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Union Budget 2017-18
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Accounting Policies of Pal Credit & Capital Ltd. Company

Mar 31, 2014

A. FIXED ASSETS AND DEPRECIATION

Fixed Assets are identified as "Tangible" and "Intangible". Tangible assets are further divided into assets for own use and Leased Assets.

All the fixed assets including assets given on lease are stated in Balance Sheet at cost of acquisition, inclusive of expenses relating to acquisition.

In respect of leased assets, depreciation is provided in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India whereby it is ensured that full depreciation is provided over the primary lease period.

In Accounting for leases, the Company has applied the recommendations of the revised Guidance Note of the Institute of Chartered Accountants of India and accordingly Lease Equalization Adjustments have been made in the Statement of Profit & Loss and net book value of Leased Assets.

In respect of other assets, depreciation is provided on Reducing Balance Method in accordance with Schedule XIV to the Companies Act, 1956 or in case of Revalued Assets, if any, depreciation is determined based on Balance life of revalued asset, determined by the valuer.

The repossessed leased assets are valued at estimated realizable value.

Assets not likely to realize any significant value are adequately provided for or written off.

B. INVESTMENTS

Long term Investments are stated at cost subject to adjustment, if any, for permanent diminution in value. Income there from is credited to revenue on accrual basis.

C. STOCK-IN-TRADE:

SHARES & SECURITIES

Stock-in-trade of Shares & Securities of each category on an aggregate is valued at cost or market value (break-up value in case of unquoted shares) whichever is lower as required by the RBI Guidelines for Non-Banking Financial Companies.

D. CURRENT ASSETS

Trade Receivable and Loans & Advances are stated at the amount to be received net after deducting the amount required to be provided as NPA as per RBI guidelines and/ or provision for dues doubtful of recovery.

E. STOCK ON HIRE

"Stock on Hire", secured against Hire Purchase Contracts, represents the principal amount and the unmetered finance charges in respect of future installments.

F. INCOME

The Company accrues hire charges, lease rentals and service charges arising out of Hire Purchase/ Lease agreements as per the terms of agreements entered into with hirers & lessee except in case of Non-performing Assets.

Income from Bill Discounting, if any, is accounted for, on time accrual basis.

Interest on Inter Corporate Deposits, Investments and overdue installments / rentals is accrued to the extent of certainty of collection.

G. GRATUITY & LEAVE ENCASHMENT

Liability on account of Gratuity and Leave Encashment (if any) are provided for.

H. EXPENSES

All the expenses are accounted on accrual basis unless otherwise stated.

In compliance with Guidelines for Prudential Norms for income recognition/provisioning issued by Reserve Bank of India from time to time, the Company has not accrued income in respect of Non-Performing Assets as defined therein. The Company has made adequate provisions in respect of such assets in terms of these Guidelines.


Mar 31, 2012

A FIXED ASSETS AND DEPRECIATION

- Fixed Assets are identified as "Tangible" and "Intangible". Tangible assets are further divided into assets for own use and Leased Assets.

- All the fixed assets including assets given on lease are stated in Balance Sheet at cost of acquisition, inclusive of expenses relating to acquisition.

- In respect of leased assets, depreciation is provided in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India whereby it is ensured that full depreciation is provided over the primary lease period.

- In Accounting for leases, the Company has applied the recommendations of the revised Guidance Note of the Institute of Chartered Accountants of India and accordingly Lease Equalization Adjustments have been made in the Statement of Profit & Loss and net book value of Leased Assets.

- In respect of other assets, depreciation is provided on Reducing Balance Method in accordance with Schedule XIV to the Companies Act, 1956 or in case of Revalued Assets, if any, depreciation is determined based on Balance life of revalued asset, determined by the valuer.

- The repossessed leased assets are valued at estimated realizable value.

- Assets not likely to realize any significant value are adequately provided for or written off.

B INVESTMENTS

- Long term Investments are stated at cost subject to adjustment, if any, for permanent diminution in value. Income there from is credited to revenue on accrual basis.

C STOCK-IN-TRADE:

SHARES & SECURITIES

- Stock-in-trade of Shares & Securities of each category on an aggregate is valued at cost or market value (break-up value in case of unquoted shares) whichever is lower as required by the RBI Guidelines for Non-Banking Financial Companies.

D CURRENT ASSETS

- Trade Receivable and Loans & Advances are stated at the amount to be received net after deducting the amount required to be provided as NPA as per RBI guidelines and/ or provision for dues doubtful of recovery.

E STOCK ON HIRE

- "Stock on Hire", secured against Hire Purchase Contracts, represents the principal amount and the unmetered finance charges in respect of future installments.

F INCOME

- The Company accrues hire charges, lease rentals and service charges arising out of Hire Purchase/Lease agreements as per the terms of agreements entered into with hirers & lessees except in case of Non-performing Assets.

- Income from Bill Discounting, if any, is accounted for, on time accrual basis.

- Interest on Inter Corporate Deposits, Investments and overdue installments / rentals is accrued to the extent of certainty of collection.

G GRATUITY & LEAVE ENCASHMENT

- Liability on account of Gratuity and Leave Encashment (if any) are provided for.

H EXPENSES

- All the expenses are accounted on accrual basis unless otherwise stated.

- In compliance with Guidelines for Prudential Norms for income recognition/provisioning issued by Reserve Bank of India from time to time, the Company has not accrued income in respect of Non- Performing Assets as defined therein. The Company has made adequate provisions in respect of such assets in terms of these Guidelines.


Mar 31, 2010

A. FIXED ASSETS AND DEPRECIATION

- All the fixed assets including assets given on lease are stated in Balance Sheet at cost of acquisition, inclusive of expenses relating to acquisition, except the assets revalued. Assets if revalued are stated at fair market value certified by Government Approved Valuer. Details of assets revalued, if any, are given separately.

- In respect of leased assets, depreciation is provided in accordance with the Guidance Note issued by the Institute of Chartered Accountants of India whereby it is ensured that full depreciation is provided over the primary lease period.

- In accounting for leases, the Company has applied the recommendations of the revised Guidance Note of the Institute of Chartered Accountants of India and accordingly Lease Equalization Adjustments have been made in the Profit & Loss Account and net book value of Leased Assets.

- In respect of other assets, depreciation is provided on Straight Line Method in accordance with Schedule XIV to the Companies Act, 1956 or in case of Revalued Assets, if any, depreciation is determined based on Balance life of revalued asset, determined by the valuer.

B INVESTMENTS

- Long term Investments are stated at cost subject to adjustment, if any, for permanent diminution in value. Income there from is credited to revenue on accrual basis.

C STOCK-IN-TRADE :

SHARES & SECURITIES

- Stock-in-trade of Shares & Securities of each category on an aggregate is valued at cost or market value (break-up value in case of unquoted shares) whichever is lower as required by the RBI Guidelines for Non-Banking Financial Companies.

REAL ESTATE

- Real Estate are valued at cost or realizable value whichever is less. Real Estate converted from Fixed Asset to Stock in Trade is valued at the Fair Market Value at the time of conversion together with cost of additions subsequent to revaluation or the market value on the date of Balance Sheet whichever is less.

D REPOSSESSED ASSETS

- The repossessed assets are valued at estimated realizable value.

E SUNDRY DEBTORS

- Sundry Debtors, including overdue are stated at the amount to be received net after deducting the amount required to be provided as NPA as per RBI guidelines and/or provision for debtors doubtful of recovery.

F STOCK ON HIRE

- "Stock on Hire", secured against Hire Purchase Contracts, represents the principal amount and the unmatured finance charges in respect of future installments.

G INCOME

- The Company accrues hire charges, lease rentals and service charges arising out of Hire Purchase/Lease agreements as per the terms of agreements entered into with hirers & lessees except in case of Non-performing Assets.

- Income from Bill Discounting, if any, is accounted for, on time accrual basis.

- Interest on Inter Corporate Deposits, Investments and overdue installments / rentals are accrued to the extent of certainty of collection.

H GRATUITY & LEAVE ENCASHMENT

- Liability on account of Gratuity and Leave Encashment (if any) are charged to revenue on the basis of actuarial valuation.

L EXPENSES

- All the expenses are accounted on accrual basis unless otherwise stated.

- In compliance with Guidelines for Prudential Norms for income recognition/provisioning issued by Reserve Bank of India from time to time, the Company has not accrued income in respect of Non- Performing Assets as defined therein. The Company has made adequate provisions in respect of such assets in terms of these Guidelines.

 
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