Mar 31, 2015
COMPANY PROFILE
A CFL Capital Financial Services Limited was incorporated in 1983 as
Samudra Mahal Investments Limited as Public Company and was engaged in
the business of Non Banking Financial Business under valid permissions
for the same from Reserve Bank of India (RBI) granted in 1998. Due to
the poor financial condition of the Company on account of dot.om burst
of 1998-99 and subsequent impact thereof which lead to inter alia
Capital Risk Adequacy Ratio (CRAR) going below the prescribed limit,
RBI cancelled its Certificate of Registration w.e.f 18-May-2004. The
RBI also directed that the Company continues to be governed by the
relevant provisions of the Act (RBI Act, 1934) and various
directions/instructions issued by RBI from time to time until such time
the entire amount of public deposits held by the company are repaid
with interest and the entire financial assets are disposed of or the
Company is converted to a non-banking non-financial company. As per its
assets and income, the Company continues to be a Non Banking Financial
Company. CFL has its registered office in Kolkata, West Bengal. Its
Company Identification Number as given by Registrar of Companies, West
Bengal, is L67120WB1983PLC036805. Its equity shares are listed on the
Bombay Stock Exchange Limited.
B In view of the above, the Company cannot carry on any fresh Non
Banking Financial activities. Hence these financial statements show the
results of these operations / activities.
C Going Concern
The net worth of the Company has become negative due to the accumulated
losses in the previous years. The Company had drawn a plan to liquidate
assets, borrow money including from shareholders / promoters etc for
meeting the liabilities of the financial year ending 31st March, 2015.
Hence, the Accounts have been drawn up on a going concern basis. The
winding up petition filed by a depositor in the previous year is
pending before the Hon'ble Calcutta High Court.
However, in view of the net worth of the Company being negative and in
view of the accumulated losses for the last few years aggregating to
Rs. 85183,83069.82 till March 2015, the Company's ability to maintain
the status is dependent on concessions from stakeholders' and others'
support Substantial support is reflected in the earlier years from
creditors and shareholders.
A Pursuant to Section 133 of the Companies Act, 2013 and Rule 7 of the
Companies (Accounts) Rules, 2014, till the standards of accounting and
addendum thereto are prescribed by the Central Government in
consultation and recommendation of the National Financial Reporting
Authority, the existing Accounting Standards notified under Companies
Act, 1956 shall continue to apply. Consequently, the financial
statements are prepared under historical cost and on accrual basis and
in accordance with the Accounting Standards notified by the Companies
(Accounting Standards) Rules 2006 referred to in section 211(3C) of the
Companies Act, 1956, other relevant provisions of Companies Act, 2013
and within the terms of Prudential Norms mandated by the Reserve Bank
of India subject to note 1 .C above.
B Non-Current & Current Liabilities
A liability is classified as Current when it satisfies any of the
following:-
a. It is expected to be settled in normal operating cycle or
b. it is held primarily for the purpose of being traded or
c. It is due to be settled within twelve months of the Balance Sheet
date or
d. the Company does not have the unconditional right to defer the
settlement of the liability for at least 12 months after the Balance
Sheet date
All other liabilities are Non-Current.
C Non-Current & Current Assets
An asset is classified as Current when it satisfies any of the
following:-
a. It is expected to be realized in or is intended for sale or
consumption
in normal operating cycle or
b. it is held primarily for the purpose of being traded or
c. It is due to be realized within twelve months of the Balance Sheet
date or
d. It is Cash or Cash Equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the Balance
All other assets are Non-Current
D Normal Operating cycle is assumed to be twelve months.
E Fixed Assets
(i) Tangible Assets : Fixed Assets are stated at cost net of
accumulated depreciation and accumulated impairment losses if any. The
cost comprises of cost of acquisition, borrowing cost and any
attributable cost of bringing the asset to the condition for its
intended use. Costs also include direct expenses incurred up to the
date of capitalization / commissioning.
Subsequent expenditure related to an existing item of fixed asset is
added to its book value only if it increases the future benefits from
the existing asset beyond the previous. It assessed standards of
performance. All other expenses on existing fixed assets, including
day-to-day repair and maintenance expenditure and cost of replacing
parts, are charged to the Statement of Profit and Loss for the period
during which such expenses are incurred.
(ii) Intangible Assets - Intangible assets are reflected at cost of
acquisition of such assets and are carried at cost less accumulated
amortization and impairment, if any.
F Income & Expenditure
Income and Expenditure are generally accounted on accrual basis except
to the extent restricted by Non-Banking Financial (Deposit Accepting or
Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.
There has been no fund based lending since 1.4.2001. The income
recognized during the year is on account of additional charges
recovered on account of defaults and delays in repayment of dues on
Leasing, Hire Purchase, Bill Discounting and other Funding activities,
Other items, except dividends, are accounted on accrual basis. Dividend
is accounted when the same is received or the Company is entitled to
its receipt.
G Depreciation on assets under finance lease was provided based on the
Primary Lease period of asset. On all other assets including operating
leases (when in operating leases (when in force), depreciation has been
provided on the straight line basis at the rates as per Schedule XIV of
the Companies Act, 1956. Effective 1st April, 2014, the Company
depreciates its fixed assets over the useful life in the manner
prescribed in Schedule II of the Act as against the earlier practice of
depreciating at the rates prescribed in Schedule XIV of the Companies
Act, 2013.
H Investments
Long term investments are valued at weighted average cost of
acquisition and provision is made in the accounts for permanent
diminution in the value of long term investments. Current investments
are valued at lower of Cost or Market Value or Net Asset Value. As per
the Accounting Standard AS 30 these investments would all fall under
'Available for Sale" category.
I Foreign Currency Transactions. Expenses and Income are recorded at
the
exchange rate prevalent on the date of transaction. Assets and
Liabilities are restated , to the extent the Company is not covered
against exchange fluctuation, at the exchange rate prevailing on the
Balance Sheet date. There is no exposure on account of Foreign Currency
Transaction during the year under review or in the previous year.
J The Company accounts follows RBI Prudential Norms for charging
delayed payment charges on overdue Lease and Hire Purchase Contracts.
These are booked on realization or on entering into a settlement
agreement with the party.
K Retirement Benefits. The Company's employees are entitled to the
following retirement benefits
i) Provident Fund contributions are being made to the Regional
Provident Fund Organization.
ii) The Gratuity Scheme is a defined benefit plan for which the Company
has taken a policy from Life Insurance Corporation of India (LIC).
iii) The Superannuation Scheme is a defined contribution scheme and
contribution is paid to the LIC as per the Scheme.
iv) Liability on account of leave earned is provided on the basis of
the actuarial certificate as on the date of the Balance Sheet as per
Revised AS 15, notified by the Companies (Accounting Standards) Rules
2006
L Provision & Contingencies
A provisions is recognized when the Company has a legal and
constructive obligation as a result of past event, for which it is
probable that cash outflow will be required and the reliable estimate
can be made. A contingent liability is disclosed when the Company has a
present or a possible obligation where it is not probable that an
outflow or resources will be required for settlement. Contingent assets
are not recognized or disclosed
M Use of Estimates
In preparing the Company's Financial Statements in conformity with the
accounting principles generally accepted in India, the management is
required to make estimates and assumptions that affect the reported
amounts of assets & liabilities, revenues and expenses and other
disclosures in these statements. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized in the
period it is determined.
N Taxes on Income
Current Tax is provided on the basis of provision of the Income Tax
Act, 1961. Deferred Tax is recognized on timing difference between the
accounting income and taxable income for the year and quantified using
tax rate and laws enacted on Balance Sheet date as per the Accounting
Standard prescribed
O Impairments of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. If
such recoverable amount of the assets is less than the book value of
the impaired asset the recoverable amount of the asset is stated as the
revised value of the impaired asset in the books of account and
consequential reduction is recognized in the statement of profit and
loss. After impairment, depreciation is provided on the revised
carrying amount of the asset over its remaining useful life.
An assessment is made at each Balance Sheet date as to whether there is
any indication that previously recognized impairment losses may no
longer exist or may have decreased. If such indication exists, the
Company estimates the asset's recoverable amount. A previously
recognized impairment loss is reversed only if there has been change of
assumptions used to determine the asset's recoverable amount since the
last impairment loss was recognized. The reversal is limited so that
the carrying amount of the asset does not exceed its recoverable amount
nor exceed the carrying amount that would have been determined, net of
depreciation, had no impairment loss been recognized in the statement
of profit and loss.
Mar 31, 2014
A. The financial statements are prepared under historical cost and on
accrual basis and in accordance with the Accounting Standards notified
by the Companies (Accounting Standards) Rules 2006 referred to in
section 211(3C) of the Companies Act, 1956 and within the terms of
Prudential Norms mandated by the Reserve Bank of India subject to note
1.C above.
B. Non-Current & Current Liabilities
A liability is classified as Current when it satisfies any of the
following:-
a. It is expected to be settled in normal operating cycle or
b. it is held primarily for the purpose of being traded or
c. It is due to be settled within twelve months of the Balance Sheet
date or
d. the Company does not have the unconditional right to defer the
settlement of the liability for at least 12 months after the Balance
Sheet date
All other liabilities are Non-Current.
C. Non-Current & Current Assets
An asset is classified as Current when it satisfies any of the
following:-
a. It is expected to be realised in or is intended for sale or
consumption in normal operating cycle or
b. it is held primarily for the purpose of being traded or
c. It is due to be realised within twelve months of the Balance Sheet
date or
d. It is Cash or Cash Equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the Balance Sheet date.
All other assets are Non-Current
D. Normal Operating cycle is assumed to be twelve months.
E. Fixed Assets
(i) Tangible Assets : Fixed Assets are stated at cost net of
accumulated depreciation and accumulated impairment losses if any. The
cost comprises of cost of acquisition, borrowing cost and any
attributable cost of bringing the asset to the condition for its
intended use. Costs also include direct expenses incurred upto the date
of capitalisation / commissioning.
Subsequent expenditure related to an existing item of fixed asset is
added to its book value only if it increases the future benefits from
the existing asset beyond the previous lt assessed standards of
performance. All other expenses on existing fixed assets, including
day-to-day repair and maintenance expenditure and cost of replacing
parts, are charged to the Statement of Profit and Loss for the period
during which such expenses are incurred.
(ii) Intangible Assets - Intangible assets are reflected at cost of
acquisition of such assets and are carried at cost less accumulated
amortisation and impairment, if any.
F. Income & Expenditure
Income and Expenditure are generally accounted on accrual basis except
to the extent restricted by Non-Banking Financial (Deposit Accepting or
Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.
There has been no fund based activity since 1.4.2001. The income
recognised during the year is on account of additional charges
recovered on account of defaults and delays in repayment of dues on
Leasing, Hire Purchase, Bill Discounting and other Funding activities,
Other items, except dividends, are accounted on accrual basis. Dividend
is accounted when the same is received or the Company is entitled to
its receipt.
G. Depreciation on assets under finance lease was provided based on the
Primary Lease period of asset. On all other assets including operating
leases (when in force), depreciation has been provided on the straight
line basis at the rates as per Schedule XIV of the Companies Act, 1956.
All leases have completed their terms. However, some of the leased
assets which are under dispute continue to appear in the books on the
Balance Sheet Date though at nil value.
H. Investments
Long term investments are valued at weighted average cost of
acquisition and provision is made in the accounts for permanent
diminution in the value of long term investments. Current investments
are valued at lower of Cost or Market Value or Net Asset Value As per
the Accounting Standard AS 30, these investments would all fall under
"Available for Sale" category.
I. Foreign Currency Transactions. Expenses and Income are recorded at
the exchange rate prevalent on the date of transaction. Assets and
Liabilities are restated , to the extent the Company is not covered
against exchange fluctuation, at the exchange rate prevailing on the
Balance Sheet date. There is no exposure on account of Foreign Currency
Transaction during the year under review or in the previous year.
J. The Company follows RBI Prudential Norms for charging delayed
payment charges on overdue Lease and Hire Purchase Contracts. These are
booked on realisation or on entering into a settlement agreement with
the party
K. Retirement Benefits. The Company''s employees are entitled to the
following retirement benefits
i) Provident Fund contributions are being made to the Regional
Provident Fund Organisation.
ii) The Gratuity Scheme is a defined benefit plan for which the Company
has taken a policy from Life Insurance Corporation of India (LIC).
iii) The Superannuation scheme is a defined contribution scheme and
contribution is paid to the LIC as per the scheme.
iv) Liability on account of leave earned is provided on the basis of
the actuarial certificate as on the date of the Balance Sheet. as per
Revised AS 15. notified by the Companies (Accounting Standards) Rules
2006
L. Provision & Contingencies
A provisions is recognised when the Company has a legal and
constructive obligation as a result of past event, for which it is
probable that cash outflow will be required and the reliable estimate
can be made. A contingent liability is disclosed when the Company has a
present or a possible obligation where it is not probable that an
outflow or resources will be required for settlement. Contingent assets
are not recognised or disclosed
M. Use of Estimates
In preparing the Company''s Financial Statements in conformity with the
accounting principles generally accepted in India, the management is
required to make estimates and assumptions that affect the reported
amounts of assets & liabilities, revenues and expenses and other
disclosures in these statements. Actual results could differ from these
estimates. Any revision to accounting estimates is recognised in the
period it is determined.
N. Taxes on Income
Current Tax is provided on the basis of provision of the Income Tax
Act, 1961. Deferred Tax is recognised on timing difference between the
accounting income and taxable income for the year and quantified using
tax rate and laws enacted on Balance Sheet date as per the Accounting
Standard prescribed
O. Impairments of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset.If
such recoverable amount of the assets is less than the book value of
the impaired asset, the recoverable amount of the asset is stated as
the revised value of the impaired asset in the books of account and
consequential reduction is recognised in the statement of profit and
loss. After impairment, depreciation is provided on the revised
carrying amount of the impaired asset over its remaining useful life.
An assessment is made at each Balance Sheet date as to whether there is
any indication that previously recognised impairment losses may no
longer exist or may have decreased. If such indication exists,the
Company re-estimates the asset''s recoverable amount. A
previouslyrecognised impairment loss is reversed only if there has been
change of assumptions used to determine the asset''s recoverable amount
since the last impairment loss was recognised. The reversal is limited
so that the carrying amount of the asset does not exceed its
recoverable amount nor exceed the carrying amount that would have been
determined, net of depreciation, had no impairment loss been recognised
in the statement of profit and loss.
Mar 31, 2013
A. The financial statements are prepared under historical cost and on
accrual basis and comply with the Accounting Standards notified by the
Companies (Accounting Standards) Rules 2006 referred to in section
211(3C) of the Companies Act, 1956 and within the terms of Prudential
Norms mandated by the Reserve Bank of India.
B. Non-Current & Current Liabilities
A liability is classified as Current when it satisfies any of the
following:-
a. it is expected to be settled in normal operating cycle or
b. it is held primarily for the purpose of being traded or
c. it is due to be settled within twelve months of the Balance Sheet
date or
d. the Company does not have the unconditional right to defer the
settlement of the liability for at least 12 months after the Balance
Sheet date. All other liabilities are Non-Current.
C. Non-Current & Current Assets
An asset is classified as Current when it satisfies any of the
following:-
a. It is expected to be realized in or is intended for sale or
consumption in normal operating cycle or
b. it is held primarily for the purpose of being traded or
c. It is due to be realized within twelve months of the Balance Sheet
date or
d. It is Cash or Cash Equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the Balance Sheet date. All other assets are Non-Current
D. Normal Operating cycle is assumed to be twelve months.
E. Fixed Assets
Fixed Assets are recorded at cost of acquisition or construction
including cost of installation, transfer costs etc. They are stated at
lower of historical cost less accumulated depreciation plus /minus
impairment adjustments (i.e. written down value) or realizable value.
There are no intangible assets.
F. Income & Expenditure
Income and Expenditure are generally accounted on accrual basis except
to the extent restricted Non-Banking Financial (Deposit Accepting or
Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.
There has been no fund based activity since 1.4.2001. The income
recognized during the year is on account of additional charges
recovered on account of defaults and delays in repayment of dues on
Leasing, Hire Purchase, Bill Discounting and other Funding activities,
Other items, except dividends, are accounted on accrual basis. Dividend
is accounted when the same is received or the Company is entitled to
its receipt.
G. Depreciation on assets under finance lease was provided based on
the Primary Lease period of asset. On all other assets including
operating leases (when in force), depreciation has been provided on the
straight line basis at the rates as per Schedule XIV of the Companies
Act, 1956. All leases have completed their terms. However. some of the
leased assets which are under dispute continue to appear in the books
on the Balance Sheet Date though at nil value.
H. Investments
Long term investments are valued at weighted average cost of
acquisition and provision is made in the accounts for permanent
diminution in the value of long term investments. Current investments
are valued at lower of Cost or Market Value or Net Asset Value As per
the Accounting Standard AS 30 these investments would all fall under
"Available for Sale" category.
I. Foreign Currency Transactions. Expenses and Income are recorded at
the exchange rate prevalent on the date of transaction. Assets and
Liabilities are restated , to the extent the Company is not covered
against exchange fluctuation, at the exchange rate prevailing on the
Balance Sheet date. There is no exposure on account of Foreign Currency
Transaction during the year under review or in the previous year.
J. The Company accounts follows RBI Prudential Norms for charging
delayed payment charges on overdue Lease and Hire Purchase Contracts.
These are booked on realization or on entering into a settlement
agreement with the party
K. Retirement Benefits.
The Company''s employees are entitled to various retirement benefits
Provident Fund contributions are made to a Fund approved by the
appropriate authorities. The shortfall in the return is borne by the
Company. Gratuity and Superannuation are covered by schemes with Life
Insurance Corporation (LIC)
The Gratuity Scheme is a defined benefit plan and funded accordingly as
per certificate given by the LIC in this regard. The Superannuation
scheme is a defined contribution scheme and contribution is paid to the
LIC as per the scheme. Liability on account of leave earned is provided
on the basis of the actuarial certificate as on the date of the Balance
Sheet. as per Revised AS 15. notified by the Companies (Accounting
Standards) Rules 2006
L. Provision & Contingencies
A provisions is recognized when the Company has a legal and
constructive obligation as a result of past event, for which it is
probable that cash outflow will be required and the reliable estimate
can be made. A contingent liability is disclosed when the Company has a
present or a possible obligation where it is not probable that an
outflow or resources will be required for settlement. Contingent assets
are not recognized or disclosed
M. Use of Estimates
In preparing the Company''s Financial Statements in conformity with the
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amounts of assets & liabilities, revenues and expenses and other
disclosures in these statements. Actual results could differ from these
estimates. Any revision to accounting estimates is recognized in the
period it is determined.
N. Taxes on Income
Current Tax is provided on the basis of provision of the Income Tax
Act, 1961. Deferred Tax is recognized on timing difference between the
accounting income and taxable income for the year and quantified using
tax rate and laws enacted on Balance Sheet date as per the Accounting
Standard prescribed
i. Rights of equity shareholders
Equity shareholders have the rights as provided under the Companies
Act, 1956 and the Memorandum and Articles of Association of the
Company.
Statutory Reserve was created as per the provisions of Section 45-IC of
the Reserve Bank of India Act, 1934 (RBI) based of the profits earned by
the Company for the years ended 31-Mar-97 and 31-Mar-98. This reserve
cannot be utilized without the permission of RBI.
Mar 31, 2012
A The financial statements are prepared under historical cost and on
accrual basis and comply with the Accounting Standards notified by the
Companies (Accounting Standards) Rules 2006 referred to in section
211(3C) of the Companies Act, 1956 and within the terms of Prudential
Norms mandated by the Reserve Bank of India.
B Non-Current & Current Liabilities
A liability is classified as Current when it satisfies any of the
following:-
a. It is expected to be settled in normal operating cycle or
b. it is held primarily for the purpose of being traded or
c. It is due to be settled within twelve months of the Balance Sheet
date or
d. The Company does not have the unconditional right to defer the
settlement of the liability for at least 12 months after the Balance
Sheet date All other liabilities are Non-Current.
C Non-Current & Current Assets
An asset is classified as Current when it satisfies any of the
following:-
a. It is expected to be realised in or is intended for sale or
consumption in normal operating cycle or
b. it is held primarily for the purpose of being traded or
c. It is due to be realised within twelve months of the Balance Sheet
date or
d. It is Cash or Cash Equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the Balance Sheet date. All other assets are Non-Current
D Normal Operating cycle is assumed to be twelve months.
E Fixed Assets
Fixed Assets are recorded at cost of acquisition or construction
including cost of installation, transfer costs etc. They are stated at
lower of historical cost less accumulated depreciation plus /minus
impairment adjustments or realisable value. There are no intangible
assets.
F Income & Expenditure
Income and Expenditure are generally accounted on accrual basis except
to the extent restricted Non-Banking Financial (Deposit Accepting or
Holding) Companies Prudential Norms (Reserve Bank) Directions 2007.
There has been no fund based activity since 1.4.2001. The income
recognised during the year is on account of additional charges
recovered on account of . defaults and delays in repayment of dues on
Leasing, Hire Purchase, Bill Discounting and other Funding activities,
Other items, except dividends, are accounted on accrual basis. Dividend
is accounted when the same is received or the Company is entitled to
its receipt.
G Depreciation on assets under finance lease was provided based on the
Primary Lease period of asset. On all other assets including operating
leases (when in force), depreciation has been provided on the straight
line basis at the rates as per Schedule XIV of the Companies Act, 1956.
All leases have completed their terms. However, some of the leased
assets which are under dispute continue to appear in the books on the
Balance Sheet Date though at nil value.
H Investments
Long term investments are valued at weighted average cost of
acquisition and- provision is made in the accounts for permanent
diminution in the value of long term investments. Current investments-
are valued at lower of Cost or Market Value or Net Asset Value
I Foreign Currency Transactions. Expenses and Income are recorded at
the exchange rate prevalent on the date of transaction. Assets and
Liabilities are restated , to the extent the Company is not covered
against exchange fluctuation, at the exchange, rate prevailing on the
Balance Sheet date. There is no exposure on account of Foreign Currency
Transaction during the year under review or in the previous year.
J The Company accounts follows RBI Prudential Norms for charging
delayed payment charges on overdue Lease and Hire Purchase Contracts.
These are booked on realisation or on entering into a settlement
agreement with the party
K Retirement Benefits. The Company's employees are entitled to various
retirement benefits Provident Fund contributions are made to a Fund
approved by the appropriate authorities.The shortfall in the return is
borne by the Company. Gratuity and Superannuation are covered by
schemes with Life Insurance Corporation (LIC)
The Gratuity Scheme is a defined benefit plan and funded accordingly as
per certificate given by the LIC in this regard. The Superannuation
scheme is a defined contribution scheme and contribution is paid to the
LIC as per the scheme. Liability on account of leave earned is provided
on the basis of the acturial certifcate as on the date of the Balance
Sheet, as per Revised AS 15. notified by the Companies (Accounting
Standards) Rules 2006
L Provision & Contingencies
A provisions is recognised when the Company has a legal and
constructive obligation as a result of past event, for which it is
probable that cash outflow will be required and the reliable estimate
can be made. A contingent liability is disclosed when the Company has a
present or a possible obligation where it is not probable that an
outflow or resouces will be required for settlement. Contingent assets
are not recognised or disclosed
M Use of Estimates
In preparing the Company's Financial Statements in conformity with the
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amounts of assets & liabilities, revenues and expenses and other
disclosures in these statements. Actual results could differ from these
estimates. Any revision to accounting estimates is recognised in the
period it is determined.
N Taxes on Income
Current Tax is provided on the basis of provision of the Income Tax
Act, 1961. Deferred Tax is recognised on timing difference between the
accounting income and taxable income1 for the year and quantified using
tax rate and laws enacted on Balance Sheet date.
Mar 31, 2011
1 The financial statements are prepared under historical cost and on
accrual basis and comply with the Accounting Standards notified by the
Companies (Accounting Standards) Rules 2006 referred to in Section
211(3C) of the Companies Act, 1956.
2 Fixed Assets
Fixed Assets are recorded at cost of acquisition or construction
including cost of installation, transfer costs etc. They are stated at
lower of historical cost less accumulated depreciation plus impairment
loss or realisable value. There are no intangible assets.
3 Income & Expenditure
Income and Expenditure are generally accounted on accrual basis. There
has been no fund based activity since 1.4.2001. The income recognised
during the year is on account of additional charges recovered on
account of defaults and delays in repayment
Other items, except dividends, are accounted on accrual basis. Dividend
is accounted when the same is received or the Company is entitled to
its receipt.
4 Depreciation on assets under finance lease was provided based on the
Primary Lease period of asset. On all other assets including operating
leases (when in force), depreciation has been provided on the straight
line basis at the rates as per Schedule XIV of the Companies Act, 1956.
All leases have completed their terms. However, some of the leased
assets which are under dispute continue to appear in the books on the
Balance Sheet Date though at nil value.
5 Investments
Long term investments are valued at weighted average cost of
acquisition and provision is made in the accounts for permanent
diminution in the value of long term investments. Current investments
are valued at lower of Cost or Market Value or Net Asset Value.
As per the Accounting Standard AS 30 these investments would all fall
under "Available for Sale" category.
6 Foreign Currency Transactions. Expenses and Income are recorded at
the exchange rate prevalent on the date of transaction. Assets and
Liabilities are restated , to the extent the Company is not covered
against exchange fluctuation, at the exchange rate prevailing on the
Balance Sheet date. There is no exposure on account of Foreign Currency
Transaction during the year under review or in the previous year.
7 The Company accounts follows RBI Prudential Norms for charging
delayed payment charges on overdue Lease and Hire Purchase Contracts.
These are booked on realisation or on entering into a setllement
agreement with the party.
8 Retirement Benefits. The Company's employees are entitled to various
retirement benefits.
Provident Fund contributions are made to a Fund approved by the
appropriate authorities. The shortfall in the return is borne by the
Company. Gratuity and Superannuation are covered by schemes with Life
Insurance Corporation (LIC).
The Gratuity Scheme is a defined benefit plan and funded accordingly as
per certificate given by the LIC in this regard.
The Superannuation scheme is a defined contribution scheme and
contribution is paid to the LIC as per the scheme.
Liability on account of leave earned is provided on the basis of the
actuarial certifcate as on the date of the Balance Sheet as per Revised
AS 15. notified by the Companies (Accounting Standards) Rules, 2006.
9 Provision & Contingencies
A provisions is recognised when the Company has a legal and
constructive obligation as a result of past event, for which it is
probable that cash outflow will be required and the reliable estimate
can be made. A contingent liability is disclosed when the Company has a
present or a possible obligation where it is not probable that an
outflow or resouces will be required for settlement. Contingent assets
are not recognised or disclosed
10 Use of Estimates
In preparing the Company's Financial Statements in conformity with the
accounting principles generally accepted in India, management is
required to make estimates and assumptions that affect the reported
amounts of assets & liabilities, revenues and expenses and other
disclosures in these statements. Actual results could differ from these
estimates. Any revision to accounting estimates is recognised in the
period it is determined.
11 Taxes on Income
Current Tax is provided on the basis of provision of the Income Tax
Act, 1961. Deferred Tax is recognised on timing difference between the
accounting income and taxable income for the year and quantified using
tax rate and laws enacted on Balance Sheet date.
Mar 31, 2010
1 The financial statements are prepared under historical cost and on
accrual basisand comply with the accounting standards issued by the
Institute of Chartered Accountants of India referref to in section
211(3C) of the Companies Act, 1956.
2 Fixed Assets
Fixed Assets are recorded at cost of acquisition or construction
including cost of installation, transfer costs etc. They are stated at
lower of historical cost less accumulated depreciation plus impairment
loss or realisable value. There are no intangible assets.
3 Income & Expenditure
Income and Expenditure are generally accounted on accrual basis.
There has been no fund based activity since 1.4.2001. The income
recognised during the year is on account of additional charges
recovered on account of defaults and delays in repayment Other items,
except dividends, are accounted on accrual basis. Dividend is accounted
when the same is received or the Company is entitled to its receipt.
4 Depreciation on assets under finance lease was provided based on the
Primary Lease period of asset. On all other assets including ,
operating leases (when in force), depreciation has been provided on the
straight line basis at the rates as per Schedule XIV of the Companies
Act, 1956. All leases have completed their terms. However, some of the
leased assets which are under dispute continue to appear in the books
on the Balance Sheet Date though at nil value.
5 Investments
Long term investments are valued at weighted average cost of
acquisition and provision is made in the accounts for permanent
diminution in the value of long term investments. Current investments
are valued at lower of Cost or Market Value or Net Asset Value.
As per the Accounting Standard AS 30 these investments would all fall
under "Available for Sale" category.
6 Foreign Currency Transactions. Expenses and Income are recorded at
the exchange rate prevalent on the date of transaction. Assets and
Liabilities are restated , to the extent the Company is not covered
against exchange fluctuation, at the exchange rate prevailing on the
Balance Sheet date. There is no exposure on account of Foreign Currency
Transaction during the year under review or in the previous year.
7 The Company accounts follows RBI Prudential Norms for charging
delayed payment charges on overdue Lease and Hire Purchase Contracts
These are booked on realisation or on entering into a setllement
agreement with the party
8 Retirement Benefits. The Companys employees are entitled to various
retirement benefitsProvident Fund contributions are made to a Fund
approved by the appropriate authorities.The shortfall in the returnis
borne by the Company. Gratuity and Superannuation are covered by
schemes with Life Insurance Corporation (LIC)The Gratuity Scheme is a
defined benefit plan and funded accordingly as per certificate given by
the LIC in this regard.The Superannuation scheme is a defined
contribution scheme and contribution is paid to the LIC as perthe
scheme. Liability on account of leave earned is provided on the basis
of the acturial certifcate as on the date of the Balance Sheet, as per
Revised AS 15. of ICAI
9 Provision & Contingencies
A provisions is recognised when the Company has a legal and
constructive obligation as a result of past event, for which it is
probable that cash outflow will be required and the reliable estimate
can be made. A contingent liability is disclosed when the Company has a
present or a possible obligation where it is not probable that an
outflow or resouces will be required for settlement. Contingent assets
are not recognised or disclosed
10 Use of Estimates
In preparing the Companys Financial Statements in conformity with the
accounting principles generally accepted in.lndia, management is
required to make estimates and assumptions that affect the reported
amounts of assets & liabilities revenues and expenses and other
disclosures in these statements. Actual results could differ from these
estimates. Any revision to accounting estimates is recognised in the
period it is determined. *
11. Taxes on Income
Current Tax is provided on the basis of provision of the Income Tax Act
1961. Deferred Tax is recognized on timing difference between the
accounting income and taxable income for the year and quantified using
tax rate and laws enacted on Balance Sheet date.