Mar 31, 2018
a) Basis of Preparation of Financial Statements
The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the applicable accounting standards notified under section 133 of companies act 2013 (ââthe Actââ), read together with Rule 7 of the Companies (Accounts) Rules 2014 and the Directions of the National Housing Bank .The accounting policies have been consistently applied by the Company and are consistent with those used in the previous period. The Financial statements have been prepared on an accrual basis and under the historical cost convention.
b) Use of Estimates
The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported income and expenses during the reporting period. Management believes that these estimates are reasonable and prudent. However actual results may differ from estimates.
Estimates and under lying assumptions are viewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.
c) System of Accounting
The Balance Sheet and the Statement of Profit and Loss of the Company are prepared in accordance with the provisions contained in Section 133 of the Companies Act 2013, read with Schedule III.
d) Inflation
Assets and liabilities are recorded at historical cost to the company. These costs are not adjusted to reflect the changing value in the purchasing power of attorney.
e) Housing Loans and Advance Standard
Housing loans are classified into âPerformingâ and âNon-Performingâ assets in terms of guidelines laid down by the National Housing Bank .Non Performing Housing loans are further classified as sub-standard, doubtful and loss as sets based on the Housing Finance Companies (NHB) Directions, 2001 as amended till 10th June, 2010.
The companyâs policy is to carry adequate amounts in the Provision for Non-Performing Assets account to cover the amount outstanding in respect of all non-performing assets and standard assets respectively as also all other contingencies. All loans and other credit exposures where the installments are overdue for Ninety days and more are classified as non-performing assets in accordance with the prudential norms prescribed by the National Housing Bank .The provision for non-performing assets is deducted from loans and advances. The provisioning policy of the company covers the minimum provisioning required as per the NHB guidelines.
f) Revenue Recognition
Repayment of housing loans is generally by way of Equated Monthly Installments (EMI) comprising principal and interest. EMIs commence once the entire loan is disbursed .Pending commencement of EMIs, pre-EMI interest is payable every month. Interest is calculated on the outstanding loan balance (including all interest and fees for defaults) at the beginning of every month and on loan disbursed during the year from the beginning of the date on which the loan has been disbursed till year end at applicable slab rates.
Interest on Housing Loans which are classified as Non-performing assets is recognized on realization as per the directives / guidelines laid down by National Housing Bank.
Fees and other income on loan application and subsequent sanction thereof and income from investments are recognized on cash basis as and when received.
g) Fixed Assets
Fixed Assets (whether tangible or intangible) are stated at cost less accumulated depreciation. The cost of fixed assets includes taxes, duties, freight, borrowing cost, if capitalization criteria are met and other incidental expenses incurred in relation to their acquisition/bringing the assets for their intended use. Leased assets are accounted in accordance with the Accounting Standard on âLeasesâ (AS 19) notified by the Companies (Accounts) Rules, 2014.
h) Depreciation & Amortization
Depreciation is provided on written down value method at the rates and in the manner prescribed in schedule II to the Companies Act, 2013 on pro-rata basis from the date of installation or acquisition.
Amortization on Lease as set is provided over the useful life of lease period
i) Employee Benefits
Short term employee benefits are recognized as an expense on accrual basis.
The obligation in respect of defined benefit plans, which covers Gratuity is paid to LIC and recognised as an expense on the basis of an actuarial valuation, using the projected unit credit method.
j) Leases
Leases where significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases and lease rentals thereon are charged to the Statement of Profit and Loss.
k) Earnings Per Share
The Earnings per Share {âEPSâ) is computed by dividing the net profit / (loss) after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.
l) Income Taxes
The accounting treatment for income-tax in respect of the companyâs income is based on the Accounting Standard 22 on âAccounting for Taxes on Incomeâ as notified by the Companies (Accounts) Rules, 2014. The provision made for income-tax in the accounts comprises both, the current tax and the deferred tax. The deferred tax assets and liabilities for the year, arising on account of timing differences, are recognised in the Statement of Profit and Loss and the cumulative effect thereof is reflected in the Balance Sheet.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax asset is recognised only to the extent that there is certainty that sufficient future taxable income will be available against which such deferred tax asset can be realised. In situations where the company has unabsorbed depreciation or carried forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that the same can be realised against future taxable profits.
m) Minimum Alternate Tax (MAT):
Mat is recognised as an asset only when and to the extend there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by ICAI, the said asset is created by way of credit to the statement of Profit and Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each Balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extend there is no longer convincing evidence to the effect that company will pay normal Income Tax during the specified period.
n) Investments
Investments, that are intended to be held for not more than one year, are classified as current investments. All other investments are classified as long term investments/ non- current investments.
Long-term investments are carried cost after deducting provisions made, if any, for diminution in value of investments other than temporary, determined separately for each individual investment. Current investments are carried at lower of cost and fair value determined for each category of investments.
o) Cash and Cash Equivalents
Cash and Cash Equivalents for the purpose of Cash Flow Statement includes cash in hand, Balances with Banks and Fixed deposits with banks.
p) Impairment of Assets
The carrying amount of assets are reviewed at each balance sheet date, if there is an indication of impairment based on internal and external factors.
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An assetâs recoverable amount is the higher of an assets net selling price and value in use. Value in use is the present value of estimated value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an armâs length transaction between knowledgeable, willing parties, less the costs of disposal.
An impairment loss, if any, is charged to the Statement of Profit and Loss in the year in which the asset is identified as impaired. Impairment loss recognised in prior years is reversed when there is an indication that impairment loss recognised for the asset no longer exists or has decreased.
The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount is estimated at the higher of net realisable value and value in use. Impairment loss is recognised wherever carrying amount exceeds the recoverable amount.
q) Provisions, Contingent Liabilities & Contingent Assets
Provisions are recognised when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.
Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.
Contingent Liabilities are not recognised but disclosed and Contingent Assets are neither recognised nor disclosed, in the financial statements.
r) Segment
The main business of the Company is to provide loans for purchase or construction of residential houses, all other activities of the Company revolve around the main business and accordingly there are no separate reportable segments, as per the Accounting Standard on âSegment Reportingâ (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies act 2013
s) Assets Acquired under SARFAESI Act
Assets acquired under SARFAESI Act are part of NPA Portfolio of loans for which necessary provisions are being made and such assets are to be disposed off at the earliest, subject to legal formalities. Losses/gains, if any, are being booked at the time of sales realization of such assets.
t) Borrowing Cost
Ancillary cost incurred for arrangement of borrowing such as loan processing fees ,stamping expenses , rating _expenses are period cost and are amortized over the tenure of the borrowing.
Mar 31, 2017
Significant Accounting Policies
a) Basis of Preparation of Financial Statements
The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the applicable accounting standards notified under section 133 of companies act 2013 (ââthe Actââ), read together with Rule 7 of the Companies (Accounts) Rules 2014 and the Directions of the National Housing Bank. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous period. The Financial statements have been prepared on an accrual basis and under the historical cost convention.
b) Use of Estimates
The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported income and expenses during the reporting period. Management believes that these estimates are reasonable and prudent. However, actual results may differ from estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognised prospectively in the current and future periods.
c) System of Accounting
The Balance Sheet and the Statement of Profit and Loss of the Company are prepared in accordance with the provisions contained in Section 133 of the Companies Act 2013, read with Schedule III.
d) Inflation
Assets and liabilities are recorded at historical cost to the company. These costs are not adjusted to reflect the changing value in the purchasing power of attorney.
e) Housing Loans and Advance Standard
Housing loans are classified into âPerformingâ and âNon-Performingâ assets in terms of guidelines laid down by the National Housing Bank. Non Performing Housing loans are further classified as sub-standard, doubtful and loss assets based on the Housing Finance Companies (NHB) Directions, 2001 as amended till 10th June, 2010.
The companyâs policy is to carry adequate amounts in the Provision for Non-Performing Assets account to cover the amount outstanding in respect of all non-performing assets and standard assets respectively as also all other contingencies. All loans and other credit exposures where the installments are overdue for Ninety days and more are classified as non-performing assets in accordance with the prudential norms prescribed by the National Housing Bank. The provision for non-performing assets is deducted from loans and advances. The provisioning policy of the company covers the minimum provisioning required as per the NHB guidelines.
f) Revenue Recognition
Repayment of housing loans is generally by way of Equated Monthly Installments (EMI) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, pre-EMI interest is payable every month. Interest is calculated on the outstanding loan balance (including all interest and fees for defaults) at the beginning of every month and on loan disbursed during the year from the beginning of the date on which the loan has been disbursed till year end at applicable slab rates.
Interest on Housing Loans which are classified as Non- performing assets is recognised on realisation as per the directives/ guidelines laid down by National Housing Bank.
Fees and other income on loan application and subsequent sanction thereof and income from investments are recognised on cash basis as and when received
g) Fixed Assets
Fixed Assets (whether tangible or intangible) are stated at cost less accumulated depreciation. The cost of fixed assets includes taxes, duties, freight, borrowing cost, if capitalization criteria are met and other incidental expenses incurred in relation to their acquisition/bringing the assets for their intended use. Leased assets are accounted in accordance with the Accounting Standard on âLeasesâ (AS 19) notified by the Companies (Accounts) Rules, 2014.
h) Depreciation & Amortisation
Depreciation is provided on written down value method at the rates and in the manner prescribed in schedule II to the Companies Act, 2013 on pro-rata basis from the date of installation or acquisition.
Amortisation on Lease asset is provided over the useful life of lease period
i) Employee Benefits
Short term employee benefits are recognised as an expense on accrual basis.
The obligation in respect of defined benefit plans, which covers Gratuity is paid to LIC and recognised as an expense on the basis of an actuarial valuation, using the projected unit credit method.
j) Leases
Leases where significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases and lease rentals thereon are charged to the Statement of Profit and Loss.
k) Earnings Per Share
The Earnings per Share {âEPSâ) is computed by dividing the net profit/ (loss) after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.
l) Income Taxes
The accounting treatment for income-tax in respect of the companyâs income is based on the Accounting Standard 22 on âAccounting for Taxes on Incomeâ as notified by the Companies (Accounts) Rules, 2014. The provision made for income-tax in the accounts comprises both, the current tax and the deferred tax. The deferred tax assets and liabilities for the year, arising on account of timing differences, are recognised in the Statement of Profit and Loss and the cumulative effect thereof is reflected in the Balance Sheet.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax asset is recognised only to the extent that there is certainty that sufficient future taxable income will be available against which such deferred tax asset can be realised. In situations where the company has unabsorbed depreciation or carried forward losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that the same can be realised against future taxable profits.
m) Minimum Alternate Tax (MAT):
Mat is recognised as an asset only when and to the extend there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in the Guidance Note issued by ICAI, the said asset is created by way of credit to the statement of Profit and Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each Balance sheet date and writes down the carrying amount of MAT Credit
Entitlement to the extend there is no longer convincing evidence to the effect that company will pay normal Income Tax during the specified period.
n) Investments
Investments, that are intended to be held for not more than one year, are classified as current investments. All other investments are classified as long term investments/ non- current investments.
Long-term investments are carried cost after deducting provisions made, if any, for diminution in value of investments other than temporary, determined separately for each individual investment. Current investments are carried at lower of cost and fair value determined for each category of investments.
o) Cash and Cash Equivalents
Cash and Cash Equivalents for the purpose of Cash Flow Statement includes cash in hand, Balances with Banks and Fixed deposits with banks.
p) Impairment of Assets
The carrying amount of assets are reviewed at each balance sheet date, if there is an indication of impairment based on internal and external factors.
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An assetâs recoverable amount is the higher of an assets net selling price and value in use. Value in use is the present value of estimated value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an armâs length transaction between knowledgeable, willing parties, less the costs of disposal.
An impairment loss, if any, is charged to the Statement of Profit and Loss in the year in which the asset is identified as impaired. Impairment loss recognised in prior years is reversed when there is an indication that impairment loss recognised for the asset no longer exists or has decreased.
The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount is estimated at the higher of net realisable value and value in use. Impairment loss is recognised wherever carrying amount exceeds the recoverable amount.
q) Provisions, Contingent Liabilities & Contingent Assets
Provisions are recognised when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.
Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.
Contingent Liabilities are not recognised but disclosed and Contingent Assets are neither recognised nor disclosed, in the financial statements.
r) Segment
The main business of the Company is to provide loans for purchase or construction of residential houses, all other activities of the Company revolve around the main business and accordingly there are no separate reportable segments, as per the Accounting Standard on âSegment Reportingâ (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies act 2013
s) Assets Acquired under SARFAESI Act
Assets acquired under SARFAESI Act are part of NPA Portfolio of loans for which necessary provisions are being made and such assets are to be disposed off at the earliest, subject to legal formalities. Losses/gains, if any, are being booked at the time of sales realization of such assets
Mar 31, 2016
Company Overview
India Home Loan Ltd. (IHLL) is a housing finance company incorporated under the Companies Act, 1956 and registered with National Housing Bank (NHB) for carrying out the business of housing finance.
Significant Accounting Policies
a) Basis of Preparation of Financial Statements
The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the applicable accounting standards notified under section 133 of companies act 2013 (''''the Act''''), read together with Rule 7 of the Companies (Accounts) Rules 2014 and the Directions of the National Housing Bank. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous period. The Financial statements have been prepared on an accrual basis and under the historical cost convention.
b) Use of Estimates
The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent liabilities as at the date of the financial statements and the reported income and expenses during the reporting period. Management believes that these estimates are reasonable and prudent. However, actual results may differ from estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.
c) System of Accounting
The Balance Sheet and the Statement of Profit and Loss of the Company are prepared in accordance with the provisions contained in Section 133 of the Companies Act 2013, read with Schedule III.
d) Inflation
Assets and liabilities are recorded at historical cost to the company. These costs are not adjusted to reflect the changing value in the purchasing power of attorney.
e) Housing Loans and Advance Standard
Housing loans are classified into âPerformingâ and âNon-Performingâ assets in terms of guidelines laid down by the National Housing Bank. Non Performing Housing loans are further classified as sub-standard, doubtful and loss assets based on the Housing Finance Companies (NHB) Directions, 2001 as amended till 10th June,2010.
The company''s policy is to carry adequate amounts in the Provision for Non-Performing Assets account to cover the amount outstanding in respect of all non-performing assets and standard assets respectively as also all other contingencies. All loans and other credit exposures where the installments are overdue for Ninety days and more are classified as non-performing assets in accordance with the prudential norms prescribed by the National Housing Bank. The provision for non-performing assets is deducted from loans and advances. The provisioning policy of the company covers the minimum provisioning required as per the NHB guidelines.
f) Revenue Recognition
Repayment of housing loans is generally by way of Equated Monthly Installments (EMI) comprising principal and interest. EMIs commence once the entire loan is disbursed. Pending commencement of EMIs, pre-EMI interest is payable every month. Interest is calculated on the outstanding loan balance (including all interest and fees for defaults) at the beginning of every month and on loan disbursed during the year from the beginning of the date on which the loan has been disbursed till year end at applicable slab rates.
Interest on Housing Loans which are classified as Non- performing assets is recognized on realization as per the directives/ guidelines laid down by National Housing Bank.
Fees and other income on loan application and subsequent sanction thereof and income from investments are recognized on cash basis as and when received sued by the Institute of Chartered Accountants of India / notified under the Companies act 2013
g) Fixed Assets
Fixed Assets (whether tangible or intangible) are stated at cost less accumulated depreciation. The cost of fixed assets includes taxes, duties, freight, borrowing cost, if capitalization criteria are met and other incidental expenses incurred in relation to their acquisition/bringing the assets for their intended use. Leased assets are accounted in accordance with the Accounting Standard on ''Leases'' (AS 19) notified by the Companies (Accounts) Rules, 2014.
h) Depreciation & Amortization
Depreciation is provided on written down value method at the rates and in the manner prescribed in schedule II to the Companies Act, 2013 on pro-rata basis from the date of installation or acquisition.
Amortization on Lease asset is provided over the useful life of lease period
i) Employee Benefits
Short term employee benefits are recognized as an expense on accrual basis.
The obligation in respect of defined benefit plans, which covers Gratuity is paid to LIC and recognized as an expense on the basis of an actuarial valuation, using the projected unit credit method.
j) Leases
Leases where significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases and lease rentals thereon are charged to the Statement of Profit and Loss.
k) Earnings Per Share
The Earnings per Share {âEPSâ) is computed by dividing the net profit/ (loss) after tax for the year attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year.
For the purpose of calculating diluted earnings per share, net profit/(loss) after tax for the year attributable to the equity shareholders and the weighted average number of equity shares outstanding during the year is adjusted for the effects of all dilutive potential equity shares.
l) Income Taxes
The accounting treatment for income-tax in respect of the company''s income is based on the Accounting Standard 22 on ''Accounting for Taxes on Income'' as notified by the Companies (Accounts) Rules, 2014. The provision made for income-tax in the accounts comprises both, the current tax and the deferred tax. The deferred tax assets and liabilities for the year, arising on account of timing differences, are recognized in the Statement of Profit and Loss and the cumulative effect thereof is reflected in the Balance Sheet.
Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax asset is recognized only to the extent that there is certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized. In situations where the company has unabsorbed depreciation or carried forward losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that the same can be realized against future taxable profits.
m) Minimum Alternate Tax (MAT):
Mat is recognized as an asset only when and to the extend there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the Guidance Note issued by ICAI, the said asset is created by way of credit to the statement of Profit and Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each Balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extend there is no longer convincing evidence to the effect that company will pay normal Income Tax during the specified period.
n) Investments
Investments, that are intended to be held for not more than one year, are classified as current investments. All other investments are classified as long term investments/ non- current investments.
Long-term investments are carried cost after deducting provisions made, if any, for diminution in value of investments other than temporary, determined separately for each individual investment. Current investments are carried at lower of cost and fair value determined for each category of investments.
o) Cash and Cash Equivalents
Cash and Cash Equivalents for the purpose of Cash Flow Statement includes cash in hand, Balances with Banks and Fixed deposits with banks.
p) Impairment of Assets
The carrying amount of assets are reviewed at each balance sheet date, if there is an indication of impairment based on internal and external factors.
An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An asset''s recoverable amount is the higher of an assets net selling price and value in use. Value in use is the present value of estimated value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in an arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.
An impairment loss, if any, is charged to the Statement of Profit and Loss in the year in which the asset is identified as impaired. Impairment loss recognized in prior years is reversed when there is an indication that impairment loss recognized for the asset no longer exists or has decreased.
The carrying amounts of assets are reviewed at each Balance Sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount is estimated at the higher of net realizable value and value in use. Impairment loss is recognized wherever carrying amount exceeds the recoverable amount.
q) Provisions, Contingent Liabilities & Contingent Assets
Provisions are recognized when there is a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimate.
A present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made, is disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the Company.
Claims against the Company where the possibility of any outflow of resources in settlement is remote, are not disclosed as contingent liabilities.
Contingent Liabilities are not recognized but disclosed and Contingent Assets are neither recognized nor disclosed, in the financial statements.
r) Segment
The main business of the Company is to provide loans for purchase or construction of residential houses, all other activities of the Company revolve around the main business and accordingly there are no separate reportable segments, as per the Accounting Standard on ''Segment Reporting'' (AS 17) issued by the Institute of Chartered Accountants of India / notified under the Companies act 2013
Mar 31, 2014
A) Basis of Preparation of Financial Statements
The financial statements have been prepared and presented under the
historical cost convention on accrual basis of accounting in accordance
with the Generally Accepted Accounting Principles in India (Indian
GAAP). These financial statements comply in all material respects with
the applicable accounting standards notified by Companies (Accounting
Standards) Rules, 2006 (as amended), to the extend applicable, the
relevant provisions of the Companies Act, 1956 read with General
Circular 15/2013 dated September 13, 2013 issued by the Ministry of
Corporate Affairs, in respect of Section 133 of the Companies Act, 2013
and the Directions of the National Housing Bank. The accounting
policies have been consistently applied by the Company and are
consistent with those used in the previous period.
b) Use of Estimates
The preparation of financial statements requires the management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities and disclosure of contingent liabilities as at the date of
the financial statements and the reported income and expenses during
the reporting period. Management believes that these estimates are
reasonable and prudent. However, actual results may differ from
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis.
Any revision to accounting estimates is recognised prospectively in the
current and future periods.
c) System of Accounting
The Balance Sheet and the Statement of Profit and Loss of the Company
are prepared in accordance with the provisions contained in Section 211
of the Companies Act 1956, read with Revised Schedule VI.
d) Inflation
Assets and liabilities are recorded at historical cost to the company.
These costs are not adjusted to reflect the changing value in the
purchasing power of attorney.
e) Housing Loans And Investments
Housing loans are classified into "Performing" and "Non-Performing"
assets in terms of guidelines laid down by the National Housing Bank.
Non Performing Housing loans are further classified as sub-standard,
doubtful and loss assets based on the Housing Finance Companies (NHB)
Directions, 2001 as amended till 10th June, 2010. Investments are
accounted at cost inclusive of brokerage and stamp charges. Investments
that are intended to be held for not more than one year, are classified
as current investments. All other investments are classified as long
term investments/non-current investments.
Long-term investments are carried at cost after deducting provisions
made, if any, for diminution in value of investments other than
temporary, determined separately for each individual investment.
Current investments are carried at lower of cost and fair value
determined for each category of investments.
The company''s policy is to carry adequate amounts in the Provision for
Non-Performing Assets account to cover the amount outstanding in
respect of all non-performing assets and standard assets respectively
as also all other contingencies. All loans and other credit exposures
where the installments are overdue for Ninety days and more are
classified as non-performing assets in accordance with the prudential
norms prescribed by the National Housing Bank. The provision for
non-performing assets is deducted from loans and advances. The
provisioning policy of the company covers the minimum provisioning
required as per the NHB guidelines.
f) Revenue Recognition
Repayment of housing loans is generally by way of Equated Monthly
Installments (EMI) comprising principal and interest. EMIs commence
once the entire loan is disbursed. Pending commencement of EMIs,
pre-EMI interest is payable every month. Interest is calculated on the
outstanding loan balance (including all interest and fees for defaults)
at the beginning of every month and on loan disbursed during the year
from the beginning of the date on which the loan has been disbursed
till year end at applicable slab rates.
Interest on Housing Loans which are classified as Non- performing
assets is recognised on realisation as per the directives/ guidelines
laid down by National Housing Bank.
Fees and other income on loan application and subsequent sanction
thereof and income from investments are recognised on cash basis as and
when received.
g) Fixed Assets
Fixed Assets (whether tangible or intangible) are stated at cost less
accumulated depreciation. The cost of fixed assets includes taxes,
duties, freight, borrowing cost, if capitalization criteria are met and
other incidental expenses incurred in relation to their
acquisition/bringing the assets for their intended use. Leased assets
are accounted in accordance with the Accounting Standard on ''Leases''
(AS 19) notified by the Companies (Accounting Standards) Rules, 2006.
h) Depreciation & Amortisation
Depreciation is provided on written down value method at the rates and
in the manner prescribed in schedule XIV to the Companies Act, 1956 on
pro-rata basis from the date of installation or acquisition.
Amortisation on Lease asset is provided over the useful life of lease
period.
i) Employee Benefits
Short term employee benefits are recognised as an expense on accrual
basis.
The obligation in respect of defined benefit plans, which covers
Gratuity is paid to LIC and recognised as an expense on the basis of an
actuarial valuation, using the projected unit credit method.
j) Leases
Leases where significant portion of the risks and rewards of ownership
are retained by the lessor are classified as operating leases and lease
rentals thereon are charged to the Statement of Profit and Loss.
k) Earnings Per Share
The basic Earnings Per Share ("EPS") is computed by dividing the net
profit/ (loss) after tax for the year attributable to the equity
shareholders by the weighted average number of equity shares
outstanding during the year.
For the purpose of calculating diluted earnings per share, net
profit/(loss) after tax for the year attributable to the equity
shareholders and the weighted average number of equity shares
outstanding during the year is adjusted for the effects of all dilutive
potential equity shares.
l) Income Taxes
The accounting treatment for income-tax in respect of the company''s
income is based on the Accounting Standard 22 on ''Accounting for Taxes
on Income'' as notified by the Companies (Accounting Standards) Rules,
2006. The provision made for income-tax in the accounts comprises both,
the current tax and the deferred tax. The deferred tax assets and
liabilities for the year, arising on account of timing differences, are
recognised in the Statement of Profit and Loss and the cumulative
effect thereof is reflected in the Balance Sheet.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax asset is recognised only to the extent that there is certainty that
sufficient future taxable income will be available against which such
deferred tax asset can be realised. In situations where the company has
unabsorbed depreciation or carried forward losses, deferred tax assets
are recognised only if there is virtual certainty supported by
convincing evidence that the same can be realised against future
taxable profits.
Minimum Alternate Tax (MAT):
Mat is recognised as an asset only when and to the extend there is
convincing evidence that the company will pay normal income tax during
the specified period. In the year in which the MAT credit becomes
eligible to be recognised as an asset in accordance with the
recommendations contained in the Guidance Note issued by ICAI, the said
asset is created by way of credit to the statement of Profit and Loss
and is shown as MAT Credit Entitlement. The Company reviews the same at
each Balance sheet date and writes down the carrying amount of MAT
Credit Entitlement to the extend there is no longer convincing evidence
to the effect that company will pay normal Income Tax during the
specified period.
m) Investments
Investments, that are intended to be held for not more than one year,
are classified as current investments. All other investments are
classified as long term investments/ non- current investments.
Long-term investments are carried cost after deducting provisions made,
if any, for diminution in value of investments other than temporary,
determined separately for each individual investment. Current
investments are carried at lower of cost and fair value determined for
each category of investments.
n) Cash and Cash Equivalents
Cash and Cash Equivalents for the purpose of Cash Flow Statement
includes cash in hand, Balances with Banks and Fixed deposits with
banks.
o) Impairment of Assets
The carrying amount of assets are reviewed at each balance sheet date,
if there is an indication of impairment based on internal and external
factors.
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An asset''s recoverable amount is the
higher of an assets net selling price and value in use. Value in use is
the present value of estimated value of estimated future cash flows
expected to arise from the continuing use of an asset and from its
disposal at the end of its useful life. Net selling price is the amount
obtainable from sale of the asset in an arms length transaction
between knowledgeable, willing parties, less the costs of disposal.
An impairment loss, if any, is charged to the Statement of Profit and
Loss in the year in which the asset is identified as impaired.
Impairment loss recognised in prior years is reversed when there is an
indication that impairment loss recognised for the asset no longer
exists or has decreased.
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment. If any such
indication exists, the recoverable amount is estimated at the higher of
net realisable value and value in use. Impairment loss is recognised
wherever carrying amount exceeds the recoverable amount.
p) Provisions, Contingent Liabilities & Contingent Assets
Provisions are recognised when there is a present obligation as a
result of past events and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. These are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimate.
A present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made, is disclosed as a
contingent liability. Contingent liabilities are also disclosed when
there is a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non- occurrence of
one or more uncertain future events not wholly within the control of
the Company.
Claims against the Company where the possibility of any outflow of
resources in settlement is remote, are not disclosed as contingent
liabilities.
Contingent Liabilities are not recognised but disclosed and Contingent
Assets are neither recognised nor disclosed, in the financial
statements.
Mar 31, 2013
A) Basis of Preparation of Financial Statements
The financial statements have been prepared and presented under the
historical cost convention on accrual basis of accounting in accordance
with the Generally Accepted Accounting Principles in India (Indian
GAAP). These financial statements comply in all material respects with
the applicable accounting standards notified by Companies (Accounting
Standards) Rules, 2006 (as amended), the relevant provisions of the
Companies Act, 1956 and the Directions of the National Housing Bank.
The accounting policies have been consistently applied by the Company
and are consistent with those used in the previous period.
b) Use of Estimates
The preparation of financial statements requires the management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities and disclosure of contingent liabilities as at the date of
the financial statements and the reported income and expenses during
the reporting period. Management believes that these estimates are
reasonable and prudent. However, actual results may differ from
estimates.
c) System of Accounting
The Balance Sheet and the Statement of Profit and Loss of the Company
are prepared in accordance with the provisions contained in Section 211
of the Companies Act 1956, read with Revised Schedule VI.
d) Inflation
Assets and liabilities are recorded at historical cost to the company.
These costs are not adjusted to reflect the changing value in the
purchasing power of attorney.
e) Housing Loans And Investments
Housing loans are classified into "Performing" and "Non-Performing"
assets in terms of guidelines laid down by the National Housing Bank.
Non Performing Housing loans are further classified as sub-standard,
doubtful and loss assets based on the Housing Finance Companies (NHB)
Directions, 2001 as amended till 10th June, 2010. Investments are
accounted at cost inclusive of brokerage and stamp charges. Investments
that are intended to be held for not more than one year, are classified
as current investments. All other investments are classified as long
term investments/non-current investments.
Long-term investments are carried at cost after deducting provisions
made, if any, for diminution in value of investments other than
temporary, determined separately for each individual investment.
Current investments are carried at lower of cost and fair value
determined for each category of investments.
The company''s policy is to carry adequate amounts in the Provision for
Non-Performing Assets account to cover the amount outstanding in
respect of all non-performing assets and standard assets respectively
as also all other contingencies. All loans and other credit exposures
where the installments are overdue for Ninety days and more are
classified as non-performing assets in accordance with the prudential
norms prescribed by the National Housing Bank. The provision for
non-performing assets is deducted from loans and advances. The
provisioning policy of the company covers the minimum provisioning
required as per the NHB guidelines.
f) Revenue Recognition
Repayment of housing loans is generally by way of Equated Monthly
Installments (EMI) comprising principal and interest. EMIs commence
once the entire loan is disbursed. Pending commencement of EMIs,
pre-EMI interest is payable every month. Interest is calculated on the
outstanding loan balance (including all interest and fees for defaults)
at the beginning of every month and on loan disbursed during the year
from the beginning of the date on which the loan has been disbursed
till year end at applicable slab rates. j
Interest on Housing Loans which are classified as Non- performing
assets is recognised on realisation as per the directives/guidelines
laid down by National Housing Bank. Fees and other income on loan
application and subsequent sanction thereof and income from investments
are recognised on cash basis as and when received.
g) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. The cost
of fixed assets includes taxes, duties, freight, borrowing cost, if
capitalization criteria are met and other incidental expenses incurred
in relation to their acquisition/bringing the assets for their intended
use. Leased assets are accounted in accordance with the Accounting
Standard on ''Leases'' (AS 19) notified by the Companies (Accounting
Standards) Rules, 2006.
h) Intangible Assets
Intangible Assets comprising of system software are stated at cost of
acquisition, including any cost attributable for bringing the same to
its working condition, less accumulated amortisation. Any expenses on
such software for support and maintenance payable annually are charged
to the Statement of Profit and Loss.
i) Depreciation
Depreciation is provided on written down value method at the rates and
in the manner prescribed in schedule XIV to the Companies Act, 1956 on
pro-rata basis from the date of installation or acquisition.
j) Employee Benefits
Short term employee benefits are recognised as an expense on accrual
basis.
The obligation in respect of defined benefit plans, which covers
Gratuity is paid to LIC and recognised as an expense on the basis of an
actuarial valuation, using the projected unit credit method.
k) Leases
Leases where significant portion of the risks and rewards of ownership
are retained by the lessor are classified as operating leases and lease
rentals thereon are charged to the Statement of Profit and Loss.
I) Earnings Per Share
The basis Earnings Per Share {"EPS") is computed by dividing the net
profit/ (loss) after tax for the year attributable to the equity
shareholders by the weighted average number of equity shares
outstanding during the year.
For the purpose of calculating diluted earnings per share, net
profit/(loss) after tax for the year attributable to the equity
shareholders and the weighted average number of equity shares
outstanding during the year is adjusted for the effects of all dilutive
potential equity shares.
m) Income Taxes
The accounting treatment for income-tax in respect of the company''s
income is based on the Accounting Standard 22 on ''Accounting for Taxes
on Income'' as notified by the Companies (Accounting Standards) Rules,
2006. The provision made for income-tax in the accounts comprises both,
the current tax and the deferred tax. The deferred tax assets and
liabilities for the year, arising on account of timing differences, are
recognised in the Statement of Profit and Loss and the cumulative
effect thereof is reflected in the Balance Sheet.
Deferred tax is measured based on the tax rates and the tax laws
enacted or substantively enacted at the Balance Sheet date. Deferred
tax asset is recognised only to the extent that there is certainty that
sufficient future taxable income will be available against which such
deferred tax asset can be realised. In situations where the company has
unabsorbed depreciation or carried forward losses, deferred tax assets
are recognised only if there is virtual certainty supported by
convincing evidence that the same can be realised against future
taxable profits.
n) Impairment of Assets
The carrying amount of assets are reviewed at each balance sheet date,
if there is an indication of impairment based on internal and external
factors.
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable amount. An asset''s recoverable amount is the
higher of an assets net selling price and value in use. Value in use is
the present value of estimated value of estimated future cash flows
expected to arise from the continuing use of an asset and from its
disposal at the end of its useful life. Net selling price is the amount
obtainable from sale of the asset in an arm''s length transaction
between knowledgeable, willing parties, less the costs of disposal.
An impairment loss, if any, is charged to the Statement of Profit and
Loss in the year in which the asset is identified as impaired.
Impairment loss recognised in prior years is reversed when there is an
indication that impairment loss recognised for the asset no longer
exists or has decreased.
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment. If any such
indication exists, the recoverable amount is estimated at the higher of
net realisable value and value in use. Impairment loss is recognised
wherever carrying amount exceeds the recoverable amount.
o) Provisions, Contingent Liabilities & Contingent Assets
Provisions are recognised when there is a present obligation as a
result of past events and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. These are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimate.
A present obligation that arises from past events where it is either
not probable that an outflow of resources will be required to settle or
a reliable estimate of the amount cannot be made, is disclosed as a
contingent liability. Contingent liabilities are also disclosed when
there is a possible obligation arising from past events, the existence
of which will be confirmed only by the occurrence or non- occurrence of
one or more uncertain future events not wholly within the control of
the Company.
Claims against the Company where the possibility of any outflow of
resources in settlement is remote, are not disclosed as contingent
liabilities.
Contingent Liabilities are not recognised but disclosed and Contingent
Assets are neither recognised nor disclosed, in the financial
statements.
Mar 31, 2012
A) Basis of Preparation of Financial Statements
The financial statements have been prepared with the Generally Accepted
Accounting Principles in India (Indian GAAP) to comply in all material
respects with the accounting standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956 and the Directions of the
National Housing Bank. The financial statements have been prepared
under the historical cost convention on an accrual basis. The
accountings policies have been consistently applied by the Company and
are consistent with those used in the previous period.
b) Use of Estimates
The preparation of the financial statements requires the management to
take reasonable estimates and assumption that affect the reported
amount of assets, liabilities and disclosure of contingent liabilities
as at the date of the financial statements. Management believes that
these estimates are reasonable and prudent. However, actual results may
differ from estimates.
c) Housing Loans And Investments
Housing loans are classified into "Performing" and
"Non-Performing" assets in terms of guidelines laid down by the
National Housing Bank. Non Performing Housing loans are further
classified as sub-standard, doubtful and loss assets based on the
Housing Finance Companies (NHB) Directions, 2001 as amended till 10th
June, 2010. Investments are accounted and valued at cost plus
incidental expenditure incurred in connection with acquisition.
Investments are classified into two categories i.e. Non-Trade
(Long-term investments) and Trade (Current investments).
Provisions for non-performing assets and investments are done on a
yearly review in accordance with the directives/ guidelines laid down
by the National Housing Bank. Permanent diminution in the value of the
non-trade investments is reviewed and necessary provisioning is done in
the accounts in accordance AS-14 on "Accounting for Investments".
Trade Investments are valued at lower of cost or market value.
d) Cash Flow Statements
Cash flow statement of the company reports cash flows during the period
classified by operating, investing and financial activities.
e) Revenue Recognition
Repayment of housing loans is by way of Equated Monthly Installments
(EMI) comprising of principal and interest. Interest is calculated on
the outstanding loan balance (including all interest and fees for
defaults) at the beginning of every year and on loan disbursed during
the year from the beginning of the month in which the loan has been
disbursed till year end at applicable slab rates.
Interest on Housing Loans which are classified as Non- performing
assets is recognised on realisation as per the directives/ guidelines
laid down by National Housing Bank.
Fees and other income on loan application and subsequent sanction
thereof and income from investments are recognised on cash basis as and
when received.
f) Fixed Assets
Fixed Assets are stated at cost including all incidental expenses
incurred for bringing the asset to its current position, less
depreciation at rates prescribed in Schedule XIV to the Companies Act,
1956, subject to provisions of Accounting Standard 26 "Intangible
Assets".
g) Depreciation
Depreciation is provided on written down value method in accordance
with section 205(2) of the Companies Act, 1956 at the rates specified
in schedule XIV to the Companies Act, 1956 on pro-rata basis with
reference to the period of put to use of such assets. Assets costing
less than Rs. 5,000/- per item are depreciated at 100% in the year of
purchase.
h) Employee Benefits
All short-term employee benefits are recognised at their undiscounted
amount in the accounting period in which they are incurred.
Retirement Benefits in the form of gratuity and leave salary is
accounted in the year of payment.
i) Leases
Lease rentals in respect of assets taken under operating leases are
charged to profit and loss account on a straight line basis over the
lease term.
j) Income Taxes
Provision for current tax is made for the tax liability payable on
taxable income after considering the allowances, deductions and
exemptions and disallowances if any determined in accordance with the
prevailing tax laws.
The differences between the taxable income and the net profit or loss
before tax for the period as per the financial statements are
identified and the tax effect on the "timing differences" is
recognised as deferred tax asset or deferred tax liability. The tax
effect is calculated on the accumulated timing differences at the end
of the accounting period based on the tax rates and laws, enacted or
substantively enacted as of the balance sheet date.
k) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment. If any such
indication exists, the recoverable amount is estimated at the higher of
net realisable value and value in use. Impairment loss is recognised
wherever carrying amount exceeds the recoverable amount.
I) Provisions, Contingent Liabilities & Contingent Assets
The Company creates a provision when there is a present obligation as a
result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
outflow.
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
within the control of the company.
Contingent Assets are neither recognised nor disclosed in the Financial
Statements as a matter of prudence.
Mar 31, 2011
A) Basis of Preparation of Financial Statements
The financial statements have been prepared to comply in all material
respects with the accounting standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended) and the relevant
provisions of the Companies Act, 1956 and the Directions of the
National Housing Bank. The financial statements have been prepared
under the historical cost convention on an accrual basis. The
accountings policies have been consis- tently applied by the Company
and are consistent with those used in the previous period.
b) Use of Estimates
The preparation of the financial statements requires the management to
take reasonable estimates and assump- tion that affect the reported
amount of assets, liabilities and disclosure of contingent liabilities
as at the date of the financial statements. Management believes that
these estimates are reasonable and prudent. However, actual results may
differ from estimates.
c) Housing Loans And Investments
Housing loans are classified into "Performing" and "Non-Performing"
assets in terms of guidelines laid down by the National Housing Bank.
Non Performing Housing loans are further classified as sub-standard,
doubtful and loss assets based on the Housing Finance Companies (NHB)
Directions, 2001 as amended till 10th June, 2010. Investments are
accounted and valued at cost plus incidental expenditure incurred in
connection with acquisition. Investments are classified into two
categories i.e. Non-Trade (Long-term investments) and Trade (Current
investments).
Provisions for non-performing assets and investments are done on a
yearly review in accordance with the directives/ guidelines laid down
by the National Housing Bank. Permanent diminution in the value of the
non-trade investments is reviewed and necessary provisioning is done in
the accounts in accordance AS-14 on "Accounting for Investments". Trade
Investments are valued at lower of cost or market value.
d) Cash Flow Statements
Cash flow statement of the company reports cash flows during the period
classified by operating, investing and financial activities.
e) Revenue Recognition
Repayment of housing loans is by way of Equated Monthly Installments
(EMI) comprising of principal and interest. Interest is calculated on
the outstanding loan balance (including all interest and fees for
defaults) at the beginning of every year and on loan disbursed during
the year from the beginning of the month in which the loan has been
disbursed till year end at applicable slab rates.
Interest on Housing Loans which are classified as Non- performing
assets is recognised on realisation as per the directives/ guidelines
laid down by National Housing Bank.
Fees and other income on loan application and subsequent sanction
thereof and income from investments are recognised on cash basis as and
when received.
f) Fixed Assets
Fixed Assets are stated at cost including all incidental expenses
incurred for bringing the asset to its current position, less
depreciation at rates prescribed in Schedule XIV to the Companies Act,
1956, subject to provisions of Accounting Standard 26 "Intangible
Assets".
g) Depreciation
Depreciation is provided on written down value method in accordance
with section 205(2) of the Companies Act, 1956 at the rates specified
in schedule XIV to the Companies Act, 1956 on pro-rata basis with
reference to the period of put to use of such assets. Assets costing
less than Rs. 5,000/- per item are depreciated at 100% in the year of
purchase.
h) Employee Benefits
All short-term employee benefits are recognised at their undiscounted
amount in the accounting period in which they are incurred.
Retirement Benefits in the form of gratuity and leave salary is
accounted in the year of payment.
i) Leases
Lease rentals in respect of assets taken under operating leases are
charged to profit and loss account on a straight line basis over the
lease term.
j) Income Taxes
Provision for current tax is made for the tax liability payable on
taxable income after considering the allowances, deductions and
exemptions and disallowances if any determined in accordance with the
prevailing tax laws.
The differences between the taxable income and the net profit or loss
before tax for the period as per the financial statements are
identified and the tax effect on the "timing differences" is recognised
as deferred tax asset or deferred tax liability. The tax effect is
calculated on the accumulated timing differences at the end of the
accounting period based on the tax rates and laws, enacted or
substantively enacted as of the balance sheet date.
k) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment. If any such
indication exists, the recoverable amount is estimated at the higher of
net realisable value and value in use. Impairment loss is recognised
wherever carrying amount exceeds the recoverable amount.
l) Provisions, Contingent Liabilities & Contingent Assets
The Company creates a provision when there is a present obligation as a
result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
outflow.
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
within the control of the company.
Contingent Assets are neither recognised nor disclosed in the Financial
Statements as a matter of prudence.
Mar 31, 2010
A) Basis of Preparation of Financial Statements
Financial statements are prepared on the historical cost convention in
accordance with the Generally Accepted Accounting Principals,
Accounting Standards and the provisions of the Companies Act, 1956 and
the Directions of the National Housing Bank.
b) Use of Estimates
The preparation of the financial statements requires the management to
take reasonable estimates and assumption that affect the reported
amount of assets, liabilities and disclosure of contingent liabilities
as at the date of the financial statements. Management believes that
these estimates are reasonable and prudent. However, actual results may
differ from estimates.
c) Housing Loans And Investments
Housing loans are classified into "Performing" and "Non-Performing"
assets in terms of guidelines laid down by the National Housing Bank.
Non Performing Housing loans are further classified as standard,
sub-standard, doubtful and loss assets. Investments are accounted and
valued at cost plus incidental expenditure incurred in connection with
acquisition. Investments are classified into two categories i.e.
Non-Trade (Long-term investments) and Trade (Current investments).
Provisions for non-performing assets and investments are done on a
yearly review in accordance with the directives /guidelines laid down
by the National Housing Bank. Permanent diminution in the value of the
non-trade investments is reviewed and necessary provisioning is done in
the accounts in accordance AS-14 on "Accounting for Investments".
Trade Investments are valued at lower of cost or market value.
d) Cash Flow Statements
Cash flow statement of the company reports cash flows during the period
classified by operating, investing and financial activities.
e) Revenue Recognition
Repayment of housing loans is by way of Equated Monthly Installments
(EMI) comprising of principal and interest. Interest is calculated on
the outstanding loan balance (including all interest and fees for
defaults) at the beginning of every year and on loan disbursed during
the year from the beginning of the month in which the loan has been
disbursed till year end at applicable slab rates.
Interest on Housing Loans which are classified as Non- performing
assets is recognised on realisation as per the directives/guidelines
laid down by National Housing Bank.
Fees and other income on loan application and subsequent sanction
thereof and income from investments are recognised on cash basis as and
when received.
f) Fixed Assets
Fixed Assets are stated at cost including all incidental expenses
incurred for bringing the asset to its current position, less
depreciation at rates prescribed in Schedule XIV to the Companies Act,
1956, subject to provisions of Accounting Standard 26 "Intangible
Assets" issued by Institute of Chartered Accountants of India.
g) Depreciation
Depreciation is provided on written down value method in accordance
with section 205(2) of the Companies Act, 1956 at the rates specified
in schedule XIV to the Companies Act, 1956 on pro-rata basis with
reference to the period of put to use of such assets. Assets costing
less than Rs. 5,000/- per item are depreciated at 100% in the year of
purchase.
h) Employee Benefits
All short-term employee benefits are recognised at their undiscounted
amount in the accounting period in which they are incurred.
Retirement Benefits in the form of gratuity and leave salary is
accounted on payment basis in the year of payment.
i) Leases
Lease rentals in respect of assets taken under operating leases are
charged to profit and loss account on a straight line basis over the
lease term.
j) Income Taxes
Provision for current tax is made for the tax liability payable on
taxable income after considering the allowances, deductions and
exemptions and disallowances if any determined in accordance with the
prevailing tax laws.
The differences between the taxable income and the net profit or loss
before tax for the period as per the financial statements are
identified and the tax effect on the "timing differences" is recognised
as deferred tax asset or deferred tax liability. The tax effect is
calculated on the accumulated timing differences at the end of the
accounting period based on the tax rates and laws, enacted or
substantively enacted as of the balance sheet date.
k) Impairment of Assets
The carrying amounts of assets are reviewed at each Balance Sheet date
to determine whether there is any indication of impairment. If any such
indication exists, the recoverable amount is estimated at the higher of
net realisable value and value in use. Impairment loss is recognised
wherever carrying amount exceeds the recoverable amount.
l) Provisions, Contingent Liabilities & Contingent Assets
The Company creates a provision when there is a present obligation as a
result of an obligating event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
outflow.
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
within the control of the company.
Contingent Assets are neither recognised nor disclosed in the Financial
Statements as a matter of prudence.
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