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Accounting Policies of Prism Finance Ltd. Company

Mar 31, 2015

A) Basis of Accounting :-

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. The financial statements are prepared in accordance with the accounting standards notified by the Central Government, in terms of section133 of the Companies Act, 2013 read with Rule 7 and guidelines issued by the Securities and Exchange Board if India (SEBI) and the guidelines issued by the Reserve Bank of India ('RBI')as applicable to a Non-Banking Finance Company ('NBFC').The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

b) Use of Estimates :-

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

c) Fixed Assets & Depreciation :

All Fixed Assets are capitalized at cost inclusive of legal and/ or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation on straight line basis on the basis of useful lives of assets as specified in Schedule II to the Companies Act, 2013.

Depreciation on assets sold / purchased during the year is proportionately charged.

Impairment of Assets:-

Impairment losses, if any, are recognized in accordance with the Accounting Standard. Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

d) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements. It is the company's general policy to accrued income/ expenses as per the terms of the agreement entered into with the lessee, lessors and hirers from time to time. In respect of hire purchase business, the company recognizes income on a reducing balance basis.

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

e) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

f) Investments are valued at cost after providing permanent diminution in value thereof.

g) The Company follows the prudential norms for income recognition and provides for/ write's off of Non- performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

h) The benefits of leave encashment of leave to employees, being at the option of the employees is accounted for as and when claimed.

i) Earning Per Share :-

The Company reports basic and diluted earnings per share in accordance with the Accounting Standard. Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year .For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

j) Provision for Taxation :

Current Tax : Provision for current tax has been made in accordance with the ordinary provisions of the Income Tax Act.

Minimum Alternative Tax : In the event the income tax liabilities as per normal provisions of the Income Tax Act, 1961 is lower than the tax payable as per section 115J (Minimum Alternative Tax), tax is provided as per Section 115J.

Deferred Tax : In accordance with the Accounting Standard, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

k) Derivative Transactions :-

Equity & Commodity Futures :Gains/Losses on futures transactions are recognized on continuous basis.

Options Contracts: Gains / Losses on options contract are recognized on squaring off/settlement day. B) Other Notes to Accounts


Mar 31, 2014

A) The Company following the mercantile system of accounting and these account comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act, 1956.

b) Fixed Assets and Depreciation :

(i) Fixed Assets are stated at cost and include incidental and/or installation expenses incurred in putting the assets to use.

(ii) Depreciation is provided on straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956. Depreciation on additions to assets during the year is provided on a proportionate basis.

c) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements. It is the company''s general policy to accrued income/ expenses as per the terms of the agreement entered into with the lessee.lessors and hirers from time to time. In respect of hire purchase business. The company recognizes income on a reducing balance basis.

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

d) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

e) Investments are valued at cost after providing permanent diminution in value thereof.

f) The Company follows the prudential norms for income recognition and provides for / write''s off of Non- performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

g) The benefits of leave encashment of leave to employees. Being at the option of the employees is accounted for as and when claimed.

h) Provision for Taxation :

(i) Provision for current tax has been made in accordance with the ordinary provisions of the Income Tax Act.

(ii) Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year that originates in one period and capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates as on the balance sheet date.


Mar 31, 2012

A) The Company following the mercantile system of accounting and these account comply with the Accounting Standards referred to in section 211(3C) of the Companies Act, 1956.

b) Fixed Assets and Depreciation :-

(i) Fixed Assets are stated at cost and include incidental and/or installation expenses incurred in putting the assets to use.

(ii) Depreciation is provided on straight line method at the rates prescribed under schedule XIV of the Companies Act.1956. Depreciation on additions to assets during the year is provided on a proportionate basis.

c) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements. It is the company's general policy to accure income/expenses as per the terms of the agreement entered into with the lessee. lessors and hirers from time to time. In respect of hire purchase business. The company recognises income on a reducing balance basis

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

d) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

e) Investment are valued at cost after providing permanent diminution in value thereof.

f) The Company follows the prudential norms for income recognition and provides for/write's off of Non- performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

g) The benefits of leave encashment of leave to employees. Being at the option of the employees is accounted for as and when claimed.

h) Provision for Taxation :

(i) Provision for current tax has been made in accordance with the ordinary provisions of the Income Tax Act.

(ii) Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year that originates in one period and capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates as on the balance sheet date.


Mar 31, 2011

A) The Company following the mercantile system of accounting and these account comply with the Accounting Standards referred to in section 211(3C) of the Companies Act, 1956.

b) Fixed Assets and Depreciation :-

(i) Fixed Assets are stated at cost and include incidental and/or installation expenses incurred in putting the assets to use.

(ii) Depreciation is provided on straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956. Depreciation on additions to assets during the year is provided on a proporionate basis.

c) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements. It is the company's general policy to accure income/expenses as per the terms of the agreements entered into with the lessee, lessors and hirers from time to time. In respect of hire purchase business. The Company recognises income on a reducing balance basis.

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

d) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

e) Investment are valued at cost after providing permanent diminuation in value thereof.

f) The Company follows the prudential norms for income recognition and provides for/writes off of Non-performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

g) The benefits of leave encashment of leave to employees. Being at the option of the employees is accounted for as and when claimed.

h) Provision for Taxation :

(i) Provision for current tax has been in accordance with the ordinary provisions of the Income Tax Act.

(ii) Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year that originates in one period and capable of reversal in one or more subsequent periods. Such deferred tax is quanitified using the tax rates as on the balance sheet date.


Mar 31, 2010

A) The Company following the mercantile system of accounting and these account comply with the Accounting Standards referred to in section 211(3C) of the Companies Act, 1956.

b) Fixed Assets and Depreciation :-

(i) Fixed Assets are stated at cost and include incidental and/or installation expenses incurred in putting the assets to use.

(ii) Depreciation is provided on straight line method at the rates prescribed under schedule XIV of the Companies Act, 1956. Depreciation on additions to assets during the year is provided on a proporionate basis.

c) Revenue Recognition:

(i) In respect of lease rentals arising out of lease agreements and hire purchase charges arising out of hire purchase agreements It is the companys general policy to accure income/expenses as per the terms of the agreements entered into with the lessee, lessors and hirers from time to time In respect of hire purchase business. The Company recognises income on a reducing balance basis

(ii) Dividend income are accounted on receipt basis.

(iii) Interest on overdue bills has been recognised on cash basis.

d) Inventory :

Stock on hire has been taken on face value of the hire purchase agreements as reduced by installments matured during the relevant period.

e) Investment are valued at cost after providing permanent diminuation in value thereof.

1) The Company follows the prudential norms for income recognition and provides for/writes off of Non-performing Assets as per the prudential norms prescribed by the Reserve Bank of India.

g) The benefits of leave encashment of leave to employees. Being at the option of the employees is accounted for as and when claimed.

h) Provision for Taxation :

ii) Provision for current tax has been in accordance with the ordinary provisions of the Income Tax Act.

(ii) Deferred tax is recognized on timing difference between the accounting income and the taxable income for the year that originates in one period and capable of reversal in one or more subsequent periods.

Such deferred tax is quantified using the tax rates as on the balance sheet date.

 
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