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Accounting Policies of Indo Asia Finance Ltd. Company

Mar 31, 2015

A) These financial statements are prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to Section 133 of the Companies Act, 20.13 read with Rule 7 of the Companies (Accounts) Rules, 2034, till the Standards of Accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial. Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 (the 'Act') shall continue to apply. Consequently, these financial statements are prepared to comply in all material aspects with the Accounting Standards notified under sub-section (3C) of Section 211 of the Act [Companies (Accounting Standards) Rules, 2006] and the other relevant provisions of the Companies Act, 2013.

All assets and liabilities are classified as current or non current as per the company's normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of services and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as 12 months for the purpose of current. non-current classification of assets and liabilities.

b) Income Recognition:

(i) Income from Hypothecation loan transaction is accounted on accrual basis as per the Internal Rate of Return method

(ii) The company has followed prudential norms prescribed by the Reserve Bank of India in respect of income recognition, valuation of investments, capital adequacy and provisioning for non performing assets.

(iii) The company have entered into an Joint Development agreement with M/s.Baashyaam Properties for construction and development of its property situated at No.87, GN Chetty Road, T.Nagar, Chennai-600 017. As per the terms of Joint develoment the company has recognised income of Rs. 13.94 crorcs on transfer of 50% of undivided share of land and buildup area as against 75% of the buildup area.

c) Expenditure:

Expenses are accounted on accrual basis except in the case of bonus to employees and contingent liabilities, which are accounted in the year of payment.

d) Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation.

e) Depreciation:

Depreciation on owned assets have been provided under Straight Line Method at the rates prescribed in Schedule 11 of the Companies Act, 2013. Pursuant to schedule 11 of the Companies Act, 2013 the changes in the usefull life of the assets are adjusted against reserves & surplus.

f) Valuation of Investments:

Long-term investments are stated at cost and provision for diminution in value, other than temporary, is considered wherever necessary. Current investments are valued at lower of cost and market vaiue/net asset value.

g) Taxes on Income:

Provision for current tax is made after taking into consideration benefits admissible under provisions of Income Tax Act, 1961. Deferred Tax resulting from 'timing difference' between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The Deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future.


Sep 30, 2014

A) System of Accounting: The financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the provisions of Companies Act,1956 and in accordance with the generally accepted accounting principles in India. The Company follows the directions prescribed by the Reserve Bank of India for Non Banking Financial Companies from time to time.

b) Income Recognition:

(i) Income from Hypothecation loan transaction is accounted on accrual basis as per the Internal Rate of Return method .

(ii) The company has followed prudential norms prescribed by the Reserve Bank of India in respect of income recognition, valuation of investments, capital adequacy and provisioning for non-performing assets.

(iii) The company have entered into an Joint Development agreement with M/s.Baashyaam Properties for construction and development of its property situated at No.87, GN Chetty Road, T.Nagar, Chennai-600 017. As per the terms of Joint development the company has recognised income of Rs.3.67 crores on transfer of 25% of undivided share of land and buildup area as against 75% of the buildup area.

(iv) The company has entered into an agreement to transfer its non performing hypothecation assets amounting to Rs.27.35 crores for consideration of Rs.30.23 crores the said purchase consideration is discharged by acquisition of equity shares amounting to Rs.27.35 crores in M/s.Saravana Realty Private Limited and the balance consideration of Rs.2.88 crores being income on such transfer is recognised as income

c) Expenditure:

Expenses are accounted on accrual basis except in the case of bonus to employees and contingent liabilities, which are accounted in the year of payment.

d) Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation.

e) Depreciation:

Depreciation on owned assets have been provided under Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

f) Valuation of Investments:

Long-term investments are stated at cost and provision for diminution in value, other than temporary, is considered wherever necessary.

Current investments are valued at lower of cost and market value/net asset value.

g) Taxes on Income:

Provision for current tax is made after taking into consideration benefits admissible under provisions of Income Tax Act, 1961. Deferred Tax resulting from ''timing difference'' between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The Deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future.


Mar 31, 2013

A) System of Accounting:

Th e financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the provisions of Companies Act,1956 and in accordance with the generally accepted accounting principles in India. Th e Company follows the directions prescribed by the Reserve Bank of India for Non Banking Financial Companies from time to time.

b) Income Recognition:

(i) Income from Hypothecation loan transaction is accounted on accrual basis as per the Internal Rate of Return method .

(ii) The company has follows prudential norms prescribed by the Reserve Bank of India in respect of income recognition, valuation of investments, capital adequacy and provisioning for non-performing assets.

c) Expenditure:

Expenses are accounted on accrual basis except in the case of bonus to employees and contingent liabilities, which are accounted in the year of payment.

d) Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation.

e) Depreciation:

Depreciation on owned assets have been provided under Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

f) Valuation of Investments:

Long-term investments are stated at cost and provision for diminution in value, other than temporary, is considered wherever necessary. Current investments are valued at lower of cost and market value/net asset value.

g) Taxes on Income:

Provision for current tax is made after taking into consideration benefits admissible under provisions of Income Ta x Act, 1961. Deferred Ta x resulting from ''timing difference'' between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The Deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future.


Mar 31, 2012

A) System of Accounting: The financial statements are prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the provisions of Companies Act, 1956 and in accordance with the generally accepted accounting principles in India. The Company follows the directions prescribed by the Reserve Bank of India for Non Banking Financial Companies from time to time.

b) Income Recognition :

(i) Income from Hypothecation loan transaction is accounted on accrual basis as per the Internal Rate of Return method.

(ii) The company has follows prudential norms prescribed by the Reserve Bank of India in respect of income recognition, valuation of investments, capital adequacy and provisioning for non- performing assets.

c) Expenditure:

Expenses are accounted on accrual basis except in the case of bonus to employees and contingent liabilities, which are accounted in the year of payment.

d) Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation.

e) Depreciation:

Depreciation on owned assets have been provided under Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act, 1956.

f) Valuation of Investments :

Long-term investments are stated at cost and provision for diminution in value, other than temporary, is considered wherever necessary. Current investments are valued at lower of cost and market value/net asset value.

g) Taxes on Income:

Provision for current tax is made after taking into consideration benefits admissible under provisions of Income Tax Act, 1961. Deferred Tax resulting from 'timing difference' between book profit and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The Deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the asset will be realised in future.


Mar 31, 2010

A) System of Accounting: The financial statements ore prepared and presented under the historical cost convention on the accrual basis of accounting and comply with the provisions of Companies Act,I956 and in accordance with the generally accepted accounting principles in India. The Company follows the directions prescribed by the Reserve Bank of India for Non

b) Income Recognition:

(i) Income from Hire Purchase and Hypothecaton loan transaction is accounted on the basis of the Internal Rate of Return method.

(ii)The company has fodows prudential norms prescribed by the Reserve Bank of India in respect of income recognition, valuation of investments, capital odequacy and provisioning for non-performing assets

c) Expenditure

Expenses are accounted on accrual basis except in the cose of bonus to employees and contingent liabilities, which are accounted in the year of payment.

d) Fixed Assets;

Fuced Assets are stoted at historical cost less accumulated depreciation

e) Depreciation;

Depreciation on owned assets have been provided under Straight Line Method at the rates prescribed in Schedule XIV of the Companies Act. 1956.

f) Valuation of Investments:

Long term investments are stated at cost and provision for diminution in year, other than temporary, is considered wherever necessary.

g) Taxes on Income

Provision for current tax is made after taking into consideration benefits admissible under provisions of Income Tax Act. 1961 Deferred Tax resulting from timing difference between book profit and taxable profit is accounted for using the tax rates and laws that hove been enacted or substantively enacted as on the balance sheet date The Deferred tax asset is recognised and earned forward only to the extent that there s a reasonable certainty that the asset will be realised in future

 
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