Mar 31, 2013
Basis of Accounting
The Financial Statements are prepared on the historical cost
convention, in accordance with applicable Accounting Standards and the
relevant provisions of the Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per criteria set out in the Schedule VI to the Companies
Act, 1956.
Use of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. Differences between
the actual results and estimates are recognised in the period in which
the results are known / materialised.
Revenue Recognition
a) Lease Rentals and Lease Management Fees arising out of Lease
Agreements and Hire Charges and Documentation Fees arising out of the
Hire Purchase Agreements are recognized as income in accordance with
the terms of the agreements entered into with the lessees / hirers or
as rescheduled from time to time.
Lease rental income on Lease Agreements executed on or after 1st April,
1995 is recognized on the basis of the implicit rate of return, the
difference between the capital recovery and the depreciation being
accounted as Lease Adjustment Account.
Hire charges are recognized as income equally over the period of the
Hire Purchase Agreements executed on or before 31st March, 1995 and on
sum of digits method for agreements executed thereafter.
However, income on non-performing assets identified in accordance with
the guidelines issued by the Reserve Bank of India is recognized on
realization in cash or in kind.
b) Delayed payment charges are recognised on realisation.
c) Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
d) All other incomes and expenditures are accounted on accrual basis.
Fixed Assets
Tangible Fixed Assets are stated at cost or revalued amounts, as the
case may be, less accumulated depreciation, lease adjustment account
and provision for impairment, if any. The cost includes expenditure
incurred in the acquisition and construction / installation and other
related expenses in bringing the asset to working condition for its
intended use. In respect of qualifying assets, related pre operational
expenses including borrowing costs are also capitalised. In case of
revaluation of fixed assets, the original cost as written up by the
valuer, is considered in the account and the differential amount is
transferred to revaluation reserve.
Depreciation
Depreciation on Tangible Fixed Assets has been provided on Straight
Line Method at the rates and in the manner prescribed in Schedule XIV
to the Companies Act, 1956 on prorata basis from the date of additions
and/or disposal :
(a) In respect of Owned Assets acquired upto 16th December, 1993, at
the rates adopted in earlier years. Depreciation on owned assets
acquired thereafter has been calculated at the revised rates prescribed
by Schedule XIV to the Companies Act, 1956.
(b) In respect of leased assets, at the revised rates prescribed by
Schedule XIV to the Companies Act, 1956.
Investments
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. Current investments are carried at
lower of cost or fair value. Long-term investments are carried at
cost. However, provision for diminution is made to recognise a decline,
other than temporary, in the value of the investments, such reduction
being determined and made for each investment individually.
Provision for Doubtful Debts
All receivables, loans and advances including assets under lease/hire
purchase agreements are classified and provision for doubtful debts is
made in accordance with the guidelines issued by the Reserve Bank of
India.
Income Taxes
Tax expense comprises both current and deferred taxes. Current Tax is
provided on the taxable income using the applicable tax rates and tax
laws. Deferred tax assests and liabilities arising on account of timing
difference and which are capable of reversal in subsequent periods are
recognised using the tax rates and tax laws that have been enacted or
substantively enacted. Deferred tax assets are recognised only to the
extent that there is reasonable certainity that sufficient future
taxable income will be available against which such deferred tax assets
can be realised. If the company has carry forward unabsorbed
depreciation and tax losses, deferred Tax assets are recognised only to
the extent there is a virtual certainity supported by convincing
evidence that sufficient taxable income will be available against which
such deferred tax assets can be realised.
Minimum Alternative Tax credit is recognised as an asset only when and
to the extent there is convincing evidence that the company will pay
normal income tax during the specified period.
Provisions and Contingent Liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Mar 31, 2012
Basis of Accounting
The Financial Statements are prepared on the historical cost
convention, in accordance with applicable Accounting Standards and the
relevant provisions of the Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per criteria set out in the Schedule VI to the Companies
Act, 1956.
Use of Estimates
The presentation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenues and expenses during the reporting period. Differences between
the actual results and estimates are recognised in the period in which
the results are known/materialised.
Revenue Recognition
a) Lease Rentals and Lease Management Fees arising out of Lease
Agreements and Hire Charges and Documentation Fees arising out of the
Hire Purchase Agreements are recognized as income in accordance with
the terms of the agreements entered into with the lessees/hirers or as
rescheduled from time to time.
Lease rental income on Lease Agreements executed on or after 1st April,
1995 is recognized on the basis of the implicit rate of return, the
difference between the capital recovery and the depreciation being
accounted as Lease Adjustment Account.
Hire charges are recognized as income equally over the period of the
Hire Purchase Agreements executed on or before 31st March, 1995 and on
sum of digits method for agreements executed thereafter.
However, income on non-performing assets identified in accordance with
the guidelines issued by the Reserve Bank of India is recognized on
realization in cash or in kind.
b) Delayed payment charges are recognised on realisation.
c) Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
d) All other incomes and expenditures are accounted on accrual basis.
Fixed Assets
Tangible Fixed Assets are stated at cost or revalued amounts, as the
case may be, less accumulated depreciation, lease adjustment account
and provision for impairment, if any. The cost includes expenditure
incurred in the acquisition and construction/installation and other
related expenses in bringing the asset to working condition for its
intended use. In respect of qualifying assets, related pre operational
expenses including borrowing costs are also capitalised. In case of
revaluation of fixed assets, the original cost as written up by the
valuer, is considered in the account and the differential amount is
transferred to revaluation reserve.
Depreciation
Depreciation on Tangible Fixed Assets has been provided on Straight
Line Method at the rates and in the manner prescribed in Schedule XIV
to the Companies Act, 1956 on prorata basis from the date of additions
and/or disposal :
(a) In respect of Owned Assets acquired upto 16th December, 1993, at
the rates adopted in earlier years. Depreciation on owned assets
acquired thereafter has been calculated at the revised rates prescribed
by Schedule XIV to the Companies Act, 1956.
(b) In respect of leased assets, at the revised rates prescribed by
Schedule XIV to the Companies Act, 1956.
Investments
Investments that are readily realisable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long term investments. Current investments are carried at
lower of cost or fair value. Long-term investments are carried at
cost. However, provision for diminution is made to recognise a decline,
other than temporary, in the value of the investments, such reduction
being determined and made for each investment individually.
Provision for Doubtful Debts
All receivables, loans and advances including assets under lease/hire
purchase agreements are classified and provision for doubtful debts is
made in accordance with the guidelines issued by the Reserve Bank of
India.
Income Taxes
Tax expense comprises both current and deferred taxes. Current Tax is
provided on the taxable income using the applicable tax rates and tax
laws. Deferred tax assests and liabilities arising on account of timing
difference and which are capable of reversal in subsequent periods are
recognised using the tax rates and tax laws that have been enacted or
substantively enacted. Deferred tax assets are recognised only to the
extent that there is reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised. If the company has carry forward unabsorbed
depreciation and tax losses, deferred Tax assets are recognised only to
the extent there is a virtual certainty supported by convincing
evidence that sufficient taxable income will be available against which
such deferred tax assets can be realised.
Provisions and Contingent Liabilities
The Company recognises a provision when there is a present obligation
as a result of a past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for a contingent liability is made when there
is a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. Where there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure is made.
Mar 31, 2011
A BASIS OF ACCOUNTS:
The accounts have been prepared on the accrual basis of accounting,
under the historical cost convention and in accordance with, the
Companies Act, 1956 and the applicable Accounting Standards prescribed
in the Companies (Accounting Standards) Rules, 2006 issued by the
Central Government.
B USE OF ESTIMATES :
The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities on the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognised in the period in which the results
are known/ materialised.
C. INCOME RECOGNITION:
(i) Lease Rentals and Lease Management Fees arising out of Lease
Agreements and Hire Charges and Documentation Fees arising out of the
Hire Purchase Agreements are recognised as income in accordance with
the terms of the agreements entered into with the lessees / hirers or
as rescheduled from time to time.
Lease rental income on Lease Agreements executed on or after 1st April,
1995 is recognised on the basis of the implicit rate of return, the
difference between the capital recovery and the depreciation being
accounted as Lease Adjustment Account.
Hire charges are recognised as income equally over the period of the
Hire Purchase Agreements executed on or before 31st March, 1995 and on
sum of digits method for agreements executed thereafter. However,
income on non-performing assets identified in accordance with the
guidelines issued by the Reserve Bank of India is recognised on
realisation in cash or in kind.
(ii) Delayed payment charges are recognised on realisation. All other
incomes are accounted on accrual basis.
D. EXPENSES:
All expenses are generally accounted for on accrual basis.
E. FIXED ASSETS AND DEPRECIATION:
(i) Fixed Assets including Leased Assets are stated at their historical
cost less accumulated depreciation and lease adjustment account.
(ii) Depreciation on Fixed Assets is provided for on Straight Line
Method :
(a) in respect of Owned Assets acquired upto 16th December, 1993, at
the rates adopted in earlier years. Depreciation on owned assets
acquired thereafter has been calculated at the revised rates prescribed
by Schedule XIV to the Companies Act, 1956.
(b) in respect of leased assets, at the revised rates prescribed by
Schedule XIV to the Companies Act, 1956.
(iii) Depreciation on assets acquired or sold, discarded or destroyed
during the year is calculated on pro-rata basis from the date of such
acquisition or, as the case may be, upto the date on which such asset
has been sold, discarded or destroyed. (iv) Profit or loss on sale of
assets is recognised on the date of sale.
F. INVESTMENTS:
Investments in securities intended to be traded in and to be held for
not more than one year are classified as 'Stock in trade'. All other
investments are classified as 'Investments'. Investments in properties
are also classified as 'Investments'.
Stock-in-trade is valued at lower of cost or market value for each
security individually.
Investments are valued at weighted average cost. Where an investment is
acquired in exchange for another asset, the acquisition cost of the
investment is determined by reference to the value of the asset given
up. Provision for diminution is made to recognise a decline, other
than temporary, in the value of each investment individually.
G. PROVISION FOR DOUBTFUL DEBTS :
All receivables, loans and advances including assets under lease/hire
purchase agreements are classified and provision for doubtful debts is
made in accordance with the guidelines issued by the Reserve Bank of
India.
H. TAXES ON INCOME
Provision for Current tax is made in accordance with the Income Tax
laws and rules prevailing for the relevant assessment years.
Deferred tax is recognised, subject to the consideration of prudence on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversing in one or more subsequent periods.
Deferred tax assets arising mainly on account of business loss and
unabsorbed depreciation under Income Tax laws recognised, only if there
is a virtual certainty of its realisation, supported by convincing
evidance.
Mar 31, 2010
Accounting Policies A BASIS OF ACCOUNTS :
The accounts have been prepared on going concern basis, under the
historical cost convention and in accordance with, the Companies Act,
1956 and the applicable Accounting Standards prescribed in the
Companies (Accounting Standards) Rules, 2006 issued by the Central
Government.
B. USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities on the
date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Differences between actual
results and estimates are recognised in the period in which the results
are known/ materialised.
C. INCOME RECOGNITION:
(i) Lease Rentals and Lease Management Fees arising out of Lease
Agreements and Hire Charges and Documentation Fees arising out of the
Hire Purchase Agreements are recognised as income in accordance with
the terms of the agreements entered into with the lessees / hirers or
as rescheduled from time to time.
Lease rental income on Lease Agreements executed on or after 1st April,
1995 is recognised on the basis of the implicit rate of return, the
difference between the capital recovery and the depreciation being
accounted as Lease Adjustment Account.
Hire charges are recognised as income equally over the period of the
Hire Purchase Agreements executed on or before 31st March, 1995 and on
sum of digits method for agreements executed thereafter. However,
income on non-performing assets identified in accordance with the
guidelines issued by the Reserve Bank of India is recognised on
realisation in cash or in kind.
(ii) Delayed payment charges are recognised on realisation. All other
incomes are accounted on accrual basis.
D. EXPENSES:
All expenses are generally accounted for on accrual basis.
E. FIXED ASSETS AND DEPRECIATION :
(i) Fixed Assets including Leased Assets are stated at their historical
cost less accumulated depreciation and lease adjustment account.
(ii) Depreciation on Fixed Assets is provided for on Straight Line
Method :
(a) in respect of Owned Assets acquired upto 16th December, 1993, at
the rates adopted in earlier years. Depreciation on owned assets
acquired thereafter has been calculated at the revised rates prescribed
by Schedule XIV to the Companies Act, 1956.
(b) in respect of leased assets, at the revised rates prescribed by
Schedule XIV to the Companies Act, 1956.
(iii) Depreciation on assets acquired or sold, discarded or destroyed
during the year is calculated on pro- rata basis from the date of such
acquisition or, as the case may be, upto the date on which such asset
has been sold, discarded or destroyed.
(iv) Profit or loss on sale of assets is recognised on the date of
sale.
F. INVESTMENTS:
Investments in securities intended to be traded in and to be held for
not more than one year are classified as Stock in trade. All other
investments are classified as Investments. Investments in properties
are also classified as Investments.
Stock-in-trade is valued at lower of cost or market value for each
security individually.
Investments are valued at weighted average cost. Where an investment is
acquired in exchange for another asset, the acquisition cost of the
investment is determined by reference to the value of the asset given
up.
Provision for diminution is made to recognise a decline, other than
temporary, in the value of each investment individually.
G PROVISION FOR DOUBTFUL DEBTS :
All receivables, loans and advances including assets under lease/hire
purchase agreements are classified and provision for doubtful debts is
made in accordance with the guidelines issued by the Reserve Bank of
India.
H. TAXES ON INCOME
Provision for Current tax is made in accordance with the Income Tax
laws and rules prevailing for the relevant assessment years.
Deferred tax is recognised, subject to the consideration of prudence on
timing differences, being the difference between taxable income and
accounting income that originate in one period and are capable of
reversing in one or more subsequent periods.
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