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Accounting Policies of Maha Rashtra Apex Corporation Ltd. Company

Mar 31, 2015

1. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make Judgements, estimates and assumptions that affect the reported amounts of assets and liability and disclosure of contingent liabilities at the date of financial statements and the results of operations during the accounting period. Although these estimates are based on management's best knowledge of current events and actions, actual results could differ from these estimates.

2. Fixed Assets:

i) Owned Assets (Tangible)

Tangible Assets held for own use are stated at cost net of tax/duty credits availed, if any, less accumulated depreciation less impairment loss, if any.

ii) Leased Assets:

Assets under operating lease are stated at Original Cost less accumulated depreciation, less Lease Terminal Adjustment wherever applicable.

3. Depreciation

Depreciation on fixed assets is charged in the accounts based on useful life of the assets as prescribed in schedule II of the companies Act 2013. The management reviewed estimated useful life of the fixed assets with effect from 1st April 2014 and charged the depreciation over the remaining useful life of the assets and the net book value of the fixed assets as at 1stApril 2014 is depreciated on a prorate basis over the remaining useful life. Where after retaining the residual value, where the remaining useful life of the assets is nil has been recognized in opening retained earnings. On assets under operating lease period has expired and these assets have been impaired in the books account considering the recoverable value and carrying amount in the books of account. No depreciation is charged in the accounts on these assets.

4. Impairment

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment Loss is charged to Profit and Loss statement in the year in which an asset is identified as impaired.

5. Investments:

Non-Current Investments are carried at cost. Provision for Diminution in the value of these investments other than temporary in nature is reduced from the value of Long term Investments.

6. Current Assets:

Stock on Hire is valued at agreement value, less amount received, unrealized & un-matured finance charges and future taxes & insurance.

7. Revenue Recognition:

Income from Suit-filed Accounts and Non-Performing Assets, Overdue Compensation, Interest on Debentures are recognized on receipt basis. Company has not followed prudential norms for income recognition as prescribed by Reserve Bank of India for Non-Banking Financial Companies. Lease equalization is computed in accordance with Guidance note on Accounting for leases issued by ICAI. The company has not entered into any new lease transactions after the effective date of Guidance note on Accounting for leases. Other revenues are recognized based on the nature of activity when consideration can be reasonably measured and there exists reasonable certainty of its recovery. The income from one time settlement of Deposits/Bonds (under Hardship route) is credited to Profit and Loss Account as and when the option is availed by the Deposit/Bond holder. Dividend income is recognized in the year in which the right to receive is established.

8. Employee Benefits:

Short-Term Employee Benefits:

All benefits such as salaries, wages, Bonus as per Bonus Act 1965 & ex-gratia leave travel allowance short term compensated absences, etc., which are payable within twelve months of rendering the service are classified as Short-Term Employee benefits and are recognized in the period in which the employees renders related service.

Post Employment Benefits:

Defined Contribution Plan:

The company contributes to state governed Provident Fund Scheme. Under the said scheme, contributions are recognized during the period in which the employees render related service.

Defined Benefit Plans:

The company contributes to LIC Group Gratuity Fund. The company relies on the actuarial valuation made by an Actuary using Projected Unit Credit Method for measurement of obligation towards Post-Employment Benefits under Defined Benefit Plans such as Gratuity. Actuarial gains or losses are recognized in the Statement of Profit & Loss.

Other Long Term Benefits:

Long term benefits such as earned leave are determined based on the actual leave accumulated at the end of the year. Provision is made as per actuarial valuation by an independent actuary.

9. Borrowing Costs:

Interest costs are charged to revenue except interest not accounted for as per Note 3.1 (a). Interest costs have been provided for the year as per Note-3.1(g).

10. Taxes on Income:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on expected outcome of assessment/appeals before various Appellate Authorities.

Deferred Tax are not recognized in the absence of reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

11. Provisions, Contingent Liability and contingent Asset:

Provision is recognized in the accounts when there is a present obligation as a results of past events and it is Probable that an outflow of resources will be required to settle the obligation and reliable estimate can be made. Contingent Liabilities if any are disclosed by way of Notes on Accounts. (Refer Other Disclosure 3.12. below)


Mar 31, 2014

1. Corporate Information:

Maha Rashtra Apex Corporation Ltd., is a public limited company domiciled in India under the provision of Companies Act 1913. Main object of the company is to carry on the business of hire purchase and leasing. Presently the company has discontinued the operation and concentrated the recovery of Hire purchase and Leasing Advances.

1.1. Basis of preparation of accounts

The Financial Statements of the company have been prepared in accordance with generally accepted accounting principles in India, Mandatory accounting standards notified under the companies (Accounting Standards) Rules 2006, (as amended) relevant provisions of the companies act 1956 read with general circular 15/2013 dated 13th September 2013, issued by the Ministry of Corporate Affairs in respect of 133 of Companies Act 2013. The Financial Statement has been prepared under historical cost convention on accrual basis except in respect of revenue from hire purchase and leasing and finance activities. The accounting policies applied by the company are consistent with those used in the previous year.

2. Significant Accounting Policies

2.1. Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liability and disclosure of contingent liabilities at the date of financial statements and the results of operations during the accounting period. Although these estimates are based on management''s best knowledge of current events and actions, actual results could differ from these estimates.

2.2. Fixed Assets:

Tangible: i) Owned Assets: Assets held for own uses are stated at cost net of tax/duty credits availed, if any, less accumulated depreciation. ii) Leased Assets: Assets under operating lease are stated at Original Cost less accumulated depreciation, less Lease Terminal Adjustment wherever applicable.

2.3. Depreciation:

In respect of Owned and Leased Assets acquired prior to 31st March 1991, depreciation is charged under Written Down Value Method at the rates specified in Notification No GSR 756(e), dated 16th December 1993, in Schedule XIV of the Companies Act, 1956.

In respect of owned assets acquired after 1st April 1991, depreciation is charged under Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956. In respect of assets given on lease, depreciation is charged under Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956. In case of Financial Leases, Lease Equalisation method is followed as per Guidance Note on Accounting for Leases issued by Institute of Chartered Accountants of India.

2.4. Impairment of Assets:

At each Balance Sheet date the carrying amount of assets is tested for impairment so as to determine any required impairment loss or reversal of earlier recognized impairment loss. Recoverable amount is determined, in case of an individual asset, at the higher of the net selling price and the value in use. In case of a cash generating unit, at the higher of the cash generating unit?s net selling price and the value in use.

2.5. Investments:

Long Term Investments are carried at cost. Provision for Diminution in the value of these investments other than temporary in nature is reduced from the value of Long term Investments.

2.6. Current Assets:

Stock on Hire is valued at agreement value, less amount received, unrealized & un-matured finance charges and future taxes & insurance.

2.7. Revenue Recognition:

Income from Suit-filed Accounts and Non-Performing Assets, Overdue Compensation, Interest on Debentures are recognized on receipt basis. Company has not followed prudential norms for income recognition as prescribed by Reserve Bank of India for Non-Banking Financial Companies. Lease equalization is computed in accordance with Guidance note on Accounting for leases issued by ICAI. The company has not entered into any new lease transactions after the effective date of Guidance note on Accounting for leases. Other revenues are recognized based on the nature of activity when consideration can be reasonably measured and there exists reasonable certainty of its recovery. The income from one time settlement of Deposits/Bonds (under Hardship route) is credited to Profit and Loss Account as and when the option is availed by the Deposit/Bond holder. Dividend income is recognized in the year in which the right to receive is established.

2.8. Employee Benefits:

Short-Term Employee Benefits: All benefits such as salaries, wages, Bonus as per Bonus Act 1965 & ex-gratia leave travel allowance short term compensated absences, etc which are payable within twelve months of rendering the service are classified as Short-Term Employee benefits and are recognized in the period in which the employees renders related service. Post Employment Benefits: Defined Contribution Plan: The company contributes to state governed Provident Fund Scheme. Under the said scheme, contributions are recognized during the period in which the employees render related service. Defined Benefit Plans: The company contributes to LIC Group Gratuity Fund. The company relies on the actuarial valuation made by an Actuary using Projected Unit Credit Method for measurement of obligation towards Post Employment Benefits under Defined Benefit Plans such as Gratuity. Actuarial gains or losses are recognized in the Statement of Profit & Loss. Other Long Term Benefits: Long term benefits such as earned leave are determined based on the actual leave accumulated at the end of the year. Provision is made as per actuarial valuation by an independent actuary.

2.9. Borrowing Costs:

Interest costs are charged to revenue except the interest not accounted for as per Note 3.1 (a). Interest costs have been provided for the year as per Note-3.1(g).

2.10. Taxes on Income:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on expected outcome of assessment/appeals before various Appellate Authorities. Deferred Tax are not recognized in the absence of reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

2.11. Contingent Liability:

Contingent Liabilities if any are disclosed by way of Notes on Accounts. (Refer Other Disclosure 3.12. below)


Mar 31, 2012

1. Basis of Accounting:

The Financial Statements have been prepared under historical cost convention on accrual basis of accounting in accordance with the accounting principles generally accepted in India, and in compliance with the provisions of the Companies Act, 1956 and applicable mandatory Accounting Standards as prescribed under Sec.211 (3C) of the Companies Act, 1956 and the relevant provisions of the Companies Act 1956.and to comply with accounting Standards issued by the council of the Institute of chartered Accountants of India.

Such a preparation of financial statements require that the management makes estimates and assumptions that affects the reported amounts of incomes and expenses for the period, the reported balances of assets and liabilities and disclosures regarding contingent liabilities as of the date of financial statements. Examples of such estimates include future obligations in respect of retirement benefit plans etc. Actual could differ from these estimates. Any revisions to accounting estimates are recognized prospectively in the current period and future periods. Wherever changes in presentation are made, comparative figures of previous periods are regrouped accordingly.

2. FixedAssets:

Tangible: i) OwnedAssets:

Assets held for own use are stated at cost net of tax/duty credits availed, if any, less accumulated depreciation,

ii) LeasedAssets:

Assets under operating lease are stated at Original Cost less accumulated depreciation, less Lease Terminal Adjustment wherever applicable.

3. Impairment of Assets:

At each Balance Sheet date the carrying amount of assets is tested for impairment so as to determine any required impairment loss or reversal of earlier recognized impairment loss. Recoverable amount is determined, in case of an individual asset, at the higher of the net selling price and the value in use. In case of a cash generating unit, at the higher of the cash generating unit's net selling price and the value in use.

4. Investments:

Long Term Investments are carried at cost, after providing for any diminution in value, if such diminution is of other than temporary in nature. Current Investments are carried at lower of costand market value.

5. CurrentAssets:

Stock on Hire is valued at agreement value, less amount received, unrealized & un-matured finance charges and future taxes & insurance.

6. Revenue Recognition:

Income from Suit-filed Accounts and Non-Performing Assets, Overdue Compensation, Interest on Debentures are recognized on receipt basis. Company has not followed prudential norms for income recognition as prescribed by Reserve Bank of India for Non Banking Financial Companies. Lease equalization is computed in accordance with Guidance note on Accounting for leases issued by ICAI. The company has not entered into any new lease transactions after the effective date of Guidance note on Accounting for leases. Deferred Tax has not been recognized in view of insufficient future taxable income

Other revenues are recognized based on the nature of activity when consideration can be reasonably measured and there exists reasonable certainty of its recovery.

The income from one time settlement of Deposits/Bonds (under Hardship route) is credited to Profit and Loss Account as and when the option is availed by the Deposit/Bond holder.

Dividend income is recognized in the year in which the right to receive is established.

7. Employee Benefits:

Short Term Employee Benefits:

All benefits such as salaries, wages, Bonus as per Bonus Act 1965 & ex-gratia leave travel allowance short term compensated absences, etc which are payable within twelve months of rendering the service are classified as Short-Term Employee benefits and are recognized in the period in which the employees renders related service.

Post Employment Benefits:

Defined Contribution Plan:

The company contributes to state governed Provident Fund Scheme. Under the said scheme, contributions are recognized during the period in which the employees render related service.

Defined Benefit Plans:

The company contributes to LIC Group Gratuity Fund. The company relies on the actuarial valuation made by LIC using Projected Unit Credit Method for measurement of obligation towards Post Employment Benefits under Defined Benefit Plans such as Gratuity. Actuarial gains or losses are recognised in the Profit & Loss Account.

Other Long Term Benefits:

Long term benefits such as earned leave are determined based on the actual leave accumulated at the end of the year.

8. Borrowing Costs:

Interest costs are charged to revenue except the interest not accounted for as per Note B (1) (a). Interest costs have been provided for the year as per Note-B (1) (g).

9. Depreciation:

In respect of Owned and Leased Assets acquired prior to 31st March 1991, depreciation is charged under Written Down Value Method at the rates specified in Notification No GSR 756(e), dated 16th December 1993, in Schedule XIV of the Companies Act, 1956.

In respect of owned assets acquired after 1 st April 1991, depreciation is charged under Straight Line Method at the rates specified in ScheduleXIV to the CompaniesAct, 1956. In respect of assets given on lease, depreciation is charged under Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956. In case of Financial Leases, Lease Equalisation method is followed as per Guidance Note on Accounting for Leases issued by Institute of Chartered Accountants of India.

10. Taxes on Income:

Tax on income forthe current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income TaxAct, 1961 and based on expected outcome of assessment/appeals.

Deferred Tax are not recognized in the absence of reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

11. Contingent Liability:

Contingent Liabilities if any are disclosed by way of Notes on Accounts. (Refer Other Disclosure B (12) below)


Mar 31, 2010

1. Basis of Accounting:

The Company maintains its account under historical cost convention in accordance with the accounting policies generally accepted in India, and is in compliance with the provisions of the Companies Act, 1956 and the Accounting Standards as prescribed by the lnstitute of Chartered Accountants o flndia.

Such a preparation of financial statements require that the management makes estimates and assumptions that affects the reported amounts of incomes and expenses for the period the reported balances of assets and liabilities and disclosures regarding contingent liabilities as of the date of financial statements. Examples of such estimates include future obligations in respect of retirement benefit plans etc. Actual could differ from these estimates. Any revisions to accounting estimates are recognized prospectively in the current period and future periods. Wherever changes in presentation are made, comparative figures of previous periods are regrouped accordingly.

2. Fixed Assets: Owned Assets:

Assets held for own use are state dat cost net of tax/ duty credits availed, if any, less accumulated depreciation.

Leased Assets:

Assets under operating lease are stated at Original Cost less accumulated depreciation, less Lease Terminal Adjustment wherever applicable.

3. Impairment of Assets:

At each Balance Sheet date the carrying amount of assets is tested for impairment so as to determine any required impairment loss or reversal of earlier recognized impairment loss. Recoverable amount is determined, in case of an individual asset,atthehigherofthenetselling price and the valueinuse. In case of a cash generating unit, at the higher of the cash generating units net selling price and the value in use.

4. Investments:

Long Term Investments are carried at cost, after providing for any diminution in value, if such diminution is of other than temporary in nature. Current Investments are carried at lower of cost and market value.

5. Current Assets:

Stock on Hire is valued at agreement value, less amount received, unrealized & unmatured finance charges and future taxes & insurance.

6. Revenue Recognition:

Income from Suit-filed Accounts and Non-Performing Assets, Overdue Compensation, Interest on Debentures are recognized on receipt basis.

Other revenues are recognized based on the nature of activity when consideration can be reasonably measured and there exists reasonable certainty of its recovery.

The income from one time settlement of Deposits/Bonds (under Hardship route) is credited to Profit and Loss Account as and when the option is availed by the Deposi!/Bond holder.

7. Employee Benefits:

Employee Benefits are recognised, measured and disclosed as per Accounting Standard -15 (Revised 2005) "Employee Benefits".

Short-Term Employee Benefits:

All benefits such as salaries, wages, short term compensated absences, etc which are payable within twelve months of rendering the service are classified as Short-Term Employee benefits.

They are recognized in the period in which the employee renders the related service.

Post Employment Benefits: Defined Contribution Plan:

The company contributes to state governed Provident Fund Scheme. Under the said scheme, contributions are recognized during the period in which the employees render related service.

Defined Benefit Plans:

The company contributes to LIC Group Gratuity Fund. The company relies on the actuarial valuation made by LIC using Projected Unit Credit Method for measurement obligation towards Post Employment Benefits under Defined Benefi! Plans such as Gratuity. Actuarial gains or losses are recognised in the Profit & Loss Account.

Other Long Term Benefits:

Long term benefits such as earned leave are determined based on the actual leave accumulated at the end of the year.

8. Borrowing Costs:

lnterest costs are charged to revenue except the interest not accounted for as per Not eB(1)(a) .lnterest costs has been provided for the year as perNote-B(1)(g).

9. Depreciation:

Inrespectof Owne d and Leased Assets acquired prior to 31st March 1991, depreciation is charged under Written Down Value Method at the rates specified in Notification No GSR 756(e), dated 16th December 1993 in Schedule XIV of the Companies Act,1956. In respect of owned assets acquired after 1 st April 1991, depreciation is charged under Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956. In respect of asseFs given on lease, depreciation is charged under Straight Line Method at the rates specified in Schedule XIV to the Companies Act, 1956 In case of Financial Leases, Lease Equalisation method is followed as per Guidance Note on Accounting for Leases issued by Institute of CharteredAccountantsoflndia.

10. Taxes onlncome:

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on expected outcome of assessment/appeals.

Deferred Tax are not recognized in the absence of reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

11..Contingent Liability:

Contingent Liabilities if any are disclosed by way of Notes on Accounts.

 
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