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Accounting Policies of Gujarat Lease Financing Ltd. Company

Mar 31, 2015

1) Significant Accounting Policies

a) Basis of preparation

The financial statements of the Company have 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, and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b) Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

c) Other income

Interest income is accounted on an accrual basis. Dividend income is accounted for when the right to receive it is established.

d) Fixed Assets (Tangible)

Fixed assets are carried at cost less accumulated depreciation / amortisation and impairment losses, if any. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use and other incidental expenses. Subsequent expenditure on fixed assets after its purchase is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

e) Depreciation

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value.

Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

f) Investments

Long-term investments are carried individually at cost less provision for diminution, other than temporary, in the value of such investments.

g) Employee benefits

Employee benefits include provident fund, gratuity fund and compensated absences.

Defined contribution plans

The Company's contribution to provident fund are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plans

The company has taken policy with the Life Insurance Corporation of India which covers the liability of gratuity to employees accruing under the Payment of Gratuity Act 1972. Annual premium on the basis of said policy is accounted for in the year of payment.

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(a) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(b) in case of non-accumulating compensated absences, when the absences occur.

h) Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the post-tax effect of extraordinary items, if any) as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

i) Taxes on income

Current tax is determined on the basis of taxable income and tax credits computed for the Company in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carry forward of losses and item relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

j) Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

k) Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events 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 (excluding retirement benefits) are not discounted to their present value and are determined based on the 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. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.


Mar 31, 2013

1.1 Accounting Convention

The accounts have been prepared on historical cost convention accrual basis in accordance with the requirements of the companies Act, 1956 including the accounting standards notified by the Central Government of India under Section 211 (3C) of the Companies Act. 1956.

1.2. Revenue Recognition

(a) Revenue is recognized when there is reasonable certainty of its ultimate realization/collection.

(b) Dividend Income is accounted on receipt basis.

1.3 Fixed Assets

Fixed Assets, including assets, given on lease if any, are recorded at the cost of acquisition. They are stated at historical cost.

1.4 Depreciation

Depreciation on own assets is provided on the Straight line method in accordance with Section 205(2)(a) of the Companies Act, 1956 as per the rates and in the manner specified in Schedule XIV of the Companies Act,1956.

1.5 Investments

Investments are stated at cost of acquisition. Adequate provision for diminution in the value is made to recognize a decline, other than temporary, in the value of the investments.

1.6 Retirement Benefits: ''

The company has taken policy with the Life Insurance Corporation of India which covers the liability of gratuity to employees accruing under the Payment of Gratuity Act 1972. Annual premium on the basis of said policy is accounted for in the year of payment.

Provision for leave encashment is made as calculated by the management.

1.7 Provision, Contingent Liabilities and Contingent Assets :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and its probable that there will be an out flow of resources.

Liabilities, which are contingent nature and not provided but are disclosed at their estimated amount in the notes to the accounts. Contingent assets are neither recognized nor disclosed in the financial statement.


Mar 31, 2012

1.1 Basis of accounting

The accounts have been prepared on historical cost basis of accounting. The company adopts the accrual system of accounting and the accounts are prepared on a going concern basis.

1.2. Revenue Recognition

(a) Revenue is recognized when there is reasonable certainty of its ultimate realization/collection.

(b) Dividend Income is accounted on receipt basis. .

1.3 Fixed Assets

Fixed Assets, including assets, given on lease if any, are recorded at the cost of acquisition. They are stated at historical cost.

1.4 Depreciation

Depreciation on own assets is provided on the Straight line method in accordance with Section 205(2)(a) of the Companies Act,1956 as per the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

1.5 Investments

Investments are stated at cost of acquisition. Adequate provision for diminution in the value is made to recognize a decline, other than temporary, in the value of the investments.

1.6 Retirement Benefits:

The company has taken policy with the Life Insurance Corporation of India which covers the liability of gratuity to employees accruing under the Payment of Gratuity Act 1972. Annual premium on the basis of said policy is accounted for in the year of payment.

Provision for leave encashment is made as calculated by the management.

1.7 Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and its probable that there will be an out flow of resources.

Liabilities, which are contingent in nature and not provided but are disclosed at their estimated amount in the Notes to the Accounts. Contingent assets are neither recognized nor disclosed in the financial statement.


Mar 31, 2011

1. Basis of accounting

The accounts have been prepared on historical cost basis of accounting. The company adopts the accrual system of accounting and the accounts are prepared on a going concern basis.

2. Revenue Recognition

(a) Revenue is recognized when there is reasonable certainty of its ultimate realization/collection.

(b) Dividend Income is accounted on receipt basis.

3. Fixed Assets

Fixed Assets, including assets, given on lease if any, are recorded at the cost of acquisition. They are stated at historical cost.

4. Depreciation

Depreciation on own assets is provided on the Straight line method in accordance with Section 205(2)(a) of the Companies Act,1956 as per the rates and in the manner specified in Schedule XIV of the Companies Act,1956.

5. Investments

Investments are stated at cost of acquisition. Adequate provision for diminution in the value is made to recognize a decline, other than temporary, in the value of the investments.

6. Retirement Benefits:

The company has taken policy with the Life Insurance Corporation of India which covers the liability of gratuity to employees accruing under the Payment of Gratuity Act 1972. Annual premium on the basis of said policy is accounted for in the year of payment.

Provision for leave encashment is made as calculated by the management.

7. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and its probable that there will be an out flow of resources.

Liabilities, which are contingent nature and not provided but are disclosed at their estimated amount in the Notes to the Accounts. Contingent assets are neither recognized nor disclosed in the financial statement.


Mar 31, 2010

1. Basis of accounting

The accounts have been prepared on historical cost basis of accounting. The company adopts the accrual system of accounting and the accounts are prepared on a going concern basis.

2. Revenue Recognition

(a) Revenue is recognized when thereisre as onablecertainty of itsulti materealization/collection.

(b) Dividend Income is accounted on receipt basis.

3. Fixed Assets

Fixed Assets, including assets, given on lease if any, are recorded at the cost of acquisition. They are stated at historical cost.

4. Depreciation

Depreciation on own assets is provided on the Straight line method in accordance with Section 205(2)(a) of the Companies Act,1956 as per the rates and in the manner specified in Schedule XTV of the Companies Act,1956.

5. Investments

Investments are stated at cost of acquisition. Adequate provision for diminution in the value is made to recognize a decline, other than temporary, in the value of the investments.

6. Retirement Benefits:

The company has taken policy with the Life Insurance Corporation of India which covers the liability of gratuity to employees accruing under the Payment of Gratuity Act 1972. Annual premium on the basis of said policy is accounted for in the year of payment. Provision for leave encashment is madeas calculated by the management.

7. Provision, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and its probable that there will be an out flow of resources.

Liabilities, which are contingent nature and not provided but are disclosed at their estimated amount in the Notes to the Accounts. Contingent assets are neither recognized nor disclosed in the financial statement.

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