Mar 31, 2011
1) Accounting Methodology:
The accounts are being prepared on the Historical Cost basis of
accounting. The incomes and expenditures are as accounted as follows :
i) Income:
a) The company follows the practice of accounting for its income on an
accrual basis to the extent recoverable. Delayed payment charges are
accrued on basis of certainty of collection / realisations.
b) Income from Investments is accounted on receipt basis.
c) In conformity with' the guidelines issued by The Reserve Bank of
India, applicable to all registered Non-Banking Finance Companies, the
company has adopted the policy of accounting income in respect of
Non-Performing Assets (NPA), in the year in which such income is
recovered when the Company was registered with RBI as NBFC . The
Company has surrender its NBFC Registration certificate to RBI.
ii) Expenses: It is the company's policy to provide for all Expenses on
an accrual Basis.
2) 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
liabilities and disclosure of contingent liabilities on the date of
financial statements. Actual results could differ from those estimates.
Any revision to accounting estimates is recognized prospectively in
current and future periods.
3) Fixed Assets:
(i) All Fixed Assets are stated at costs less accumulated depreciation
and impairment assets.
5) Investments:
Investments are classified as long term investments and current
investments based on the period for which the investments are proposed
to be held by the company. Long term investments are stated at cost.
Provisions for diminution on global basis, in value of long term
investments are made unless the diminution is considered to be
temporary in nature.
Government Securities, Bonds etc. invested to comply with the Statutory
Liquidity Ratio (SLR) as prescribed by the Reserve Bank of India, for
registered Non-Banking Finance Companies are stated at costs.
Provisions for diminution in value of quoted. and unquoted "investment
have been made as per R.B.I. Directions "Non Banking Financial
Companies Prudential Norms. (Reserve Bank) Directions, 1998 when the
Company was registered with RBI as NBFC- Profit/Loss on sale of
investments are computed with respect to their average costing.
4) Provision for Contingency :
Depending upon availability of profit, it is the company's policy to
provide for contingency @ 2% of the gross income per year, but due to
the losses for the period under consideration, the same is not
provided.
5) Contingent Liability :
Contingent Liabilities are not provided for in the accounts, but are
separately stated in the notes to the accounts.
6) Retirement Benefits :
1) Gratuity:
As there was no employee during the year, therefore Company had not
made any provision for Gratuity for the year ended 31st March 2011.
2) Leave Encashment:
In terms of the Accounting Standard 15, issued by the Institute of The
Chartered Accountants of India, relating to "Accounting of Retirement
Benefits and the Financial Benefits of the Employees", applicable for
the year 1995-96 and onwards, the company has made necessary provisions
for leave encashment liability due to the, employees as all employees
retired as on 31st March 1999 and the same is charged to Profit and
Loss Account upto 31st March 1999. As during the year' under review
there are no employees on payroll of the Company, no provision has been
made.
7) Prudential Norms:
The company has followed the guidelines issued by the Reserve Bank of
India to registered Non-Banking Finance Companies, regarding Capital
Adequacy, Asset Classification; Provisioning for Income Recognition on
Non-Performing Assets till the Company was registered with RBI as NBFC.
Mar 31, 2010
1) Accounting Methodology:
The accounts are being prepared on the Historical Cost basis of
accounting. The incomes and expenditures are as accounted as follows :
i) Income:
a) The company follows the practice of accounting for its income on an
accrual basis to the extent recoverable. Delayed payment charges are
accrued on basis of certainty of collection/realisations.
b) Income from Investments is accounted on receipt basis.
c)In conformity with the guidelines issued by The Reserve Bank of
India, applicable to all registered Non-Banking Finance Companies, the
company has adopted the policy of accounting income in respect of
Non-Performing Assets (NPA), in the year in which such income is
recovered when the Company was registered with RBI as NBFC . The
Company has surrender its NBFC Registration certificate to RBI.
ii) Expenses: It is the companys policy to provide for all Expenses on
an accrual Basis.
2) 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
liabilities and disclosure of contingent liabilities on the date of
financial statements. Actual results could differ from those estimates.
Any revision to accounting estimates is recognized prospectively in
current and future periods.
3) Fixed Assets:
(i) All Fixed Assets are stated at costs less accumulated depreciation
and impairment assets.
(ii) Impairment
In accordance with AS-28, with effect from April 1, 2004, where there
is an indication of impairment of the Companys asset, the carrying
amounts of the Companys assets are reviewed at each balance sheet date
to determine whether there is any impairment. The recoverable amounts
of the assets are estimated, as impairment of its net selling price and
its value in use. An impairment loss is recognized whenever the
carrying amount of an asset or a cash generating unit exceeds its
recoverable amount. Impairment loss is recognised in the profits and
loss account or against revaluation surplus where applicable.
4) Depreciation:
Nature of Fixed Assets Depreciation Method Used
Fixed Assets acquired for
own use Straight Line Method at the rate
specified in schedule XIV of the
Companies Act, 1956.
Fixed Assets acquired and given on
Lease
Depreciation on additions is provided on pro-rata basis from the day
the asset is put to use and on leased assets the depreciation is
provided from the month the said asset is put to use.
5) Investments:
Investments are classified as long term investments and current
investments based on the period for which the investments are proposed
to be held by the company. Long term investments are stated at cost.
Provisions for diminution on global basis, in value of long term
investments are made unless the diminution is considered to be
temporary in nature.
Government Securities, Bonds etc. invested to comply with the Statutory
Liquidity Ratio (SLR) as prescribed by the Reserve Bank of India, for
registered Non-Banking Finance Companies are stated at costs.
Provisions for diminution in value of quoted and unquoted investment
have been made as per R.B.I. Directions "Non Banking Financial
Companies Prudential Norms. (Reserve Bank) Directions, 1998 when the
Company was registered with RBI as NBFC. Profit / Loss on sale of
investments are computed with respect to their average costing.
6) Provision for Contingency:
Depending upon availability of profit, it is the companys policy to
provide for contingency @ 2% of the gross income per year, but due to
the losses for the period under consideration, the same is not
provided.
7) Contingent Liability:
Contingent Liabilities are not provided for in the accounts, but are
separately stated in the notes to the accounts.
8) Retirement Benefits:
1) Gratuity:
As there was no employee during the year, therefore Company had not
made any provision for Gratuity for the year ended 31st March 2010.
2) Leave Encashment:
In terms of the Accounting Standard 15, issued by the Institute of The
Chartered Accountants of India, relating to "Accounting of Retirement
Benefits and the Financial Benefits of the Employees", applicable for
the year 1995-96 and onwards, the company has made necessary provisions
for leave encashment liability due to the employees as all employees
retired as on 31st March 1999 and the same is charged to Profit and
Loss Account upto 31st March 1999. As during the year under review
there are no employees on payroll of the Company, no provision has been
made.
9) Prudential Norms:
The company has followed the guidelines issued by the Reserve Bank of
India to registered Non-Banking Finance Companies, regarding Capital
Adequacy, Asset Classification, Provisioning for Income Recognition on
Non-Performing Assets till the Company was registered with RBI as NBFC.
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