Mar 31, 2014
The Financial statements have been prepared on accrual basis and in
accordance w''ft applicable accounting standards. A sun may of he
important accounting policies, below.
1.1 Basis of Accounting:
Recognition and provisioning for Non-performing Assets as prescribed in
the directions issued by the Reserve Bank of India in term sot the Non-
Banking Financial (Non-Deposit Accepting or Holding) Companies
Prudential Norms (Reserve Bank) Directions, 2007.
1.2 Investments:
Long term investments am stated at cost Incidental expenses incurred in
acquiring fie irt/estments are added to the cost Decline in carrying
amount ofrnvesenents. if any, oher than of temporary nature is provided
for in the Statement of Profit and Loss.
1.3 Fixed Assets:
Fixed Assets are recorded at cost inclusive of all incidental cost of
acquisition anatoiler incidental costs.
14 Depreciation /Am orSsafon:
Goodwill is amortised over the period of its estimateduseful Me of 2.5
years. Depredation mother Sxedassets isprovided on mien Dom Value
Method at the rates prescribed under ire Schedule XIV of tie Companies
Act, me on pro rata basis from the date of addition/upto he date of
deletion.
1 .5 Capitai-WoMn Progress:
The expenditure m correction M the assets under acquisition
/construction are treated as CapM Wbik-ln-Ptogres$ til the date of
capitalisation thereof.
i.6 Receivables under Financing Act-/ites
The receivables under trancing actrMes includes Stock on Hire (i.e. toU
receivables comprising of total value of hire purchase insialmerts
falling due after end of the accounting year net of Finance charges
receivable on balance instalments), Trade Receivables (hire purchase
instalments due), Loans given. Bills Discounted (net of unmatured
discount charges). The receivables under financing activities we
further classified into non-current portion and current potion based on
tenure thereof.
1.7 Revenue Recognition:
i) tn rescec; o'' F, imce Chafes on Hire Purchase agreements. Income is
accounted by applying implicit rate of return in he transacted on the
declining balance cftheamounttinancedformper.od of trie agreement
ii) Interest and discounting charges income are recognised on tme
accrual basis.
ill) No incom e is recognised in resoeel of non-performing assets as
specified in the directions issued by the Reserve Bank of India in
terms of the Non-Banking Financial (Non-Deposit Accepting or Holding)
Companies Prudent al Norms (Reserve Bank) Directions, 2007.
1.8 Taxation:
Tne provision for current tax, if any, is computed in accordance with
the relevant tax regulations. Deferred Tax is recognised on timing
difference bemen accounting and taxable income for the yea- by aopiying
applicable tax rates as per Accounting Standard-22 on ''Accounting for
Taxes on Income: Deferred Tax Assets is recognised i«wr mem is
reasonable certainty that future taxable income mil be available
against Mich such Deferred Tax Assets can be realised.
Provision and Contingent liabilities
Provision are recognised in the accounts for present probable obSgafons
arising out of past events that require outflow dresources, the amount
of can be reliably estimated,
Contingent are disclosed in respect of possible obligations
hatarisefrom pastevents but their existence is confirmed by
meoccurrence or non occurrence of one or more uncertain future s not
wholly within the conM of the company, unless likehood an outflow of
resources is remote Contigent assests are recognized in the accounts
unless there is virtual certiny as to its realisation. resources
accounts.
Mar 31, 2013
The Financial statements have been prepared on accrual basis and in
accordance with applicable accounting standards. A summary of the
important accounting policies, which have been applied, is set out
below:
1.1 Basis of Accounting: The financial statements are prepared in
accordance with the historical cost convention. Further the Company
follows prudential norms for Income Recognition and provisioning for
Non-performing Assets as prescribed in the directions issued by the
Reserve Bank of India in terms of the Non-Banking Financial
(Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve
Bank) Directions, 2007.
1.2 Investments: Long term investments are stated at cost. Incidental
expenses incurred in acquiring the investments are added to the cost.
Decline in carrying amount of investments, if any, other than of
temporary nature is provided for in the Statement of Profit and Loss.
1.3 Fixed Assets: Fixed Assets are recorded at cost inclusive of all
incidental cost of acquisition and other incidental costs.
1.4 Depreciation / Amortisation: Goodwill is amortised over the period
of its estimated useful life of 2.5 years. Depreciation on other fixed
assets is provided on Written Down Value Method at the rates prescribed
under the Schedule XIV of the Companies Act, 1956 on pro rata basis
from the date of addition / upto the date of deletion.
1.5 Stock on Hire: Stock on hire is reflected at total receivables
comprising of total value of hire purchase instalments falling due
after end of the accounting year net of Finance charges receivable on
balance instalments.
1.6 Revenue Recognition:
i) In respect of Finance Charges on Hire Purchase agreements, Income is
accounted by applying implicit rate of return in the transaction on the
declining balance of the amount financed for the period of the
agreement. ii) Interest and discounting charges income are recognised
on time accrual basis.
iii) No income is recognised in respect of non-performing assets as
specified in the directions issued by the Reserve Bank of India in
terms of the Non-Banking Financial (Non-Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Directions, 2007.
1.7 Taxation:
The provision for current tax, if any, is computed in accordance with
the relevant tax regulations. Deferred Tax is recognised on timing
difference between accounting and taxable income for the year by
applying applicable tax rates as per Accounting Standard-22 on
"Accounting for Taxes on Income". Deferred Tax Assets is recognised
wherever there is reasonable certainty that future taxable income will
be available against which such Deferred Tax Assets can be realised.
1.8 Provisions and Contingent Liabilities:
Provisions are recognised in the accounts for present probable
obligations arising out of past events that require outflow of
resources, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the company, unless likelihood of an
outflow of resources is remote. Contingent assets are not recognised in
the accounts, unless there is virtual certainty as to its realisation.
Mar 31, 2012
The Financial statements have been prepared on accrual basis and in
accordance with applicable accounting standards. A summery of the
important accounting policies, which have been applied is set out
below:
1.1. Basis of Accounting:
The financial statements are prepared in accordance with the historical
cost convention,
1.2 investments:
Long term investments are stated at cost. Incidental expenses incurred
in acquiring the Investments are added to the cost, Decline in carrying
amount of investments, if any, other than of temporary nature is
provided for in the Statement of Profit and Loss.
1.3 Fixed Assets:
Fixed Assets are recorded at cost inclusive of all incidental cost of
acquisition and other Incidental costs.
1.4 Depreciation/Amortisation:
Goodwill is amortised over the period of its estimated useful life of
2.5 years. Depreciation on other fixed assets is provided on Written
Down Value Method at the rates prescribed under the Schedule XIV of the
Companies Act, 1953 on pro rata basis from the date of addition/upto
the date of deletion.
1.5 Stock on Hire
Stock on hire is reflected at total receivables comprising of total
value of hire purchase instalments falling due after end of
the accounting year net of Finance charges receivable on balance
installments.
i) In respect of Finance Charges on Hire Purchase agreements, Income is
accounted by applying implicit rate of return in the transaction on the
declining balance of the amount financed for the period of the
agreement. No Income is recognised in respect of non-performing assets
as specified in the directions issued by the Reserve Bank of India in
terms of the Non- Banking Financial (Non-Deposit Accepting or Holding)
Companies Prudential Norms (Reserve Bank) Directions, 2007. ii) Income
Interest is recognised on time accrual basis.
1.7 Taxation
The provision for current tax, If any, is computed in accordance with
the relevant tax regulations. Deferred Tax is recognised on timing
difference between accounting and taxable income for the year by
applying applicable tax rates as per Accounting Standard -22 on
"Accounting for Taxes on Income". Deferred Tax Assets is recognised
wherever there is reasonable certainty that future taxable income will
be available against which such Deferred Tax Assets can be realised.
1.8 Provisions and Contingent Liabilities:
Provisions are recognised In the accounts for present probable
obligations arising out of past events that require outflow of
resources, the amount of which can be reliably estimated.
Contingent liabilities are disclosed in respect of possible obligations
that arise from past events but their existence is confirmed by the
occurrence or non occurrence of one or more uncertain future events not
wholly within the control of the company, unless likelihood of an
outflow of resources is remote. Contingent assets are not recognised In
the accounts, unless there Is virtual certainty as to its realisation,
Mar 31, 2010
The financial statements are prepared under the historical cost
convention, on an accrual basis and in accordance with the applicable
accounting standards.
1.1) Fixed Assets :-
Fixed Assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
1.2) Depreciation :-
Depreciation on Fixed Assets is provided on Written Down Method at the
rates and in the manner specified in the Schedule XIV of the Companies
Act, 1956.
1.3) Investments :-
Long Term Investments are stated at cost.
1.4) Revenue Recognition:
Interest is recorded on time basis. Dividend income on investments is
accounted for when the right to receive the payment is established.
1.5) Taxation :-
The provision for Current Tax is determined on the basis of taxable
income for the current accounting year in accordance with the Income
Tax Act, 1961.
The Deferred Tax is recognized, considering the prudence, on timing
difference, that originate in one period and capable of reversal in
subsequent period.
Deferred tax assets are recognized on Long Term Capital loss on the
basis of reasonable certainty that such deferred tax asset can be
realized against future taxable Long Term Capital Gain.
Deferred tax Liability recognized in earlier year on difference between
Book depreciation and depreciation under Income Tax Act 1961 is
reversed to the extent of realization.
1.6) Retirement Benefits :-
No Retirement benefit provisions made.
1.7) Segment Information :-
Since the company is dealing in only one segment, ie there is no
segment reporting.
Mar 31, 2009
1.1) Fixed Assets:-
Fixed Assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
1.2) Depreciation :-
Depreciation on Fixed Assets is provided on Written Down Method at the
rates and in the manner specified in the Schedule XIV of the Companies
Act, 1956-
1.3) Investments :-
Long Term Investments are stated at cost.
1.4) Revenue Recognition :
Interest is recorded on lime basis. Dividend income on investments is
accounted for when the right to receive the payment is established.
15) Taxation:-
The provision for Current Tax is determined on the basis of taxable
income for the current accounting year in accordance with the Income
Tax Act, 1961.
The Deferred Tax is recognized, considering the prudence, on timing
difference, that originate in one period and capable of reversal in
subsequent period.
Deferred tax assets are recognized on Long Term Capital loco on the
basis of reasonable certainty that such deferred tax asset can be
realized against future taxable Long Term Capital Gain.
Deferred lax Liability recognized in earlier year on difference between
Book depreciation and depreciation under Income Tax Act 1961 is
reversed to the extent of realization.
1.6) Retirement Benefits :-
No Retirement benefit provisions made.
1.7) Segment Information :-
Since the company is dealing financing, there is no segment reporting.