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Accounting Policies of Ushakiran Finance Ltd. Company

Mar 31, 2015

A. Corporate Information:

Ushakiran Finance Limited is a Non-Banking Finance Company listed on the Bombay Stock Exchange (BSE). It is engaged in the business of financing, investments and trading in equity shares etc.,

B. Basis of Accounting:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act,2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention, except those with significant uncertainties. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year except for change in the accounting policy for depreciation.

C. Use of Estimates:

The preparation of financial statements requires estimates and assumptions that affect the reported amount of assets and liabilities, and disclosure of contingent liabilities at that date of the financial statements and the results of operations during the reporting period. Although such estimates and assumptions are made on reasonable and prudent basis taking into account all available information, the actual results could differ from these estimates and assumptions and such differences are recognized in the period in which the results are known/ materialized/crystallised.

D. Prudential Norms:

The company compiles its Financial Statements in accordance with the prudential norms prescribed by the Reserve Bank of India in respect of:

a) Income recognition.

b) Provisioning for standard, substandard, doubtful and loss Assets.

c) Accounting for Investments.

E. Revenue Recognition:

Income from interest is accounted on due basis, subject to income recognition and prudential norms of Reserve Bank of India as mentioned above, interest income on Non-performing, doubtful/loss assets etc., are recognized as and when the amount is received and appropriated towards interest. Dividend Income is accounted when the right to receive the dividend is established. Sale is recognized when the significant risks and rewards of ownership have been transferred to the customers.

F. Expenses:

All the expenses are accounted on accrual basis.

G. Fixed Assets:

Fixed Assets are stated at cost of acquisition.

The acquisition cost includes the purchase price (excluding refundable taxes, if any) and expenses directly attributable to bring the asset to the location and condition for its intended use.

H. Depreciation:

Depreciation has been provided on written down value method as per Schedule XIV of the Companies Act, 1956. Effective 1st April, 2014, the company depreciates its Fixed Assets over the useful life on written down value method, in the manner prescribed in Schedule II of the Companies Act, 2013, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.

I. Investments:

Investments that are readily realizable 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, other than held in Stock-in-Trade, have been classified as long term investments. Long Term Investments are carried at cost of acquisition.

Unquoted Investments have are valued at cost and the diminution in the value of quoted investments has been provided, if such decline is other than temporary in the opinion of management. Current Investments are stated at lower of cost or fair/market value, determined on an individual investment basis.

J. Inventories:

Shares and Securities held as Stock-in-Trade are valued scrip wise at cost or market value whichever is lower.

K. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts, if any. Contingent Assets are neither recognized nor disclosed in the financial statements.

L. Retirement and other employee benefits:

All employees benefits due wholly within a year of rendering services are classified as short term benefits. These benefits like salaries, wages short term compensation absences, expected cost of bonus, ex-gratia are recognized as expenses on accrual basis of undiscounted amounts in the Statement of Profit and Loss. Retirement benefits to the Employees will be provided as and when the relevant acts are applicable to the Company.

M. Accounting for taxes on income:

(a) Current Tax is determined as the amount of tax payable in respect of its taxable income as per the provisions of the Income Tax Act, 1961.

(b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax assets and liabilities, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

N. Earnings per Share:

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equivalent shares outstanding during the year, except when the results would be anti-dilutive.

O. Cash Flow Statement:

Cash-flow statement is prepared in accordance with the "Indirect Method" as explained in the Accounting Standard(AS) 3 - Cash Flow Statements. Cash and cash equivalent in the cash flow statement comprises cash in hand, bank balances in current accounts, cheques and drafts on hand and term deposits with an original maturity of less than three months.


Mar 31, 2014

B. Basis of Accounting:

The financial statements have been prepared on going concern basis in accordance with generally accepted accounting principles in India (Indian GAAP) and comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956 read with general circular 8/2014 dated 2nd April, 2014, issued by Ministry of Corporate Affairs. The financial statements have been prepared on accrual basis under the historical cost convention, except those with significant uncertainties.

C. Use of Estimates:

Estimates and assumptions used in the preparation of the financial statements are based on management''s, evolution of the relevant facts and circumstances as of the date of the Financial statements which may differ from the actual results at a subsequent date. Difference between the actual results and estimates are recognized in the period in which the results are known/materialised.

D. Prudential Norms:

The company compiles its Financial Statements in accordance with the prudential norms prescribed by the Reserve Bank of India in respect of:

a) Income recognition.

b) Provisioning for standard, substandard, doubtful and loss Assets.

c) Accounting for Investments.

E. Revenue Recognition:

Income from interest is accounted on due basis, subject to income recognition and prudential norms of Reserve Bank of India as mentioned above, interest income on Non-performing, doubtful/loss assets etc., are recognized as and when the amount is received and appropriated towards interest. Dividend Income is accounted when the right to receive the dividend is established.

F. Expenses:

All the expenses are accounted on accrual basis.

G. Fixed Assets:

Fixed Assets are stated at cost of acquisition.

H. Depreciation:

Depreciation has been provided on written down value method as per Schedule XIV of the Companies Act, 1956.

i. investments:

Investments (Long Term) are stated at cost of acquisition.

The diminution in the value of quoted investments has been provided, if such decline is other than temporary in the opinion of management. Current Investments are stated at lower of cost or market value, determined on an individual investment basis.

J. inventories:

Shares and Securities held as Stock-in-Trade are valued scrip wise at cost or market value whichever is lower.

K. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.

L. Retirement and other employee benefits:

All employees benefits due wholly within a year of rendering services are classified as short term benefits. These benefits like salaries, wages short term compensation absences, expected cost of bonus, ex-gratia are recognized as expenses on accrual basis of undiscounted amounts in the Statement of Profit and Loss. Retirement benefits to the Employees will be provided as and when the relevant acts are applicable to the Company.

M. accounting for taxes on income:

(a) Current Tax is determined as the amount of tax payable in respect of its taxable income as per the provisions of the Income Tax Act, 1961.

(b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

N. Earnings per share:

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equivalent shares outstanding during the year, except when the results would be anti-dilutive.


Mar 31, 2012

A. Corporate Information: Ushakiran Finance Limited is a Non- Banking Finance Company listed on the Bombay Stock Exchange. It is engaged in the business of Financing, investments etc.,

B. Basis of Accounting:

The financial statements are prepared on the basis of historical cost convention and the accounts are prepared in accordance with the generally accepted accounting policies and accounting standards notified undet1 section 211 (3C) Companies (Accounting Standards) Rules, 2006 and provisions of the Companies Act, 1956 as adopted consistently by the Company, unless otherwise stated.

C. Use of Estimates:

Estimates and assumptions used in the preparation of the financial statements are based on management's, evolution of the relevant facts and circumstances as of the date of the Financial statements which may differ from the actual results at a subsequent date.

D. Prudential Norms:

The company compiles its Financial Statements in accordance with the prudential norms prescribed by the Reserve Bank of India in respect of:

a) Income recognition. '

b) Provisioning for standard, substandard, doubtful and loss Assets:

c) Accounting for Investments.

E. Revenue Recognition:

Income from interest is accounted on due basis, subject to income recognition and prudential norms of Reserve Bank of India as mentioned above, interest income on Non-performing, doubtful/loss assets etc., are recognized as and when the amount is received and appropriated towards interest. Dividend Income is accounted when the right to receive the dividend is established.

F. Expenses:

All the expenses are accounted on accrual basis.

G. Fixed Assets:

Fixed Assets are stated at cost of acquisition.

H. Depreciation:

Depreciation has been provided on written down vaiue method as per Schedule XIV of the Companies Act, 1956.

I. Investments:

Investments (Long Term) are stated at cost of acquisition.

The diminution in the value of quoted investments has been provided, if such decline is other than temporary in the opinion of management.

J. inventories:

Shares and Securities held as Stock-in-Trade are vatued scrip wise at cost or market value whichever is lower.

K. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation iri measuremenfare recognized when there is present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabili- ties are not recognized but are disclosed in the notes to accounts. Con* tingent Assets are neither recognized nor disclosed in the financial state- ments.

L. Retirement and other employee benefits:

All employees benefits due wholly within a year of rendering services are classified as short term benefits. These benefits like salaries, wages short term compensation absences, expected cost of bonus, ex-gratia are recognized as expenses on accrual basis of undiscounted amounts in the Profit and Loss Account. Retirement benefits to the Employees will be provided as and when the relevant acts are applicable to the Company.

M. Accounting for taxes on income: .

(a) Current Tax is determined as the amount of tax payable in respect of its taxable income as per the provisions of the Income Tax Act, 1961.

(b) Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax asset, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

N. Earnings per Share:

Basic earnings per share is computed and disclosed using the weighted average number of equity shares outstanding during the year. DHutive earnings per share is computed and disclosed using the weighted average number of equity and dilutive equivalent shares outstanding during the year, except when the results would be anti-dilutive.


Mar 31, 2010

A. ACCOUNTING POLICIES:

The financial statements are prepared on the basis of historical cost convention and the accounts are prepared in accordance with the generally accepted accounting policies and provisions of the Companies Act, 1956 as adopted consistently by the Company, unless otherwise stated.

B. USE OF ESTIMATES :

Estimates and assumptions used in the preparation of the financial statements are based on managements, evolution of the relevant facts and circumstances as of the date of the Financial statements which may differ from the actual results at a subsequent date.

C. PRUDENTIAL NORMS:

The company compiles its Financial Statements in accordance with the prudential norms prescribed by the Reserve Bank of India in respect of:

a) Income recognition.

b) Provisioning for standard, substandard, doubtful and loss Assets.

c) Accounting for investments.

O. REVENUE RECOGNITION:

Income from interest is accounted on due basis, subject to income recognition and prudential norms of Reserve Bank of India as mentioned above, interest income on Non-performing, doubtful/loss assets etc., are recognized as and when the amount is received and appropriated towards interest. Dividend Income is accounted when the right to receive the dividend is established.

E. EXPENSES:

All the expenses are accounted on accrual basis.

F. FIXED ASSETS:

Fixed Assets are stated at cost of acquisition.

G. DEPRECIATION

Depreciation has been provided on written down value method as per Schedule XIV of the Companies Act, 1956.

H. INVESTMENTS:

Investments (Long Term) are stated at cost of acquisition.

The diminution in the value of quoted investments have been provided, if such decline is other than temporary in the opinion of management.

1. INVENTORIES:

Shares and Securities held as Stock-in-Trade are valued scrip wise at cost or market value whichever is lower.

J. CONTINGENT LIABILITIES:

Unpaid liability for partly paid shares amounts to Rs.7.00 Lakhs (Rs.7.00 Lakhs)

K. All employees benefits due wholly within a year of rendering services are classified as short term benefits. These benefits like salaries, wages, short term compensation absences, expected cost of bonus, ex-gratia are recognized as expenses on accrual basis of undiscounted amounts in the Profit and, Loss Account. Retirement benefits to the Employees will be provided as and when the relevant acts are applicable to the Company.

 
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