Mar 31, 2015
A. BASIC OF PREPARATION OF FINANCIAL STATEMENTS:
The accompanying financial statements are prepared and presented under
the historical cost convention on the accrual basis of accounting
unless otherwise stated and comply with the accounting standard
referred to in Section 133 of the Companies Act 2013 read with Rule 7
of Company (Accounts) Rules 2014, to the extent applicable.
The Company complies in all material respects, with the prudential
norms relating to income recognition asset classification and
provisioning for bad and doubtful debts and other matters, specified in
the directions issued by the Reserve Bank of India in terms of Non-
Banking Financial Companies Prudential Norms (Reserve Bank) Directions
2007 as applicable to it.
B. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities and disclosure of contingent liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between the actual results and
estimates are recognized in the period in which the results are known/
materialized.
C. REVENUE RECOGNITION:
i) Interest Income:
Interest income is recognized as it accrues on a time proportion basis
taking into account the amount outstanding and the rate applicable
except in the case of nonperforming assets ('NPAs') where is
recognized, upon realization.
ii) Dividend income:
Dividend income is recognized when the right to received payment is
established.
iii) Income from investments:
Profit earned from sale of securities is recognized on trade date
basis. The cost of securities is computed based on weighted average
basis.
iv) Discount on investments:
The Difference between the acquisition cost and face value of debt
instruments are recognized as interest income over the tenor of the
instrument on straight line basis.
v) Loan processing fee income:
Loan processing fee income is recognized as and when it becomes due.
vi) Management fee income:
Management fee income toward support services is accounted as and when
it becomes due on contractual terms with the parties.
D. FIXED ASSETS:
Fixed assets are stated at cost of acquisition less accumulated
depreciation and impairment loss if any. Cost includes all expenses
incidental to the acquisition of the fixed assets.
E. DEPRECIATION:
Depreciation on straight method over the useful life of assets.
F. IMPAIRMENT 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 asset is less that the carrying amount. The
carrying amount is reduced to its recoverable amount. The reduction is
treated as an impairment loss and is recognized in the statement of
profit and loss if at the balance sheet date there is an indication that
a previously assessed impairment loss no longer exits the recoverable
amount is reassessed and the asset is reflected at the recoverable
amount subject to a maximum of depreciable historical cost.
G. INVESTMENTS:
Investments are classified as long term or current based on intention
of the management at the time of purchase. Current investments are
valued scrip wise at cost or fair value whichever is lower.
H. REPOSSESSED ASSETS:
Assets repossessed against the settlement of loans are carried in the
balance sheet at outstanding loans amount or market value whichever is
lower. The difference between the outstanding loan amount and the
market value is charged to statement of profit and loss in the year of
repossession of assets.
I. LOAN ORIGINATION/ACQUITION COST:
All direct cost incurred for the origination is amortized over the
average tenure of the loan.
J. SECURITY OF LOAN GIVEN:
Housing loans/loans against property granted are secured by equitable
registered mortgage of property and / or undertaking to create secured
loans are secured against the hypothecation of respective assets.
K. BORROWING COST:
Borrowing cost: which are directly attributable to the
acquisition/construction of fixed assets, till the time assets are
ready for intended use, are capitalized as part of the cost of the
assets Other borrowing costs are recognized as expenses in the year in
which they are incurred. Borrowing cost directly attributable to
borrowing are expense over the tenure of the borrowing.
L. EARNING PER SHARE:
The basic earning per shares is computed by dividing the net
profit/loss attributable to the equity shareholders for the period by
the weighted average number of equity shares outstanding during the
reported year. Diluted earning per share reflects the potential
dilution that could occur if securities or other contract to issue
equity shares were exercised or converted during the year. Diluted
earning per share is computed by dividing the net profit after tax by
weighted average number of equity shares and dilutive potential equity
shares outstanding during the year. In computing dilutive earning per
share, only potential equity shares that are dilutive and that reduce
profit/increase loss per share are included.
M. PROVISION FOR NON-PERFORMING ASSET (NPA) AND DOUBTFUL DEBTS:
NPA includes loans and advances receivable are identified as bad/doubt
full bases on the duration of the delinquency. The duration is set at
appropriate levels for each product. NPA provisions are made based on
the management assessment of the degree of impairment and the level of
provisioning meets the NBFC prudential norms prescribed by the Reserve
Bank of
N. PROVISION FOR STANDARD ASSETS:
Provisions for standard assets are made as per the reserve bank of
India notification DNBS.PD.CC NO. 207/03.02.2002/2010-11 dated January
17,2011.
O. TAXATION:
i) Current Tax:
Provision for current tax made after taking into consideration benefit
admissible under the provision of the income tax act, 1961. Minimum
alternate tax (MAT) credit entitlement is recognized where there is
convincing evidence that the same can be realized in future.
ii) Deferred Tax:
The deferred tax charge or credit and the corresponding deferred tax
liability or assets are recognized using the tax rate that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in future however where there
is unabsorbed depreciation or carried forward loss under taxation laws.
Deferred tax assets are recognized only if there is virtual certainty
or realization of such assets. Deferred tax assets are reviewed as at
each balance sheet date and written down or written up to reflect the
amount that is reasonably/ virtual certain (as the case may be)to be
realized.
3. During the year effective from 1st April 2014, the Company has
revised estimated useful life of all of its fixed assets as per the
Schedule II of the Companies Act 2013. Based on current estimates of
assets whose useful life has already been exhausted as on 01.04.2014,
has been adjusted and there not been any change in the useful life of
the fixed assets.
The financial statement for the period ended march 31, 2015 had been
prepared as per the then applicable. Schedule III to the companies act,
2013.Consequent to the notification to the Schedule III under the
companies act, 2013, the financial statement for the period ended march
31,2015 have been prepared as per Schedule III. Accordingly the
previous year's figures does not impact recognition and measurement
principle followed for preparation of financial statement.
Mar 31, 2013
A. Basic of preparation of financial statements
The accompanying financial statements are prepared and presented under
the historical cost convention on the accrual basis of accounting
unless otherwise stated and comply with the accounting standard
prescribed by the companies (accounting Standards ) Rules, 2006 and the
relevant provisions of the companies Act, 1956 to the extent
applicable.
The company complies in all material respects, with the prudential
norms relating to income recognition asset classification and
provisioning for bad and doubtful debts and other matters, specified in
the directions issued by the Reserve Bank of India in terms of
Non-Banking Financial Companies Prudential Norms (Reserve Bank)
Directions 2007 as applicable to it.
B. Use of estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities and disclosure of contingent liabilities on the date of the
financial statements and the reported amount of revenues and expenses
during the reporting period. Difference between the actual results and
estimates are recognized in the period in which the results are known/
materialized.
C. Revenue Recognition: i) Interest Income:
Interest income is recognized as it accrues on a time proportion basis
taking into account the amount outstanding and the rate applicable
except in the case of non performing assets (NPAs1) where is
recognized, upon realization.
ii) Dividend income:
Dividend income is recognized when the right to received payment is
established.
iii) Income from investments:
Profit earned from sale of securities is recognizeci on trade date
basis. The cost of securities is computed based on weighted average
basis.
iv) Discount on investments:
The Difference between the acquisition cost and face value of debt
instruments are recognized as interest income over the tenor of the
instrument on straight line basis.
v) Loan processing fee income:
Loan processing fee income is recognized as and when it becomes due.
vi) Management fee income:
Management fee income toward support services is accounteci as and when
it becomes due on contractual terms with the parties.
D. Fixed assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation and impairment loss if any. Cost includes all expenses
incidental to the acquisition * of the fixed assets.
E. Depreciation:
Depreciation on straight method over the useful life of assets.
F. Impairment 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 asset is less that the carrying amount.
The carrying amount is reduced to its recoverable amount. The reduction
is treated as an impairment loss and is recognized in the statement of
profit and loss if at the balance sheet date there is an indication
that a previously assessed impairment loss no longer exits the
recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciable historical cost.
G. investments:
Investments are classified as long term or current based on intention
of the management at the time of purchase. Current investments are
valued scrip wise at cost or fair value whichever is lower.
H. Repossessed assets:
Assets repossessed against the settlement of loans are carried in the
balance sheet at outstanding loans amount or market value whichever is
lower. The difference between the outstanding loan amount and the
market value is charged to statement of profit and loss in the year of
repossession of assets.
I. Loan origination/acquit ion cost:
All direct cost incurred for the origination is amortized over the
average tenure of the loan.
J. Security of loan given:
Housing loans/loans against property granted are secured by equitable
registered mortgage of property and / or undertaking to create secured
loans are secured against the hypothecation of respective assets.
K. Borrowing cost:
Borrowing cost: which are directly attributable to the acquisition/
construction of fixed assets, till the time assets are ready for
intended use, are capitalized as part of the cost of the assets Other
borrowing costs are recognized as expenses in the year in which they
are incurred. Borrowing cost directly attributable to borrowing are
expense over the tenure of the borrowing.
L. Earning Per Share:
The basic earning per shares is computed by dividing the net
profit/loss attributable to the equity shareholder for the period by
the weighted average number of equity shares outstanding during the
reported year. Diluted earning per share reflects the potential
dilution that could occur if securities or other contract to issue
equity shares were exercised or converted during the year. Diluted
earning per share is computed by dividing the net profit after tax by
weighted average number of equity shares and dilutive potential equity
shares outstanding during the year. In computing dilutive earning per
share, only potential equity shares that are dilutive and that reduce
profit/increase Joss per share are included.
M. Provision for Non-performing Asset (NPA) and Doubtful Debts:
NPA includes loans and advances receivable are identified as
bad/doubtful bases on the duration of the delinquency. The duration is
set at appropriate levels for each product. NPA provisions are made
based on the management assessment of the degree of impairment and the
level of provisioning meets the NBFC prudential norms prescribed by the
Reserve Bank of India.
N. Provision for standard assets:
Provisions for standard assets are made as per the reserve bank of
India notificationDNBS.PD.CC NO. 207/03.02.2002/2010-11 dated January
17,2011.
O. Taxation:
i) Current Tax:
Provision for current tax made after taking into consideration benefit
admissible under the provision of the income tax act, 1961. Minimum
alternate tax (MAT) credit entitlement is recognized where there is
convincing evidence that the same can be realized in future.
ii) Deferred Tax:
The deferred tax charge or credit and the corresponding deferred tax
liability or assets are recognized using the tax rate that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in future however where there
is unabsorbed depreciation or carried forward loss under taxation laws.
Deferred tax assets are recognized only if there is virtual certainty
or realization of such assets. Deferred tax assets are reviewed as at
each balance sheet date and written down or written up to reflect the
amount that is reasonably/ virtual certain (as the case mav be) to be
realized.
Mar 31, 2011
1.01 Basis of Accounting
The financial statements are prepared to comply in all material aspects
with Indian Accounting Standards as notified by the Companies
(Accounting Standards) Rules, 2006 and the relevant provisions of the
Companies Act, 1956. The Financial Statements has been prepared under
historical cost conventions, on accrual basis. The Accounting policies
have been consistently applied by the Company and are consistent with
those used in the previous year.
1.02 ACCOUNTING POLICIES:
The Company is regulated as a Non-Banking Financial Company (NBFC) by
the RBI. Accordingly, Investments are classified under two categories
i.e. Current and Long Term and are valued in accordance with the RBI
guidelines and Accounting Standard 13 on ''Accounting for Investments''
as notified by the Companies (Accounting Standards) Rules, 2006.
a. FIXED ASSETS
(i) All fixed assets are valued at cost less depreciation.
(ii) If the carrying amount of fixed assets exceeds the recoverable
amount on the reporting date, the carrying amount is reduced to the
recoverable amount. The recoverable amount is measured at the highest
of the net selling price and the value in use determined by the present
value of estimated future cash flow.
b. REVENUE RECONGNITION
(i) Interest and other dues are accounted and accrual basis except in
the case of non-performing assets ("NPAs") where they are recognised
upon realisation, as per the income recognition and assets
classification norms prescribed by the RBI.
(ii) Income and discounted instruments is recognised over the tenure of
the instrument on straight line method.
(iii) Dividend is accounted on an accrual basis when the right to
receive is established.
(iv) Front end fees on processing of loans are recognised upfront as
income.
(v) All fess are recognised when reasonable right of recovery is
established, revenue can be reliably measured and as and when they
become due except commission income on guarantees, is recognised
pro-data over the residual period of the guarantee.
(vi) Premium on interest rate deduction is accounted on accrual basis
over the residual life of the loan.
(vii) Profit on securitization is recognised over the residual life of
the loan in terms of the RBI guidelines. Profit on sale of loans assets
through direct assignment, without any recourse obligation, is
recognised at the time of sale. Net loss arising on account of
securitisation and direct assignment of loan assets is recognised at
the time of sale.
c. DEPRECIATION
Depreciation is provided on straight line method at the rates specified
in Schedule XIV of The Companies Act, 1956 on pro-rata basis. Land
including site development is not depreciated.
d. INVESTMENTS
The Company is regulated as a Non-Banking Financial Company (NBFC) by
the RBI. Accordingly, Investments are classified and valued in
accordance with the RBI guidelines and Accounting Standard 13 on
''Accounting for Investments'' as notified by the Companies (Accounting
Standards) Rules, 2006.
e. PROVISION FOR INCOME TAX
The Income Tax liability is ascertained on the basis of assessable
income in accordance with the provisions of the Income Tax Act,
1961.Provision for current income tax is made in accordance with the
provisions of Income Tax Act, 1961. In accordance with Accounting
Standard (AS)-22 "Accounting for Taxes on Income", Deferred Tax
resulting from timing differences between book & tax profit is
accounting for at the current rate of tax to the extent that the timing
differences are expected to crystallize. Deferred Tax Assets are
recognized only when there is virtual certainty of sufficient future
profits available to realize such assets.
f. INTANGIBLE ASSETS
Intangible Assets comprising of system software as are stated at cost
of acquisition, including any cost attributable for bringing the asset
to its working condition, less accumulated amortization. Any technology
support cost or annual maintenance cost for such software is charges
annually to the Profit and Loss Account.
g. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Contingent liability if any is disclosed by way of notes on accounts.
Provision is made in account in respect of those contingencies which
are likely to materialize in to liabilities after the year end till the
adoption of accounts by Board of Directors and which have material
effect on the position stated in the balance sheet. Contingent Assets
are neither recognized nor disclosed in the financial statements.