Mar 31, 2018
i. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with accounting principles generally accepted in India. The financial statements comply in all material aspects with the Accounting Standards specified under Section 133 of the Companies Act, 2013 (the Act), read with amendment rules and relevant provisions of the Companies Act, 2013, National Housing Bank Act, 1987 and the Housing Finance Companies (NHB) Directions, 2010 as amended.
Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.
ii. Presentation and Disclosure of Financial Statements:
AH the assets and liabilities have been classified as current or non-current as per the companyâs normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. The company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.
iii. Use of Estimates:
The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any difference between the actual results and estimates are recognized in the period in which the results are known / materialize. Any revision to accounting estimates is recognized prospectively in the current and future period.
1. REVENUE RECOGNITION:
a) INCOME ON LOANS:
i. Repayment of loans is by way of Equated Monthly Installments (EMI) comprising principal and interest. Interest is calculated on the outstanding loan balance at the beginning of every month. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, Pre-EMI interest is payable every month.
ii. Interest income is recognized on accrual basis, except in case of Non- performing Asset (NPA) where in Interest Income is recognized on receipt basis, following the directives/guidelines laid down by National Housing Bank (NHB).
iii. Fees income, Penal Interest and other charges are recognized on receipt basis.
b) INVESTMENT INCOME :
i. Dividend and interest income:
Dividend income is recognized when the unconditional right to receive the income is established. Income from interest on deposits and interest bearing securities is recognized on the time proportionate method taking into account the amount outstanding and the rate applicable.
ii. Income on Investments which are classified as Non - performing is recognized only on realization following the directives/guidelines laid down by NHB.
2. CASH AND CASH EQUIVALENT:
For purpose of the Cash Flow Statement, Cash comprises Cash in Hand, Balance with Banks and Demand Deposits with Banks.
3. CASH FLOW STATEMENT:
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.
4. PROPERTY, PLANT AND EQUIPMENT:
Property, Plant and Equipment are stated at cost of acquisition or construction, inclusive of expenses incidental thereto, less accumulated depreciation and accumulated impairment loss, if any. Subsequent expenditure related to an item of Property, Plant and Equipment is capitalized only when it is probable the future economic benefit associated with these will flow to the Company and the cost of the item can be measured reliably.
The Company depreciates property, plant and equipment over the estimated useful life of the Assets using reducing balance method. The estimated useful life of the assets is as prescribed under Schedule II to the Companies Act, 2013. Assets costing up to Rs.5000 are fully depreciated in the year of acquisition.
The Depreciation method, useful life, and residual value are reviewed periodically, including at each financial year end. The cost and related accumulated depreciation are eliminated from the financial statement upon sale or retirement of the asset and the resultant gain or losses are recognized in the statement of Profit and Loss.
5. INTANGIBLE ASSETS AND AMORTIZATION:
Intangible assets are recognized only if it is probable that the future economic benefits attributable to asset will flow to the enterprise and the cost of asset can be measured reliably. Intangible assets are stated at acquisition cost, net off accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on straight line basis over their estimated useful life.
The amortization period and the amortization method are reviewed at least at each financial year end. If expected life of asset is significantly different from previous estimates the amortization period is changed accordingly. Computer Application Software is amortized over the period of 3 years on straight line basis or useful life, whichever is shorter.
6. IMPAIRMENT OF ASSETS:
Assessment is done at each Balance Sheet date as to whether there is any indication that an asset [tangible and intangible] is impaired. If any such indication exists, an estimate of the recoverable amount of the asset is made. Assets whose carrying value exceeds the recoverable amount are written down to the recoverable amount. Recoverable amount is the higher of an assetâs net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an armâs length transaction between knowledgeable, willing parties, less the costs of disposal.
7. INVESTMENTS:
Investments are classified into current and noncurrent investments.
In accordance with the Guidelines issued by National Housing Bank (NHB), current investments are carried at lower of cost and fair value. Long term investments are carried at cost. However, provision for diminution in value of long term investments is made to recognize decline, other than temporary, on an individual investment basis.
Unquoted investments in the units of mutual funds in the nature of current investments are carried at lower of cost and the net asset value declared by mutual funds in respect of each particular scheme.
8. PROVISIONING FOR LOANS AND INVESTMENTS:
i. Loans are classified into âPerformingâ and âNon-Performingâ assets in terms of guidelines/ directions laid down/ given by the National Housing Bank (NHB). Loans are further classified as standard, sub-standard, doubtful and loss assets.
ii. Provisions for performing assets and non-performing assets and investments are made on a periodic review which is in compliance with the directives /guidelines laid down by the National Housing Bank (NHB).
9. EMPLOYEE BENEFITS:
Defined contribution plan:
Defined contribution plans include contributions to Employeesâ Pension Scheme, Employee State Insurance Scheme and Employeesâ Deposit Linked Insurance scheme, recognized as employee benefit expenses in the statement of profit and loss as and when the services are received from the employees.
Defined benefit plans:
The Company has defined benefit plans namely - provident fund plan, leave encashment plan and gratuity plan, the calculation of which is performed annually by a qualified actuary using the projected unit credit method, and incremental liability, if any, is provided in the books. Actuarial gains/ losses comprising of experience adjustment and the effects of changes in actuarial assumptions are recognized as income or expense (as applicable) in the Statement of Profit and Loss.
The Company has formed a Provident Fund Trust for all employees and the same is administered by the trustees. For the purpose of gratuity, the Company has obtained a qualifying group gratuity insurance policy from Life Insurance Corporation of India.
Short Term employee benefits:
AH employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, and performance incentive paid annual leave, bonus, leave travel assistance, medical allowance, contribution to provident fund and superannuation etc. recognized as actual amounts due in period in which the employee renders the related services.
10. SEGMENT REPORTING:
The segments have been identified taking into account the nature of the products / services, geographical locations, nature of risks and returns, internal organization structure and internal financial reporting system. The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.
11. LEASES:
Assets acquired on lease where significant portions of the risk and rewards incidental to the ownership are retained by the lessors are classified as operating leases. Rental expenses on assets obtained under operating lease arrangements are recognized on a straight line basis as expense in the Statement of Profit and Loss over the lease term of respective lease arrangement.
12. EARNINGS PER SHARE:
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
13. TAXATION:
Tax expense comprises of current and deferred tax charge or credit.
Current Tax is determined as the amount of income tax payable to the taxation authorities in respect of taxable income for the period.
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially 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 carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. A deferred tax asset are reviewed at each balance sheet date and is written-down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.
14. PROVISIONS AND CONTINGENCIES:
Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that the cash outflow will be required and a reliable estimate can be made of the amount of the obligation.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognize a contingent liability but discloses its existence in the financial statements. Contingent assets are neither recognized nor disclosed.
Mar 31, 2017
SIGNIFICANT ACCOUNTING POLICIES:
i. Basis of preparation of financial statements:
The financial statements are prepared under the historical cost convention on accrual basis of accounting and in accordance with accounting principles generally accepted in India. Pursuant to Section 133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts) Rule, 2016, and other relevant provisions of Companies Act, 2013, the National Housing Bank Act, 1987 and The Housing Finance Companies (NHB) Directions, 2010 as amended.
Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the Company.
ii. Presentation and Disclosure of Financial Statements:
All the assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. The Company has ascertained its operating cycle as 12 months for the purpose of current or non-current classification of assets and liabilities.
iii. Use of Estimates:
The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ from these estimates. Any difference between the actual results and estimates are recognized in the period in which the results are known / materialize. Any revision to accounting estimates is recognized prospectively in the current and future period.
1. REVENUE RECOGNITION:
a) INCOME ON LOANS :
i. Repayment of loans is by way of Equated Monthly Installments (EMI) comprising principal and interest. Interest is calculated on the outstanding loan balance at the beginning of every month. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, Pre-EMI interest is payable every month.
ii. Interest income is recognized on accrual basis, except in case of Non-performing Asset (NPA) where in Interest Income is recognized on receipt basis, following the directives/guidelines laid down by National Housing Bank.
iii. Fees income, Penal Interest and other charges are recognized on receipt basis.
b) INVESTMENT INCOME :
i. Dividend and interest income:
Dividend income is recognized when the unconditional right to receive the income is established. Income from interest on deposits and interest bearing securities is recognized on the time proportionate method taking into account the amount outstanding and the rate applicable.
ii. Income on Investments which are classified as Non-performing is recognized only on realization following the directives/ guidelines laid down by National Housing Bank.
2. CASH AND CASH EQUIVALENT:
For purpose of the Cash Flow Statement, Cash comprises Cash in Hand, Balance with Banks and Demand Deposits with Banks.
3. CASH FLOW STATEMENT:
Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.
4. PROPERTY, PLANT AND EQUIPMENT
Property, Plant and Equipment are stated at cost of acquisition or construction, inclusive of expenses incidental thereto, less accumulated depreciation and accumulated impairment loss, if any. Subsequent expenditure related to an item of Property, Plant and Equipment is capitalized only when it is probable the future economic benefit associated with these will flow to the Company and the cost of the item can be measured reliably.
The Company depreciates property, plant and equipment over the estimated useful life of the Assets using reducing balance method. The estimated useful life of the assets is as prescribed under Schedule II to the Companies Act, 2013. Assets costing up to Rs.5000 are fully depreciated in the year of acquisition.
The Depreciation method, useful life, and residual value are reviewed periodically, including at each financial year end. The cost and related accumulated depreciation are eliminated from the financial statement upon sale or retirement of the asset and the resultant gain or losses are recognized in the statement of Profit and Loss.
5. INTANGIBLE ASSETS AND AMORTIZATION:
Intangible assets are recognized only if it is probable that the future economic benefits attributable to asset will flow to the enterprise and the cost of asset can be measured reliably. Intangible assets are stated at acquisition cost, net off accumulated amortization and accumulated impairment losses, if any. Intangible assets are amortized on straight line basis over their estimated useful life.
The amortization period and the amortization method are reviewed at least at each financial year end. If expected life of asset is significantly different from previous estimates the amortization period is changed accordingly. Computer Application Software is amortized over the period of 3 years on straight line basis or useful life, whichever is shorter.
6. IMPAIRMENT OF ASSETS:
Assessment is done at each Balance Sheet date as to whether there is any indication that an asset [tangible and intangible] is impaired. If any such indication exists, an estimate of the recoverable amount of the asset / cash generating unit is made. Assets whose carrying value exceeds the recoverable amount are written down to the recoverable amount. Recoverable amount is the higher of an asset''s net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal. Assessment is also done at each Balance Sheet date as to whether there is any indication that an impairment loss recognized for an asset in prior accounting period may no longer exists or may have decreased.
7. INVESTMENTS:
Investments are classified into current and non-current investments.
In accordance with the Guidelines issued by National Housing Bank (NHB), current investments are carried at lower of cost and fair value. Long term investments are carried at cost. However, provision for diminution in value of long term investments is made to recognize decline, other than temporary, on an individual investment basis.
Unquoted investments in the units of mutual funds in the nature of current investments are carried at lower of cost and the net asset value declared by mutual funds in respect of each particular scheme.
8. PROVISIONING FOR LOANS AND INVESTMENTS:
i. Loans are classified into "Performing" and "Non-Performing" assets in terms of guidelines/directions laid down/given by the National Housing Bank. Loans are further classified as standard, sub-standard, doubtful and loss assets.
ii. Provisions for performing assets and non-performing assets and investments are made on a periodic review which is in compliance with the directives/guidelines laid down by the National Housing Bank.
9. EMPLOYEE BENEFITS:
Defined contribution plan:
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to Employees'' Pension Scheme, Employee State Insurance Scheme and EDLI, which are defined contribution plans are recognized as an employee benefit expense in the statement of profit and loss as and when the services are received from the employees.
Defined benefit plans:
A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Company''s net obligation in respect of provident fund plan, leave encashment plan and gratuity plan, which are defined benefit plans, and certain other defined benefit plans are calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value. Any unrecognized past service costs and the fair value of any plan assets are deducted. The discount rate is the yield at the reporting date on risk free government bonds that have maturity dates approximating the terms of the Company''s obligations and that are denominated in the same currency in which the benefits are expected to be paid. The calculation is performed annually by a qualified actuary using the projected unit credit method.
Retirement and other employee benefits:
All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits. Benefits such as salaries, wages, and performance incentive paid annual leave, bonus, leave travel assistance, medical allowance, contribution to provident fund and superannuation etc. recognized as actual amounts due in period in which the employee renders the related services.
i. The Company has formed a Provident Fund Trust for its employees. Contributions are made to the Trust, which is administered by the Trustees. Trust makes investments and also settles claims of members. Interest payable to the members shall not be at a rate lower than the statutory rate. In case of short fall in the interest accrued, the same is contributed by the Company. Contribution to Provident Fund is charged to accounts on accrual basis.
For this Scheme, contributions are made by the Company, based on current salaries, to recognized Fund maintained by the Company; simultaneously contributions are also made by the employees to Provident fund scheme.
ii. The Company''s gratuity benefit scheme is a defined benefit plan. The Company''s net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in current and prior periods. For this purpose the Company has obtained qualifying group gratuity insurance policy from Life Insurance Corporation of India.
iii. The Company provides benefits to its employees under the Leave Encashment pay plan which is a non-contributory defined benefit plan. The employees of the Company are entitled to receive certain benefits in lieu of the annual leave not availed of during service, at the time of retirement. The benefits payable takes into account the Salary and the leave balance to the credit of the employees on the date of retirement.
10. SEGMENT REPORTING:
The segments have been identified taking into account the nature of the products/services, geographical locations, nature of risks and returns, internal organization structure and internal financial reporting system. The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.
11. LEASES:
Assets acquired on lease where significant portions of the risk and rewards incidental to the ownership are retained by the lessors are classified as operating leases. Rental expenses on assets obtained under operating lease arrangements are recognized on a straight line basis as expense in the Statement of Profit and Loss over the lease term of respective lease arrangement.
12. EARNINGS PER SHARE:
Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.
13. TAXATION:
Tax expense comprises of current and deferred tax charge or credit.
Current Tax is determined as the amount of income tax payable to the taxation authorities in respect of taxable income for the period.
Deferred tax charge or credit reflects the tax effects of timing differences between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantially 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 carry forward of losses, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. A deferred tax asset are reviewed at each balance sheet date and is written-down or written-up to reflect the amount that is reasonably / virtually certain (as the case may be) to be realized.
14. PROVISIONS AND CONTINGENCIES:
Provisions are recognized when the Company has a legal and constructive obligation as a result of a past event, for which it is probable that the cash outflow will be required and a reliable estimate can be made of the amount of the obligation.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
15. DIVIDEND:
Final dividend on equity shares are recorded as a liability on the date of the approval by the shareholders and interim dividend are recorded as liability on the date of declaration by the Company''s Board of Directors.
Mar 31, 2015
I. Basis of preparation offinancial statements:
The financial statements are prepared under the historical cost
convention on accrual basis of accounting and in accordance with
accounting principles generally accepted in India. Pursuant to Section
133 of the Companies Act, 2013 read with rule 7 of Companies (Accounts)
Rule, 2014, till the standard of accounting or any addendum thereto are
prescribed by the Central Government in consultation and recommendation
of National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act, 1956 shall continue to
apply. Consequently these financial statements have been prepared to
comply in all material aspects with the Accounting Standards notified
u/s 211 (3C) [Accounting Standard Rules, 2006 as amended] and other
relevant provisions of Companies Act, 2013, the National Housing Bank
Act, 1987 and The Housing Finance Companies (NHB) Directions, 2010 as
amended.
Accounting policies not specifically referred to otherwise are
consistent with the generally accepted accounting principles followed
by the Company.
ii. Presentation and Disclosure of Financial Statements:
All the assets and liabilities have been classified as current or
non-current as per the company''s normal operating cycle and other
criteria set out in the Schedule III to the Companies Act, 2013. The
company has ascertained its operating cycle as 12 months for the
purpose of current or non-current classification of assets and
liabilities.
iii. Use of Estimates:
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities) as of the date of
the financial statements and the reported income and expenses during
the reporting period. The Management believes that the estimates used
in preparation of the financial statements are prudent and reasonable.
Future results could differ from these estimates. Any difference
between the actual results and estimates are recognized in the period
in which the results are known / materialize. Any revision to
accounting estimates is recognized prospectively in the current and
future period.
1. REVENUE RECOGNITION:
a) INCOME ON LOANS :
i. Repayment of loans is by way of Equated Monthly Installment (EMI)
comprising principal and interest. Interest is calculated on the
outstanding loan balance at the beginning of every month. EMIs commence
once the entire loan is disbursed. Pending commencement of EMIs,
Pre-EMI interest is payable every month.
ii. Interest on Loans which are classified as Non- performing assets is
recognized on realization as per the directives/ guidelines laid down
by National Housing Bank.
iii. Fees are recognized as and when accrued.
iv. Penal Interest and other charges are recognized when received.
b) INVESTMENT INCOME :
i. Dividend and interest income:
Dividend income is recognized when the unconditional right to receive
the income is established. Income from interest on deposits and
interest bearing securities is recognized on the time proportionate
method taking into account the amount outstanding and the rate
applicable.
ii. Income on Investments which are classified as Non - performing is
recognized on realization as per the directives/ guidelines laid down
by National Housing Bank.
2. CASH AND CASH EQUIVALENT:
For purpose of the Cash Flow Statement, Cash comprises Cash in Hand,
Balance with Banks and Demand Deposits with Banks.
3. CASH FLOW STATEMENT:
Cash flows are reported using the indirect method, where by net profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities are segregated.
4. FIXED ASSETS:
Fixed Assets are stated at cost of acquisition, or construction
inclusive of expenses incidental thereto less accumulated depreciation
and accumulated impairment loss, if any. Subsequent expenditure related
to an item of Fixed Assets are added
to its book value only if they increase the future benefits from the
existing assets beyond its previously assessed standard of performance.
5. DEPRECIATION:
Depreciation on Fixed Assets is provided on the reducing balance method
over the estimated useful life of the assets as prescribed under
Schedule II to the Companies Act, 2013. Assets costing upto Rs. 5000 are
fully depreciated in the year of purchase.
6. INTANGIBLE ASSETS AND AMORTIZATION:
Intangible assets are recognized only if it is probable that the future
economic benefits attributable to asset will flow to the enterprise and
the cost of asset can be measured reliably. Intangible assets are
stated at acquisition cost, net off accumulated amortization and
accumulated impairment losses, if any. Intangible assets are amortized
on straight line basis over their estimated useful life.
The amortization period and the amortization method are reviewed at
least at each financial year end. If expected life of asset is
significantly different from previous estimates the amortization period
is changed accordingly. Computer Application Software is amortized over
the period of 3 years on straight line basis or useful life, whichever
is shorter.
7. IMPAIRMENT OF ASSETS:
Assessment is done at each Balance Sheet date as to whether there is
any indication that an asset [tangible and intangible] is impaired. If
any such indication exists, an estimate of the recoverable amount of
the asset / cash generating unit is made. Assets whose carrying value
exceeds the recoverable amount are written down to the recoverable
amount. Recoverable amount is the higher of an asset''s net selling
price and its value in use. Value in use is the present value of
estimated future cash flows expected to arise from the continuing use
of the asset and from its disposal at the end of its useful life. Net
selling price is the amount obtainable from sale of the asset in an
arm''s length transaction between knowledgeable, willing parties, less
the costs of disposal. Assessment is also done at each Balance Sheet
date as to whether there is any indication that an impairment loss
recognized for an asset in prior accounting period may no longer exists
or may have decreased.
8. INVESTMENTS:
Investments are classified into current and Non-current investments
In accordance with the Guidelines issued by National Housing Bank
(NHB), current investments are carried at lower of cost and fair value.
Long term investments are carried at cost. However, provision for
diminution in value of long term investments is made to recognize
decline, other than temporary, on an individual investment basis.
Investments in liquid mutual funds are classified as cash and cash
equivalents.
Unquoted investments in the units of mutual funds in the nature of
current investments are carried at lower of cost and the net asset
value declared by mutual funds in respect of each particular scheme.
9. PROVISIONING FOR LOANS AND INVESTMENTS:
i. Loans are classified into "Performing" and "Non-Performing"
assets in terms of guidelines laid down by the National Housing Bank.
Loans are further classified as standard, sub-standard, doubtful and
loss assets.
ii. Provisions for performing assets and non-performing assets and
investments are made on a periodic review in accordance with the
directives /guidelines laid down by the National Housing Bank.
10. EMPLOYEE BENEFITS:
Defined contribution plan:
A defined contribution plan is a post-employment benefit plan under
which an entity pays fixed contributions into a separate entity and
will have no legal or constructive obligation to pay further amounts.
Obligations for contributions to Employees'' Pension Scheme and Employee
State Insurance Scheme and EDLI, which are defined contribution plans
are recognized as an employee benefit expense in the statement of
profit and loss as and when the services are received from the
employees.
Defined benefit plans:
A defined benefit plan is a post-employment benefit plan other than a
defined contribution plan. The Company''s net obligation in respect of
provident fund plan, leave encashment plan and gratuity plan, which are
defined benefit plans, and certain other defined benefit plans is
calculated separately for each plan by estimating the amount of future
benefit that employees have earned in return for their service in the
current and prior periods; that benefit is discounted to determine its
present value. Any unrecognized past service costs and the fair value
of any plan assets are deducted. The discount rate is the yield at the
reporting date on risk free government bonds that have maturity dates
approximating the terms of the Company''s obligations and that are
denominated in the same currency in which the benefits are expected to
be paid. The calculation is performed annually by a qualified actuary
using the projected unit credit method.
Retirement and other employee benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages, and performance incentive paid annual leave,
bonus, leave travel assistance,
medical allowance, contribution to provident fund and superannuation
etc. recognized as actual amounts due in period in which the employee
renders the related services.
i. The Company has formed a Provident Fund Trust for its employees.
Contributions are made to the Trust, which is administered by the
Trustees. Trust makes investments and also settles claims of members.
Interest payable to the members shall not be at a rate lower than the
statutory rate. In case of short fall in the interest accrued, the same
is contributed by the Company. Contribution to Provident Fund is
charged to accounts on accrual basis.
For this Scheme, contributions are made by the company, based on
current salaries, to recognized Fund maintained by the company. In case
of Provident fund scheme, contributions are also made by the employees.
ii. The Company''s gratuity benefit scheme is a defined benefit plan.
The Company''s net obligation in respect of the gratuity benefit
scheme is calculated by estimating the amount of future benefit that
employees have earned in return for their service in current and prior
periods. For this purpose the Company has obtained qualifying group
gratuity insurance policy from Life Insurance Corporation of India.
iii. The Company provides benefits to its employees under the Leave
Encashment pay plan which is a non-contributory defined benefit plan.
The employees ofthe Company are entitled to receive certain benefits in
lieu ofthe annual leave not availed of during service, at the time of
retirement. The benefits payable takes into account the Salary and the
leave balance to the credit of the employees on the date of retirement.
11. SEGMENT REPORTING:
The segments have been identified taking into account the nature ofthe
products/services, geographical locations, nature of risks and returns,
internal organization structure and internal financial reporting
system. The Company prepares its segment information in conformity with
the accounting policies adopted for preparing and presenting the
financial statements of the Company as a whole.
12. LEASES:
Assets acquired on lease where significant portions of the risk and
rewards incidental to the ownership are retained by the lessors are
classified as operating leases. Rental expenses on assets obtained
under operating lease arrangements are recognized on a straight line
basis as expense in the Statement of Profit and Loss over the lease
term of respective lease arrangement.
13. EARNINGS PER SHARE:
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
14. TAXATION:
Tax expense comprises of current and deferred tax charge or credit.
Current Tax is determined as the amount of income tax payable to the
taxation authorities in respect of taxable income for the period.
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantially 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 carry forward of
losses, deferred tax assets are recognized only if there is a virtual
certainty of realization of such assets.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws. A deferred tax asset are reviewed at each balance sheet
date and is written-down or written- up to reflect the amount that is
reasonably / virtually certain (as the case may be) to be realized.
15. CONTINGENT LIABILITY:
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the
financial statements.
Mar 31, 2014
1. SYSTEM OF ACCOUNTING :
i. Basis of preparation of financial statements
The financial statements are prepared under the historical cost
convention on accrual basis of accounting and in accordance with
accounting principles generally accepted in India. The Financial
Statements comply in all material aspects with the Accounting Standards
notified under the Companies (Accounting Standards) Amendment Rules,
2011, the relevant provisions of the Companies Act, 1956, read with
General Circular 15/2013 dated September 13, 2013, issued by the
Ministry of Corporate Affairs, in respect of Sec.133 of Companies Act,
2013, the National Housing Bank Act, 1987 and The Housing Finance
Companies (NHB) Directions, 2010 as amended.
Accounting policies not specifically referred to otherwise are
consistent with the generally accepted accounting principles followed
by the Company.
All the assets and liabilities have been classified as current or
non-current as per the company''s normal operating cycle and other
criteria set out in the Revised Schedule VI to the Companies Act, 1956.
The company had ascertained its operating cycle as 12 months for the
purpose of current or non-current classification of assets and
liabilities.
ii. Use of Estimates
The preparation of financial statements requires the Management to make
estimates and assumptions considered in the reported amounts of assets
and liabilities (including contingent liabilities) as of the date of
the financial statements and the reported income and expenses during
the reporting period. The Management believes that the estimates used
in preparation of the financial statements are prudent and reasonable.
Future results could differ from these estimates.
2. REVENUE RECOGNITION:
a) INCOME ON HOUSING LOANS :
i. Repayment of housing loans is by way of Equated Monthly Installments
(EMI) comprising principal and interest. Interest is calculated on the
outstanding loan balance at the beginning of every month. EMIs commence
once the entire loan is disbursed. Pending commencement of EMIs,
Pre-EMI interest is payable every month.
ii. Interest on Housing Loans which are classified as Non- performing
assets is recognised on realisation as per the directives/guidelines
laid down by National Housing Bank.
iii. Fees are recognized as and when accrued.
iv. Penal Interest and other charges are recognised when received.
b) INVESTMENT INCOME :
i. Dividend and interest income :
Dividend income is recognised when the unconditional right to receive
the income is established. Income from interest on deposits and
interest bearing securities is recognized on the time proportionate
method taking into account the amount outstanding and the rate
applicable.
ii. Income on Investments which are classified as Non - performing is
recognised on realisation as per the directives/ guidelines laid down
by National Housing Bank.
3. INVESTMENTS :
In accordance with the Guidelines issued by National Housing Bank
(NHB), current investments are carried at lower of cost and fair value
and long term investments are carried at cost. However, provision is
made to recognize decline other than temporary in the carrying amount
of long term investments. Unquoted investments in the units of mutual
funds in the nature of current investments are valued at the net asset
value declared by mutual funds in respect of each particular scheme as
per the guidelines issued by the NHB.
4. FIXED ASSETS :
Fixed Assets are stated at cost of acquisition, or construction
inclusive of expenses incidental thereto less accumulated depreciation
and impairment loss, if any.
5. DEPRECIATION: Depreciation on Fixed Assets is provided on the
reducing balance method at the rates specified by Schedule XIV of the
Companies Act, 1956.
6. INTANGIBLE ASSETS AND AMORTISATION
Intangible assets comprising of Computer Software are capitalized at
cost and amortised over a period of their useful life on straight line
basis.
7. PROVISIONING FOR HOUSING LOANS AND INVESTMENTS :
i. Housing loans are classified into "Performing" and "Non-Performing"
assets in terms of guidelines laid down by the National Housing Bank.
Housing loans are classified as standard, sub-standard, doubtful and
loss assets.
ii. Provisions for performing assets and non-performing assets and
investments are made on a periodic review in accordance with the
directives /guidelines laid down by the National Housing Bank.
8. EMPLOYEE BENEFITS:
Defined contribution plan :
A defined contribution plan is a post-employment benefit plan under
which an entity pays fixed contributions into a separate entity and
will have no legal or constructive obligation to pay further amounts.
Obligations for contributions to Employees'' Pension Scheme and Employee
State Insurance Scheme and EDLI, which are defined contribution plans
are recognized as an employee benefit expense in the statement of
profit and loss as and when the services are received from the
employees.
Defined benefit plans:
A defined benefit plan is a post-employment benefit plan other than a
defined contribution plan. The Company''s net obligation in respect of
provident fund plan, leave encashment plan and gratuity plan, which are
defined benefit plans, and certain other defined benefit plans is
calculated separately for each plan by estimating the amount of future
benefit that employees have earned in return for their service in the
current and prior periods; that benefit is discounted to determine its
present value. Any unrecognized past service costs and the fair value
of any plan assets are deducted. The discount rate is the yield at the
reporting date on risk free government bonds that have maturity dates
approximating the terms of the Company''s obligations and that are
denominated in the same currency in which the benefits are expected to
be paid. The calculation is performed annually by a qualified actuary
using the projected unit credit method.
Retirement and other employee benefits:
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. Benefits
such as salaries, wages, and performance incentive paid annual leave,
bonus, leave travel assistance, medical allowance, contribution to
provident fund and superannuation etc. recognized as actual amounts due
in period in which the employee renders the related services.
i. The Company has formed a Provident Fund Trust for its employees.
Contributions are made to the Trust, which is administered by the
Trustees. Trust makes investments and also settles claims of members.
Interest payable to the members shall not be at a rate lower than the
statutory rate. Contribution to Provident Fund is charged to accounts
on accrual basis.
For this Scheme, contributions are made by the company, based on
current salaries, to recognized Fund maintained by the company. In case
of Provident fund scheme, contributions are also made by the employees.
ii. The Company''s gratuity benefit scheme is a defined benefit plan.
The Company''s net obligation in respect of the gratuity benefit scheme
is calculated by estimating the amount of future benefit that employees
have earned in return for their service in current and prior periods.
For this purpose the Company has obtained qualifying group gratuity
insurance policy from Life Insurance Corporation of India.
iii. The Company provides benefits to its employees under the Leave
Encashment pay plan which is a non-contributory defined benefit plan.
The employees of the Company are entitled to receive certain benefits
in lieu of the annual leave not availed of during service, at the time
of retirement. The benefits payable takes into account the Salary and
the leave balance to the credit of the employees on the date of
retirement.
9. IMPAIRMENT LOSS
Impairment loss is provided to the extent the carrying amount of assets
exceeds their recoverable amounts. Recoverable amount is the higher of
an asset''s net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the asset and from its disposal at the end of its
useful life. Net selling price is the amount obtainable from sale of
the asset in an arm''s length transaction between knowledgeable, willing
parties, less the costs of disposal.
10. TAXATION
Tax expense comprises of current and deferred tax charge or credit.
Current Tax is determined as the amount of income tax payable to the
taxation authorities in respect of taxable income for the period.
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognised using the tax rates
that have been enacted or substantially enacted by the balance sheet
date. Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognised only if there is a virtual
certainty of realisation of such assets.
Deferred tax assets and deferred tax liabilities are offset, if a
legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred tax assets and deferred tax
liabilities relate to the taxes on income levied by same governing
taxation laws. Deferred tax assets are reviewed at each balance sheet
date and is written-down or written-up to reflect the amount that is
reasonably / virtually certain (as the case may be) to be realised.
11. CONTINGENT LIABILITY :
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does
not recognize a contingent liability but discloses its existence in the
financial statements.
12. LEASES :
Assets acquired on lease where significant portions of the risk and
rewards incidental to the ownership are retained by the lessors are
classified as operating leases. Lease rentals are charged to the
Statement of Profit & Loss on accrual basis.
13. EARNINGS PER SHARE :
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
Mar 31, 2013
1. SYSTEM OF ACCOUNTING :
The accounts have been prepared to comply in all material aspects with
applicable accounting principles in India, mandatory Accounting
Standards notifi ed by the Companies (Accounting Standards) Amendment
Rules, 2011 and the relevant provisions of the Companies Act, 1956. The
Company adopts the accrual concept in the preparation of the Financial
Statements, following the historical cost convention.
2. PROVISIONING FOR HOUSING LOANS AND INVESTMENTS :
i. Housing loans are classifi ed into "Performing and "Non-PerformingÂ
assets in terms of guidelines laid down by the National Housing Bank.
Housing loans are classifi ed as standard, sub-standard, doubtful and
loss assets.
ii. Provisions for performing assets and non-performing assets and
investments are made on a periodic review in accordance with the
directives /guidelines laid down by the National Housing Bank.
3. INCOME ON HOUSING LOANS :
i. Repayment of housing loans is by way of Equated Monthly Installments
(EMI) comprising principal and interest. Interest is calculated on the
outstanding loan balance at the beginning of every month. EMIs commence
once the entire loan is disbursed. Pending commencement of EMIs,
Pre-EMI interest is payable every month.
ii. Interest on Housing Loans which are classifi ed as Non- performing
assets is recognised on realisation as per the directives/ guidelines
laid down by National Housing Bank.
iii. Fees are recognized as and when accrued.
iv. Penal Interest and other charges are recognised when received.
4. INVESTMENTS:
i. Investments are accounted and valued at cost plus incidental
expenditure incurred in connection with acquisition.
ii. Investments are classifi ed into two categories i.e. Non-current
investments and Current investments.
iii. Income on Investments which are classifi ed as Non performing is
recognised on realisation as per the directives/guidelines laid down by
National Housing Bank.
5. FIXED ASSETS :
Fixed Assets are capitalised at cost.
6. DEPRECIATION:
Depreciation on Fixed Assets is provided on the reducing balance method
at the rates specifi ed by Schedule XIV of the Companies Act, 1956.
7. INTANGIBLE ASSETS AND AMORTISATION:
Intangible assets comprising of Computer Software are capitalized at
cost and amortised over a period of their useful life.
8. EMPLOYEE BENEFITS:
Contribution to Provident Fund is charged to accounts on accrual basis.
Provision for leave encashment has been made on the basis of actuarial
valuation. Provision for gratuity liability is made on the basis of
actuarial valuation in respect of the Group Gratuity Policy with an
insurance company.
Mar 31, 2012
1. SYSTEM OF ACCOUNTING :
The accounts have been prepared to comply in all material aspects with
applicable accounting principles in India, mandatory Accounting
Standards notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956. The Company
adopts the accrual concept in the preparation of the Financial
Statements, following the historical cost convention.
2. PROVISIONING FOR HOUSING LOANS AND INVESTMENTS :
i. Housing loans are classified into "Performing" and "Non-Performing"
assets in terms of guidelines laid down by the National Housing Bank.
Housing loans are classified as standard, sub-standard, doubtful and
loss assets.
ii. Provisions for performing assets and non-performing assets and
investments are made on a periodic review in accordance with the
directives /guidelines laid down by the National Housing Bank.
3. INCOME ON HOUSING LOANS :
i. Repayment of housing loans is by way of Equated Monthly Installments
(EMI) comprising principal and interest. Interest is calculated on the
outstanding loan balance at the beginning of every month. EMIs commence
once the entire loan is disbursed. Pending commencement of EMIs,
Pre-EMI interest is payable every month.
ii. Interest on Housing Loans which are classified as Non- performing
assets is recognised on realisation as per the directives/ guidelines
laid down by National Housing Bank.
iii. Fees are recognized as and when accrued.
iv. Penal Interest and other charges are recognised when received.
4. INVESTMENTS:
i. Investments are accounted and valued at cost plus incidental
expenditure incurred in connection with acquisition.
ii. Investments are classified into two categories i.e. Long-term
investments and Current investments.
iii. Income on Investments which are classified as Non performing is
recognised on realisation as per the directives/guidelines laid down by
National Housing Bank.
5. FIXED ASSETS :
Fixed Assets are capitalised at cost.
6. DEPRECIATION:
Depreciation on Fixed Assets is provided on the reducing balance method
at the rates specified by Schedule XIV of the Companies Act, 1956.
7. INTANGIBLE ASSETS AND AMORTISATION
Intangible assets comprising of Computer Software are capitalized at
cost and amortised over a period of five years.
8. EMPLOYEE BENEFITS:
Contribution to Provident Fund is charged to accounts on accrual basis.
Provision for leave encashment has been made on the basis of actuarial
valuation. Provision for gratuity liability is made on the basis of
actuarial valuation in respect of the Group Gratuity Policy with an
insurance company.
Mar 31, 2010
1. SYSTEM OF ACCOUNTING :
The accounts have been prepared to comply in all material aspects with
applicable accounting principles in India, mandatory Accounting
Standards notified by the Companies (Accounting Standards) Rules, 2006
and the relevant provisions of the Companies Act, 1956. The Company
adopts the accrual concept in the preparation of the Financial
Statements, following the historical cost convention.
2. PROVISIONING FOR HOUSING LOANS AND INVESTMENTS :
i. Housing loans are classified into "Performing" and "Non-Performing"
assets in terms of guidelines laid down by the National Housing Bank.
Housing loans are classified as standard, sub-standard, doubtful and
loss assets.
ii. Provisions for non-performing assets and investments are made on a
periodic review in accordance with the directives/guidelines laid down
by the National Housing Bank.
3. INCOME ON HOUSING LOANS :
i. Repayment of housing loans is by way of Equated Monthly Installments
(EMI) comprising principal and interest. Interest is calculated on the
outstanding loan balance at the beginning of every month. EMIs commence
once the entire loan is disbursed. Pending commencement of EMIs,
Pre-EMI interest is payable every month.
ii. Interest on Housing Loans which are classified as Non- performing
assets is recognised on realisation as per the directives/guidelines
laid down by National Housing Bank.
iii. Fees are recognised as and when accrued.
iv. Penal Interest and other charges are recognised when received.
4. INVESTMENTS:
i. Investments are accounted and valued at cost plus incidental
expenditure incurred in connection with acquisition.
ii. Investments are classified into two categories i.e. Long-term
investments and Current investments.
iii. Income on Investments which are classified as Non performing is
recognised on realisation as per the directives/guidelines laid down by
National Housing Bank.
5. FIXED ASSETS :
Fixed Assets are capitalised at cost.
6. DEPRECIATION :
Depreciation on Fixed Assets is provided on the reducing balance method
at the rates specified by Schedule XIV of the Companies Act, 1956.
7. INTANGIBLE ASSETS AND AMORTISATION :
Intangible assets comprising of Computer Software are capitalised at
cost and amortised over a period of five years.
8. RETIREMENT BENEFITS :
Contribution to Provident Fund is charged to accounts on accrual basis.
Provision for leave encashment has been made on the basis of actuarial
valuation. Provision for gratuity liability is made on the basis of
actuarial valuation in respect of the Group Gratuity Policy with an
insurance company.
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