Mar 31, 2015
1 The Financial Statements of the Corporation are prepared on Accrual
basis except for Interest c NPAs which has been accounted for on
receipt basis as per RBI guidelines.
2 The amount received from the borrowers against bans and advances is
appropriated in the folbwing orders
i) Miscellaneous Expenses
ii) Interest
iii) Principal
3 In the past, when the Corporation used to sell borrowers' assets on
deferred payment basis,respecti' borrowers' loan accounts was credited
by the full amount of the sale proceeds after execution of agreeme to
sell. The deferred part of sale proceeds used to be treated as fresh
loan to the auction purchasers ai recovered as per the terms of the
sale agreements. The possession of the property was also used to be
hand' over after execution of Agreement to Sell to the Auction
Purchaser. The Corporation has modified its policy 1 sale of mortgaged
property and as per the new policy approved by the BoD in its meeting
held on 19.12.201 the units will be sold on the terms of payments by
the auction purchaser within 3 months. However, in sor exceptional
cases, the Managing Director may give extension in payment of sale
consideration for a furtf period of 9 months @ 13% with compounding on
monthly basis. As per new policy the possession of the u will be handed
over to the auction purchaser only after receipt of full amount of bid.
4 The Corporation introduced settlement policies namely, the policy for
Compromise Settlement Chronic Non-Performing Assets (Doubtful Loan
Accounts) of Haryana Financial Corporation-2011 and the pol for
Compromise Settlement of Loss Accounts of Haryana Financial Corporation
- 2011 in the financial y( 2011-12 extended upto 30.09.2015 to reduce
NPAs/written off portfolios.
In the normal course, the recoveries are adjusted first against the
actual misc. expenses and th against the outstanding interest and
thereafter, the balance amount is adjusted against outstanding princii
amount. However, as per parameters of OTS Policies, the accounts are
recast by appropriating the amoi realized by way of sale of mortgaged
assets by the Corporation or sale by promoters/guarantors/mortgage with
the permission of the Corporation or by order of any court, on the date
of sale, first against actual mi expenses, then against the principal
amount balance if any against the outstanding interest.
5 Retirement Benefits
i) Gratuity to employees of the Corporation is governed by u Punjab
Financial Corporal Employees Group Gratuity Regulations, 1964 as
applicable to employees of the Haryana Finan Corporation". The fund is
being maintained by Life Insurance Corporation of India. Provision for
grat liability for the existing staff as on 31.03.2015 amounting to Rs.
0.15 crore as per actuarial valuatioi Life Insurance Corporation of
India ( LIC ) has been duly provided for in the books of accounts an<
provision of Rs. 0.65 crore in case of retirees whose gratuity has not
been released upto 31.03.2' has been made in the books of
accounts.Provision for Leave Encashment liability payable to s
amounting to Rs. 4.16 crore has been made in the books of accounts.
ii) Provision of Compassionate Assistance liability amounting to Rs.
0.64 crore payable to 1 legal heirs of the deceased employees on the
pattern of Govt, of Haryana has been made in the be of accounts.
ii) Monthly matching contribution towards employees provident fund is
remitted to the Regii Provident Fund Commissioner, Chandigarh as per
provisions of the Employees Provident F and Miscellaneous Provisions
Act, 1952 and is charged to profit and loss account.
6) Asset Classification and Provisioning
i) Loans and Advances have been categorised and provisioning has been
made as per guidel received from Small Industries Development Bank of
India (SIDBI) which are as under:
ii) As per guidelines issued by SIDBI in respect of investments in
equity shares (available for sale ), evaluation has been done as per
market rate, which is the price of the script available from trades /
quotes on the stock exchange. Those scripts for which current
quotations are not available or where the shares are not quoted on
stock exchange, have been valued at book value as certained from their
latest Balance Sheets. In case the latest Balance Sheet is not
available, the shares have been valued at Rs. 1/- per company. In case
of Investment in equity shares ( held to maturity) evaluation has been
done at acquisition price.
The shares which are held to maturity are shown as non current
investments. The shares which are quoted on the stock exchanges have
been shown as quoted investment. Rest of the shares listed ( at the
time of acquisition but now not quoted ) and un-listed have been shown
as unquoted current investment.
iii) Entire lease rentals in respect of Equipment Leasing, Vehicle
Leasing and Special Vehicle Leasing cases have fallen due for payment
before the date of balance sheet, hence provisioning equivalent to the
entire amount outstanding on this account as on 31.03.2015 has been
made.
iv) The provisioning has been made without giving the effect of the
amount lying in the Sundry Deposits under schedule 'D' - Other
Liabilities.
7 Fixed Assets/Depreciation
The Corporation is maintaining Fixed Assets purchase register where all
items of fixed assets are entered with date, amount of purchase and its
location. In terms of Accounting Standard ( AS-10 ), it is required to
give the gross block, addition/deletion, depreciation, and written down
value of each block in the schedule attached to the balance sheet Since
the Corporation has has not maintained the fixed assets register on
this pattern since inception, so due to non-availability of required
details, the Corporation is not in a position to maintain the fixed
assets register as per the provision of AS-10. Depreciation on fixed
assets has been provided on written down value method at the rates
prescribed under provisions of Income Tax Rules 1962. Depreciation in
respect respect of leasing portfolio is charged equivalent to principal
amount out of lease rentals recovered on the basis of Capital Recovery
Method. However, amount received in settled cases has been appropriated
as per terms of settlement.
Mar 31, 2013
1 The Financial Statements of the Corporation are prepared on Accrual
basis except for Interest on NPAs which has been accounted for on
receipt basis as per RBI guidelines.
2 The amount received from the borrowers against loans and advances is
appropriated in the following orders: i) Miscellaneous Expenses.
ii) Interest.
iii) Principal.
3 In cases, where the Corporation sells borrowers'' assets on deferred
payment basis, respective borrowers'' loan accounts are credited by the
full amount of the sale proceeds after execution of agreement to sell.
The deferred part of sale proceeds is treated as fresh loans to the
auction purchasers and recovered as per the terms of the sale
agreements.
4 The Corporation introduced settlement policies namely, the policy for
Compromise Settlement of Chronic Non-Performing Assets (Doubtful Loan
Accounts) of Haryana Financial Corporation-2011 and the policy for
Compromise Settlement of Loss Accounts of Haryana Financial Corporation
- 2011 in the financial year 2011-12 for prompt recovery of NPAs. The
Corporation has approved settlement in 194 accounts under above OTS
policies upto 31-03-2013.
In the normal course, the recoveries are adjusted first against the
actual misc. expenses and then against the outstanding interest and
thereafter the balance amount is adjusted against outstanding principal
amount. However, at the time of settlement in terms of the above
policies, the accounts are recast by appropriating the amount realized
by way of sale of mortgaged assets by the Corporation or sale by
promoters / guarantors /mortgagers with the permission of the
Corporation or by order of any court, on the date of sale, first
against actual misc. expenses, then against the principal amount
balance if any against the outstanding ineterst.
5 Retirement Benefits
i) Gratuity to staff is covered under the Group Gratuity Scheme of Life
Insurance Corporation of
India. The Board of Directors in its meeting held on 22.12.2011 has
approved the enhancement of gratuity limit payable to staff (w.e.f.
01.04.09) from Rs. 3.50 lakh to Rs. 10.00 lakh. The State Government has
approved the same and issued necessary Gazette notification. Provision
for gratuity for the existing staff as per revised limit amounting to
Rs.3.97crore as per actuarial valuation of Life Insurance Corporation of
India (LIC) has been provided in the books of account and a provision
of Rs. 2.37 crore in case of retirees as on 31.03.2013 who are eligible
for the enhanced gratuity has also been made. Provision for leave
Encashment payable to staff amounting to Rs.4.79 crore has been provided
in the books of accounts
ii) Monthly matching contribution towards employees provident fund is
remitted to the Regional Provident Fund Commissioner, Chandigarh as per
provisions of the Employees Provident Fund and Miscellaneous Provisions
Act, 1952 and is charged to profit and loss account.
6) Asset Classification and Provisioning
i) Loans and Advances have been categorised and provisioning has been
made there against as per guidelines received from Small Industries
Development Bank of India (SIDBI) which are as under:
Provision of 2.75% has been made on the standard assets which are
upgraded from NPAs for the first year from the date of upgradation
and on restructured accounts classified as standard assets in the first
two years from the date of restructuring. In cases of moratorium of
payment of interest/principal after restructuring, such advances will
attract a provision of 2.75% for the period covering moratorium and two
years thereafter.
ii) As per guidelines issued by SIDBI in respect of investments in
equity shares (available for
sale), evaluation has been done as per market rate, which is the price
of the script available from trades / quotes on the stock exchange.
Those scripts for which current quotations are not available or where
the shares are not quoted on stock exchange, have been valued at book
value ascertained from their latest Balance Sheets. In case the latest
Balance Sheet is not available, the shares have been valued at Rs. 1/-
per company. In case of Investment in equity shares (held to maturity)
evaluation has been done at acquisition price.
iii) Entire lease rentals in respect of Equipment Leasing, Vehicle
Leasing and Special Vehicle
Leasing cases have fallen due for payment before the date of balance
sheet, hence provisioning equivalent to the entire amount outstanding
on this account as on 31.03.2013 has been made. Lease finance in
respect of Loans for Leasing Equipments ( advance ) and Vehicle Sub
Leasing cases are treated as loans, for the purpose of provisioning.
iv) The provisioning has been made without giving the effect of the
amount lying in the
Sundry Deposits under schedule ''E'' - Other Liabilities.
7 Depreciation
Depreciation on fixed assets has been provided on written down value
method at the rates prescribed under provisions of Income Tax Rules
1962. Depreciation in respect of leasing portfolio is charged
equivalent to principal amount out of lease rentals recovered on the
basis of Capital Recovery Method. However, amount received in settled
cases has been appropriated as per terms of settlement.
Mar 31, 2012
A) The Financial Statements of the Corporation are prepared on Accrual
basis except for Interest on NPAs which has been accounted for on
receipt basis as per RBI guidelines.
b) The amount received from the borrowers against loans and advances is
appropriated in the following orders :
i) Miscellaneous Expenses.
ii) Interest.
iii) Principal.
c) In cases, where the Corporation sells borrower''s assets on deferred
payment basis, respective borrowers'' loan accounts are credited by the
full amount of the sale proceeds. The deferred part of sale proceeds is
treated as fresh loans to the auction purchasers and recovered as per
the terms of the sale agreements.
d) During the year, the Corporation introduced settlement policies
namely, the policy for Compromise Settlement of Chronic Non-Performing
Assets (Doubtful Loan Accounts) of Haryana Financial Corporation - 2011
and the policy for Compromise Settlement of Loss Accounts of Haryana
Financial Corporation-2011 for prompt recovery of NPAs. The Corporation
has approved 125 cases of settlement under above policy upto
31-07-2012.
In the normal course, the recoveries are adjusted first against the
actual misc. expenses and then against the outstanding interest and
thereafter the balance amount is adjusted against outstanding principal
amount. However, at the time of settlement in terms of the above
policies, the account are recasted by appropriating the amount realized
by way of sale of mortgaged assets by the Corporation or sale by
promoters/guarantors/mortgagers with the permission of the Corporation
or by order of any court, on the date of sa]e, first against actual
misc. expenses, then against the principal amount balance if any
against the outstanding ineterst.
e) Retirement Benefits
i) Gratuity to staff is covered under the Group Gratuity Scheme of Life
Insurance Corporation of India. The Board of Directors in its meeting
held on 22.12.2011 has approved the enhancement of gratuity limit
payable to staff (w.e.f. 01.04.09) from Rs.3.50 lakh toRs.10.00 lakh.
However provision for shortfall on account of enhanced gratuity limit
amounting to Rs.3.11 crore as per actuarial valuation of Life Insurance
Corporation of India (LIC) has not been provided in the books of
account, as the same is yet to be approved by State Government. The
Corporation is regularly paying the gratuity premium to LIC (on basis
of present gratuity limit of Rs.3.50 lakh) and as per LIC letter dated
25.04.12, the present value of gratuity liability is Rs.4.30 crore and
the fund size towards gratuity of Corporation with LIC is Rs.4.65 crore.
The excess amount Rs.0.35 crore has been appropriated to relevant head
and shown in balance sheet under the head ''Other Assets''. Provision
for leave Encashment payable to staff amounting to Rs.5.08 crore is made
in the books of accounts
ii) Monthly matching contribution towards employees provident fund is
remitted to the Regional Provident Fund Commissioner, Chandigarh as per
provisions of the Employees Provident Fund and Miscellaneous Provisions
Act, 1952 and is charged to profit and loss account.
Provision of 2% has been made on the standard assets which are upgraded
from NPAs for the first year from the date of upgradation and on
restructured accounts classified as standard assets in the first two
years from the date of restructuring.
ii) As per guidelines issued by SIDBI in respect of investments in
equity shares (available for sale), evaluation has been done as per
market rate, which is the price of the script available from trades
/quotes on the stock exchange. Those scripts for which current
quotations are not available or where the shares are not quoted on
stock exchange, have been valued at book value ascertained from the
latest balance sheet. In case the latest balance sheet is not
available, the shares have been valued at Rs. 1/- per company. In case of
Investment in equity shares (held to maturity) evaluation has been done
at acquisition price. ''
iii) Entire lease rentals in respect of Equipment Leasing, Vehicle
Leasing and Special Vehicle Leasing cases have fallen due for payment
before the date of balance sheet, hence provisioning equivalent to the
entire amount outstanding on this account as on 31.03.2012 has been
made. Lease finance in respect of Loans for Leasing Equipments
(advance) and Vehicle Sub Leasing cases are treated as loans, for the
purpose of provisioning.
iv) The provisioning has been made without giving the effect of the
amount lying in the Sundry Deposits under schedule ÂE'' - Other
Liabilities.
g) Depreciation
Depreciation on fixed assets has been provided on written down value
method at the rates prescribed under provisions of Income Tax Rules
1962. Depreciation in respect of leasing portfolio is charged
equivalent to principal amount out of lease rentals recovered on the
basis of Capital Recovery Method. However, amount received in settled
cases has been appropriated as per terms of settlement.
Mar 31, 2010
A) The Financial Statements of the Corporation are prepared on Accrual
basis except for Interest on NPAs which has been accounted for on
receipt basis as per RBI guidelines.
b) The amount received from the borrowers against loans and advances is
appropriated in the following orders :
i) Miscellaneous Expenses.
ii) Interest.
iii) Principal.
c) In cases, where the Corporation sells borrowers assets on deferred
payment basis, respective borrowers loan accounts are credited by the
full amount of the sale proceeds. The deferred part of sale proceeds is
treated as fresh loans to the auction purchasers and recovered as per
the terms of the sale agreements.
d) Retirement Benefits
i) Provision for Gratuity amounting to Rs. 2.42 crore being the
shortfall amount as per actuarial valuation of Life Insurance
Corporation of India (LIC) and Rs. 4.72 crore being the amount of Leave
Encashment payable to staff have been made in the books of accounts.
ii) Monthly matching contribution towards employees provident fund is
remitted to the Regional Provident Fund Commissioner, Chandigarh as per
provisions of the Employees Provident and Miscellaneous Provisions Act,
1952 and is charged to profit and loss account.
e) Asset Classification and Provisioning
ii) As per guidelines issued by SIDBI in respect of investments in
equity shares (available for sale), evaluation has been done as per
market rate, which is the price of the script available from trades /
quotes on the stock exchange. Those scripts for which current
quotations are not available or where the shares are not quoted on
stock exchange, have been valued at value ascertained from the latest
balance sheet. In case the latest balance sheet is not available.the
shares have been valued at Rea- per company. In case of Investment in
equity shares (held to maturity) evaluation has been done at
acquisition price.
iii) Entire lease rentals in respect of Equipment Leasing, Vehicle
Leasing and Special Vehicle leasing (except Employees Vehicle Leasing)
cases have fallen due for payment before the date of balance sheet,
hence provisioning equivalent to the entire amount outstanding on this
account as on 31.03.2010 has been made. Since lease rentals in the case
of Employees Vehicle Leasing are being recovered on due dates, hence no
provisioning has beem made against the same. Lease finance in respect
of Loans for Leasing Equipments (advance) and Vehicle Sub Leasing cases
are treated as loans, for the purpose of provisioning.
iv) The provisioning has been made without giving the effect of the
amount lying in the Sundry Deposits under Schedule E - Other
Liabilities.
f) Depreciation
Depreciation on fixed assets has been provided on written down value
method at the rates prescribed under provisions of Income Tax Rules
1962. Depreciation in respect leasing portfolio is charged equivalent
to principal amount out of lease rentals recovered on the basis of
Capital Recovery Method. However, amount received in settled cases has
been appropriated as per terms of settlement.
Mar 31, 2000
1. From Its April 1983, Corporation changed its method of accounting
from accrual (Mercantile) basis to cash basis. Accordingly, the
Balance Sheet & Profit & Loss Account have been prepared on cash basis
except.
i) Provision for Taxation
ii) Provision for Non-Performing Assets
iii) Depreciation on Assets
iv) Adjustments against/relating to balance of accounts receivable and
payable as on 31st March, 1983 upto which date the system of accounting
was on Mercantile Basis.
v) Public issue expenses being deferred revenue expenditure.
vi) Provision for dividend
2. Amount received in respect of loan cases, where security has been
liquidated due to sale has been appropriated first towards Principal
amount and balance towards interest.
3. In respect of default cases, other than the cases where legal
action has been initiated, the amount recovered during the year has
been first appropriated towards interest accrued and due and thereafter
against principal amount due.
4. Depreciation on fixed assets has been charged at the rates
prescribed under the provision of the Income Tax Act on written down
value method except on leased assets where depreciation has been
charged on the Capital Recovery method.