Mar 31, 2014
(1) Nature of Operation
The company is engaged in providing loan against security of vahicles,
investment in shares & mutual fund, and finance business
concerns,individuals, companies, etc, as per the directions prescribed
by the Reserve Bank Of India (RBI) for Non-Banking Financial Companies
(NBFC).
(2) Basis of Preparation
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India,the relevant provision of
the Companies Act.1956 and the guidelines issued by the RBI as
applicable to Non-Deposit accepting NBFC.
The financial statements have been prepared under the historical cost
convention on an accrual basis unless otherwise stated. The accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year.
(3) Fixed Assets and Depreciation
Fixed assets are stated at Cost less Depreciation.
The depreciation has been provided in accordance with the provisions of
the Schedule XIV of Companies Act, 1956 on Written Down Value Method.
(4) Revenue Recognition
I. Income from operation represents earnings from Loan against security
of vehicles arrived at by amortising the installment containing the
interest, as and when these become due, as per the related
agreement.Such amortisation being based on Even Spread Method on
individual agreements.
II. Additional Interest for Delayed payment and rebate allowed on
timely payment are recognised as and when received / paid.
III. As a part of prudent financial management, the Company had decided
to progessively follow the international accepted accounting principles
on revenue recognition, provisioning and assets classification. These
principles stipulate de-recognition income on 5 (Five) installment dues
progressive provisioning and recognition of the contracts with 365 days
past dues as loss assets. These principles are more stringent than the
guidelines prescribed by the Reserve Bank of India for compliance.
In accordance with these prudent accounting policies, all contracts
with 365 days past dues treated as loss assets and written off as bad
debts. Any subsequent recoveries made out of these contracts will be
treated as income for the year during which the same is received.
IV. Prudential Norms
Subject to Para III above, the Company has followed the Prudential
Norms issued by Reserve Bank of India, as applicable, and revenue /
assets have been represented (considering adjustments / written - off /
net - off, as applicable) keeping in line therewith and management
prudence.
V. Dividend income on investment is accounted for when the company''s
right to receive dividend is establised.
VI. The Company makes provision of 0.25% on Standard Assets in
accordance with RBI Guidelines issued on 17th january, 2011.
(5) Expenses
All the expenses have been accounted for on accrual basis.
(6) Investment Valuation
Investment being Long term Investments are stated at cost. Provisions
for dimunition in value of investments are made only when such
dimunition is permanent in nature.
(7) Income Tax
a) Provision for Current Income Tax is made on the basis of relevant
provisions of the Income Tax Act, 1961 as applicable to the financial
year.
b) Deferred Taxon timing differences is measured based on the Tax Rates
and the Tax laws enacted or substantively enacted as on the Balance
Sheet date. Deferred Tax Assets are recognized only to the extent that
there is virtual certainty with convincing evidence that sufficient
future taxable income will be available against which such deferred tax
assets can be realized.
(8) Gratuity
The company has been legally advised that Payment of Gratuity Act, 1972
is not applicable to the company during the year.
Mar 31, 2013
(1) Nature of Operation
The company is engaged in providing loan against security of vehicles,
investment in shares & mutual fund, and finance business concerns,
individuals, companies, etc, as per the directions prescribed by the
Reserve Bank of India (RBI) for Non-Banking Financial Companies (NBFC).
(2) Basis of Preparation
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India, the relevant provision of
the Companies Act, 1956 and the guidelines issued by the RBI as
applicable to Non-Deposit accepting NBFC.
The financial statements have been prepared under the historical cost
convention on an accrual basis unless otherwise stated. The accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year.
(3) Fixed Assets and Depreciation
Fixed assets are stated at Cost less Depreciation.
The depreciation has been provided in accordance with the provisions of
the Schedule XIV of Companies Act, 1956 on Written Down Value Method.
(4) Revenue Recognition
I. Income from operation represents earnings from Loan against
security of vehicles arrived at by amortising the installment
containing the interest, as and when these become due, as per the
related agreement. Such amortisation being based on Even Spread Method
on individual agreements.
II. Additional Interest for Delayed payment and rebate allowed on
timely payment are recognised as and when received / paid,
III. As apart of prudent financial management, the Company had decided
to progressively follow the international accepted accounting
principles on revenue recognition, provisioning and assets
classification. These principles stipulate de-recognition income on 5
(Five) installment dues, progressive provisioning and recognition of
the contracts with 365 days past dues as loss assets. These principles
are more stringent than the guidelines prescribed by the Reserve Bank
of India for compliance.
In accordance with these prudent accounting policies, all contracts
with 365 days past dues are treated as loss assets and written off as
bad debts. Any subsequent recoveries made out of these contracts will
be treated as income for the year during which the same is received.
IV. Prudential Norms
Subject to Para III above, the Company has followed the Prudential
Norms issued by Reserve Bank of India, as applicable, and revenue /
assets have been represented (considering adjustments / written - off /
net - off, as applicable) keeping in line therewith and management
prudence.
V. Dividend income on investment is accounted for when the company''s
right to receive dividend is established.
VI. The Company makes provision of 0.25% on Standard Assets in
accordance with RBI Guidelines issued on 17th January, 2011.
(5) Expenses
All the expenses have been accounted for on accrual basis.
(6) Investment Valuation
Investment being Long term Investments are stated at cost. Provisions
for dimunition in value of investments are made only when such
dimunition is permanent in nature.
(7) Income Tax
a) Provision for Current Income Tax is made on the basis of relevant
provisions of the Income Tax Act, 1961 as applicable to the financial
year.
b) Deferred Tax on timing differences is measured based on the Tax
Rates and the Tax laws enacted or substantively enacted as on the
Balance Sheet date. Deferred Tax Assets are recognized only to the
extent that there is virtual certainty with convincing evidence that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
(8) Gratuity
The company has been legally advised that Payment of Gratuity Act, 1972
is not applicable to the company during the year.
Mar 31, 2010
(1) Nature of Operation
The Company is engaged in providing loan against security of vehicles,
investment in shares & mutual funds, and finance business concerns,
individuals, companies, etc, as per the directions prescribed by the
Reserve Bank of India (RBI) for Non Banking Financial Companies {NBFC).
(2) Basis of Preparation
The financial statements have been prepared to comply in all material
respects with the mandatory Accounting Standards issued by the
Institute of Chartered Accountants of India, the relevant provisions of
the Companies Act, 1956 and the guidelines issued by the RBI as
applicable to Non-Deposit accepting NBFC.
The financial statements have been prepared under the historical cost
convention on an accrual basis unless otherwise stated. The accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous year.
(3) Fixed Assets and Depreciation
Fixed assets are stated at Cost less Depreciation.
The depreciation has been provided in accordance with the provisions of
the Schedule XIV of the Companies Act, 1956 on Written Down Value
Method.
(4) Revenue Recognition
I. Income from operation represents earnings from Loan against
security of vehicles arrived at by amortising the installments
containing the interest, as and when these become due, as per the
related agreement. Such amortisation being based on Even Spread Method
on individual agreements.
II. Delayed payment charges and rebate allowed on timely payments are
recognised as and when received /paid.
III. As a part of prudent financial management, the Company had
decided to progressively follow the internationally accepted accounting
principles on revenue recognition, provisioning and assets
classification. These principles stipulate de recognition of income on
5 (Five) installment dues, progressive provisioning and recognition of
contracts with 365 days past dues as loss assets. These principles are
more stringent than the guidelines prescribed by the Reserve Bank of
India for compliance.
In accordance with these prudent accounting policies, all contracts
with 365 days past dues treated as loss assets and written off as bad
debts. Any subsequent recoveries made out of these contracts will be
treated as income for the year during which the same is received.
IV. Prudential Norms
Subject to Para III above, the Company has followed the Prudential
Norms issued by Reserve Bank of India, as applicable, and revenue /
assets have been represented {considering adjustments / written off /
net off, as applicable) keeping in line therewith and management
prudence.
V. Profit / Loss on Repossessed Assets represent the profit / loss due
to repossession of the vehicles.
VI. Dividend income on investment is accounted for when the companys
right to receive dividend is established.
(5) Expenses
All the expenses have been accounted for on accrual basis.
(6) Investment Valuation
Investments being Long term Investments are stated at cost. Provisions
for diminution in value of investments are made only when such
diminution is permanent in nature.
(7) Gratuity
The company has been legally advised that Payment of Gratuity Act, 1972
is not applicable to the company during the year.
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