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IKF Finance Ltd. Accounting Policies | Accounting Policy of IKF Finance Ltd.
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Accounting Policies of IKF Finance Ltd. Company

Mar 31, 2014

The Presentation in the Balance Sheet, Profit and Loss Statement and Notes to the Accounts is in Terms of the Revised Schedule VI to the Companies Act, 1956 which has become mandatory with effect from 1st April 2011. The Assets and Liabilities have been classified as Current and Non Current based on a Twelve months operating cycle. Previous years figure''s have been regrouped / reclassified wherever necessary to confirm to the Current year''s presentation

Fixed Assets

The Company capitalized fixed assets at cost inclusive of all incidental expenses incurred in acquisition of such assets.

Depreciation

Depreciation on all assets has been provided in accordance with the rates prescribed in Schedule XIV to the Companies Act, 1956 on Straight Line Method.

Impairment of Assets

The company assesses at each balance sheet date if there is an indication of impairment of any asset. If any indication exists, the company estimates the recoverable amount of the asset. The recoverable amount of an asset is greater of net selling price and value in use of the asset. Where the carrying amount of an asset is more than its recoverable amount, the asset is considered impaired and is written down to it''s recoverable amount.

Provisions

Provision are recognized when the Company has present legal or constructive obligations, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Non performing loans are written off / provided for, as per estimates of management, subject to the minimum provision required as per Non- Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

Provision on standard asset is made as required under Reserve Bank of India (RBI) notification No. DNBS.222/CGM (US-2011) dated January 17, 2011.

Income Recognition

(i) Income from financing activities is accounted on the basis of Internal Rate of Return method (net of business origination cost).

(ii) Additional finance charges / additional interest are treated to accrue on realisation due to uncertainty of its realisation.

(iii) Gain arising on securitization / direct assignment of assets is recognised over the tenure of agreements as per the guidelines on securitisation of standard assets issued by RBI.

(iv) The prudential norms for income recognition prescribed under Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007 are followed.

(v) Interest spread from Channel Business (net of related expenditure) and other Income has been recoginzed on accrual basis.

Taxation

Current Tax is provided on the taxable income for the year. Deferred Tax liabilities arising from timing differences have been fully provided.

Segment Reporting

The company is engaged primarily in the business of financing and accordingly there are no separate reportable segments as per Accounting Standard - 17 - ''Segment Reporting'' issued by ICAI


Mar 31, 2013

Presentation and disclosure of financial statements

The Presentation in the Balance Sheet, Profit and Loss Statement and Notes to the Accounts is in Terms of the Revised Schedule VI to the Companies Act, 1956 which has become mandatory with effect from 1st April 2011. The Assets and Liabilities have been classified as Current and Non Current based on a Twelve months operating cycle. Previous years figure''s have been regrrrrrrrr / reclassified wherever necessary to confffff to the Cur rent year''s presentation

Fixed Assets ^^^K ^

The Company capitalized fixed assets at cost inclusive of all incidental expenses incurred in acquisition of such assets.

Depreciation

Depreciation on all assets has been provided in accordance with the rates prescribed in Schedule XIV to the Companies Act, 1956 on Straight Line Method.

Impairment of Assets

The company assesses at each balance sheet date if there is an indication of impairment of any asset. If any indication exists, the company estimates the recoverable amount of the asset. The recoverable amount of an asset is greater of net selling price and value in use of the asset. Where the carrying amount of an asset is more than its recoverable amount, the asset is considered impaired and is written down to it''s recoverable amount.

Provisions

Provision are recognized when the Company has present legal or constructive obligations, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Non performing loans are written off / provided for, as per estimates of management, subject to the minimum provision required as per Non- Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

Provision on standard asset is made as required under Reserve Bank of India (RBI) notification No. DNBS.222/CGM (US-2011) dated January 17, 2011.

Income Recognition

(i) Income from financing activities is accounted on the basis of Internal Rate of Return method (net of business origination cost).

(ii) Additional finance charges / additional interest are treated to accrue on realisation due to uncertainty of its realisation.

(iii) Gain arising on securitization / direct assignment of assets is recognised over the tenure of agreements as per guideline on securitisation of standard assets issued by RBI.

(iv) The prudential norms for income recognition prescribed under Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007 are followed.

(v) Interest spread from Channel Business (net of related expenditure) and other Income has been recoginzed on accrual basis.

Taxation

Current Tax is provided on the taxable income for the year. Deferred Tax liabilities arising from timing differences have been fully provided.

Segment Reporting

The company is engaged primarily in the business of financing and accordingly there are no separate reportable segments as per Accounting Standard - 17 - ''Segment Reporting'' issued by ICAI


Mar 31, 2012

Presentation and disclosure of financial statements

The Presentation in the Balance Sheet, Profit and Loss Statement and Notes to the Accounts is in Terms of the Revised Schedule VI to the Companies Act, 1956 which has become mandatory with effect from 1st April 2011. The Assets and Liabilities have been classified as Current and Non Current based on a Twelve months operating cycle. Previous years figure's have been regrouped/reclassified wherever necessary to confirm to the Current year's presentation

Fixed Assets

The Company capitalized fixed assets at cost inclusive of all incidental expenses incurred in acquisition of such assets. Depreciation

Depreciation on all assets has been provided in accordance with the rates prescribed in Schedule XIV to the Companies Act, 1956 on Straight Line Method.

Impairment of Assets

The company assesses at each balance sheet date if there is an indication of impairment of any asset. If any indication exists, the company estimates the recoverable amount of the asset. The recoverable amount of an asset is greater of net selling price and value in use of the asset. Where the carrying amount of an asset is more than its recoverable amount, the asset is considered impaired and is written down to it's recoverable amount.

Provisions

Provision are recognized when the Company has present legal or constructive obligations, as a result of past events, for which it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Non performing loans are written off/provided for, as per estimates of management, subject to the minimum provision required as per Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007.

Provision on standard asset is made as required under Reserve Bank of India (RBI) notification No. DNBS.222/CGM (US-2011) dated January 17, 2011.

Income Recognition

(i) Income from financing activities is accounted on the basis of Internal Rate of Return method (net of business origination cost).

(ii) Additional finance charges/additional interest are treated to accrue on realisation due to uncertainty of its realisation.

(iii) Gain arising on securitization/direct assignment of assets is recognised over the tenure of agreements as per guideline on securitisation of standard assets issued by RBI.

(iv) The prudential norms for income recognition prescribed under Non-Banking Financial (Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions 2007 are followed.

(v) Interest spread from Channel Business (net of related expenditure) and other Income has been recognized on accrual basis.

Taxation

Current Tax is provided on the taxable income for the year. Deferred Tax liabilities arising from timing differences have been fully provided.

Segment Reporting

The company is engaged primarily in the business of financing and accordingly there are no separate reportable segments as per Accounting Standard - 17 - 'Segment Reporting' issued by ICAI


Mar 31, 2010

1.1 The Financial Statements have been prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the relevant provisions of the Companies Act, 1956 and the Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI), as applicable. The Company follows the directions prescribed by the reserve Bank of India for Non-Banking Financial Companies.

1.2 Income Recognition:

a) Lease Income is recognised on the basis of equated monthly/quarterly instalments on accrual system as per lease agreement.

b) Hire Charges arising out of agreements for hire purchase are apportioned over the period of the agreement on Weighted Average basis.

c) Liquidated damages on Lease rentals and additional finance charges on hire charges have been accounted on cash basis.

d) Profit on Securitisation of stock on hire is amortised for the current and future years on weighted average method based on the outstanding amount from month to month.

e) Asset Protfolio Income (net of related expenditure) and Other Income has been recognised on accrual basis

1.3 Fixed Assets:

The Company capitalised Fixed Assets at cost inclusive of all incidental expenses incurred in acquisition of such assets.

1.4 Depreciation:

Depreciation on all assets has been provided in accordance with the rates prescribed in Schedule XIV to the Companies Act, 1956 on Straight Line method.

1.5 Valuation of Investments:

Investments in shares with M/s.Avenir Power Technologies Pvt. Limited being unquoted is valued at cost to the Company.

1.6 Taxation:

Current tax is provided on the taxable income for the year. Deferred tax liabilities on the timing differences have been fully provided.


Mar 31, 2000

1.1 FIXED ASSETS

a) The Company capitalised Fixed Assets at cost inclusive of all incidental expenses incurred in acquisition of such assets.

b) Depreciation on all assets has been provided in accordance with the rates prescribed in Schedule XIV to the Companies Act, 1956 on Straight Line method.

1.2 INCOME RECOGNITION

a) Lease income is recognised on the basis of equated monthly/quaterly instalments on accural system as per lease agreement.

b) Hire charges arising out of agreements for hire purchase are apportioned over the period of the agreement on Weighted Average basis:

c) All other income has been recognised on accrual basis.

 
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