Mar 31, 2015
1. System of Accounting:
a. The Company follows the mercantile system of accounting and
recognises income and expenditure on accrual basis except accounting
for income from non-performing assets as defined in the guidelines of
the Reserve Bank of India on prudential norms for income recognition of
Non Banking Financial Companies, penal interest on delayed payments on
lease & finance installments and dividend which have been accounted for
on cash basis.
b. The Company follows the prudential norms for Asset classification,
Income Recognition, Provisioning for bad and doubtful debts as
prescribed by the Reserve Bank of India for Non-Banking Finance
Companies.
c. The accounting policies are consistently applied by the Company
with those applied in the previous year except otherwise stated. All
assets and liabilities have been classified as current or non-current
as per the Company's normal operating cycle. Based on the nature of
services and the time between the acquisition of assets for processing
and their realization in cash and cash equivalents, the Company has
ascertained its operating cycle as twelve months for the purpose of
current / non-current classification of its assets and liabilities.
2. Use of Estimates:
The preparation of Financial Statements in generally accepted
accounting principles requires management to make estimates and
assumptions that affects the reported amounts of assets and liabilities
at the date of the financials and the results of operations during the
reported period end. Although these estimates are based upon the
management's best knowledge of current events and actions, actual
results could differ from these estimates. Adjustments as a result of
differences between actual and estimates are made prospectively.
3. Fixed Assets :
Tangible Assets : Tangible assets are stated at acquisition cost plus
directly attributable costs of bringing the asset to its working
condition for its intended use, less accumulated depreciation and
impairment losses, if any.
Intangible Assets : Intangible assets are stated at cost and amortized
over the period the Company expects to derive economic benefits from
their use.
Advances paid towards acquisition of fixed assets and cost of assets
not ready for use before the year end, are disclosed as capital work in
progress.
4. Impairment:
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 of the asset is estimated.
For assets that are not yet available for use, the recoverable is
estimated at each balance sheet date. An impairment loss is recognized
whenever the carrying amount of an asset or cash generating unit
exceeds its recoverable amount. Impairment losses are recognized in the
statement of profit and loss. An impairment loss is reversed if there
has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the
asset's carrying amount does not exceed the carrying amount that would
have been determined net of depreciation or amortization loss had been
recognized.
5. Investments:
Investments are classified into long-term investments and current
investments based on intent of the management at the time of making the
investment. Investments intended to be held for more than one year are
classified as long-term investments.
Long-term investments, including investments in subsidiaries, if any,
are stated at cost price. Any diminution of permanent nature in the
value of the long-term investments is suitably provided for by charging
off to revenue. Diminution is considered to be permanent based on the
criteria that include the extent to which cost exceeds the market value,
the duration of the market value, decline and the financial health of
and specific prospects of the issuer.
The investments intended to be held for less than one year are
classified as current investments are stated at lower of cost or fair
value, computed category-wise.
6. Revenue Recognition :
Income / revenue is generally accounted on accrual as they are earned
except income from non-performing assets as defined in the guidelines
of the Reserve Bank of India on prudential norms for income recognition
of Non Banking Financial Companies & penal interest on delayed payments
which are accounted for on cash basis.
The income is deemed as earned :
a. Interest is recognized as earned on day to day basis.
b. Dividend income is recognized when the right to receive the income
is established.
c. In respect of other heads of income, the Company follows the
practice of recognising income on accrual basis.
In case of uncertainties as to the risks & rewards, the conservative
accounting policy is adopted by way of making suitable provisions for
expenses and deferring the recognition of revenues.
7. Expenditure:
Expenses are recognized on accrual basis and provisions are made for
all known losses and liabilities.
8. Borrowing Cost:
Borrowing cost that are directly attributable to the acquisition,
construction or production of qualifying assets is capitalized as part
of the cost of such assets. A qualifying asset is an asset that
necessarily requires a substantial period of time to get ready for
intended use or sale.
All other borrowing costs are recognized as expense for the period in
which they are incurred calculated taking into account the amount
outstanding and the rate applicable on the borrowing.
9. Depreciation:
i) In respect of tangible assets acquired during the year, depreciation
is charged on straight line basis so as to right off the cost of assets
over the useful lives and for the assets acquired prior to April 1,
2014 the carrying amount as on April 1, 2014 is depreciated over
remaining useful lives. The useful life of assets is taken as prescibed
in Schedule II to the Companies Act, 2013.
ii) Intangible Assets are amortized over the period, the Company
expects to derive economic benefits from their use.
iii) Leasehold improvements are amortized over the lease period as
stated in the lease agreement or over the estimated useful life of the
assets, whichever is shorter.
10. Earnings per share :
Basic earning per share is computed using the weighted average number
of equity shares out- standing during the year. Diluted earnings per
share is computed using the weighted average number of equity and
dilutive potential shares outstanding during the year, except where the
results would be anti-dilutive.
11. Taxation :
Tax expense comprises current tax and deferred tax. Current tax is the
amount of tax for the year determined in accordance with the provisions
of income tax laws based on the estimated taxable income, as the case
may be, after taking into consideration, estimates of benefits /
deductions admissible under the provisions of Income Tax Act, 1961.
Deferred Tax charge or credit reflects the tax effects or impact of
timing differences between taxable income and accounting income for the
year and reversal of timing difference of earlier years. Any major
deficiency or reversal in relation to the estimate of preceding year(s)
is shown separately as relating to earlier years.
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized based on the tax rates and the tax
laws enacted or substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. If
the Company has carry forward of unabsorbed depreciation and tax losses
deferred tax are recognized only if there is virtual certainty that
such deferred tax assets can be realized against future taxable
profits.
At each balance sheet date the Company reassesses unrecognized deferred
tax assets. It recognizes deferred tax assets to the extent it has
become reasonably certain or virtually certain, as the case may be that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date. The Company writes down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be. That
sufficient future taxable income will be available.
12. Retirement Benefits:
The Company's obligations towards various employees' benefits have been
recognized as follows :
a) Short term benefits : All employee benefits payable / available
within twelve months of rendering the service are classified as
short-term employee benefits. Benefits such as salaries, wages and
bonus etc., are recognized in the statement of profit and loss in the
period in which the employee renders the related services.
b) Provident Fund (Defined contribution plan) : Provident fund is a
defined contribution plan. The contribution towards provident fund
which are being deposited with the Regional Provident Fund,
Commissioner and are charged to the statement of profit and loss.
c) Gratuity (Defined benefit plan) : The Company pays gratuity to
employees who retire or resign after a minimum period of five years of
continuous service. The Company has taken a policy from LIC to meet
such liability. The contribution to the policy is accounted for on
accrual basis.
Mar 31, 2014
1.01 System of Accounting :
a. The Company follows the mercantile system of accounting and
recognises income and expenditure on accrual basis except accounting
for income from non-performing assets as defined in the guidelines of
the Reserve Bank of India on prudential norms for income recognition of
Non Banking Financial Companies, penal interest on deiayed payments on
lease & finance installments and dividend which have been accounted for
on cash basis.
b. The Company follows the prudential norms for Asset classification,
Income Recognition, Provisioning for bad and doubtful debts as
prescribed by the Reserve Bank of India for Non- Banking Finance
Companies.
c. The accounting polices are consistently applied by the company with
those applied in the previous year except otherwise stated. All assets
and liabilities have been classified as current or non- current as per
the Company''s normal operating cycle and other criteria set out in the
Revised Schedule VI of the Companies Act, 1956. Based on the nature of
services and the time between the acquisition of assets for processing
and their realization in cash and cash equivalents, the Company has
ascertained its operating cycle as twelve months for the purpose of
current / non- current classification of its assets and liabilities.
1.02 Use of Estimates :
The preparation of Financial Statements in generally accepted
accounting principles requires manage- ment to make estimates and
assumptions that affects the reported amounts of assets and liabilities
at the date of the financials and the results of operations during the
reported period end. Although these estimates are based upon the
management''s best knowledge of current events and actions, actual
results could differ from these estimates. Adjustments as a result of
differences between actual and estimates are made prospectively.
1.03 Fixed Assets :
Tangible Assets : Tangible assets are stated at acquisition cost plus
directly attributable costs of bringing the asset to its working
condition for its intended use, less accumulated depreciation and
impairment losses, if any.
Intangible Assets : Intangible assets are stated at cost and amortized
over the period the Company expects to derive economic benefits from
their use.
Advances paid towards acquisition of fixed assets and cost of assets
not ready for use before the year end, are disclosed as capital work in
progress.
1.04 Impairment:
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 of the asset is estimated.
For assets that are not yet available for use, the recoverable is
estimated at each balance sheet date. An impairment loss is recognized
whenever the carrying amount of an asset or cash generating unit
exceeds its recoverable amount. Impairment losses are recognized in the
statement of profit and loss. An impairment loss is reversed if there
has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the
asset''s carrying amount does not exceed the carrying amount that would
have been determined net of depreciation or amortization loss had been
recognized.
1.05 Investments:
Investment are classified into long-term investments and current
investments based on intent of the management at the time of making the
investment. Investment intended to be held for more than one year are
classified as long-term investments.
Long-term investments, including investments in subsidiaries, if any,
are stated at cost price. Any diminution of permanent nature in the
value of the long-term investments is suitably provided for by charging
off to revenue. Diminution is considered to be permanent based on the
criteria that include the extent to which cost exceeds the market
value, the duration of the market value, decline and the financial
health of and specific prospects of the issuer.
The investments intended to be held for less than one year are
classified as current investments are stated at lower of cost or fair
value, computed category-wise.
1.06 Inventories:
Stock under finance agreements is valued at full agreement value less
amounts received / receivable upto the close of the financial year.
1.07 Revenue Recognition:
Income / revenue is generally accounted on accrual as they are earned
except income from non- performing assets as defined in the guidelines
of the Reserve Bank of India on prudential norms for income recognition
of Non Banking Financial Companies & penal interest on delayed payments
which are accounted for on cash basis. The income is deemed as earned
:
a. Finance charges, are accounted for over the finance period on the
basis of sum of digit method. They are recognized as income on due
basis as per the terms of agreement.
b. Interest is recognized as earned on day to day basis.
c. Dividend income is recognized when the right to receive the income
is established.
d. In respect of other heads of income, the Company follows the
practice of recognising income on accrual basis.
In case of uncertainties as to the risks & rewards, the conservative
accounting policy is adopted by way of making suitable provisions for
expenses and deferring the recognition of revenues.
1.08 Expenditure:
Expenses are recognized on accrual basis and provisions are made for
all known losses and liabilities.
1.09 Borrowing Cost:
Borrowing cost that are directly attributable to the acquisition,
construction or production of qualifying assets is capitalized as part
of the cost of such assets. A qualifying asset is an asset that
necessarily requires a substantial period of time to get ready for
intended use or sale.
All other borrowing costs are recognized as expense for the period in
which they are incurred calculated taking into account the amount
outstanding and the rate applicable on the borrowing.
1.10 Depreciation:
i) Tangible Assets are depreciated on Straight Line Method (SLM) at
rates specified in Schedule XIV to the Companies Act, 1956 from the
date of put to use until the date of sale.
ii) Intangible Assets are amortized over the period, the company
expects to derive economic benefits from their use.
iii) Leasehold improvements are amortized over the lease period as
stated in the lease agreement or over the estimated useful life of the
assets, whichever is shorter.
iv) Depreciation on assets costing up to Rs. 5,000/- is calculated at
the rate of 100% on pro-rata basis.
v) Depreciation on additions to assets or on sale / adjustment is
calculated pro-rata from the date of such addition or up to the date of
such sale / adjustment.
1.11 Earnings per share :
Basic earning per share is computed using the weighted average number
of equity shares out- standing during the year. Diluted earnings per
share is computed using the weighted average number of equity and
dilutive potential shares outstanding during the year, except where the
results would be anti-dilutive.
1.12 Taxation:
Tax expense comprises current tax and deferred tax. Current tax is the
amount of tax for the year determined in accordance with the provisions
of income tax laws based on the estimated taxable income, as the case
may be, after taking into consideration, estimates of benefits /
deductions admissible under the provisions of Income Tax Act, 1961.
Deferred Tax charge or credit reflects the tax effects of impact of
timing differences between taxable income and accounting income for the
year and reversal of timing difference of earlier years. Any major
deficiency or reversal in relation to the estimate of preceding year(s)
is shown separately as relating to earlier years.
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized based on the tax rates and the tax
laws enacted or substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. If
the company has carry forward of unabsorbed depreciation and tax losses
deferred tax are recognized only if there is virtual certainty that
such deferred tax assets can be realized against future taxable
profits.
At each balance sheet date the company reassesses unrecognized deferred
tax assets. It recognizes deferred tax assets to the extent it has
become reasonable certain or virtually certain, as the case may be that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each balance
sheet date. The company writes down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonable certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be. That
sufficient future taxable income will be available,
1.13 Retirement Benefits :
The company''s obligations towards various employees'' benefits have been
recognized as follows :
a) Short term benefits
All employee benefits payable / available within twelve months of
rendering the service are classified as short-term employee benefits.
Benefits such as salaries, wages and bonus etc., are recognized in the
statement of profit and loss in the period in which the employee
renders the related services.
b) Provident Fund (Defined contribution plan)
Provident fund is a defined contribution plan. The contribution towards
provident fund which are being deposited with the Regional Provident
Fund, Commissioner and are charged to the statement of profit and loss.
c) Gratuity (Defined benefit plan)
The company pays gratuity to employees who retire or resign after a
minimum period of five years of continuous service. The company has
taken a policy from LIC to meet such liability. The contribution to the
policy is accounted for on accrual basis.
Mar 31, 2012
1.1 System of Accounting :
a. The Company follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis except accounting
for income from non-performing assets as defined in the guidelines of
the Reserve Bank of India on prudential norms for income recognition of
Non Banking Financial Companies, penal interest on delayed payments on
installments and dividend which have been accounted for on cash basis.
b. The Company follows the prudential norms for Asset classification,
Income Recognition, Provisioning for bad and doubtful debts as
prescribed by the Reserve Bank of India for Non-Banking Finance
Companies.
c. The accounting policies are consistently applied by the company
with those applied in the previous year except otherwise stated. All
assets and liabilities have been classified as current or non-current
as per the Companys normal operating cycle and other criteria set out
in the Revised Schedule VI of the Companies Act, 1956. Based on the
nature of services and the time between the acquisition of assets for
processing and their realization in cash and cash equivalents, the
Company has ascertained its operating cycle as twelve months for the
purpose of current/ non-current classification of its assets and
liabilities.
1.2 Use of estimates :
The preparation of Financial Statements in generally accepted
accounting principles requires management to make estimates and
assumptions that affects the reported amounts of assets and liabilities
at the date of the financials and the results of operations during the
reported period end. Although these estimates are based upon the
managements best knowledge of current events and actions, actual
results could differ from these estimates. Adjustments as a result of
differences between actual and estimates are made prospectively.
1.3 Fixed Assets:
Tangible Assets : Tangible assets are stated at acquisition cost plus
directly attributable costs of bringing the asset to its working
condition for its intended use, less accumulated depreciation and
impairment losses, if any.
Intangible Assets : Intangible assets are stated at cost and amortised
over the period the Company expects to derive economic benefits from
their use.
Advances paid towards acquisition of fixed assets and cost of assets
not ready for use before the year end, are disclosed as capital work in
progress.
1.4 Impairment:
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 of the asset is estimated.
For assets that are not yet available for use, the recoverable is
estimated at each balance sheet date. An impairment loss is recognized
whenever the carrying amount of an asset or cash generating unit
exceeds its recoverable amount. Impairment losses are recognized in the
statement of profit and loss. An impairment loss is reversed if there
has been a change in the estimates used to determine the recoverable
amount. An impairment loss is reversed only to the extent that the
asset's carrying amount does not exceed the carrying amount that would
have been determined net of depreciation or amortization loss had been
recognized.
1.5 Investments:
Investment are classified into long-term investments and current
investments based on intent of the management at the time of making the
investment. Investment intended to be held for more than one year are
classified as long-term investments.
Long-term investments, including investments in subsidiaries, if any,
are stated at cost price. Any diminution of permanent nature in the
value of the long-term investments is suitably provided for by charging
off to revenue. Diminution is considered to be permanent based on the
criteria that include the extent to which cost exceeds the market
value, the duration of the market value, decline and the financial
health of and specific prospects of the issuer.
The investments intended to be held for less than one year are
classified as current investments are stated at lower of cost or fair
value, computed category-wise.
Investments, which are held as stock in trade as part of the business
operations are valued in the same manner as are relatable to Current
Investments.
i) The Cost is arrived at FIFO method and is inclusive of brokerage,
transfer expenses & Demat Charges, if any. The fair value is arrived at
with reference to the market value, if available, quotation in any
stock exchange or any other available information to indicate a
transaction between un-related willing buyer & willing seller at arms
length price.
ii) In case of unquoted investments, the fair value is arrived on the
basis of break up value as per latest available audited balance sheet
of the investee company.
iii) Interest accrued and/or broken period interest paid on unsold
securities is recognized as "Interest Accrued on Investment" under
Other Current Assets.
1.6 Inventories:
Stock under finance agreements is valued at full agreement value less
amounts received/receivable up to the close of the financial year.
1.7 Revenue Recognition :
Income /' revenue is generally accounted on accrual as they are earned
except income from non-performing assets as defined in the guidelines
of the Reserve Bank of India on prudential norms for income recognition
of Non Banking Financial Companies & penal interest on delayed payments
which are accounted for on cash basis.
The income is deemed as earned :
a. Finance charges are accounted for over the finance period on the
basis of sum of digit method. They are recognised as income on due
basis as per the terms of agreement.
b. Interest is recognized as earned on day to day basis.
In case of uncertainties as to the risks & rewards, the conservative
accounting policy is adopted by way of making suitable provisions for
expenses and deferring the recognition of revenues.
1.8 Expenditure:
Expenses are recognized on accrual basis and provisions are made for
all known losses and liabilities. Expenses incurred on behalf of other
companies, in India, for sharing personnel, common services and
facilities like premises, telephones, etc. are allocated to them at
cost and reduced from expenses. Expenses allocation received from other
companies is included within respective expense classifications.
1.9 Borrowing Cost:
Borrowing cost that are directly attributable to the acquisition,
construction or production of qualifying assets is capitalized as part
of the cost of such assets. A qualifying asset is an asset that
necessarily requires a substantial period of time to get ready for
intended use or sale.
All other borrowing costs are recognized as expense for the period in
which they are incurred calculated taking into account the amount
outstanding and the rate applicable on the borrowing.
1.10 Depreciation :
i) Tangible Assets are depreciated on Straight Line Method (SLM) at
rates specified in Schedule XIV to the Companies Act, 1956 from the
date of put to use until the date of sale.
ii) Intangible Assets are amortised over the period, the company
expects to derive economic benefits from their use.
iii) Leasehold improvements are amortised over the lease period as
stated in the lease agreement or over the estimated useful life of the
assets, whichever is shorter.
iv) Depreciation on assets costing up to Rs.5.000/- is calculated at
the rate of 100% on pro-rata basis,
v) Depreciation on additions to assets or on sale/adjustment is
calculated pro-rata from the date of such addition or up to the date of
such sale / adjustment.
1.11 Earnings per share :
Basic earning per share is computed using the weighted average number
of equity shares outstanding during the year. Diluted earnings per
share is computed using the weighted average number of equity and
dilutive potential shares outstanding during the year, except where the
results would be anti-dilutive.
1.12 Taxation :
Tax expense comprises current tax and deferred tax. Current tax is the
amount of tax for the year determined in accordance with the provisions
of income tax laws based on the estimated taxable income, as the case
may be, after taking into consideration, estimates of benefits/'
deductions admissible under the provisions of Income Tax, 1961.
Deferred Tax charge or credit reflects the tax effects of impact of
timing differences between taxable income and accounting income for the
year and reversal of timing difference of earlier years. Any major
deficiency or reversal in relation to the estimate of preceding year(s)
is shown separately as relating to earlier years.
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized based on the tax rates and the tax
laws enacted or substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent that there is
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized. If
the company has carry forward of un absorbed depreciation and tax
losses deferred tax are recognized only if there is virtual certainty
that such deferred tax assets can be realized against future taxable
profits.
At each balance sheet date the company reassesses unrecognized deferred
tax assets. It recognizes deferred tax assets to the extent it has
become reasonable certain or virtually certain, as the case may be that
sufficient future taxable income will be available against which such
deferred tax assets can be realized.
The carrying amount of deferred tax assets are review at each balance
sheet date. The company writes down the carrying amount of a deferred
tax asset to the extent that it is no longer reasonable certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be. That
sufficient future taxable income will be available.
1.13 Retirement Benefits :
The company's obligations towards various employees' benefits have been
recognized as follows :
a) Short term benefits
All employee benefits payable / available within twelve months of
rendering the service are classified as short-term employee benefits.
Benefits such as salaries, wages and bonus etc., are recognized in the
statement of profit and loss in the period in which the employee
renders the related services.
b) Provident Fund (Defined contribution plan)
Provident fund is a defined contribution plan. The contribution towards
provident fund which are being deposited with the Regional Provident
Fund, Commissioner and are charged to the statement of profit and loss.
c) Gratuity (Defined benefit plan)
The company pays gratuity to employees who retire or resign after a
minimum period of five years of continuous service. The company has
taken a policy from LIC to meet such liability. The contribution to the
policy is accounted for on accrual basis.
Each holder of equity shares is entitled to one vote per share with a
right to receive per share dividend declared by the Company. In the
event of liquidation, the equity shareholders are entitled to receive
remaining assets of the Company (after distribution of all preferential
amounts) in the proportion of equity shares held by the shareholders.
During the year ended 31 March 2012, the Company has recorded per share
dividend of Rs. Nil (previous year: Rs.Nil) to equity shareholders.
Mar 31, 2011
(i) System of Accounting :
a) The Company follows the mercantile system of accounting and
recognises income and expenditure on accrual basis except accounting
for income from non-performing assets as defined in the guidelines of
the Reserve Bank of India on prudential norms for income recognition of
Non Banking Financial Companies, penal interest on delayed payments on
lease & finance installments and dividend which have been accounted for
on cash basis.
b) The Company follows the prudential norms for Asset Classification,
Income Recognition, Provisioning for bad and doubtful debts as
prescribed by the Reserve Bank of India for Non-Banking Finance
Companies.
(ii) Fixed Assets:
Fixed Assets are stated at cost of acquisition, less accumulated
depreciation.
(iii) Depreciation:
Depreciation is provided on straight line method in accordance with the
rates and in the manner prescribed under Schedule XIV of the Companies
Act, 1956.
(iv) Investments :
Long term Investments are valued at cost and any diminution in value
wherever considered permanent by the management are provided for.
Unquoted Equity Shares are valued at cost or break-up value whichever
is lower. Unquoted Preference Shares are valued at cost or face value
whichever is lower.
(v) Inventories :
Stock under finance agreements is valued at full agreement value less
amounts received / receivable upto the close of the financial year.
(vi) Revenue Recognition :
a) Finance charges are accounted for over the finance period on the
basis of sum of digit method. They are recognised as income on due
basis as per the terms of agreement.
b) Interest is recognized as earned on day to day basis.
(vii) Retirement Benefits :
Company's contribution to Provident Fund, Gratuity and Leave encashment
are charged to Profit & Loss Account on accrual basis.
(viii) Taxation :
Provision for the tax for the year comprises current income tax
determined to be payable in respect of taxable income and deferred tax
being the tax effect of timing differences representing the difference
between taxable income and the accounting income that originate in one
period and are capable of reversal in one or more subsequent period(s).
(ix) Contingent Liabilities:
Unprovided contingent liabilities are disclosed in the accounts by way
of notes giving nature and quantum of such liabilities.
Mar 31, 2010
(i) System of Accounting:
a) The Company follows the mercantile system of accounting and
recognises income and expenditure on accrual basis except accounting
for income from non-performing assets as defined in the guidelines of
the Reserve Bank of India on prudential norms for income recognition of
Non Banking Financial Companies, penal interest on delayed payments on
lease & finance installments and dividend which have been accounted for
on cash basis.
b) The Company follows the prudential norms for Asset Classification,
Income Recognition, Provisioning for bad and doubtful debts as
prescribed by the Reserve Bank of India for Non-Banking Finance
Companies.
(ii) Fixed Assets:
Fixed Assets are stated at cost of acquisition, less accumulated
depreciation.
(iii) Depreciation:
Depreciation is provided on straight line method in accordance with the
rates and in the manner prescribed under Schedule XIV of the Companies
Act, 1956.
(iv) Investments:
Long term Investments are valued at cost and any diminution in value
wherever considered permanent by the management are provided for.
Unquoted Equity Shares are valued at cost or break-up value whichever
is lower. Unquoted Preference Shares are valued at cost or face value
whichever is lower.
(v) Inventories:
Stock under finance agreements is valued at full agreement value less
amounts received / receivable upto the close of the financial year.
(vi) Revenue Recognition:
a) Finance charges are accounted for over the finance period on the
basis of sum of digit method. They are recognised as income on due
basis as per the terms of agreement.
b) Interest is recognized as earned on day to day basis.
(vii) Retirement Benefits:
Companys contribution to Provident Fund, Gratuity and Leave encashment
are charged to Profit & Loss Account on accrual basis.
(viii) Taxation:
Provision for the tax for the year comprises current income tax
determined to be payable in respect of taxable income and deferred tax
being the tax effect of timing differences representing the difference
between taxable income and the accounting income that originate in one
period and are capable of reversal in one or more subsequent period(s).
(ix) Contingent Liabilities:
Unprovided contingent liabilities are disclosed in the accounts by way
of notes giving nature and quantum of such liabilities.