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Accounting Policies of LKP Finance Ltd. Company

Mar 31, 2019

1 Significant Accounting Policies

i Basis of preparation

The financial statements are prepared on going concern basis in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) and comply in all material aspects with its accounting standards specified under Section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the Companies (Accounting Standards) Amendment Rules, 2016, the provisions of the Act) and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those of previous year

ii Use of estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of the financial statements and the reported amount of revenue and expenses for the year. Actual results could differ from these estimates. Any revision to estimates is recognised in the period in which the results are known/materalized.

iii Property, Plant and Equipments

Property, Plant and Equipments are stated at cost less accumulated depreciation, and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

iv Depreciation on Property, Plant and equipments

(a) Depreciation on Property, Plant and equipments is provided on straight line method based on the useful life specified in Schedule II of the Companies Act, 2013.

(b) Leasehold improvements are amortised over the period of lease.

v Impairment of Property, Plant and Equipments

At each Balance Sheet date, the Company reviews the carrying amount of assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

vi Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets till the time such assets are ready for its intended use or sale are capitalised as part of the cost of the assets. All other borrowing costs are expensed in the period they occur.

vii Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

viii Investments

(a) Investments intended to be held for more than one year, from the date of acquisition, are classified as long term and are carried at cost. All other investments are considered as current investments. Provision for diminution in value of long term investments is made to recognize a decline other than temporary. Current investments are carried at cost or market value, whichever is lower.

(b) Unquoted investments are valued at cost and provision for diminution in the value of investments is made based on the guidelines prescribed by the Reserve Bank of India or based on the judgement of the management, whichever is higher.

ix Inventories

Shares and Securities acquired with intention of trading are considered as stock-in-trade and are valued at cost or market value, whichever is lower. Cost is determined on weighted average cost basis.

x Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(a) Interest income is recognised on a time proportion basis considering the amount outstanding and the applicable interest rate.

(b) Dividend income is recognized when the Company’s right to receive dividend is established.

(c) Profit or loss on sale of investments/ inventories are recognised on sale net of cost determined on weighted average cost

xi Non - Performing Assets (NPA)

The Company follows the directions of Reserve Bank of India on Prudential Norms for income recognition, provisioning for bad and doubtful debts, provision for contingencies, Accounting of investments etc.

xii Foreign currency transactions

(a) Foreign currency transactions are recorded at the exchange rate prevailing on the date of such transaction. Foreign currency monetary assets and liabilities are tranlated using the exchange rate prevailing at the reporting date. Non-monetary foreign currency items are carried at cost.

(b) Gains or losses arising on settlement/translation of foreign currency monetary assets and liabilities at the year-end rate are recognized in the Statement of Profit and Loss.

xiii Derivative transactions

(a) Initial and additional margin paid over and above initial margin, for entering into contracts for Equity Index/ Stock Futures/ Commodity futures and Equity Index/ Stock Options/ Commodity Options which are released on final settlement/squaring-up of underlying contracts are disclosed under Other current assets/ Other current liabilities.

(b) “Equity Index/Stock Option Premium/ Commodity Option Premium” represents premium paid or received for buying or selling the options, respectively.

(c) On final settlement or squaring up of contracts for Equity Index / Stock Futures/ Commodity Futures, the realised profit or loss after adjusting the unrealised loss already accounted, if any, is recognised in the Statement of Profit and Loss.

(d) On settlement or squaring up of Equity Index / Stock Options/ Commodity Options before expiry, the premium prevailing in “Equity Index/Stock Option/ Commodity Option Premium” on that date is recognised in the Statement of Profit and Loss.

xiv Retirement and other employee benefits

(a) Short-term employee benefits are expensed at the undiscounted amount in the Statement of profit and loss, in the year the employee renders the service.

(b) Post employment and other long term employee benefits are recognised as an expense in the Statement of profit and loss at the present value of the amount payable determined using actuarial valuation techniques in the year the employee renders the service. Actuarial gains and losses are charged to the Statement of profit and loss.

(c) Payments to defined contribution retirement benefit schemes are expensed as and when they fall due.

xv Accounting for taxes on income

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

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

(c) Minimum Alternate Tax (MAT) paid in accordance with tax laws, which give rise to furture economic benefits in the form of adjustment of future tax liability, is recognised as an asset only when, based on convincing evidence, it is probable that the future economic benefits associated with it will flow to the Company and the assets can be measured reliably.

xvi Earnings per share

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

xvii Provisions, Contingent Liabilities and Contingent Assets

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


Mar 31, 2018

1 Significant Accounting Policies

i Basis of preparation

The financial statements are prepared on going concern basis in accordance with Generally Accepted Accounting Principles in India (Indian GAAP) and comply in all material aspects with its accounting standards specified under Section 133 of the Companies Act, 2013 (Act) read with Rule 7 of the Companies (Accounts) Rules, 2014, the Companies (Accounting Standards) Amendment Rules, 2016, the provisions of the Act) and guidelines issued by the Securities and Exchange Board of India (SEBI). The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those of previous year

ii Use of estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of the financial statements and the reported amount of revenue and expenses for the year. Actual results could differ from these estimates. Any revision to estimates is recognised in the period in which the results are known/materalized.

iii Property, Plant and Equipments

Property, Plant and Equipments are stated at cost less accumulated depreciation, and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.

iv Depreciation on Property, Plant and equipments

(a) Depreciation on Property, Plant and equipments is provided on straight line method based on the useful life specified in Schedule II of the Companies Act, 2013.

(b) Leasehold improvements are amortised over the period of lease.

v Impairment of Property, Plant and Equipments

At each Balance Sheet date, the Company reviews the carrying amount of assets to determine whether there is an indication that those assets have suffered impairment loss. If any such indication exists, the recoverable amount of assets is estimated in order to determine the extent of impairment loss. The recoverable amount is higher of the net selling price and value in use, determined by discounting the estimated future cash flows expected from the continuing use of the asset to their present value.

vi Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets till the time such assets are ready for its intended use or sale are capitalised as part of the cost of the assets. All other borrowing costs are expensed in the period they occur.

vii Lease

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased term, are classified as operating leases. Operating lease payments are recognized as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

viii Investments

(a) Investments intended to be held for more than one year, from the date of acquisition, are classified as long term and are carried at cost. All other investments are considered as current investments. Provision for diminution in value of long term investments is made to recognize a decline other than temporary. Current investments are carried at cost or market value, whichever is lower.

(b) Unquoted investments are valued at cost and provision for diminution in the value of investments is made based on the guidelines prescribed by the Reserve Bank of India or based on the judgement of the management, whichever is higher.

ix Inventories

Shares and Securities acquired with intention of trading are considered as stock-in-trade and are valued at cost or market value, whichever is lower. Cost is determined on weighted average cost basis.

x Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

(a) Interest income is recognised on a time proportion basis considering the amount outstanding and the applicable interest rate.

(b) Dividend income is recognized when the Company’s right to receive dividend is established.

(c) Profit or loss on sale of investments/ inventories are recognised on sale net of cost determined on weighted average cost

xi Non - Performing Assets

The Company follows the directions of Reserve Bank of India on Prudential Norms for income recognition, provisioning for bad and doubtful debts, provision for contingencies, Accounting of investments etc.

xii Foreign currency transactions

(a) Foreign currency transactions are recorded at the exchange rate prevailing on the date of such transaction. Foreign currency monetary assets and liabilities are tranlated using theexchange rate prevailing at the reporting date. Nonmonetary foreign currency items are carried at cost.

(b) Gains or losses arising on settlement/translation of foreign currency monetary assets and liabilities at the year-end rate are recognized in the Statement of Profit and Loss.

xiii Derivative transactions

(a) Initial and additional margin paid over and above initial margin, for entering into contracts for Equity Index/ Stock Futures/ Commodity futures and Equity Index/ Stock Options/ Commodity Options which are released on final settlement/squaring-up of underlying contracts are disclosed under Other current assets/ Other current liabilities.

(b) “Equity Index/Stock Option Premium/ Commodity Option Premium” represents premium paid or received for buying or selling the options, respectively.

(c) On final settlement or squaring up of contracts for Equity Index / Stock Futures/ Commodity Futures, the realised profit or loss after adjusting the unrealised loss already accounted, if any, is recognised in the Statement of Profit and Loss.

(d) On settlement or squaring up of Equity Index / Stock Options/ Commodity Options before expiry, the premium prevailing in “Equity Index/Stock Option/ Commodity Option Premium” on that date is recognised in the Statement of Profit and Loss.

xiv Retirement and other employee benefits

(a) Short-term employee benefits are expensed at the undiscounted amount in the Statement of profit and loss, in the year the employee renders the service.

(b) Post employment and other long term employee benefits are recognised as an expense in the Statement of profit and loss at the present value of the amount payable determined using actuarial valuation techniques in the year the employee renders the service. Actuarial gains and losses are charged to the Statement of profit and loss.

(c) Payments to defined contribution retirement benefit schemes are expensed as and when they fall due.

xv Accounting for taxes on income

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

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

(c) Minimum Alternate Tax (MAT) paid in accordance with tax laws, which give rise to furture economic benefits in the form of adjustment of future tax liability, is recognised as an asset only when, based on convincing evidence, it is probable that the future economic benefits associated with it will flow to the Company and the assets can be measured reliably.

xvi Earnings per share

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

xvii Provisions, Contingent Liabilities and Contingent Assets

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


Mar 31, 2017

1. Basis of Accounting

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ( GAAP) under the historical cost convention on the accrual basis. The financial statements are prepared in accordance with the accounting standards notified by the Central Government, in terms of section 133 of the Companies Act,2013 read with Rule 7 and guidelines issued by the Securities and Exchange Board if India(SEBI) and the guidelines issued by the Reserve Bank of India (‘RBI’) as applicable to a Non Banking Finance Company (‘NBFC’). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

The Company follows the practice of accounting for Income on accrual basis except dividend. In respect of loans and advances, interest is accrued on standard advances and on others are accounted on the basis of certainty of collection, and/or receipt basis. In respect of loans classified as NPA’s interest is not accrued from the date the loan is recognized as NPA.

4. Fixed Assets & Depreciation

All Fixed Assets are capitalized at cost inclusive of legal and/ or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation on straight line basis on the basis of useful lives of assets as specified in Schedule II to the Companies Act, 2013.

Depreciation on assets sold / purchased during the year is proportionately charged.

Impairment of Assets

Impairment losses, if any, are recognized in accordance with the Accounting Standard. Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

5. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed under the head current assets. The initial cost of securities comprises actual cost of acquisition and other charges such as brokerage, fees, tax, duty or cess.

b) Securities comprises listed securities and unlisted securities. Listed Securities are classified into :

(i) shares;

(ii) debt securities;

(iii) convertible securities; and

(iv) others

c) Method of Valuation

Listed securities are valued at initial acquisition cost or net realizable value at the close of the year, whichever is lower. Unlisted securities are valued at initial acquisition cost.

6. Non Current Investments

Securities which are intended to be held for more than one year are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the acquisition cost plus brokerage, fees, tax, duty or cess. Provision for diminution in value is made in case the same is other than temporary. Profit or loss on these investments are accounted as and when realized

7. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with the Accounting Standard. Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

8. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Minimum Alternative Tax : In the event the income tax liability as per normal provisions of the Income Tax Act, 1961 is lower than the tax payable as per section 115J ( Minimum Alternative Tax ), tax is provided as per Section 115J.

c) Deferred Tax : In accordance with the Accounting Standard, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

9. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

10. Derivative Transactions.

a) Equity, Currency & Commodity Futures : Gains/Losses on futures transactions are recognized on continuous basis.

b) Options Contracts : Premium on Options contracts are recognized on date of Purchase / Sale. Gains/Losses on options contracts are recognized on squaring off/settlement day.

c) At the close of the financial year, open position of equity instruments and in commodity exchange are disclosed in the notes to accounts.

11. a. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.


Mar 31, 2015

1. Basis of Accounting

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. The financial statements are prepared in accordance with the accounting standards notified by the Central Government, in terms of section 133 of the Companies Act,2013 read with Rule 7 and guidelines issued by the Securities and Exchange Board if India(SEBI) and the guidelines issued by the Reserve Bank of India (''RBI'') as applicable to a Non Banking Finance Company (''NBFC''). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date ofthe financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

The Company follows the practice of accounting for Income on accrual basis except dividend. In respect of loans and advances, interest is accrued on standard advances and on others are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets are capitalized at cost inclusive of legal and/ or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation on straight line basis on the basis of useful lives of assets as specified in Schedule II to the Companies Act, 2013.

Depriciation on assets sold / purchased during the year is proportionately charged.

Impairment of Assets

Impairment losses, if any, are recognized in accordance with the Accounting Standard. Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

5. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed as current assets.

b) The securities held as inventories under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds as at 31st March, 2015 is considered as market value.

6. Non Current Investments

Securities which are intended to be held for more than one year are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or loss on these investments are accounted as and when realized

7. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with the Accounting Standard. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

8. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Minimum Alternative Tax : In the event the income tax liability as per normal provisions of the Income Tax Act, 1961 is lower than the tax payable as per section 115J ( Minimum Alternative Tax ), tax is provided as per Section 115J.

c) Deferred Tax : In accordance with the Accounting Standard, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

9. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

10. Derivative Transactions.

a. Equity & Commodity Futures :Gains/Losses on futures transactions are recognized on continous basis.

b. Options Contracts : Gains / Losses on options contract are recognized on squaring off/settlement day.

11. a. Contingent Liabilities are disclosed by way of a note to

the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.


Mar 31, 2014

1. Basis of Accounting

The financial statements have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules, 2006, as amended, notified by the Central Government, in terms of section 211 (3C) of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India (''RBI'') as applicable to a Non Banking Finance Company (''NBFC''). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

In respect of lease and hire purchase agreement it is the Company''s general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

In respect of other business interest the Company follows the practice of accounting for such Income on accrual basis ''except dividend, delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation. The Company provides depreciation as under:

a) On assets for own use : On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16th December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

5. Impairment of Assets

Impairment losses, if any, are recognized in accordance with Accounting Standard 28(AS 28). Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

6. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed as current assets.

b) The securities held as inventories under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds as at 31st March, 2014 is considered as market value.

7. Non Current Investments

Securities which are intended to be held for one year or more are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or Loss on these investments are accounted as and when realized.

8. Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20- (Earning per Share) prescribed by the Companies (Accounting Standards) Rule, 2006. Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

9. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Deferred Tax : In accordance with the Accounting Standard 22-"Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

10. Employee Benefits

Short Term Employee Benefits: (i.e.J benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

11. Derivative Transactions.

a. Equity & Commodity Futures : Gains/Losses on futures transactions are recognized on continuous basis.

b. Options Contracts : Gains / Losses on options contract are recognized on squaring off/settlement day.

12. a. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved. b. Contingent Assets are neither recognized nor disclosed.


Mar 31, 2013

1. Basis of Accounting

The financial statements have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules, 2006, as amended, notified by the Central Government, in terms of section 211 (3C) of the Companies Act,1956 and the guidelines issued by the Reserve Bank of India (''RBI'') as applicable to a Non Banking Finance Company (''NBFC''). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

In respect of lease and hire purchase agreement it is the Company''s general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

In respect of other business interest the Company follows the practice of accounting for such Income on accrual basis except dividend,delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation as under:

a) On assets for own use : On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16th December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

5. Impairment of Assets

Impairment losses, if any, are recognized in accordance with Accounting Standard 28(AS 28). Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

6. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed as current assets.

b) The securities held as inventories under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds as at 31st March, 2013 is considered as market value.

7. Non Current Investments

Securities which are intended to be held for one year or more are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or losse on these investments are accounted as and when realized

8. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20- (Earning per Share) prescribed by the Companies (Accounting Standards) Rule, 2006. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

9. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Deferred Tax : In accordance with the Accounting Standard 22-"Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

10. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them. Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

11. Derivative transactions.

a. Equity & Commodity Futures :Gains/Losses on futures transactions are recognized on continous basis.

b. Options Contracts : Gains / Losses on options contract are recognized on squaring off/settlement day.

12. a. Contingent Liabilities are disclosed by way of a note to the

financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.


Mar 31, 2012

1. Basis of Accounting

The financial accounts have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules, 2006, as amended, notified by the Central Government, in terms of section 211 (3C) of the Companies Act, 1956 and the guidelines issue by the Reserve Bank of India ('RBI') as applicable To a Non Banking Finance Company ('NBFC'). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

In respect of lease and hire purchase agreement it is the Company's general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

In respect of other business interests the Company follows the practice of accounting for such Income on accrual basis except delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation as under:

a) On assets for own use: On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16th December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

5. Impairment of Assets

Impairment losses, if any, are recognized in accordance with Accounting Standard 28(AS 28). Where there is an indication that an asset is impaired, the recoverable amount, if any, is estimated and the impairment loss is recognized to the extent carrying amount exceeds recoverable amount and the same is charged to the Statement of Profit & Loss.

6. Inventories

a) The securities acquired with the intention of short term holding and trading positions are considered as inventories and disclosed as current assets.

b) The securities held as inventories under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds is considered as market value.

7. Non Current Investments

Securities which are intended to be held for one year or more are classified as Non Current- Long Term Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or losses on investments are accounted as and when realized

8. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20- Earning per Share prescribed by the Companies (Accounting Standards) Rule, 2006. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share the net profit after tax and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

9. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Deferred Tax : In accordance with the Accounting Standard 22-"Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

10. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

11. Derivative Transactions.

a. Equity & Commody Futures :Gains/Losses on futures transactions are recognized on continuous basis.

b. Options Contracts : Gains / Losses on options contract are recognized on squaring off/settlement day.

12. a. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.


Mar 31, 2011

1. Basis of Accounting

The accounts have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules, 2006, as amended, notified by the Central Government, in terms of section 211 (3C) of the Companies Act, 1956 and the guidelines issue by the Reserve Bank of India (RBI) as applicable To a Non Banking Finance Company (NBFC). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2. Use of Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

3. Revenue Recognition

In respect of lease and hire purchase agreement it is the Companys general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

In respect of other heads of income the Company follows the practice of accounting for such Income on accrual basis except delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

4. Fixed Assets & Depreciation

All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation.

The Company provides depreciation as under:

a) On assets for own use : On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16th December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

5. Stock in Trade

a) The securities acquired with the intention of short term holding and trading positions are considered as stock-in-trade and disclosed as current assets.

b) The securities held as stock-in-trade under current assets are valued at lower of cost or market value. In case of units of mutual fund, net asset value of units declared by the mutual funds is considered as market value.

6. Investments

Securities which are intended to be held for one year or more are classified as Investments. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or losses on investments are accounted as and when realized

7. Earning Per Share

The Company reports basic and diluted earnings per share in accordance with Accounting Standard 20- Earning per Share prescribed by the Companies (Accounting Standards) Rule, 2006. Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the year.

Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts 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 the weighted average number of equity shares and dilutive potential equity shares outstanding during the year.

8. Taxes on Income

a) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b) Deferred Tax : In accordance with the Accounting Standard 22. "Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

9. Employee Benefits

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

10. Derivative Transactions—Equity & Commodities Futures and Options

Gains are recognized only on settlement /expiry of derivative instruments.

All open positions are marked to market and unrealized losses are provided for. Unrealized gains, if any, on marked to market are not recognized.

11. a. Contingent Liabilities are disclosed by way of a note to the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.


Mar 31, 2010

1. The accounts have been prepared on historical cost convention. The Company follows the accrual basis of accounting. The financial statements are prepared in accordance with the accounting standards specified in the Companies (Accounting Standards) Rules,2006 notified by the Central Government, in terms of section 211 (3C) of the Companies Act, 1956.

2. a) In respect of lease and hire purchase agreement it is the

Companys general policy to accrue income as per the terms of the Agreement entered into with the lessees / hirers from time to time. In respect of disputed lease agreement, which is contested in court the lease rentals will be accounted as and when received. Hire purchase and service charges are accounted on equated basis over the period of contracts.

b) In respect of other heads of income the Company follows the practice of accounting for such Income on accrual basis except delayed payment charges and interest income on loans and advances, which are accounted on the basis of certainty of collection, and/or receipt basis.

3. The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

4. All Fixed Assets including assets given on lease are capitalized at cost inclusive of legal and/or installation and incidental expenses, less accumulated depreciation.

5. The Company provides depreciation as under:

a) On assets for own use : On written down value method at the rates and in the manner specified in Schedule XIV to the Companies Act 1956 as amended on 16* December, 1993.

b) On assets acquired and leased: On straight line method at the rates so as to write off the assets over the period of lease.

6. Investments are capitalized and accounted at the cost plus brokerage and stamp charges. Provision for diminution in value is made in case the same is other than temporary. Profit or losses on investments are accounted as and when realized.

7. a. Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

b. Deferred Tax : In accordance with the Accounting Standard 22-"Accounting for Taxes on the Income", issued by the Institute of Chartered Accountants of, India, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

8 Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities.

Liability towards Gratuity covering eligible employees is contributed to Group Gratuity Scheme of Life Insurance Corporation of India based on the annual premium payable to them.

Contribution to Central Government Employees State Insurance Scheme for eligible employees is recognized as charge for the year

9 a. Contingent Liabilities are disclosed by way of a note to

the financial statements after careful evaluation by the management of the facts and legal aspects of the matters involved.

b. Contingent Assets are neither recognized nor disclosed.

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