Mar 31, 2015
Corporate Information
Hasti Finance Limited is a Non Banking Finance Company (Non Deposit
accepting company) having Registered Office at Chennai. The Company is
engaged in financing activities.
1.1 Basis of preparation:
The financial statements of the Company have been prepared under the
historical cost convention on a going concern and accrual basis in
accordance with the generally accepted accounting principles in India
to comply with Accounting Standards notified under rule 7 of the
companies (Accounts) Rules, 2014, the provision of Section 133 of the
Companies Act, 2013 along with the applicable guidelines issue by
Reserve Bank Of India ("RBI") for Non-deposit taking Non-Banking
Finance Companies (NBFC-ND). Further, the company follows the
prudential norms for income recognition, asset classification and
provisioning as prescribed by Reserve Bank of India (RBI) for
Non-deposit taking Non-Banking Finance Companies (NBFC-ND).
1.2 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.
1.3 Cash flow statement:
Cash flows are reported using the indirect method, whereby profit/
(loss) before extraordinary items and tax is adjusted for the effect of
transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flow from operating,
investing and financing activities of the Company are segregated based
on the available information. The Company considers all highly liquid
financial instruments, which are readily convertible into cash, to be
cash equivalents.
1.4 Revenue Recognition:
a. Income on Loan transactions
Interest from interest-bearing assets is recognized on accrual basis.
Interest and other dues in the case of nonperforming loans is
recognized upon realization, as per the income recognition and asset
classification norms prescribed by the RBI. Unrealized interest
recognized as income in the previous period is reversed in the month in
which the loan is classified as Non Performing.
b. Income from Current and Long-term Investments
Income from dividend on shares of corporate bodies and units of mutual
funds is accounted on accrual basis when the Company's right to receive
dividend is established.
Interest income on bonds and deposits is recognized on accrual basis.
1.5 Provisions for Standard/Non Performing Assets and Doubtful Debts
The Company provides an allowance for loan receivables based on the
prudential norms issued by the RBI relating to income recognition,
asset classification and provisioning for non- performing assets. In
respect of loans, where interest is not serviced, provision for
diminution is made as per the parameter applicable to Non-Performing
Advances. Provision on restructured loans and advances is made as per
agreement and contract with the party. In addition the Company provides
for Standard Assets as required by the directions issued by RBI.
1.6 Investments
Long Term investments are valued at cost. Diminution in value if any,
which is of a temporary nature, is not provided.
1.7 Fixed Assets
Fixed assets are recorded at the cost of acquisition. Cost includes all
identifiable expenditure incurred to bring the assets to its present
condition and location.
1.8 Depreciation
Depreciation on fixed assets is calculated on a straight-line which
reflect the management estimate of the useful lives of respective fixed
assets and are lesser than or equal to useful life as prescribed in
Schedule II of the companies Act, 2013.
1.9 Leases
Leases are classified as operating lease where significant portion of
risk and reward of ownership of assets acquired under lease are
retained by the lesser.
1.10 Taxes
Current tax provision has been determined on the basis of relief,
deductions etc. available under the Income Tax Act, 1961. Deferred tax
is recognized for all timing differences, subject to the consideration
of prudence.
1.11 Gratuity / Retirement Benefits
The Company's gratuity scheme is a defined benefit plan. The Company's
net obligation in respect of the gratuity benefit is calculated by
estimating the amount of future benefit that the employees have earned
in return for their service in the current and prior periods. This
benefit is discounted to determine its present value.
The present value of the obligation under such benefit plan is
determined based on actuarial valuation carried out by an independent
actuary using the Projected Unit Credit Method which recognizes each
period of service that give rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation.
The obligation is measured at present values of estimated future cash
flows. The discounted rates used for determining the present value are
based on the market yields on Government Securities as at the balance
sheet date.
Actuarial gains and losses are recognized immediately in the profit and
loss account
1.12 Provisions, 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 it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statement
1.13 Impairments
The carrying amounts of assets are reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any
indications exist, the assets recoverable amount is estimated. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value is
use, the estimated future cash flows are discounted to their present
value based on average pre-tax borrowing rate of the country where the
assets are located, adjusted for risks specific to the asset.
After impairment, depreciation is provided on the assets revised
carrying amount over its remaining useful life. A previously recognized
impairment loss is increased or decreased depending on changes in
circumstances. However, an impairment loss is not decreased to an
amount higher than the carrying amount that would have been determined
(net of amortization or depreciation) had no impairment loss been
recognized in the prior year.
1.14 Earnings per share
Basic and diluted earnings per share are computed in accordance with
Accounting Standared-20- Earnings Per Share. Basic earnings per share
is calculated by dividing the net profit or loss after tax for the year
attributable to equity share holders by the weighted average number of
equity share outstanding during the year. Diluted earnings per share
reflect the potential dilution that could occur if securities or other
contracts to issue equity shares were exercised or converted during the
reporting period. Diluted earnings per share is computed using the
weighted average number of equity shares and dilutive potential equity
shares outstanding as at the end of the reporting period.
1.15 Cash flow statement
The cash flow statement is prepared in accordance with indirect method
as explained in the Accounting Slandered on cash flow statements (AS) 3
issued by the institute of Chartered Accountants Of India. Cash and
Bank Balances that have insignificant risk of change in value including
term deposits, which have original durations up to three months, are
included in cash and cash equivalents in the cash flow statement.
Mar 31, 2014
1.1 Basis of preparation
The financial statements of the Company have been prepared under the
historical cost convention on a going concern and accrual basis in
accordance with the generally accepted accounting principles in India
to comply with Accounting Standards notified by under Section 211 (3C)
of the Companies Act, 1956 ("the 1956 Act")(which continue to be
applicable in respect of Section 133 of the Companies Act, 2013 ("the
2013Act") in terms of the General Circular 15/2013 dated 13 September,
2013 of the Ministry of Corporate Affairs) and the relevant provisions
of the 1956 Act/ 2013 Act, as applicable. Further, the company follows
the prudential norms for income recognition, asset classification and
provisioning as prescribed by Reserve Bank of India (RBI) for
Non-deposit taking Non-Banking Finance Companies (NBFC-ND).
1.2 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.
1.3 Cash flow statement:
Cash flows are reported using the indirect method, whereby profit/
(loss) before extraordinary items and tax is adjusted for the effect of
transactions of non-cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flow from operating,
investing and financing activities of the Company are segregated based
on the available information. The Company considers all highly liquid
financial instruments, which are readily convertible into cash, to be
cash equivalents.
1.4 Revenue Recognition:
a. Income on Loan transactions
Interest income is recognised under the Internal Rate of Return method
to provide a constant periodic rate of return on net investment
outstanding on the Loan contract. In the case of Non Performing Loans,
interest income is recognised upon realisation, as per RBI guidelines.
Unrealised interest recognised as income in the previous period is
reversed in the month in which the loan is classified as Non
Performing.
b. Income from Current and Long-term Investments
Income from dividend on shares of corporate bodies and units of mutual
funds is accounted on accrual basis when the Company''s right to receive
dividend is established.
Interest income on bonds and deposits is recognised on accrual basis.
1.5 Provisions for Standard/Non Performing Assets and Doubtful Debts
The Company provides an allowance for loan receivables based on the
prudential norms issued by the RBI relating to income recognition,
asset classification and provisioning for non- performing assets. In
addition to the provisioning as per RBI norms, the Company also
provides for/writes off the entire receivables, where any of the
instalment are overdue for a period exceeding llmonths.
In addition the Company provides for Standard Assets as required by the
directions issued by RBI.
1.6 Investments
Long Term investments are valued at cost. Diminution in value if any,
which is of a temporary nature, is not provided.
1.7 Fixed Assets
Fixed assets are recorded at the cost of acquisition. Cost includes all
identifiable expenditure incurred to bring the assets to its present
condition and location.
1.8 Depreciation
Depreciation on fixed assets is provided on Written Down Value at the
rates specified in Schedule XIV of the Companies Act, 1956.
1.9 Leases
Leases are classified as operating lease where significant portion of
risk and reward of ownership of assets acquired under lease are
retained by the lessor.
1.10 Taxes
Current tax provision has been determined on the basis of relief,
deductions etc. available under the Income Tax Act, 1961. Deferred tax
is recognized for all timing differences, subject to the consideration
of prudence.
1.11 Gratuity / Retirement Benefits
The Company''s gratuity scheme is a defined benefit plan. The Company''s
net obligation in respect of the gratuity benefit is calculated by
estimating the amount of future benefit that the employees have earned
in return for their service in the current and prior periods. This
benefit is discounted to determine its present value.
The present value of the obligation under such benefit plan is
determined based on actuarial valuation carried out by an independent
actuary using the Projected Unit Credit Method which recognizes each
period of service that give rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation.
The obligation is measured at present values of estimated future cash
flows. The discounted rates used for determining the present value are
based on the market yields on Government Securities as at the balance
sheet date.
Actuarial gains and losses are recognized immediately in the profit and
loss account
1.12 Provisions, 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 it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements
1.13 Impairments
The carrying amounts of assets are reviewed at each balance sheet date
to determine whether there is any indication of impairment. If any
indications exist, the assets recoverable amount is estimated. An
impairment loss is recognized wherever the carrying amount of an asset
exceeds its recoverable amount. The recoverable amount is the greater
of the assets net selling price and value in use. In assessing value is
use, the estimated future cash flows are discounted to their present
value based on average pre-tax borrowing rate of the country where the
assets are located, adjusted for risks specific to the asset.
After impairment, depreciation is provided on the assets revised
carrying amount over its remaining useful life. A previously recognized
impairment loss is increased or decreased depending on changes in
circumstances. However, an impairment loss is not decreased to an
amount higher than the carrying amount that would have been determined
(net of amortization or depreciation) had no impairment loss been
recognized in the prior year.
1.14 Earnings per share
The Company reports basic and diluted earning per share in accordance
with "Accounting Standard 20 - Earnings per share" prescribed by
Companies (Accounting Standards) Rules, 2006. Basic earning per share
is computed by dividing the net profit after tax by the weighted
average number of equity shares outstanding during the reporting
period.
Diluted earnings per share reflect the potential dilution that could
occur if securities or other contracts to issue equity shares were
exercised or converted during the reporting period. Diluted earnings
per share is computed using the weighted average number of equity
shares and dilutive potential equity shares outstanding as at the end
of the reporting period.
Mar 31, 2013
I. Basis of preparation
The financial statements have been prepared under the historical cost
convention on a going concern and accrual basis in accordance with the
generally accepted accounting principles in India including Accounting
Standards notified by under Section 211 (3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956
The company follows the prudential norms for income recognition, asset
classification and provisioning as prescribed by Reserve Bank of India
(RBI) for Non-deposit taking Non-Banking Finance Companies (NBFC-ND).
II. 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.
III. Cash and Cash Equivalents:
The Company considers all highly liquid financial instruments, which
are readily convertible into cash, to be cash equivalents.
IV. Revenue Recognition:
Interest income is recognised under the Internal Rate of Return method
to provide a constant periodic rate of return on net investment
outstanding on the Loan contract. In the case of Non Performing Loans,
interest income is recognised upon realisation, as per RBI guidelines.
Unrealised interest recognised as income in the previous period is
reversed in the month in which the loan is classified as Non
Performing.
Interest income on bonds and deposits is recognised on accrual basis.
V. Taxes
Current tax provision has been determined on the basis of relief,
deductions etc. available under the Income Tax Act, 1961. Deferred tax
is recognized for all timing differences, subject to the consideration
of prudence.
VI. Fixed Assets
Fixed assets are recorded at the cost of acquisition. Cost includes all
identifiable expenditure incurred to bring the assets to its present
condition and location.
VII. Depreciation
Depreciation on fixed assets is provided on Written Down Value at the
rates specified in Schedule XIV of the Companies Act, 1956.
VIII. Investments
Long Term investments are valued at cost. Diminution in value if any,
which is of a temporary nature, is not provided.
IX. Gratuity / Retirement Benefits
The Company''s gratuity scheme is a defined benefit plan. The Company''s
net obligation in respect of the gratuity benefit is calculated by
estimating the amount of future benefit that the employees have earned
in return for their service in the current and prior periods. This
benefit is discounted to determine its present value.
The present value of the obligation under such benefit plan is
determined based on actuarial valuation carried out by an independent
actuary using the Projected Unit Credit Method which recognizes each
period of service that give rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation.
The obligation is measured at present values of estimated future cash
flows. The discounted rates used for determining the present value are
based on the market yields on Government Securities as at the balance
sheet date.
Actuarial gains and losses are recognized immediately in the profit and
loss account
X. Provisions, 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 it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
XI. Provisioning under Financing Activity
Provision for Standard Assets is made as per internal estimates, based
on past experience, realisation of security, and other relevant
factors, on the outstanding amount of Standard Assets for all types of
lending subject to minimum provisioning requirements specified by RBI.
Mar 31, 2012
I. Basis of preparation
The financial statements have been prepared under the historical cost
convention on a going concern and accrual basis in accordance with the
generally accepted accounting principles in India including Accounting
Standards notified by under Section 211 (3C) [Companies (Accounting
Standards) Rules, 2006, as amended] and the other relevant provisions
of the Companies Act, 1956
The company follows the prudential norms for income recognition, asset
classification and provisioning as prescribed by Reserve Bank of India
(RBI) for Non-deposit taking Non-Banking Finance Companies (NBFC-ND).
The accounting policies adopted in the preparation of the financial
statements are consistent with those followed in the previous year
except for change in the method of charging depreciation as more fully
described in Note 21.
II. 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.
III. Cash and Cash Equivalents:
The Company considers all highly liquid financial instruments, which
are readily convertible into cash, to be cash equivalents.
IV. Revenue Recognition:
Interest income is recognised under the Internal Rate of Return method
to provide a constant periodic rate of return on net investment
outstanding on the Loan contract. In the case of Non Performing Loans,
interest income is recognised upon realisation, as per RBI guidelines.
Unrealised interest recognised as income in the previous period is
reversed in the month in which the loan is classified as Non
Performing.
Interest income on bonds and deposits is recognised on accrual basis.
V Taxes
Current tax provision has been determined on the basis of relief,
deductions etc. available under the Income Tax Act, 1961. Deferred tax
is recognized for all timing differences, subject to the consideration
of prudence.
VI Fixed Assets
Fixed assets are recorded at the cost of acquisition. Cost includes all
identifiable expenditure incurred to bring the assets to its present
condition and location.
VII Depreciation
Depreciation on fixed assets is provided on Written Down Value at the
rates specified in Schedule XIV of the Companies Act, 1956.
VIII Investments
Long Term investments are valued at cost. Diminution in value if any,
which is of a temporary nature, is not provided.
IX Gratuity / Retirement Benefits
The Company's gratuity scheme is a defined benefit plan. The
Company's net obligation in respect of the gratuity benefit is
calculated by estimating the amount of future benefit that the
employees have earned in return for their service in the current and
prior periods. This benefit is discounted to determine its present
value.
The present value of the obligation under such benefit plan is
determined based on actuarial valuation carried out by an independent
actuary using the Projected Unit Credit Method which recognizes each
period of service that give rise to additional unit of employee benefit
entitlement and measures each unit separately to build up the final
obligation.
The obligation is measured at present values of estimated future cash
flows. The discounted rates used for determining the present value are
based on the market yields on Government Securities as at the balance
sheet date.
Actuarial gains and losses are recognized immediately in the profit and
loss account
X Provisions, 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 it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
XI Provisioning under Financing Activity
Provision for Standard Assets is made as per internal estimates, based
on past experience, realisation of security, and other relevant
factors, on the outstanding amount of Standard Assets for all types of
lending subject to minimum provisioning requirements specified by RBI.
Mar 31, 2011
I. Accounting Concepts
a. The Accounts have been prepared on historical cost basis.
b. The company generally follows the mercantile system of accounting
and recognises income and expenditure on accrual basis.
c. The Company follows Prudential Norms for Income recognition and
Provisioning for Non- Performing Assets as prescribed by the Reserve
Bank of India for Non Banking Financial Companies.
II. Income Recognition:
Finance charges are accounted under Capital Recovery method. Additional
Finance charges are accounted on receipt basis. The interests on Loan
amounts given are provided whenever it is receivable. Also in
accordance with the guidelines issued by the Reserve Bank of India for
Non Banking Financial Companies, Income on Business Assets classified
as Non-performing Assets, is recognised on receipt basis.
III. Taxes
Current tax provision has been determined on the basis of relief,
deductions etc. available under the Income Tax Act, 1961. Deferred tax
is recognized for all timing differences, subject to the consideration
of prudence. There being no timing difference during the period,
deferred tax provision is not made.
IV. Fixed Assets
Fixed assets are recorded at the cost of acquisition. Cost includes all
identifiable expenditure incurred to bring the assets to its present
condition and location.
V. Depreciation
Depreciation for the year has been provided for the year at the rate
prescribed in Income Tax Act, 1961.
VI. Investments
Long Term investments are valued at cost. Diminution in value if any,
which is of a temporary nature, is not provided.
VII. Gratuity / Retirement Benefits
These are accounted for on cash basis
VIII. Provisions, 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 it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2010
I. Accounting Concepts
a. The Accounts have been prepared on historical cost basis.
b. The company generally follows the mercantile system of accounting
and recognises income and expenditure on accrual basis.
II. Income Recognition:
Finance charges are accounted under Capital Recovery method. Additional
Finance charges are accounted on receipt basis. The interest on Loan
amounts given are provided whichever it is receivable. The interest
amount is not provided, where the principle amount in itself is in
doubtful. The same shall be provided as and when received.
III. Taxes
Current tax provision has been determined on the basis of relief,
deductions etc. available under the Income Tax Act, 1961. Deferred tax
is recognized for all timing differences, subject to the consideration
of prudence. There being no timing difference during the period,
deferred tax provision is not made.
IV. Fixed Assets
Fixed assets are recorded at the cost of acquisition. Cost includes all
identifiable expenditure incurred to bring the assets to its present
condition and location.
V. Depreciation
Depreciation is provided for on Written Down Value method at the rates
and in the manner specified in Schedule XIV of the Companies Act, 1956.
Depreciation on additions deletions to the fixed assets during the
year is- provided on pro-rata basis from to the date of such additions
deletions as the case may be.
VI. Investments
Long Term investments are valued at cost. Diminution in value if any,
which is of a temporary nature, is not provided.
VII. Provisions, 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 it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognized but are disclosed in the
notes. Contingent assets are neither recognized not disclosed in the
financial statements.