Mar 31, 2015
1. Basic of preparation
The financial statements are prepared and presented under the
historical cost convention in accor- dance with the Generally Accepted
Accounting Principles (GAAP), and provisions referred to Sec 133 of the
Companies Act, 2013 and accounting standards issued by the Institute of
Chartered Account- ants of India (ICAI) as Applicable. The Company also
follows the directions prescribed by the Reserve Bank of India (RBI)
for NBFC''s.
2. Income Recognition
Interest income on loans and hire charges are accounted on accrual
basis. Loans are classified into "Performing and non- performing assets
in terms of the directions issued by the RBI from time to time". Income
recognition on non-performing advances are made in accordance with the
RBI guide- lines. Additional Finance Charges, Cheque bounce charges,
Field visit charges and other penal / ser- vicing charges are
recognised as income on realisation due to uncertainty in their
collection.
3. Segment Reporting
The Company is primarily engaged in the business of financing. All the
activities of the Company re- volve around the main business. Further,
the Company does not have any separate geographic seg- ments other than
India. As such there are no separate reportable segments as per AS-17
"Segmental Reporting".
4. Fixed Assets And Depreciation
Fixed Assets are stated at cost, Depreciation on fixed assets is
provided on pro-rata basis on "Written Down Value Method" from the date
of installation based on life assigned to each asset in accordance with
Schedule II of the Companies Act, 2013.
5. Provision on Non-Performing Assets
Non- performing assets are identified and categorized into
Sub-standard, Doubtful and Loss Category based on the guidelines and
direction issued by RBI. Provisions for non-performing assets are made
in the accordance with the said guidelines
6. Contingent Liabilities
All the known liabilities where ever Materials are provided for.
7. Investments
The Company''s investments are valued at cost.
8. Retirement Benefits :
Liability for employee benefits, both short and long term, for present
and past services which are due as per terms of employment are recorded
in accordance with Accounting Standard (AS) 15 "Employee Benefits" as
notified by the Companies (Accounting Standards)Rules,2006.
i) Gratuity
The management is of the opinion that since none of the employees of
the company were in con- tinuous service as provided in the act
accordingly making provision of the gratuity does not arise.
ii) Pension
The management is also of the opinion that the payment under Pension
Act is not applicable to the Company.
9. Accounting For Taxes On Income
Income tax expenses is the aggregate amount of current tax and deferred
tax charge, Taxes on in- come are accrued in the same period as the
revenue and expenses to which they relate. Current Tax is determined in
accordance with the Income Tax Act 1961, on the amount of tax payable
in respect of income for the year.
Deferred tax assets and liabilities are recognized for the future tax
consequences of temporary differ- ences arising between the carrying
value of assets and liabilities. Deferred tax assets are recognized
only after giving due consideration to prudence. Deferred tax assets
and liabilities are measured us- ing tax retards and tax laws that have
been enacted (or) substantially enacted by the balance sheet date.
10. Earnings Per Share
The Company reports basic and diluted earnings per equity share in
accordance with (AS) 20, Earnings per share issued by the Institute of
Chartered accountants of India. Basic earnings share have been computed
by divided net income by the weighted average number of equity shares
outstanding for the period. Diluted earnings per equity shares have
been computed using the weighted average number of equity shares and
dilutive potential equity shares outstanding during the period.
Earnings per share (EPS) is calculated as follows:
Particulars 2014-15 2013-14
Net profit after tax 2358122 1722852
Weighted Average Number of Equity Shares (No''s) 3875400 2361901
Earnings Per Share- Basic and Diluted 0.61 0.73
Mar 31, 2014
1. Basic of preparation
The financial statements are prepared and presented under the
historical cost convention in accordance with the Generally Accepted
Accounting Principles (GAAP), and provisions of the Companies Act, 1956
and accounting standards issued by the Institute of Chartered
Accountants of India (ICAI) as Applicable. The Company also follows the
directions prescribed by the Reserve Bank of India (RBI) for NBFC''s.
2. Income Recognition
Interest income on loans and hire charges are accounted on accrual
basis. Loans are classified into "Performing and non-performing assets
in terms of the directions issued by the RBI from time to time". Income
recognition on non-performing advances are made in accordance with the
RBI guidelines.
Additional Finance Charges, Cheque bounce charges, Field visit charges
and other penal / servicing charges are recognised as income on
realisation due to uncertainty in their collection.
3. Segment Reporting
The Company is primarily engaged in the business of financing. All the
activities of the Company revolve around the main business. Further,
the Company does not have any separate geographic segments other than
India. As such there are no separate reportable segments as per AS-17
"Segmental Reporting".
4. Fixed Assets And Depreciation
a. Fixed Assets are stated at cost, Depreciation on fixed assets is
provided on pro-rata basis from the date of installation on written
down value method in accordance with Schedule XIV of the Companies Act,
1956.
b. Assets costing till 5000 are being depreciated fully in the year of
acquisition.
5. Provision on Non-Performing Assets
Non- performing assets are identified and categorized into
Sub-standard, Doubtful and Loss Category based on the guidelines and
direction issued by RBI. Provisions for non-performing assets are made
in the accordance with the said guidelines
6. Contingent Liabilities
All the known liabilities where ever Materials are provided for.
7. Investments
The Company''s investments are valued at cost.
8. Retirement Benefits :
Liabilities on accounts of Gratuity has not been ascertained and
provided for as none of the employees have completed the qualifying
service even on accrual basis the amount have not been ascertained,
same being insignificant.
9. Accounting For Taxes On Income
Income tax expenses is the aggregate amount of current tax and deferred
tax charge, Taxes on income are accrued in the same period as the
revenue and expenses to which they relate. Current Tax is determined in
accordance with the Income Tax Act 1961, on the amount of tax payable
in respect of income for the year.
Deferred Tax Assets is recognized on timing difference, between taxable
income and accounting income which originate in one period and are
capable of reversal is one or more subsequent period. The tax effect
calculated on the accumulated timing differences at the yearend based
on tax and laws enacted or substantially enacted as of the Balance
Sheet.
10. Earnings Per Share
The Company reports basic and diluted earnings per equity share in
accordance with (AS) 20, Earnings per share issued by the Institute of
Chartered accountants of India. Basic earnings share have been computed
by dividend net income by the weighted average number of equity shares
outstanding for the period. Diluted earnings per equity shares have
been computed using the weighted average number of equity shares and
dilutive potential equity shares outstanding during the period.