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Accounting Policies of K Z Leasing & Finance Ltd. Company

Mar 31, 2014

A) Basis of Accounting

Accounts are prepared under historical cost convention. Revenues are recognized and the expenses are accounted for on an accrual basis with provision for all known liabilities and losses except to the extent that i. Income in respect of Non Performing Assets is recognized only when received as prescribed by the prudential norms issued by the Reserve Bank of India forNon Banking Financial Companies And ii. There were no provision for lower Market Value Of securities (investments) as there were frequent change in market prices.

b) Recognization of Income & Expenditure Revenue Recognition :

1 .The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provision of the Companies Act, 1956.

2. The Company generally follows mercantile system of accounting and recognizes significant items of Income and expenditure on accrual basis.

Expenses :

1 All Expenditure is on mercantile basis.

2 Interest rates on unsecured loans are decided by the Directors.

3 Hire Purchase advances also include the other type of advances guaranteed either on fixed assets or personal guarantee of the loan.

4 Bad & Doubtful advances written off as and when no recovery instead NPA of provision.

c) Fixed Assets

Fixed Assets are stated at cost. Cost comprises the purchase price or acquisition cost and any Attributable cost of bringing the assets to working condition for its intended use.

d) Depreciation

1. Depreciation has been provided on the Straight Line Method as per the rates prescribed in Companies Act, 1956.

2. Depreciation on addition during the year has been provided on pro rata basis i.e. from the date of its purchase or it is actually put to use whichever is late and with reference to the method of Depreciation.

e) Inflation

The assets and liabilities are recorded at historical cost in the company. These costs are not Adjusted to reflect the changing value in the purchasing power of money.

The company has only one class of Equity share having Per Value of Rs.10 per share. Eac h holder of Equity shares is entitled to vote one per share


Mar 31, 2012

A) Basis of Accounting

Accounts are prepared under historical cost convention. Revenues are recognized and the expenses are accounted for on an accrual basis with provision for all known liabilities and losses except to the extent that i. Income in respect of Non Performing Assets is recognized only when received as prescribed by the prudential norms issued by the Reserve Bank of India forNon Banking Financial Companies And ii. There were no provision for lower Market Value Of securities (investments ) as there were frequent change in market prices.

b) Recognization of Income & Expenditure Revenue Recognition :

1 The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provision of the Companies Act, 1956.

2.The Company generally follows mercantile system of accounting and recognizes significant items of Income and expenditure on accrual basis. Expenses:

1 All Expenditure are on mercantile basis.

2 Interest rates on unsecured loans are decided by the Directors.

3 Hire Purchase advances also includes the other type of advances guaranteed either on fixed assets or personal guarantee of the loan.

4 Bad & Doubtful advances written off as and when no recovery instead NPA of provision.

c) Fixed Assets

Fixed Assets are stated at cost. Cost comprises the purchase price or acquisition cost and any attributable cost of bringing the assets to working condition for its intended use.

d) Depreciation

1 .Depreciation has been provided on the Straight Line Method as per the rates prescribed in Companies Act,1956.

2. Depreciation on addition during the year has been provided on pro rata basis i.e. from the date of its purchase or it is actually put to use whichever is late and with reference to the method of depreciation.

e) Inflation

The assets and liabilities are recorded at historical cost in the company. These costs are not adjusted to reflect the changing value in the purchasing power of money.


Mar 31, 2010

1 Basis of Accounting :

Accounts are prepared under historical cost convention. Revenues are recognised and the expenses are accounted for on an accrual basis with provision for all known liabilities and losses except to the extent that i. Income in respect of Non Performing Assets is recognised only when received as prescribed by the prudential norms issued by the Reserve Bank of India for Non Banking Financial Companies And ii. There were no provision for lower market value of securities (investments ) as there were frequent change in market prices.

2 Revenue Recognition :

1 Interest Income on accrual basis except N.P.A. accounts if any.

2 Service Charges on accrual basis.

3 Rent Income on accrual basis except lease Income.

4 Dividend Income is accounted for on receipt basis.

3 Expenses.

1 All Expenditure are on mercantile basis.

2 Interest rates on unsecured loans are decided by the Directors.

3 Hire Purchase advances also includes the other type of advances guaranteed either on fixed assets or personal guarantee of the loan.

4 Bad & Doubtful advances written off as and when no recovery instead NPA of provision.

4 Fixed Assets :

( a) 1 Fixed Assets are stated at cost.

2 Machinery are lying with leassee and used by them.

3 Depreciation has been Charged on S.L.M. as per rate prescribed in companies Act.

4 Depreciation has been charged for the full year irrespective of date of purchase / sale ( b preliminary Expenses will be written off at the rate of 10 % of SLM.

 
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