Mar 31, 2015
1. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared on accrual basis of
accounting, under the historical cost convention and in accordance with
the accounting principles generally accepted in India and comply in all
material aspects with the Accounting Standards notified by Companies
Accounting Standard Rules 2006, read with Sections 133 and 129 of the
Companies Act, 2013.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities as at date of financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from these estimates. Any
revision to accounting estimates is recognised in the period in which
the results are known / materialised.
3. Fixed Assets:
Fixed Assets are stated at cost less depreciation. Cost includes taxes,
freight and other incidental expenses related to acquisition and
installation of the said assets.
4. Depreciation:
Depreciation on fixed assets is computed on Written Down Value Method
as prescribed in Schedule II of the Companies Act, 2013.
5. Investments:
Investments held by the Company are long term in nature and are stated
at cost, unless stated otherwise. Diminution in value, if any, of
permanent nature are provided for.
6. Foreign Exchange Transactions:
Payments made in foreign currency are converted at the applicable
exchange rate prevailing on the date of remittance. Liability on
account of foreign currency is converted at the exchange rate
prevailing as at the end of the year except in case of subsequent
payments where liability is provided at actuals. Gain/Loss arising out
of fluctuation in exchange rate is adjusted in the statement of Profit
and Loss.
7. Employee Benefits:
Short Term Employee Benefit is recognised as an expense in the
Statement of Profit and Loss of the year in which related service is
rendered.
Post employment and other Long Term Employee Benefits are provided for
in the Accounts in the following manner:
i) Gratuity  Maintained as a defined benefit retirement plan and
contribution is made to the Life Insurance Corporation of India, as per
Company's Scheme. Provision / write back, if any, is made on the basis
of the present value of the liability as at the Balance Sheet date
determined by actuarial valuation following Projected Unit Credit
Method and is treated as liability.
ii) Leave encashment on termination of service  As per actuarial
valuation as at the Balance Sheet date following Projected Unit Credit
Method.
iii) Provident Fund  Provident Fund is a Defined Contribution Scheme,
where the contribution is made to a Fund administered by the Government
Provident Fund Authority.
8. Taxes on Income:
Income Tax expense comprises of current tax and deferred charge or
credit. Current tax is determined as the amount of tax payable in
respect of taxable income for the year.
Deferred tax expense or benefit is recognised on timing differences
being the difference between the taxable income and accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date.
In the event of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient taxable income will be available in
future to realize such assets. In other situations, deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available to realize
these assets.
9. Recognition of Income:
a) Interest on Loan is accounted for on accrual basis.
b) Dividend is recognised when the right to receive is established.
c) Rent Income is accounted for on accrual basis.
10. Prudential Norms:
The Company has followed the prudential norms for income recognition
and provisioning against non-performing assets and standard assets as
prescribed by the Reserve Bank of India for Non-Banking Financial
Companies.
11 . Prior period adjustments, extra-ordinary items and changes in
Accounting Policy:
Prior period adjustments, extra-ordinary items and changes in
accounting policies having material impact on the financial affairs of
the Company are disclosed.
12. Provision, Contingent Liabilities and Assets:
Provisions are recognised when the Company has legal and constructive
obligation as a result of a past event, for which it is probable that a
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. Contingent liabilities are disclosed when
the Company has a possible obligation or a present obligation and it is
probable that a cash outflow will not be required to settle the
obligation. Contingent assets are neither recognised nor disclosed in
the financial statements.
Mar 31, 2014
1. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared on accrual basis of
accounting, under the historical cost convention and in accordance with
the accounting principles generally accepted in India and comply in all
material aspects in respect with the Notified Accounting Standards by
Companies Accounting Standard Rules, 2006 and the relevant provisions
of the Companies Act, 1956.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities as at date of financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from these estimates. Any
revision to accounting estimates is recognised in the period in which
the results are known / materialised.
3. Fixed Assets:
Fixed Assets including assets given on finance lease are stated at cost
less depreciation. Cost includes taxes, freight and other incidental
expenses related to acquisition and installation of the said assets.
4. Depreciation:
Depreciation on fixed assets including assets given on finance lease is
provided on Written Down Value Method at the specified rates prescribed
in Schedule XIV of the Companies Act, 1956.
5. Investments:
Investments held by the Company are long term in nature and are stated
at cost, unless stated otherwise. Diminution in value, if any, of
permanent nature are provided for.
6. Stock-in-Shares/Merchandise:
i) Stock-in-shares held for trading purposes are valued at cost or
market value/breakup value whichever is lower on individual basis.
ii) Stock of merchandise are valued at lower of cost or market price.
7. Stock on Hire:
i) Stock on Hire under hire purchase agreement are valued at agreement
value less instalments received/ receivable.
ii) Repossessed Stock are valued at cost less capital repayment upto
the date of repossession.
8. Foreign Exchange Transactions:
Payments made in foreign currency are converted at the applicable
exchange rate prevailing on the date of remittance. Liability on
account of foreign currency is converted at the exchange rate
prevailing as at the end of the year except in case of subsequent
payments where liability is provided at actuals. Gain/Loss arising out
of fluctuation in exchange rate is adjusted in the statement of Profit
and Loss.
9. Employee Benefits:
Short Term Employee Benefit is recognised as an expense in the
Statement of Profit and Loss of the year in which related service is
rendered.
Post employment and other Long Term Employee Benefits are provided for
in the Accounts in the following manner:
i) Gratuity - Maintained as a defined benefit retirement plan and
contribution is made to the Life Insurance Corporation of India, as per
Company''s Scheme. Provision / write back, if any, is made on the basis
of the present value of the liability as at the Balance Sheet date
determined by actuarial valuation following Projected Unit Credit
Method and is treated as liability.
ii) Leave encashment on termination of service - As per actuarial
valuation as at the Balance Sheet date following Projected Unit Credit
Method.
iii) Provident Fund - Provident Fund is a Defined Contribution Scheme,
where the contribution is made to a Fund administered by the Government
Provident Fund Authority.
10. Taxes on Income:
Income Tax expense comprises of current tax and deferred charge or
credit. Current tax is determined as the amount of tax payable in
respect of taxable income for the year.
Deferred tax expense or benefit is recognised on timing differences
being the difference between the taxable income and accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantially enacted by the Balance Sheet date.
In the event of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient taxable income will be available in
future to realize such assets. In other situations, deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available to realise
these assets.
11. Recognition of Income:
a) Income from Leases:
For assets given on lease, lease rentals are charged as and when they
become accrued and are accounted for accordingly.
b) Interest on Loan is accounted for on accrual basis.
c) Dividend is recognised when the right to receive is established.
d) Rent Income is accounted for on accrual basis.
12. Prudential Norms:
The Company has followed the prudential norms for income recognition
and provisioning against non-performing assets and standard assets as
prescribed by the Reserve Bank of India for Non-Banking Financial
Companies.
13. Prior period adjustments, extra-ordinary items and changes in
Accounting Policy:
Prior period adjustments, extra-ordinary items and changes in
accounting policies having material impact on the financial affairs of
the Company are disclosed.
14. Provision, Contingent Liabilities and Assets:
Provisions are recognised when the Company has legal and constructive
obligation as a result of a past event, for which it is probable that a
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. Contingent liabilities are disclosed when
the Company has a possible obligation or a present obligation and it is
probable that a cash outflow will not be required to settle the
obligation. Contingent assets are neither recognised nor disclosed in
the financial statements.
Mar 31, 2013
1. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared on accrual basis of
accounting, under the historical cost convention and in accordance with
the accounting principles generally accepted in India and comply in all
material aspects in respect with the Notified Accounting Standards by
Companies Accounting Standard Rules, 2006 and the relevant provisions
of the Companies Act, 1956.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities as at date of financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from .these estimates.
Any revision to accounting estimates is recognised in the period in
which the results are known / materialised.
3. Fixed Assets:
Fixed Assets including assets given on finance lease are stated at cost
less depreciation. Cost includes taxes, freight and other incidental
expenses related to acquisition and installation of the said assets.
4. Depreciation:
Depreciation on fixed assets including assets given on finance lease is
provided on Written Down Value Method at the specified rates prescribed
in Schedule XIV of the Companies Act, 1956.
5. Investments:
Investments held by the Company are long term in nature and are stated
at cost, unless stated otherwise. Diminution in value, if any, of
permanent nature are provided for.
6. Stock-in-Shares/Merchandise:
i) Stock-in-shares held for trading purposes are valued at cost or
market value/breakup value whichever is lower on individual basis.
ii) Stock of merchandise are valued at lower of cost or market price.
7. Stock on Hire:
i) Stock on Hire under hire purchase agreement are valued at agreement
value less instalments received/ receivable.
ii) Repossessed Stock are valued at cost less capital repayment upto
the date of repossession.
8. Foreign Exchange Transactions:
Payments made in foreign currency are converted at the applicable
exchange rate prevailing on the date of remittance. Liability on
account of foreign currency is converted at the exchange rate
prevailing as at the end of the year except in case of subsequent
payments where liability is provided at actuals. Gain/Loss arising out
of fluctuation in exchange rate is adjusted in the revenue account.
9. Employee Benefits:
Short Term Employee Benefit is recognised as an expense in the
Statement of Profit and Loss of the year in which related service is
rendered.
Post employment and other Long Term Employee Benefits are provided for
in the Accounts in the following manner:
i) Gratuity - Maintained as a defined benefit retirement plan and
contribution is made to the Life Insurance Corporation of India, as per
Company''s Scheme. Provision / write back, if any, is made on the basis
of the present value of the liability as at the Balance Sheet date
determined by actuarial valuation following Projected Unit Credit
Method and is treated as liability.
ii) Leave encashment on termination of service - As per actuarial
valuation as at the Balance Sheet date following Projected Unit Credit
Method.
iii) Provident Fund - Provident Fund for most of the employees is a
Defined Contribution Scheme, where the contribution is made to a Fund
administered by the Government Provident Fund Authority.
10. Taxes on Income:
Income Tax expense comprises of current tax and deferred charge or
credit. Current tax is determined as the amount of tax payable in
respect of taxable income for the year.
Deferred tax expense or benefit is recognised on timing differences
being the difference between the taxable income and accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the Balance Sheet date.
In the event of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient taxable income will be available in
future to realize such assets. In other situations, deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available to realize
these assets.
11. Recognition of Income:
a) Income from Leases: For assets given on lease upto 31.3.2001 lease
rentals are charged as and when they become accrued and are accounted
for accordingly.
b) Income from Hire Purchase: Income by way of finance charges is
arrived at by amortising the instalments containing the financial
charges based on Capital Recovery Method.
c) Interest on Loan is accounted for on accrual basis.
d) Dividend is recognised when the right to receive is established.
12. Prudential Norms:
The Company has followed the prudential norms for income recognition
and provisioning against non-performing assets and standard assets as
prescribed by the Reserve Bank of India for Non-Banking Financial
Companies.
13. Prior period adjustments, extra-ordinary items and changes in
Accounting Policy:
Prior period adjustments, extra-ordinary items and changes in
accounting policies having material impact on the financial affairs of
the Company are disclosed.
14. Provision, Contingent Liabilities and Assets:
Provisions are recognised when the Company has legal and constructive
obligation as a result of a past event, for which it is probable that a
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. Contingent liabilities are disclosed when
the Company has a possible obligation or a present obligation and it is
probable that a cash outflow will not be required to settle the
obligation. Contingent assets are neither recognised nor disclosed in
the financial statements.
Mar 31, 2012
1. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared on accrual basis of
accounting, under the historical cost convention and in accordance with
the accounting principles generally accepted in India and comply in all
material aspects in respect with the Notified Accounting Standards by
Companies Accounting Standard Rules, 2006 and the relevant provisions
of the Companies Act, 1956.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities as at date of financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from these estimates. Any
revision to accounting estimates is recognised in the period in which
the results are known / materialised.
3. Fixed Assets:
Fixed Assets including assets given on finance lease are stated at cost
less depreciation. Cost includes taxes, freight and other incidental
expenses related to acquisition and installation of the said assets.
4. Depreciation:
Depreciation on fixed assets including assets given on finance lease is
provided on Written Down Value Method at the specified rates prescribed
in Schedule XIV of the Companies Act, 1956.
5. Investments:
Investments held by the Company are long term in nature and are stated
at cost. Diminution, if any, of permanent nature is provided for.
6. Stock-in-Shares/Merchandise:
i) Stock-in-shares held for trading purposes are valued at cost or
market value/breakup value whichever is lower on individual basis.
ii) Stock of merchandise are valued at lower of cost or market price.
7. Stock on Hire:
i) Stock on Hire under hire purchase agreement are valued at agreement
value less instalments received/ receivable.
ii) Repossessed Stock are valued at cost less capital repayment upto
the date of repossession.
8. Foreign Exchange Transactions:
Payments made in foreign currency are converted at the applicable
exchange rate prevailing on the date of remittance. Liability on
account of foreign currency is converted at the exchange rate
prevailing as at the end of the year except in case of subsequent
payments where liability is provided at actuals. Gain/Loss arising out
of fluctuation in exchange rate is adjusted in the revenue account.
9. Employee Benefits:
Short Term Employee Benefit is recognised as an expense in the
Statement of Profit and Loss of the year in which related service is
rendered.
Post employment and other Long Term Employee Benefits are provided for
in the Accounts in the following manner:
i) Gratuity à Maintained as a defined benefit retirement plan and
contribution is made to the Life Insurance Corporation of India, as per
Company's Scheme. Provision / write back, if any, is made on the basis
of the present value of the liability as at the Balance Sheet date
determined by actuarial valuation following Projected Unit Credit
Method and is treated as liability.
ii) Leave encashment on termination of service à As per actuarial
valuation as at the Balance Sheet date following Projected Unit Credit
Method.
iii) Provident Fund à Provident Fund for most of the employees is a
Defined Contribution Scheme, where the contribution is made to a Fund
administered by the Government Provident Fund Authority.
10. Taxes on Income:
Income Tax expense comprises of current tax and deferred charge or
credit. Current tax is determined as the amount of tax payable in
respect of taxable income for the year.
Deferred tax expense or benefit is recognised on timing differences
being the difference between the taxable income and accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the Balance Sheet date.
In the event of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient taxable income will be available in
future to realize such assets. In other situations, deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available to realize
these assets.
11 . Recognition of Income:
a) Income from Leases:
For assets given on lease upto 31.3.2001 lease rentals are charged as
and when they become accrued and are accounted for accordingly.
b) Income from Hire Purchase
Income by way of finance charges is arrived at by amortising the
instalments containing the financial charges based on Capital Recovery
Method.
c) Interest on Loan is accounted for on accrual basis, whereas dividend
is recognised when the right to receive is established.
12. Prudential Norms:
The Company has followed the prudential norms for income recognition
and provisioning against non-performing assets and standard assets as
prescribed by the Reserve Bank of India for Non-Banking Financial
Companies.
13. Prior period adjustments, extra-ordinary items and changes in
Accounting Policy:
Prior period adjustments, extra-ordinary items and changes in
accounting policies having material impact on the financial affairs of
the Company are disclosed.
14. Provision, Contingent Liabilities and Assets:
Provisions are recognised when the Company has legal and constructive
obligation as a result of a past event, for which it is probable that a
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. Contingent liabilities are disclosed when
the Company has a possible obligation or a present obligation and it is
probable that a cash outflow will not be required to settle the
obligation. Contingent assets are neither recognised nor disclosed in
the financial statements.
Mar 31, 2011
1. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared on accrual basis of
accounting, under the historical cost convention and in accordance with
the accounting principles generally accepted in India and comply in all
material aspects in respect with the Notified Accounting Standards by
Companies Accounting Standard Rules, 2006 and the relevant provisions
of the Companies Act, 1956.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities as at date of financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from these estimates. Any
revision to accounting estimates is recognised in the period in which
the results are known / materialised.
3. Fixed Assets:
Fixed Assets including assets given on finance lease are stated at cost
less depreciation. Cost includes taxes, freight and other incidental
expenses related to acquisition and installation of the said assets.
4. Depreciation:
Depreciation on fixed assets including assets given on finance lease is
provided on Written Down Value Method at the specified rates prescribed
in Schedule XIV of the Companies Act, 1956.
5. Investments:
Investments held by the Company are long term in nature and are stated
at cost. Diminution, if any, of permanent nature are provided for.
6. Stock-in-Shares/Merchandise:
i) Stock-in-shares held for trading purposes are valued at cost or
market value/break-up value whichever is lower on individual basis.
ii) , Stock of merchandise are valued at lower of cost or market price.
7. Stock on Hire:
i) Stock on Hire under hire purchase agreement are valued at agreement
value less instalments received/ receivable.
ii) Repossessed Stock are valued at cost less capital repayment upto
the date of repossession.
8. Foreign Exchange Transactions:
Payments made in foreign currency are converted at the applicable
exchange rate prevailing on the date of remittance. Liability on
account of foreign currency is converted at the exchange rate
prevailing as at the end of the year except in case of subsequent
payments where liability is provided at actuals. Gain/Loss arising out
of fluctuation in exchange rate is adjusted in the revenue account.
9. Employee Benefits:
Short Term Employee Benefit is recognised as an expense in the Profit
and Loss Account of the year in which related service is rendered.
Post employment and other Long Term Employee Benefits are provided for
in the Accounts in the following manner:
i) Gratuity - Maintained as a defined benefit retirement plan and
contribution is made to the Life Insurance Corporation of India, as per
Company's Scheme. Provision / write back, if any, is made on the basis
of the present value of the liability as at the Balance Sheet date
determined by actuarial valuation following Projected Unit Credit
Method and is treated as liability.
ii) Leave encashment on termination of service - As per actuarial
valuation as at the Balance Sheet date following Projected Unit Credit
Method.
iii) Provident Fund - Provident Fund for most of the employees is a
Defined Contribution Scheme, where the contribution is made to a Fund
administered by the Government Provident Fund Authority.
10. Taxes oh Income:
Income Tax expense comprises of current tax and deferred charge or
credit. Current tax is determined as the amount of tax payable in
respect of taxable income for the year.
Deferred tax expense or benefit is recognised on timing differences
being the difference between the taxable income and accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted ,by the Balance Sheet date.
In the event of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient taxable income will be available in
future to realize such assets. In other situations, deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available to realise
these assets.
11. Recognition of Income:
a) Income from Leases: For assets given on lease upto 31.3.2001 lease
rentals are charged
as and when they become accrued and are accounted for accordingly.
b) Income from Hire Purchase: Income by way of finance charges is
arrived at by amortising the
instalments containing the financial charges based on Capital Recovery
Method.
c) Interest on'Loan is accounted for on accrual basis, whereas dividend
is recognised when the right to receive is established.
12. Prudential Norms:
The Company has followed the prudential norms for income recognition
and provisioning against non-performing assets and standard assets as
prescribed by the Reserve Bank of India for Non-Banking Financial
Companies.
13. Prior period adjustments, extra-ordinary items and changes in
Accounting Policy:
Prior period adjustments, extra-ordinary items and changes in
accounting policies having material impact on the financial affairs of
the Company are disclosed.
14. Provision, Contingent Liabilities and Assets:
Provisions are recognised when the Company has legal and constructive
obligation as a result of a past event, for which it is probable that a
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. Contingent liabilities are disclosed when
the Company has a possible obligation or a present obligation and it is
probable that a cash outflow will not be required to settle the
obligation. Contingent assets are neither recognised nor disclosed in
the financial statements.
Mar 31, 2010
1. Basis of Preparation of Financial Statements:
The Financial Statements have been prepared on accrual basis of
accounting, under the historical cost convention and in accordance with
the accounting principles generally accepted in India and comply in all
material aspects in respect with the Notified Accounting Standards by
Companies Accounting Standard Rules, 2006 and the relevant provisions
of the Companies Act, 1956.
2. Use of Estimates:
The preparation of financial statements in conformity with generally
accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities as at date of financial
statements and the reported amounts of revenue and expenses during the
reporting period. Actual results could differ from these estimates. Any
revision to accounting estimates is recognised in the period in which
the results are known/materialized.
3. Fixed Assets:
Fixed Assets including assets given on finance lease are stated at cost
less depreciation. Cost includes taxes, freight and other incidental
expenses related to acquisition and installation of the said assets.
4. Depreciation:
Depreciation on fixed, assets including assets given on finance lease
is provided on Written Down Value Method at the specified rates
prescribed in Schedule XIV of the Companies Act, 1956.
5. Investments:
Investments held by the Company are long term in nature and are stated
at cost. Diminution, if any, of permanent nature are provided for.
6. Stock-in-Shares/Merchandise:
i) Stock-in-shares held for trading purposes are valued at cost or
market value/breakup value whichever is
lower on individual basis. ii) Stock of merchandise are valued at
lower of cost or market price.
7. Stock on Hire:
i) Stock on Hire under hire purchase agreement are valued at agreement
value less instalments received/
receivable. ii) Repossessed Stock are valued at cost less capital
repayment upto the date of repossession.
8. Foreign Exchange Transactions:
Payments made in foreign currency are converted at the applicable
exchange rate prevailing on the date of remittance. Liability on
account of foreign currency is converted at the exchange rate
prevailing as at the end of the year except in case of subsequent
payments where liability is provided at actuals. Gain/Loss arising out
of fluctuation in exchange rate is adjusted in the revenue account.
9. Employee Benefits:
i) Defined Contribution Plan
Companys contributions paid/payable during the year to Provident Fund,
ESIC and Labour Welfare Fund are recognised in the Profit and Loss
Account. Contributions to Provident Fund to the Government authorities
are accounted for on accrual basis. There are no other obligations
other than the contribution payable to the respective authorities.
ii) Defined Benefit Plan
In respect of Defined Benefit Plan, the Company is liable to Gratuity
and Leave Encashment. In respect of Gratuity, the Company contributes
to the qualifying Group Gratuity cum Life Insurance Policy of Life
Insurance Corporation of India (LICI) based on the premium notices as
per the actuarial valuation carried out by themselves, which are
charged to revenue.
Companys liabilities towards leave encashment are determined using the
projected unit credit method which considers each period of service as
giving rise to an additional unit of benefit entitlement and measures
each unit separately to build up the final obligation. Past services
are recognised on a straight line basis over the average period until
the amended benefits become vested. Obligation is measured at the
present value of estimated future cash flows using a discounted rate
that is determined by reference to market yields at the balance sheet
date on Government bonds where the currency and terms of the Government
bonds are consistent with the currency and estimated terms of the
defined benefit obligation.
iii) Actuarial gains/losses are immediately taken to Profit and Loss
Account and are not deferred.
10. Taxes on Income:
Income Tax expense comprises of current tax and deferred charge or
credit. Current tax is determined as the amount of tax payable in
respect of taxable income for the year.
Deferred tax expense or benefit is recognised on timing differences
being the difference between the taxable income and accounting income
that originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the Balance Sheet date.
In the event of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient taxable income will be available in
future to realize such assets. In other situations, deferred tax assets
are recognised only to the extent that there is reasonable certainty
that sufficient future taxable income will be available to realize
these assets.
11 Recognition of Income:
a) Income from Leases : For assets given on lease upto
31.3.2001 lease rentals are charged
as and when they become accrued and
are accounted for accordingly.
b) Income from Hire Purchase : Income by way of finance charges is
arrived at by amortising the
instalments containing the financial
charges based on Capital Recovery
Method.
c) Interest on Loan is accounted for on accrual basis, whereas dividend
is recognised when the right to receive is established.
12. Prudential Norms:
The Company has followed the prudential norms for income recognition
and provisioning against non-performing assets as prescribed by the
Reserve Bank of India for Non-Banking Financial Companies.
13. Prior period adjustments, extra-ordinary items and changes in
Accounting Policy:
Prior period adjustments, extra-ordinary items and changes in
accounting policies having material impact on the financial affairs of
the Company are disclosed.
14. Provision, Contingent Liabilities and Assets:
Provisions are recognised when the Company has legal and constructive
obligation as a result of a past event, for which it is probable that a
cash outflow will be required and a reliable estimate can be made of
the amount of the obligation. Contingent liabilities are disclosed when
the Company has a possible obligation or a present obligation and it is
probable that a cash outflow will not be required to settle the
obligation. Contingent assets are neither recognised nor disclosed in
the financial statements.
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