Accounting Policies of Ind Bank Housing Ltd. Company

Mar 31, 2018

1. ACCOUNTING POLICIES:

1. Corporate Information

The company is incorporated on 28.01.1991 with the Registrar of Companies, Chennai with the object of providing Housing Loans. The Registered office of the company is located at No.480, 3rd floor, Anna Salai, Nandanam, Chennai-600035.

2. Method of Accounting

The Company accounts have been prepared under historical cost convention on an accrual basis except for certain financial assets and Defined Benefit Plans which are measured at Fair Value. The Financial Statements comply with the Indian Acounting Standards referred to Section 133 of the Act, read with Companies (Accounts) Rules, 2015 (as amended) and the relevant provisions of the Companies Act 2013 The company has adopted all the applicable Ind AS standards and transition from GAAP to Ind AS was carried out in accordance with the Ind AS 101- (First Time Adoption of Indian Accounting Standard.)

3. Revenue Recognition and Prudential Norms

The Company follows NHB''s Prudential Norms for recognition of Income and Provisioning for Non-Performing Assets.

Interest on Housing Loans

Repayment of housing loans is by way of Equated Monthly Installments (EMI''s) comprising of principal and interest. Interest is calculated every half year on the opening balance at the beginning of the respective half year/year. EMI commence once the entire loan is disbursed.

Pending commencement of EMI, pre EMI interest payable is recognized every month. Interest on loan assets classified as "non-performing" is recognised only on realisation.

Interest income from bank deposits is recognized on accrual basis.

4. Property, Plant and Equipment and Depreciation (PPE)

PPE are shown at carrying Cost, i.e, cost less depreciation. Depreciation is calculated on written down value method over the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. On transition to Ind AS, the company has elected to continue with the carrying value of all its Property, Plant and Equipment recognized as on 01.04 2016, measured as per the previous GAAP and use that carrying amount as the deemed cost of PPE.

5. Cash and Cash Equivalents.

Cash and Cash Equivalents includes cash on hand, deposits held at call with financial institutions, other short-term investments which are highly liquid and subject to insignificant risk, for the purpose of presentation in the Statement of Cash Flows.

6. Financial Assets.

The financial assets are classified at fait value or at amortized cost depending on the entity''s business model and the contractual terms of the cash flows. For assets measured at fair value, in accordance with the applicable Ind As. Changes in the Fair Value, gain or loss, are recorded either in ''Profit and Loss'' or ''Other Comprehensive Income''

7. Off-setting Financial Instruments

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right, in the normal course of business, to offset the recognized amounts and there is an intension to settle on a net basis or realize the asset and settle the liability simultaneously.

8. Impairment of Assets.

Tangible assets are tested for impairment by the management whenever the circumstances indicate that the carrying cost may not be recoverable. The impairment loss is recognized in the profit and Loss account.

Other Financial Assets are assessed based on the expected credit losses associated with its assets carried at amortized cost and its significance.

9. Employees'' Benefits Defined Benefit Plan:

The Gratuity liability is covered by Trust formed under the Group Gratuity Scheme. The trust has purchased a Group Gratuity policy from LIC and the annual premium is paid through the Trust and liability for leave encashment is provided for on actuarial basis. The defined benefit obligation is calculated annually based on actuarial valuation and therefore ''gain or Loss'' on account of re-measurement are recognized directly in ''Other Comprehensive Income''

Defined Contribution Plan

Contribution to Provident Funds is made to the Regional Provident Fund Commissioner is recognized as expenses. The liability is confined to the contribution made and no further obligation to pay any additional sums.

10. Income Tax:

The current charge for income tax is calculated in accordance with the provisions of the Income Tax Act applicable to the company.

Deferred tax charge/credits reflects the tax effects on timing difference between accounting income and taxable income for the year on account of depreciation and the benefit arising out of carried over unabsorbed losses of the company.

11. Segment Reporting

The Chief Operating Decision Maker of the company (CODM) makes strategic decision with regard to classification of segment reporting based on internal reporting provided to him and the financial performance of the company.

12. Earnings per share.

Basic earnings per share is computed by dividing the profitf(loss) attributable to the ordinary equity shares by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share is computed by adjusting dividing the profitf(loss) and the weighted average number of shares by taking into account the conversion of dilutive potential equity shares.

13. Contingent Liabilities:

All liabilities have been provided for in the accounts except liabilities of a contingent nature, which if any, have been disclosed at their estimated value in the Notes on Accounts.

2. Significant Use of Estimates

The presentation of financial statements in accordance with the applicable Accounting Standards and Policies requires the management to make estimates and assumption on future events that may affect the balances of assets and liabilities and the reported amounts of income and expenditures during the year under audit. However the actual results could differ from those estimated which will be recognized prospectively. Gratuity Assumption

The measurement of company''s defined benefit obligation to its employees requires the use of certain assumption, including, among others, estimate of discount rates and expected return on plan assets. Changes in these assumption may affect the future funding requirements of the plans and actuarial gain/loss recognized in the statement of comprehensive income.

23. Notes on First time Adoption of Ind AS

1. Transition to Ind AS

The Company has prepared its first Financial Statements in accordance with Ind AS and has adopted Indian Accounting Standards (Ind AS) as

notified by the Ministry of Corporate Affairs with effect from April 1, 2017, with a transition date of April 1, 2016.

The Accounting policies set out in Note No. 1 have been applied in preparing the Financial Statements for the year ended March 31, 2018, the comparative information presented in these Financial Statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS Balance Sheet at April 1,2016 (the date of transition) in accordance with the Ind AS 101-Fitst Time Adoption of Indian Accounting Standard.

2. Hitherto the Company prepared its Financial Statements in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act under Indian GAAP. (till the previous year ended 31.03.2017.

3. For the current financial year the Accounts are prepared in the revised format specified under Division II to Schedule III of the Company''s Act, 2013.

4. Being the first time adopter, Ind AS 101 is applied in the transition from IGAAP to Ind AS to the extent permitted. The resulting difference in carrying values of the assets and liabilities of the company as on the transition date from IGAAP to Ind AS have been recognised directly in equity

5. Under Ind AS, the carrying value in respect of PPE known as Fixed Assets in IGAAP, ''Investments" and ''Loans & Advances'' require adjustment when translated from the exiting IGAAP to Ind AS. The applicable Accounting Standards under Ind AS to be complied by the company are Ind AS-16 (for Property, Plant &Equipment) and Ind AS 32 and 109 for Financial Assets.

6. As for as the Property, Plant and Equipment, the company chooses Cost Model and continue with the existing carrying value for all of its Property, Plant and Equipment as recognised in the Financial Statements as at the date of transition to Ind AS and use that as its deemed cost as at the date of transition. Consequently, there is no impact in the financial prepared under Ind AS from IGAAP.

7. Regarding Investments in Equity, as the intention of the management is principally for the purpose of trading and therefore recognised at Fair Value and resulting change in valuation at the time of transition to Ind AS have been recognised in Retained Earning of the Company

8. All Financial assets and Liabilities are required to be recognised at fair value. In respect of Loans 81 Advances, the outstanding balances as on the transition date have already been reckoned to fair value in IGAAP and therefore do not require any further adjustment when move on to Ind AS. The Company is taking concisions efforts to recover the loans given. Besides, there were no new loans given attracting the requirement of Expected Credit Loss Model as stipulated in Ind AS 109.

9. All other assets appearing in the Financial on the date of transition to Ind AS do not undergo any changes and thus require no adjustments.

10. Other Comprehensive Income; Items of income and expenses not recognised in Profit or Loss bur are shown in the Statement of Profit or Loss as Comprehensive Income, as required under Ind AS, includes measurement of Defined Benefit Plans net of tax of Rs.755/- for the previous year.

11. A reconciliation between the transition from IGAAP to Ind AS and its impact in the Company''s financial position, financial performance and cash flows is set out in the following Annexure.

> Reconciliation of Equity as at 31.03.2017.......................................................................... vide Annexure-1

> Reconciliation of Equity as at the date of transition (April 1, 2016)..................................... vide Annexure-2

> Reconciliation of Profit and Loss Account for the YE 31.03.2017........................................vide Annexure-3

> Note on Financial Risk Management..................................................................................... vide Annexure-4

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Mar 31, 2015

A) Method of Accounting

The Company accounts have been prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014.

b) Income Recognition and Prudential Norms

The Company follows NHB's Prudential Norms for recognition of Income and Provisioning for Non Performing Assets

c) Interest on Housing Loans

Repayment of housing loans is by way of Equated Monthly Installments (EMI's) comprising of principal and interest. Interest is calculated every half year on the opening balance at the beginning of the respective half year/year. EMI commence once the entire loan is disbursed. Pending commencement of EMI, pre EMI interest payable is recognized every month.

d) Investments

Investments are classified into current investments and long-term investments. Investments are valued at lower of cost or Market value for each investment individually as per NHB guidelines in force.

e) Fixed Assets and Depreciation

Fixed Assets are capitalised at cost and are stated at cost less depreciation. Depreciation is calculated on written down value method at the rates prescribed in Schedule II to the Companies Act, 2013.

f) Retirement Benefits

i. Contribution to Provident Funds is made to the Regional Provident Fund Commissioner.

ii. The Gratuity liability is covered by Trust formed under the Group Gratuity Scheme. The trust has purchased a Group Gratuity policy from LIC and the annual premium is paid through the Trust.

iii. Liability for leave encashment is provided for on actuarial basis.

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Mar 31, 2014

A) Method of Accounting

The Company accounts have been prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to section 211(3C) of the Companies Act, 1956.

b) Income Recognition and Prudential Norms

The Company follows NHB''s Prudential Norms for recognition of Income and Provisioning for Non Performing Assets

c) Interest on Housing Loans

Repayment of housing loans is by way of Equivated Monthly Installments (EMI''s) comprising of principal and interest. Interest is calculated every half year on the opening balance at the beginning of the respective half year/year. EMI commence once the entire loan is disbursed. Pending commencement of EMI, pre EMI interest payable is recognized every month.

d) Investments

Investments are classified into current investments and long-term investments. Investments are valued at lower of cost or Market value for each investment individually as per NHB guidelines in force.

e) Fixed Assets and Depreciation

Fixed Assets are capitalised at cost and are stated at cost less depreciation. Depreciation is calculated on written down value method at the rates prescribed in schedule XIV to the Companies Act, 1956.

f) Retirement Benefits

i. Contribution to Provident Funds is made to the Regional Provident Fund Commissioner.

ii. The Gratuity liability is covered by Trust formed under the Group Gratuity Scheme. The trust has purchased a Group Gratuity policy from LIC and the annual premium is paid through the Trust.

iii. Liability for leave encashment is provided for on actuarial basis.

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Mar 31, 2013

A) Method of Accounting

The Company accounts have been prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to section 211(3C) of the Companies Act, 1956.

b) Income Recognition and Prudential Norms

The Company follows NHB''s Prudential Norms for recognition of Income and Provisioning for Non Performing Assets

c) Interest on Housing Loans

Repayment of housing loans is by way of Exuviated Monthly Installments (EMI''s) comprising of principal and interest. Interest is calculated every half year on the opening balance at the beginning of the respective half year/year. EMI commence once the entire loan is disbursed. Pending commencement of EMI, pre EMI interest payable is recognized every month.

d) Investments

Investments are classified into current investments and long-term investments. Investments are valued at lower of cost or Market value for each investment individually as per NHB guidelines in force.

e) Fixed Assets and Depreciation

Fixed Assets are capitalised at cost and are stated at cost less depreciation. Depreciation is calculated on written down value method at the rates prescribed in schedule XIV to the Companies Act, 1956.

f) Retirement Benefits

i. Contribution to Provident Funds is made to the Regional Provident Fund Commissioner.

ii. The Gratuity liability is covered by Trust formed under the Group Gratuity Scheme. The trust has purchased a Group Gratuity policy from LIC and the annual premium is paid through the Trust.

iii. Liability for leave encashment is provided for on actuarial basis.

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Mar 31, 2012

A) Method of Accounting

The Company accounts have been prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to section 211 (3C) of the Companies Act, 1956.

b) Income Recognition and Prudential Norms

The Company follows NHB's Prudential Norms for recognition of Income and Provisioning for Non Performing Assets

c) Interest on Housing Loans

Repayment of housing loans is by way of Equated Monthly Installments (EMI's) comprising principal and interest. Interest is calculated every half year on the opening balance at the beginning of the respective half year/year. EMI commences once the entire loan is disbursed. Pending commencement of EMI, pre EMI interest payable is recognized every month.

d) Investments

Investments are classified into current investments and long-term investments. Investments are valued at lower of cost or Market value for each investment individually as per NHB guidelines in force.

e) Fixed Assets and Depreciation

Fixed Assets are capitalized at cost and are stated at cost less depreciation. Depreciation is calculated on written down value method at the rates prescribed in schedule XIV to the Companies Act, 1956.

f) Retirement Benefits

i. Contribution to Provident Funds is made to the Regional Provident Fund Commissioner.

ii. The Gratuity liability is covered by the Trust formed under the Group Gratuity Scheme. The trust has purchased a Group Gratuity policy from LIC and the annual premium is paid through the Trust.

iii. Liability for leave encashment is provided for on actuarial basis.

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Mar 31, 2010

A) Method of Accounting

The Company accounts have been prepared under historical cost convention on an accrual basis and comply with the accounting standards referred to section 211 (3C) of the Companies Act, 1956.

b) Income Recognition and Prudential Norms

The Company follows NHBs Prudential Norms for recognition of Income and Provisioning for Non Performing Assets

c) Interest on Housing Loans

Repayment of housing loans is by way of Equivated Monthly Installments (EMIs) comprising of principal and interest. Interest is calculated every half year on the opening balance at the beginning of the respective half year/year. EMI commence once the entire loan is disbursed. Pending commencement of EMI, pre EMI interest payable is recognized every month. ;

d) Investments

Investments are classified into current investments and long-term investments. Investments are valued at lower of cost or Market value for each investment individually as per NHB guidelines in force.

e) Fixed Assets and Depreciation

Fixed Assets are capitalised at cost and are stated at cost less depreciation. Depreciation is calculated on written down value method at the rates prescribed in schedule XIV to the Companies Act, 1956.

f) Retirement Benefits

i. Contribution to Provident Funds is made to the Regional Provident Fund Commissioner.

ii. The Gratuity liability is covered by Trust formed under the Group Gratuity Scheme. The trust has purchased a Group Gratuity policy from LIC and the annual premium is paid through the Trust.

iii. Liability for leave encashment is provided for on actuarial basis.