Mar 31, 2015
I) Accounting Convention
The financial statements of the Company, have been prepared on
historical cost convention, applicable Accounting Standards specified
under Section 133 of the Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules, 2014, and the relevant provisions of
Companies Act, 2013 to the extent applicable and guidelines issued by
the Reserve Bank of India to Non-Banking Financial Companies from time
to time.
ii) Fixed Assets
Fixed Assets (including assets given on lease upto 31.3.2001) have been
stated at cost less accumulated depreciation and impairment, if any.
Cost refers to cost of acquisitions.
iii) Investments
Long terms investments are valued at cost. Cost refers to actual cost
of acquisition / carrying cost. Provisions for diminution in value, if
any, is made if decline is of permanent nature. Current Investments are
valued at lower of cost or market value.
iv) Repossessed Vehicles
Repossessed vehicles in hand are valued at the Principal or Principal
and Interest amount due form hirers or at net realisable value,
whichever is lower.
v) Assets given under finance lease
Assets given under finance lease w.e.f. 1st April, 2001 are recorded as
receivables and shown under current assets. Finance income is
recognized based on a pattern reflecting a constant periodic rate of
return on the net investment outstanding. Initial direct costs incurred
are charged to the Profit & Loss Account.
vi) Depreciation
(a) Depreciation on fixed assets is provided on the written down value
(WDV) method based on the useful lives and residual value of the assets
as prescribed in Schedule II to the Companies Act, 2013.
vii) Classification of Assets and Provisioning
Assets are classified into Performing and Non Performing categories
based on their record of recovery as prescribed by the Reserve Bank of
India's Prudential Norms and after considering adjustments effected, if
any. Provisions are being made as per Reserve Bank of India's
Prudential Norms.
viii) Revenue Recognition
a) Finance Charges on hire purchase/ loans against hypothecation
contracts and income from finance lease transactions are computed using
Internal Rate of Return Method which ensures a constant periodic rate
of return on net finance amount outstanding.
b) Lease Rentals are accounted for as per terms of lease agreements.
However, in compliance of the Guidance Note on "Accounting for Leases"
issued by the Institute of Chartered Accountants of India, and
applicable to transactions entered into prior to 01.4.2001, the
differential between the Capital Recovery Component comprised (based on
the Internal Rate of Return Method) in the lease rentals and the
depreciation referred to in Para 6(ii) above, (for all assets acquired
on or beginning from 1st April, 1995 from accounting year 1995-96 and
in respect of assets acquired upto 1.4.1995 prospectively from the
accounting year 1996-97) is carried to "Lease Equalisation" in the
Profit & Loss Account.
c) Income from Non Performing Assets is recognised when realised.
d) Bill Discounting Charges are accounted for on accrual basis except
in case of Non Performing Assets, wherein it is recognised on
realisation basis.
e) Overdue charges from hirers/lessees are accounted for on realisation
basis in view of significant uncertainties.
f) Interest income recognised on accrual basis.
g) Dividend in accounted for on accrual basis when the right to receive
dividend is established.
ix) Retirement Benefits
a) The liability on account of Gratuity is provided on the basis of
actuarial valuation at the year end.
b) Provident Fund contribution for all employees is charged to revenue
each year.
x) Deferred Tax
Deferred Tax is recognised, subject to consideration of prudence, on
timing differences, representing the difference between the taxable
income/ (loss) and the accounting income/ (loss) that originated in one
period and are capable of reversal in one or more subsequent periods.
Deferred Tax assets and liabilities are measured using tax rates and
the tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred Tax assets viz. unabsorbed depreciation
and carry forward losses are recognised if there is 'virtual certainty'
that sufficient future taxable income will be available against which
such deferred tax assets can be realised.
xi) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
to ascertain impairment based on internal/external factors. An
impairment loss is recognised when the carrying amount of an asset
exceeds its realisable value. The realisable value is greater of the
assets net selling price and value in use.
xii) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) the Company has a present obligation as a result of past event,
b) a probable outflow of resources is expected to settle the obligation
and
c) the amount of obligation can be reliably estimated.
Reimbursements expected in respect of expenditure required to settle a
provision are recognised only when it is virtually certain that the
reimbursement will be received.
Contingent liability is disclosed in the case of
a) a present obligation arising from the past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a possible obligation, of which the probability of outflow of
resources is remote. Contingent Assets are neither, recognised nor
disclosed.
Provisions, Contingent Liabilities and Contingent Assets are reviewed
at each Balance Sheet date.
Mar 31, 2014
I) Accounting Convention
The financial statements have been prepared under the historical cost
convention, as per provisions of the Companies Act, 1956 and after
taking into account the applicable guidelines issued by the Reserve
Bank of India to Non Banking Financial Companies from time to time and
in accordance with the mandatory Accounting Standards issued by The
Institute of Chartered Accountants of India.
ii) Fixed Assets
Fixed Assets (including assets given on lease upto 31.3.2001) have been
stated at cost less accumulated depreciation and impairment, if any.
Cost refers to cost of acquisitions.
iii) Investments
Long terms investments are valued at cost. Cost refers to actual cost
of acquisition / carrying cost. Provisions for diminution in value, if
any, is made if decline is of permanent nature. Current Investments are
valued at lower of cost or market value.
iv) Repossessed Vehicles
Repossessed vehicles in hand are valued at the Principal or Principal
and Interest amount due form hirers or at net realisable value,
whichever is lower.
v) Assets given under finance lease
Assets given under finance lease w.e.f. 1st April, 2001 are recorded as
receivables and shown under current assets. Finance income is
recognized based on a pattern reflecting a constant periodic rate of
return on the net investment outstanding. Initial direct costs incurred
are charged to the Profit & Loss Account.
vi) Depreciation
(a) Depreciation on office equipments and generators, owned by the
Company, is provided on written down value method at the rate, as per
the Income Tax Act, 1961. Depreciation on other owned assets, are
provided on written down value method, at rates prescribed under
Schedule XIV to the Companies Act 1956.
(b) Assets given on lease prior to 31st March, 2001 and included under
''Assets on Lease'' in the Fixed Asset Schedule are depreciated on
straight line method at rates prescribed under Schedule XIV to the
Companies Act 1956 except machinery which is depreciated on written
down value method at the rates as per the Income Tax Act 1961.
vii) Classification of Assets and Provisioning
Assets are classified into Performing and Non Performing categories
based on their record of recovery as prescribed by the Reserve Bank of
India''s Prudential Norms and after considering adjustments effected, if
any. Provisions are being made as per Reserve Bank of India''s
Prudential Norms.
viii) Revenue Recognition
a) Finance Charges on hire purchase/ loans against hypothecation
contracts and income from finance lease transactions are computed using
Internal Rate of Return Method which ensures a constant periodic rate
of return on net finance amount outstanding.
b) Lease Rentals are accounted for as per terms of lease agreements.
However, in compliance of the Guidance Note on "Accounting for Leases"
issued by The Institute of Chartered Accountants of India, and
applicable to transactions entered into prior to 01.4.2001, the
differential between the Capital Recovery Component comprised (based on
the Internal Rate of Return Method) in the lease rentals and the
depreciation referred to in Para 6(ii) above, (for all assets acquired
on or beginning from 1st April, 1995 from accounting year 1995-96 and
in respect of assets acquired upto 1.4.1995 prospectively from the
accounting year 1996-97) is carried to "Lease Equalisation" in the
Profit & Loss Account.
c) Income from Non Performing Assets is recognised when realised.
d) Bill Discounting Charges are accounted for on accrual basis except
in case of Non Performing Assets, wherein it is recognised on
realisation basis.
e) Overdue charges from hirers/lessees are accounted for on realisation
basis in view of significant uncertainties.
f) Interest income recognised on accrual basis.
g) Dividend in accounted for on accrual basis when the right to receive
dividend is established.
ix) Retirement Benefits
a) The liability on account of Gratuity is provided on the basis of
actuarial valuation at the year end.
b) Provident Fund contribution for all employees is charged to revenue
each year.
x) Deferred Tax
Deferred Tax is recognised, subject to consideration of prudence, on
timing differences, representing the difference between the taxable
income/ (loss) and the accounting income/ (loss) that originated in one
period and are capable of reversal in one or more subsequent periods.
Deferred Tax assets and liabilities are measured using tax rates and
the tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred Tax assets viz. unabsorbed depreciation
and carry forward losses are recognised if there is ''virtual certainty''
that sufficient future taxable income will be available against which
such deferred tax assets can be realised.
xi) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
to ascertain impairment based on internal/external factors. An
impairment loss is recognised when the carrying amount of an asset
exceeds its realisable value. The realisable value is greater of the
assets net selling price and value in use.
xii) Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) the Company has a present obligation as a result of past event,
b) a probable outflow of resources is expected to settle the obligation
and
c) the amount of obligation can be reliably estimated.
Reimbursements expected in respect of expenditure required to settle a
provision are recognised only when it is virtually certain that the
reimbursement will be received.
Contingent liability is disclosed in the case of
a) a present obligation arising from the past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a possible obligation, of which the probability of outflow of
resources is remote.
Contingent Assets are neither, recognised nor disclosed.
Provisions, Contingent Liabilities and Contingent Assets are reviewed
at each Balance Sheet date.
Mar 31, 2013
I) Accounting Convention
The financial statements have been prepared under the historical cost
convention, as per provisions of the Companies Act, 1956 and after
taking into account the applicable guidelines issued by the Reserve
Bank of India to Non Banking Financial Companies from time to time and
in accordance with the mandatory Accounting Standards issued by the
Institute ofCharteredAccountants ofIndia.
ii) Fixed Assets
FixedAssets (including assets given on lease upto 31.3.2001) have been
stated at cost less accumulated depreciation and impairment,ifany. Cost
referstocostofacquisitions.
iii) Investments
Long terms investments are valued at cost. Cost refers to actual cost
of acquisition / carrying cost. Provisions for diminution in value, if
any, is made if decline is of permanent nature. Current Investments are
valued at lower of cost or market value.
iv) Repossessed Vehicles
Repossessed vehicles in hand are valued at the Principal or Principal
and Interest amount due from hirers or at net realisable value,
whicheverislower.
v) Assets given under finance lease
Assets given under finance lease w.e.f. 1st April, 2001 are recorded as
receivables and shown under current assets. Finance income is
recognized based on a pattern reflecting a constant periodic rate of
return on the net investment outstanding. Initial direct costs incurred
are chargedto the Profit & LossAccount.
vi) Depreciation
(a) Depreciation on office equipments and generators, owned by the
Company, is provided on written down value method at the rate, as per
the IncomeTa xAct, 1961. Depreciation on other owned assets, are
provided on written down value method,at rates prescribed under
Schedule XIVto the CompaniesAct 1956.
(b) Assets given on lease prior to 31st March, 2001 and included under
''Assets onLease''in the FixedAsset Schedule are depreciated on straight
line method at rates prescribed under Schedule XIV to the Companies Act
1956 except machinery which is depreciated on written down value method
at the rates as per the Income Ta x Act 1961.
vii) ClassificationofAssets and Provisioning
Assets are classified into Performing and Non Performing categories
based on their record of recovery as prescribed by the Reserve Bank of
India''s Prudential Norms and after considering adjustments effected, if
any. Provisions are being madeasper Reserve Bankof India''s Prudential
Norms.
viii) Revenue Recognition
a) Finance Charges on hire purchase/ loans against hypothecation
contracts and income from finance lease transactions are computed using
Internal Rate of Return Method which ensures a constant periodic rate
of return on net finance amount outstanding.
b) Lease Rentals are accounted for as per terms of lease agreements.
However, in compliance of the Guidance Note on "Accounting for Leases"
issued by the Institute of Chartered Accountants of India, and
applicable to transactions entered into prior to01.4.2001, the
differential between the Capital Recovery Component comprised (based on
the Internal Rate of Return Method) in the lease rentals and the
depreciation referred to in Para 6(ii) above, (for all assets acquired
on or beginning from 1st April, 1995 from accounting year 1995-96 and
in respect of assets acquired upto 1.4.1995 prospectively from the
accounting year 1996-97) iscarriedto"Lease Equalisation" in the Profit
& LossAccount.
c) Income from Non PerformingAssetsis recognised when realised.
d) Bill Discounting Charges are accounted for on accrual basis except
in case of Non Performing Assets, wherein it is recognisedonrealisation
basis.
e) Overdue charges from hirers/lessees are accounted for on realisation
basis inviewofsignificant uncertainties.
f) Interest income recognised on accrual basis.
g) Dividend inaccounted foronaccrual basis when the right toreceive
dividendis established.
ix) Retirement Benefits
a) The liabilityonaccount ofGratuityisprovidedonthe basisofactuarial
valuationatthe year end.
b) Provident Fund contribution for all employeesischarged torevenue
each year.
x) Deferred Tax
Deferred Ta x is recognised, subject to consideration of prudence, on
timing differences, representing the difference between the taxable
income/ (loss) and the accounting income/ (loss) that originated in one
period and are capable of reversal in one or more subsequent periods.
Deferred Ta x assets and liabilities are measured using tax rates and
the tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred Ta x assets viz. unabsorbed depreciation
and carry forward losses are recognised if there is ''virtual certainty''
that sufficient future taxable income willbeavailable against which
such deferred tax assets canberealised.
xi) ImpairmentofAssets
The carrying amounts of assets are reviewed at each Balance Sheet date
to ascertain impairment based on internal/external factors. An
impairment loss is recognised when the carrying amount ofan asset
exceeds its realisable value. The realisable valueis greaterofthe
assets net selling price and value inuse.
xii) Provisions, Contingent Liabilities and ContingentAssets
Provisions are recognized for liabilities that canbemeasured
onlybyusingasubstantial degree ofestimation, if
a) the Company has apresent obligationas a resultofpast event,
b) aprobable outflowofresources isexpectedtosettle the obligation and
c) the amount ofobligation can be reliably estimated.
Reimbursements expected in respect of expenditure required to settle a
provision are recognised only when it is virtually certain that the
reimbursement willbereceived.
Contingent liability is disclosed in the case of
a) a present obligation arising from the past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) apossibleobligation, ofwhich the
probabilityofoutflowofresourcesisremote. ContingentAssets are neither,
recognised nor disclosed.
Provisions, Contingent Liabilities and ContingentAssets are reviewedat
each Balance Sheet date.
Mar 31, 2010
1. Accounting Convention
The financial statements have been prepared under the historical cost
convention, as per provisions of the Companies Act, 1956 and after
taking into account the applicable guidelines issued by the Reserve
Bank of India to Non Banking Financial Companies from time to time and
in accordance with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India.
2. Fixed Assets
Fixed Assets (including assets given on lease upto 31.3.2001) have been
stated at cost less accumulated depreciation and impairment, if any.
Cost refers to cost of acquisitions.
3. Investments
Long terms investments are valued at cost. Cost refers to actual cost
of acquisition / carrying cost. Provisions for diminution in value, if
any, is made if decline is of permanent nature. Current Investments are
valued at lower of cost or market value.
4. Repossessed Vehicles
Repossessed vehicles in hand are valued at the Principal or Principal
and Interest amount due from hirers or at net realisable value,
whichever is lower.
5. Assets given under finance lease
Assets given under finance lease w.e.f. 1st April, 2001 are recorded as
receivables and shown under current assets. Finance income is
recognized based on a pattern reflecting a constant periodic rate of
return on the net investment outstanding. Initial direct costs incurred
are charged to the Profit & Loss Account.
6. Depreciation
(I) Depreciation on office equipments and generators, owned by the
Company, is provided on written down value method at the rate, as per
the Income Tax Act, 1961. Depreciation on other owned assets, are
provided on written down value method, at rates prescribed under
Schedule XIV to the Companies Act 1956.
(ii Assets given on lease prior to 31st March, 2001 and included under
Assets on Leaseà in the Fixed Asset Schedule are depreciated on
straight line method at rates prescribed under Schedule XIV to the
Companies Act 1956 except machinery which is depreciated on written
down value method at the rates as per the Income Tax Act 1961.
7. Classification of Assets and Provisioning
Assets are classified into Performing and Non Performing categories
based on their record of recovery as prescribed by the Reserve Bank of
IndiaÃs Prudential Norms and after considering adjustments effected, if
any. Provisions are being made as per Reserve Bank of IndiaÃs
Prudential Norms.
8. Revenue Recognition
a) Finance Charges on hire purchase/ loans against hypothecation
contracts and income from finance lease transactions are computed using
Internal Rate of Return Method which ensures a constant periodic rate
of return on net finance amount outstanding.
b) Lease Rentals are accounted for as per terms of lease agreements.
However, in compliance of the Guidance Note on ÃAccounting for LeasesÃ
issued by the Institute of Chartered Accountants of India, and
applicable to transactions entered into prior to 01.4.2001, the
differential between the Capital Recovery Component comprised (based on
the Internal Rate of Return Method) in the lease rentals and the
depreciation referred to in Para 6(ii) above, (for all assets acquired
on or beginning from 1st April, 1995 from accounting year 1995-96 and
in respect of assets acquired upto 1.4.1995 prospectively from the
accounting year 1996-97) is carried to ÃLease Equalisationà in the
Profit & Loss Account.
c) Income from Non Performing Assets is recognised when realised.
d) Bill Discounting Charges are accounted for on accrual basis except
in case of Non Performing Assets, wherein it is recognised on
realisation basis.
e) Overdue charges from hirers/lessees are accounted for on realisation
basis in view of significant uncertainties.
f) Interest income recognised on accrual basis.
g) Dividend in accounted for on accrual basis when the right to receive
dividend is established.
9. Retirement Benefits
a) The liability on account of Gratuity is provided on the basis of
actuarial valuation at the year end.
b) Provident Fund contribution for all employees is charged to revenue
each year.
10. Deferred Tax
Deferred Tax is recognised, subject to consideration of prudence, on
timing differences, representing the difference between the taxable
income/ (loss) and the accounting income/ (loss) that originated in one
period and are capable of reversal in one or more subsequent periods.
Deferred Tax assets and liabilities are measured using tax rates and
the tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred Tax assets viz. unabsorbed depreciation
and carry forward losses are recognised if there is Ãvirtual certaintyÃ
that sufficient future taxable income will be available against which
such deferred tax assets can be realised.
11. Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
to ascertain impairment based on internal/external factors. An
impairment loss is recognised when the carrying amount of an asset
exceeds its realisable value. The realisable value is greater of the
assets net selling price and value in use.
12. Provisions, Contingent Liabilities and Contingent Assets
Provisions are recognized for liabilities that can be measured only by
using a substantial degree of estimation, if
a) the Company has a present obligation as a result of past event,
b) a probable outflow of resources is expected to settle the obligation
and
c) the amount of obligation can be reliably estimated.
Reimbursements expected in respect of expenditure required to settle a
provision are recognised only when it is virtually certain that the
reimbursement will be received.
Contingent liability is disclosed in the case of
a) a present obligation arising from the past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a possible obligation, of which the probability of outflow of
resources is remote. Contingent Assets are neither, recognised nor
disclosed.
Provisions, Contingent Liabilities and Contingent Assets are reviewed
at each Balance Sheet date.
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