Accounting Policies of NPR Finance Ltd. Company

Mar 31, 2015

1.1 Accounting Convention :

The Company prepares its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) under historical cost convention on accrual basis and also in accordance with requirements of the Companies Act, 2013. It follows the directions prescribed by Reserve Bank of India for Non-Banking Financial Companies and as per the applicable accounting standards issued by the Institute of Chartered Accountants of India (ICAI).

1.2 Fixed Assets :

Fixed Assets are stated at historical cost less accumulated depreciation and impairments, if any. Direct costs are capitalized until fixed assets are ready for use.

1.3 Depreciation :

Pursuant to the enactment of Companies Act, 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated / amortised over the revised/remaining useful lives as provided in Schedule II. Further, the assets costing below Rs. 5000 is treated as revenue expenditure.

1.4 Non Current investment :

Long-term investments are usually carried at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognize the decline.

1.5 Current Assets :

i. Stock of shares & securities are stated at cost or net realizable value whichever is lower.

ii. Valuation of repossessed assets :

Assets when repossessed are treated as Stock of Vehicles repossessed. Such stock is revalued as on year end and are stated at cost or net realizable value whichever is lower, and the difference between such valuation and the book value of the asset is written-off.

1.6 Revenue Recognition:

i. Income from financing transactions is accounted for on the basis of Internal Rate of Return method.

ii. All other incomes are accounted for on accrual basis.

1.7 Foreign Currency Transactions:

i. Foreign Exchange Transactions in respect of purchase and sale of Travellers Cheques and currencies are recorded at the exchange rate prevailing at the time of transaction.

ii. Closing Stock of foreign currency notes & coins and Travellers Cheques are valued at cost price or market price, whichever is lower.

1.8 Retirement Benefits:

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Company.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation at each Balance Sheet date using the projected unit credit method.The employees gratuity fund scheme is managed by Life Insurance corporation of India.

1.9 Non-Performing Assets :

Identification of Non-Performing Assets (NPAs) has been done as per the guidelines of Non-Banking Financial Companies (Prudential Norms) Directions, 1998 prescribed by the Reserve Bank of India. The company is following the policy of writing off the Non- Performing Assets in its books of accounts every year instead of making provisions as per the guidelines.

1.10 Provisions & Contingent Liabilities :

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.11 Income Taxes :

Income taxes are accrued in the same period that the related revenue and expenses arise .A provision is made for income tax, based on the tax liability computed, after considering tax allowances and exemptions. Provisions are recorded when it is estimated that a liability due to disallowances or other matters is probable.

Minimum alternate tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of tax credit against future income tax liability, is recognized as an asset in the Balance Sheet if there is convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant asset can be measured reliably. The Company offsets, on a year on year basis, the current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

The differences that result between the profit considered for income taxes and the profit as per the financial statements are identified, and there after a deferred tax asset or deferred tax liability is recorded for timing differences, namely the differences that originate in one accounting period and reverse in another, based on the tax effect of the aggregate amount of timing difference. The tax effect is calculated on the accumulated timing differences at the end of an accounting period based on enacted or substantively enacted regulations. Deferred tax assets in situation where unabsorbed depreciation and carry forward business loss exists, are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax asset can be realized. Deferred tax assets, other than in situation of unabsorbed depreciation and carry forward business loss, are recognized only if there is reasonable certainty that they will be realized. Deferred tax assets are reviewed for the appropriateness of the respective carrying values at each reporting date. Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority. The income tax provision for the interim period is made based on the best estimate of the annual average tax rate expected to be applicable for the full financial year.

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Mar 31, 2014

1.1 Accounting Convention :

The Company prepares its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) under historical cost convention on accrual basis and also in accordance with requirements of the Companies Act, 1956. It follows the directions prescribed by Reserve Bank of India for Non-Banking Financial Companies and as per the applicable accounting standards issued by the Institute of Chartered Accountants of India (ICAI).

1.2 Fixed Assets :

Fixed Assets are stated at historical cost less accumulated depreciation and impairments, if any. Direct costs are capitalized until fixed assets are ready for use.

1.3 Depreciation :

Depreciation on Owned Fixed Assets is provided on Straight Line Method at the rates given in Schedule XIV of the Companies Act, 1956. Full depreciation is provided on the individual low cost assets (below t. 5000).

1.4 Non Current investment :

Long-term investments are usually carried at cost. However, when there is a decline, other than temporary, in the value of a long term investment, the carrying amount is reduced to recognize the decline.

1.5 Current Assets:

i. Stock of shares & securities are stated at cost or net realizable value whichever is lower.

ii. Valuation of repossessed assets :

Assets when repossessed are treated as Stock of Vehicles repossessed. Such stock is revalued as on year end and are stated at cost or net realizable value whichever is lower, and the difference between such valuation and the book value of the asset, if a loss, is written-off.

1.6 Revenue Recognition:

i. Income from financing transactions is accounted for on the basis of Internal Rate of Return method.

ii. All other incomes are accounted for on accrual basis.

1.7 Foreign Currency Transactions:

i. Foreign Exchange Transactions in respect of purchase and sale of Travellers Cheques and currencies are recorded at the exchange rate prevailing at the time of transaction.

ii. Closing Stock of foreign currency notes & coins and Travellers Cheques are valued at cost price or market price, whichever is lower.

1.8 Retirement Benefits:

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, a defined benefit retirement plan (''the Gratuity Plan'') covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation ortermination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the Company.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation at each Balance Sheet date using the projected unit credit method.

1.9 The Statutory maintenance of minimum percentage of liquid assets is based on deposits liabilities as per directions given by Reserve Bank of India (RBI).

2.0 Non-Performing Assets :

Identification of Non-Performing Assets (NPAs) has been done as per the guidelines of Non-Banking Financial Companies (Prudential Norms) Directions, 1998 prescribed by the Reserve Bank of India. Company has written off the amount as per the guideline of RBI.

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Mar 31, 2013

1.1 Accounting Convention:

The Company prepares its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) under historical cost convention on accrual basis (except dividend income) and also in accordance with requirements of the Companies Act, 1956. It follows the directions prescribed by Reserve Bank of India for Non-Banking Financial Companies and as per the applicable accounting standards issued by the Institute of Chartered Accountants of India (ICAI).

1.2 Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation and impairments, if any. Direct costs are capitalized until fixed assets are ready for use.

1.3 Depreciation:

Depreciation on Fixed Assets both owned & leased is provided on Straight Line Method at the rates given in Schedule XIV of the Companies Act, 1956. Full depreciation is provided on the individual low cost assets (below Z 5000).

1.4 Current Assets:

i. Stock of shares & securities are stated at cost or net realizable value whichever is lower.

ii. Valuation of repossessed assets:

Assets when repossessed are treated as Stock of Vehicles repossessed. Such stock is revalued at the year end and are stated at cost or net realizable value whichever is lower, and the difference between such valuation and the book value of the asset, if loss, is written-off.

1.5 Revenue Recognition:

i. Income from financing transactions is accounted for/on the basis of Internal Rate of Return method, as per Accounting Standard-19.

ii. Incomes from dividend are accounted for on receipt basis.

iii. All other income is accounted for on accrual basis.

1.6 Foreign Currency Transactions:

i. Foreign Exchange Transactions in respect of purchase and sale of Travellers Cheques and currencies are recorded at the exchange rate prevailing at the time of transaction.

ii. Closing Stock of foreign currency notes & coins and Travellers Cheques are valued at cost price or market price whichever is lower.

1.7 Retirement Benefits:

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, a defined benefit retirement plan (''the Gratuity Plan'') covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment with the Company.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation at each Balance Sheet date using the projected unit credit method.

1.8 The Statutory maintenance of minimum percentage of liquid assets is based on deposits liabilities as per directions given by Reserve Bank of India.

1.9 Non-Performing Assets:

Identification of Non-Performing Assets (NPAs) has been done as per the guidelines of Non-Banking Financial Companies (Prudential Norms) Directions, 1998 prescribed by the Reserve Bank of India. Company has written off the amount as per the guideline of RBI.

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Mar 31, 2012

1.1 Change in Accounting Policy:

Presentation and disclosure of Financial Statement

During the year ended 31sl March, 2012 revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognisation and measurement principle followed for preparation of financial statements. However, it has significant impact on presentation and disclosure made in the financial statements. The Company has also re-classified the previous year figures in accordance with the requirement applicable in the current year.

1.2 Accounting Convention:

The Company prepares its financial statements in accordance with Generally Accepted Accounting Principles (GAAP) under historical cost convention on accrual basis (except dividend income) and also in accordance with requirements of the Companies Act, 1956. It follows the directions prescribed by Resen/e Bank of India for Non-Banking Financial Companies and as per the applicable accounting standards issued by the Institute of Chartered Accountants of India (ICAI).

1.3 Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation and impairments, if any. Direct costs are capitalized until fixed assets are ready for use.

1.4 Depreciation:

Depreciation on Fixed Assets both owned & leased is provided on Straight Line Method at the rates given in Schedule XIV of the Companies Act, 1956. Full depreciation is provided on the individual low cost»assets (below Rs. 5000).

1.5 Current Assets:

i. Stock of shares & securities are stated at cost or net realizable value whichever is lower.

ii. Valuation of repossessed assets:

Assets when repossessed are treated as Stock of Vehicles repossessed. Such stock is revalued as on year end and are stated at cost or net realizable value whichever is lower, and the difference between such valuation and the book value of the asset, if a loss, is written-off.

1.6 Revenue Recognition: '

i. Income from financing transactions is accounted for/on the basis of Internal Rate of Return method, as per Accounting Standard-19.

ii. Incomes from dividend are accounted for on receipt basis.

iii. All other income is accounted for on accrual basis.

1.7 Foreign Currency Transactions:

i. Foreign Exchange Transactions in respect of purchase and sale of Travellers Cheques and currencies are recorded at the exchange rate prevailing at the time of transaction.

ii. Closing Stock of foreign currency notes & coins and Travellers Cheques are valued at cost price or market price whichever is lower.

1.8 Retirement Benefits:

In accordance with the Payment of Gratuity Act, 1972, the Company provides for gratuity, a defined benefit retirement plan ('the Gratuity Plan') covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure of employment with the Company.

Liabilities with regard to the Gratuity Plan are determined by actuarial valuation at each Balance Sheet date using the projected unit credit method.

1.9 The Statutory maintenance of minimum percentage of liquid assets is based on deposits liabilities as per directions given by Reserve Bank of India.

1.10 Non-Performing Assets: Identification of Non-Performing Assets (NPAs) has been done as per the guidelines of Non- Banking Financial Companies (Prudential Norms) Directions, 1998 prescribed by the Reserve Bank of India. Company has written off the amount as per the guideline of RBI.

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Mar 31, 2010

A. Accounting Convention:

The Company prepares its financial statements in accordance with generally accepted accounting practices and also in accordance with requirements of the Companies Act, 1956 and follows the directions prescribed by Reserve Bank of India for Non-Banking Financial Companies and the applicable accounting standards issued by the Institute of Chartered Accountants of India (ICAI).

B. Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation.

C. Depreciation:

Depreciation on Fixed Assets both owned & leased is provided on Straight Line Method at the rates given in Schedule XIV of the CompaniesAct, 1956.

D. CurrentAssets:

a. Stock of shares & securities are stated at cost or net realisable value whichever is less.

b. Valuation of repossessed assets:

Assets when repossessed are treated as Stock of Vehicles repossessed. Such stock is valued at cost or net realisable value whichever less is and the difference between such valuation and the book value of the asset, if a loss, is written-off.

E. Revenue Recognition:

a. Income from financing transactions are accounted for on the basis of Internal Rate of Return method, as per Accounting Standard-19,

b. Incomes from dividend are accounted for on receipt basis.

c. All other income is accounted for on accrual basis.

F. Foreign Currency Transactions:

a. Fo/eign Exchange Transactions in respect of purchase and sale of Travellers Cheques and currencies are recorded at the exchange rate prevailing at the time of transaction.

b. Closing Stock of foreign currency notes & coins and Travellers Cheques are valued at cost price or market price whichever is less.

G. Retirement Benefits:

Provision for gratuity liability towards employees is made on the basis of actuarial valuation as per AS 15 revised. Defined Benefit Plans on 31st March, 2010 as per Actuarial Valuations using Projected Unit Credit Method and recognized in the Financial Statements are as follows:-

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Mar 31, 2009

A. Accounting Convention :

The Company prepares its financial statements in accordance with generally accepted accounting practices and also in accordance with requirements of the Companies Act, 1956 and follows the directions prescribed by Reserve Bank of India for Non-Banking Financial Companies and the applicable accounting standards issued by the Institute of Chartered Accountants of India (ICAI).

B. Fixed Assets:

Fixed Assets are stated at historical cost less accumulated depreciation.

C. Depreciation:

Depreciation on Fixed Assets both owned & leased are provided on Straight Line Method at the rates given in Schedule XIV of the Companies Act, 1956. However Company has changed the rate of depreciation of Wind Power Plant from 4.75 % applicable under Straight line method of single shift to 5.28% applicable for continuous process pant. As a result Company has provided for Rs. 16.74 lacs towards depreciation for earlier years & the same has been appropriated out of Profit & Loss Appropriation Account.

D. CurrentAssets:

(a) Stock of shares & securities are stated at cost or net realisable value whichever is less.

(b) Valuation of repossessed assets :

Assets when repossessed , are treated as Stock of Vehicles repossessed. Such stock is valued at cost or net realisable value whichever is less and the difference between such valuation and the book value of the asset, if a loss, is written off.

E. Revenue Recognition:

i. Income from financing transactions are accounted for on the basis of Internal Rate of Return method . as per Accounting Standard-19,

ii. Income from dividend are accounted for on receipt basis.

iii. All other income are accounted for on accrual basis.

F. Foreign Currency Transactions :

I. Foreign Exchange Transactions in respect of purchase and sale of Travellers Cheques and currencies are recorded at the exchange rate prevailing at the time of transaction.

ii. Closing Stock of foreign currency notes & coins and Travellers Cheques are valued at cost price or market price whichever is less.

G. Retirement Benefits:

Provision for gratuity liability towards employees is made on thebasisof actuarial valuation as per AS 15 revised.

Defined Benefit Plans on 31" March, 2009 as per Acturial Valuations using Projected Unit Credit Method and recognized in the Financial Statements is as follows:-