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Accounting Policies of GDL Leasing & Finance Ltd. Company

Mar 31, 2014

I. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amount of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amount of assets or liabilities for future periods.

II. Cash Flow Statement

Cash flow are reported using the indirect method where by cash flow from operating, investing and financing activities of the Group are segregated and profit before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash or receipts.

III. Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured. The following specific recognition criteria must be fulfilled before revenue is recognized.

a. Interest and other dues are accounted on accrual basis except in the case of non- performing loans where it is recognized upon realization, as per the income recognition and assets classification norms prescribed by the RBI.

b. Income or discounted instruments are recognized over the tenure of the investment on a straight line method.

c. Dividend is accounted when the right to receive is established.

d. Front end fees on processing of loans are recognized upfront as income

e. Profit/loss on sale of Investments is recognized on trade data basis. Profit/loss on sale of Investment is determined based on 'weighted average' cost for Investment.

f. All other fees are recognized when reasonable right to recovery is established, revenue can be reliably measured as and when they become due

g. Other revenue is recognized on accrual basis and no significant uncertainty exists as to its realization or collection.

IV. Fixed Assets

Fixed cost is stated at cost, net of accumulated depreciation and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its intended use.

Subsequent expenditure related to an item of fixed assets is added to book value only if it increases the future benefits from the existing assets beyond its previously assessed standard of performance. All other expenses of existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from the de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of fixed asset and are recognized in the statement of profit and loss when the asset is de-recognized.

V. Depreciation

Depreciation of fixed assets is provided using the Straight Line Basis based on or at the rate prescribed under schedule XIV of the Companies Act, 1956.

VI. Taxes on Income

Tax expenses comprise Current and Deferred Tax. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

VII. Retirement and Other Employee Benefits

Provident Fund

Retirement benefit in the form of provident fund is a defined contribution scheme. The company has not deducted or deposited any provident fund on behalf of employee so there is no obligation of company towards provident fund.

Gratuity

The company has not made any provision for the gratuity and will be charged to the Profit & Loss Account in the year in which it is paid.

VIII. Earnings Per Share

Basic Earnings per Share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting all attributable taxes) by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholder and the weighted average no of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

IX. Cash and Cash Equivalent

Cash and cash equivalent for the purpose of cash flow statement comprise cash at bank and cash on hand, fixed deposit and interest accrued on deposits upto 31.03.2014.


Mar 31, 2013

1. Income Recognition and Basis of Accounting

The Company prepares its financial statement in according with generally accepted accounting principals and also in accordance with the requirement of the Companies Act, 1956. Specific Income has been recognized as under.

a) Interest on Loans & Advances on accrual basis.

b) Dividends .are acxountedifoEsas& when received.

2. Treatment of expenses

All expenses are accounted for on accrual basis

3. Depreciation

The Company has charged depreciation on straight-line method as per schedule XIV of the Companies Act, 1956 on pro-rata basis with reference to period of use.

4. Treatment of miscellaneous expenditure

Expenditure related to share issue and preliminary expenses are to be written off in ten yearly equal installments.

5. Valuation of Stock In Trade

Stock-in trade is valued at lower of cost or market price. Cost is computed on the basis of weighted average cost method.


Mar 31, 2010

1. Income Recognition and Basis of Accounting

The Company prepares its financial statement in according with generally accepted accounting principals and also in accordance with the requirement of the Companies Act, 1956. Specific Income has been recognized as under.

a) Interest on Loans & Advances on accrual basis.

b) Dividends are accounted for as & when received.

2. Treatment of expenses

All expenses are accounted for on accrual basis

3. Depreciation

The Company has charged depreciation on straight-line method as per schedule XIV of the Companies Act, 1956 on pro-rata basis with reference to period of use.

4. Treatment of miscellaneous expenditure

Expenditure related to share issue and preliminary expenses are to be written off in ten yearly equal installments.

5. Valuation of Stock In Trade

Stock-in trade is valued at lower of cost or market price. Cost is computed on the basis of weighted average cost method.

 
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