1st April 2001 have been accounted as per the Accounting Standard (AS-19) issued by the Institute of Chartered Accountants of India.

iv) The company has followed the Prudential norms prescribed by the Reserve Bank of India for Non-Banking Financial Companies

v) Interest on overdue Lease rentals, loans and hire purchase instalments accounted for on receipt basis.

c) Fixed Assets and Depreciation:

i) Fixed Assets are stated at historical cost less accumulated depreciation.

ii) Depreciation on assets has been provided on written down value method as prescribed by Schedule XIV to the Companies Act, 1956.

d) Investments :

Investments in Shares and Debentures are stated at cost. However, any decline in the value of such investments which in the opinion of the management, is not temporary, is provided for.


Mar 31, 2013

A) Basis of preparation of Financial Statements

The accounts have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act,1956 and the Regulations, as appllicable to the Non Banking Finance Companies, issued by the RBI.

b) Recognition of Income and Expenditure

i) The company accounts for income and expenditure on accrual basis except otherwise stated.

ii) Finance Charges in respect of Hire Purchase, Vehicle loan & Hypothecation transactions are apportioned over the period of agreement by Internal Rate of Return basis.

iii) The company has followed the Prudential norms prescribed by the Reserve Bank of India for Non-Banking Financial Companies

iv) Interest on overdue Lease rentals, loans and hire purchase instalments accounted for on receipt basis.

c) Fixed Assets and Depreciation :

i) Fixed Assets are stated at historical cost less accumulated depreciation.

ii) Depreciation on assets has been provided on written down value method as prescribed by Schedule XIV to the Companies Act, 1956.

d) Investments :

Investments in Shares and Debentures are stated at cost. However, any decline in the value of such investments which in the opinion of the management, is not temporary , is provided for.


Mar 31, 2012

A) Basis of preparation of Financial Statements

The accounts have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and the Regulations, as applicable to the Non Banking Finance Companies, issued by the RBI.

b) Recognition of Income and Expenditure

i) The company accounts for income and expenditure on accrual basis except otherwise stated.

ii) Finance Charges in respect of Hire Purchase, Vehicle loan & Hypothecation transactions are apportioned over the period of agreement by Internal Rate of Return basis.

iii) Lease transactions entered after 1st April 2001 have been accounted as per the Accounting Standard (AS-19) issued by the Institute of Chartered Accountants of India.

iv) The company has followed the Prudential norms prescribed by the Reserve Bank of India for Non-Banking Financial Companies

v) Interest on overdue Lease rentals, loans and hire purchase instalments accounted for on receipt basis.

c) Fixed Assets and Depreciation:

i) Fixed Assets are stated at historical cost less accumulated depreciation.

ii) Depreciation on assets has been provided on written down value method as prescribed by Schedule XIV to the Companies Act, 1956.

d) Investments:

Investments in Shares and Debentures are stated at cost. However, any decline in the value of such investments which in the opinion of the management, is not temporary, is provided for.




Mar 31, 2011

1a) Basis of preparation of Financial Statements

The accounts have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, the provisions of the Companies Act, 1956 and the Regulations,as applicable to the Non Banking Finance Companies, issued by the RBI.

b) Recognition of Income and Expenditure

I) The company accounts for income and expenditure on accrual basis except otherwise stated.

ii) Finance Charges in respect of Hire Purchase & Hypothecation transactions entered after 1 st April 2002 are apportioned over the period of agreement by Internal Rate of Return basis and transaction entered before 31 st March 2002 have been accounted on the even spread method.

iii) Lease transactions entered after 1st April 2001 have been accounted as per the Accounting Standard (AS-19) issued by the Institute of Chartered Accountants of India.

iv) The company has followed the Prudential norms prescribed by the Reserve Bank of India for Non-Banking Financial Companies.

v) Gratuity Liabilities accounted on cash basis.

vi) Interest on overdue Lease rentals, loans and hire purchase instalments accounted for on

c) Fixed Assets and Depreciation:

ii) Depreciation on assets has been provided on written down value method as prescribed by Schedule XIV to the Companies Act, 1956. The company follows the guidance note on accounting for lease issued by the Institute of Chartered Accountants of India in respect of assets acquired between 1st April 1994 and 31st March 2001.

d) Investments:

Investments in Shares and Debentures are stated at cost. However, any decline in the value of such investments which, in the opinion of the management, is not temporary, is provided for.

 
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