Mar 31, 2015
A. 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.
B. 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.
C. Revenue Recognition
i) 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.
ii) Sales represent invoiced value of goods sold net of excise duty.
iii) Lease Rentals are accounted for on accrual basis and full months
rental is considered as income irrespective of the date on which the
lease rentals fall due during the month. Further the company accounts
for income arising out of leasing activities on the method recommended
by the Institute of Chartered Accountants of India. For assets leased
up to 31st March 2001, the lease income is recognised at an Internal
Rate of Return (IRR) on the principal amount outstanding at the due
date of the lease rental. An annual lease equalisation charge is
computed by deducting from lease rentals the income derived at IRR,
which is then compared with depreciation provided.
The difference is adjusted through lease equalisation in lease
adjustment account. No assets have been leased after 1-4-2001 and
therefore the mandatory provisions under Accounting standard (A 8-9) in
respect of leased assets after 1-4-2001 do not apply.
iv) Hire Purchase Finance Charges/ Hypothecation charges/Loan
Syndication Charges have been accounted for on instalment due basis
based on Internal Rate of Return.
D. Inventories
i) Raw Material, Packing Materials, Stores and spares, Finished goods,
Semi-finished goods & Stocks in process are valued at cost or market
price whichever is lower. In accordance with valuation principles laid
out in AS-2 issued by The Institute of Chartered Accountants of India.
ii) Stock on Hire/ Hypothecation/ Loan Syndication Principal represents
disbursed value of assets less capital repayments matured including
un-matured finance/hypothecation/loan syndication charges thereon as
per IRR. The un-matured finance/hypothecation/loan syndication charges
are reduced from stock on hire/hypothecation/loan syndication to
reflect the net principal outstanding.
iii) The securities acquired with the intention of short term holding
and trading positions are considered as inventories and disclosed as
current assets. The securities held as inventories under current assets
are valued at lower of cost or market value as at 31st March, 2015 is
considered as market value.
E. Fixed Assets & Depreciation
i) Leased assets of the Company are valued at historical cost less
depreciation and lease adjustment account
ii) Other Fixed Assets are capitalized at cost inclusive of legal and/
or installation and incidental expenses, less accumulated depreciation.
iii) 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.
iv) 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.
F. Earning per share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net profit or
loss for the year attributable to equity shareholders and the weighted
average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.
G. Taxes on Income
i) Current Tax: Provision for current tax is made on the estimated
taxable income at the rate applicable to the relevant assessment year.
ii) 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.
iii) 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.
H. Employee Benefits
i) Short Term Employee Benefits: (i.e. benefits payable within one
year) are recognized in the period in which employee services are
rendered.
ii) Contributions towards Provident Fund are recognized as expense.
Provident Fund contributions in respect of all employees are made to
Provident Fund Authorities.
iii) Provision for Gratuity Payable has been made in accordance with
the period of qualifying service put in by the each employee of the
Company from the date of joining and upto the end of the financial
year.
iv) Contribution to Central Government Employees State Insurance Scheme
for eligible employees is recognized as charge for the year.
I. Contingent Assets and Liabilities
i) 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.
ii) Contingent Assets are neither recognized nor disclosed.
Mar 31, 2014
Finance Division policies:
A. The fixed assets of the Company are valued at historical cost less
depreciation and lease adjustment account.
B. The company has provided depreciation on fixed assets as per written
down value method under the Companies (Amendment) Act, 1988. Further
depreciation on additions & sales of fixed assets during the year has
been provided on pro-rata basis.
C. Stock on Hire/Hypothecation/Loan Syndication Principal represents
disbursed value of assets less capital repayments matured including
un-matured finance/hypothecation/loan syndication charges thereon as
per IRR. The un-matured finance/hypothecation/loan syndication charges
are reduced from stock on hire/hypothecation/loan syndication to
reflect the net principal outstanding.
D. Lease Rentals are accounted for on accrual basis and full months
rental is considered as income irrespective of the date on which the
lease rentals fall due during the month. Further the company accounts
for income arising out of leasing activities on the method recommended
by the Institute of Chartered Accountants of India. For assets leased
up to 31st March 2001, the lease income is recognised at an Internal
Rate of Return (IRR) on the principal amount outstanding at the due
date of the lease rental. An annual lease equalisation charge is
computed by deducting from lease rentals the income derived at IRR,
which is then compared with depreciation provided. The difference is
adjusted through lease equalisation in lease adjustment account. No
assets have been leased after 1-4-2001 and therefore the mandatory
provisions under Accounting standard (A 8-9) in respect of leased
assets after 1-4-2001 do not apply.
E. Hire Purchase Finance Charges/ Hypothecation charges/ Loan
Syndication Charges have been accounted for on instalment due basis
based on Internal Rate of Return.
F. All Incomes and expenses have been accounted for on accrual basis.
Overdue charges from hirers/ lessees are accounted for on realisation.
G. Income Recognition, assets classification and provisioning in
respect of Non- Performing Assets has been done in accordance with the
Reserve Bank of India Directions, 1998 as amended upto 12th May, 1998.
Income in respect of non performing assets has been considered on
realisation basis.
H. Revenue is being recognised in accordance with the guidance note on
Accrual Basis of accounting issued by the Institute of Chartered
Accountants of India. Accordingly, if there are any uncertainties in
the realisation of income, the same are not accounted for.
I. Closing Stock of Shares/Securities has been valued at cost or market
price which ever is lower. Manufacturing (Cement & Pole) Division
policies :
J. The accounts are prepared on the historical cost basis and on the
accounting principles of a going concern.
K. Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
L. Sales represent invoiced value of goods sold net of excise duty.
M. Depreciation on Fixed Assets has been provided in accordance with
the rates prescribed under Straight Line Method & in the manner
specified in Schedule XIV of the Companies Act., 1956.
N. Raw Material, Packing Materials, Stores and spares, Finished goods,
Semi-finished goods & Stocks in process are valued at cost or market
price whichever is lower .in accordance with valuation principles laid
out in AS-2 issued by The Institute of Chartered Accountants of India.
Other policies
O. Accounting for taxes on Income- Income Taxes are accounted for in
accordance with Accounting Standard 22 on "Accounting for Taxes on
Income"(AS-22) issued by the Institute of Chartered Accountants of
India. Tax expenses comprise both current and deferred tax.
P. Current tax is determined as the amount of tax payable in respect of
taxable income for the period using the applicable tax rates and tax
laws. Deferred tax assets and liabilities are recognized, subject to
consideration of prudence, on timing differences, being the difference
between taxable incomes and accounting income, that originate in one
period and are capable of reversal in one or more subsequent periods
and are measured using tax rates enacted or substantively enacted as at
the Balance Sheet date. The carrying amount of deferred tax assets and
liabilities are reviewed at each balance sheet date.
Q. Contribution to Provident Fund is accounted for on accrual basis and
charged to Profit and Loss Account.
R. Provision for Gratuity Payable has been made in accordance with the
period of qualifying service put in by the each employee of the Company
from the date of joining and upto the end of the financial year.
Mar 31, 2012
Finance Division Policies:
A. The fixed assets of the Company are valued at historical cost less
depreciation and lease adjustment account.
B. The company has provided depreciation on fixed assets as per
written down value method under the Companies (Amendment) Act, 1988.
Further depreciation on additions & sales of fixed assets during the
year has been provided on pro-rata basis.
C. Stock on Hire/Hypothecation/Loan Syndication Principal represents
disbursed value of assets less capital repayments matured including
un-matured finance/hypothecation/loan syndication charges thereon as
per IRR. The un-matured finance/hypothecation/loan syndication charges
are reduced from stock on hire/hypothecation/loan syndication to
reflect the net principal outstanding.
D. Lease Rentals are accounted for on accrual basis and full months
rental is considered as income irrespective of the date on which the
lease rentals fall due during the month. Further the company accounts
for income arising out of leasing activities on the method recommended
by the Institute of Chartered Accountants of India. For assets leased
up to 31st March 2001, the lease income is recognised at an Internal
Rate of Return (IRR) on the principal amount outstanding at the due
date of the lease rental. An annual lease equalisation charge is
computed by deducting from lease rentals the income derived at IRR,
which is then compared with depreciation provided. The difference is
adjusted through lease equalisation in lease adjustment account. No
assets have been leased after 1-4-2001 and therefore the mandatory
provisions under Accounting standard (A 8-9) in respect of leased
assets after 1-4-2001 do not apply.
E. Hire Purchase Finance Charges/Hypothecation charges/Loan
Syndication Charges have been accounted for on instalment due basis
based on Internal Rate of Return.
F. All Incomes and expenses have been accounted for on accrual basis.
Overdue charges from hirers/ lessees are accounted for on realisation.
G. Income Recognition, assets classification and provisioning in
respect of Non- Performing Assets has been done in accordance with the
Reserve Bank of India Directions, 1998 as amended upto 12th May, 1998.
Income in respect of non performing assets has been considered on
realisation basis.
H. Revenue is being recognised in accordance with the guidance note on
Accrual Basis of accounting issued by the Institute of Chartered
Accountants of India. Accordingly, if there are any uncertainties in
the realisation of income, the same are not accounted for.
I. Closing Stock of Shares/Securities has been valued at cost or
market price which ever is lower.
Manufacturing (Cement & Pole) Division policies:
J. The accounts are prepared on the historical cost basis and on the
accounting principles of a going concern.
K. Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
L. Sales represent invoiced value of goods sold net of excise duty.
M. Depreciation on Fixed Assets has been provided in accordance with
the rates prescribed under Straight Line Method & in the manner
specified in Schedule XIV of the Companies Act., 1956.
N. Raw Material, Packing Materials, Stores and spares, Finished goods,
Semi-finished goods & Stocks in process are valued at cost or market
price whichever is lower, in accordance with valuation principles laid
out in AS-2 issued by The Institute of Chartered Accountants of India.
O. Investments are stated at cost. Other policies:
P. Accounting for taxes on Income- Income Taxes are accounted for in
accordance with Accounting Standard 22 on "Accounting for Taxes on
Income" (AS-22) issued by the Institute of Chartered Accountants of
India. Tax expenses comprise both current and deferred tax.
Q. Current tax is determined as the amount of tax payable in respect of
taxable income for the period using the applicable tax rates and tax
laws. Deferred tax assets and liabilities are recognized, subject to
consideration of prudence, on timing differences, being the difference
between taxable incomes and accounting income, that originate in one
period and are capable of reversal in one or more subsequent periods
and are measured using tax rates enacted or substantively enacted as at
the Balance Sheet date. The carrying amount of deferred tax assets and
liabilities are reviewed at each balance sheet date.
R. Contribution to Provident Fund is accounted for on accrual basis and
charged to Profit and Loss Account.
S. Provision for Gratuity Payable has been made in accordance with the
period of qualifying service put in by the each employee of the Company
from the date of joining and upto the end of the financial year.
Mar 31, 2010
Finance Division:
1) The fixed assets of the Company are valued at historical cost less
depreciation and lease adjustment account.
2) The company has provided depreciation on fixed assets as per written
down value method under the Companies (Amendment) Act, 1988. Further
depreciation on additions & sales of fixed assets during the year has
been provided on pro-rata basis.
3) Stock on Hire/Hypothecation/Loan Syndication Principal represents
disbursed value of assets less capital repayments matured including
un-matured finance/hypothecation/loan syndication charges thereon as
per IRR. The un-matured finance/hypothecation/loan syndication charges
are reduced from stock on hire/ hypothecation/loan syndication to
reflect the net principal outstanding.
4) Lease Rentals are accounted for on accrual basis and full months
rental is considered as income irrespective of the date on which the
lease rentals fall due during the month. Further the company accounts
for income arising out of leasing activities on the method recommended
by the Institute of Chartered Accountants of India. For assets leased
up to 31st March 2001, the lease income is recognised at an Internal
Rate of Return (IRR) on the principal amount outstanding at the due
date of the lease rental. An annual lease equalisation charge is
computed by deducting from lease rentals the income derived at IRR,
which is then compared with depreciation provided. The difference is
adjusted through lease equalisation in lease adjustment account. No
assets have been leased after 1-4-2001 and therefore the mandatory
provisions under Accounting standard (A 8-9) in respect of leased
assets after 1-4-2001 do not apply.
5) Hire Purchase Finance Charges/ Hypothecation charges/ Loan
Syndication Charges have been accounted for on instalment due basis
based on Internal Rate of Return.
6) All Incomes and expenses have been accounted for on accrual basis.
Overdue charges from hirers/lessees are accounted for on realisation.
7) Income Recognition, assets classification and provisioning in
respect of Non- Performing Assets has been done in accordance with the
Reserve Bank of India Directions, 1998 as amended upto 12th May, 1998.
Income in respect of non performing assets has been considered on
realisation basis.
8) Revenue is being recognised in accordance with the guidance note on
Accrual Basis of accounting issued by the Institute of Chartered
Accountants of India. Accordingly, if there are any uncertainties in
the realisation of income, the same are not accounted for.
9) Closing Stock of Shares/Securities has been valued at cost or market
price which ever is lower. Cement & Pole Division:
1) The accounts are prepared on the historical cost basis and on the
accounting principles of a going concern.
2) Accounting policies not specifically referred to otherwise are
consistent and in consonance with generally accepted accounting
principles.
3) Sales represent invoiced value of goods sold net of excise duty.
4) Depreciation on Fixed Assets has been provided in accordance with
the rates prescribed under Straight Line Method & in the manner
specified in Schedule XIV of the Companies Act., 1956.
5) Raw Material, Packing Materials, Stores and spares, Finished goods,
Semi-finished goods & Stocks in process are valued at cost or market
price whichever is lower. In accordance with valuation principles laid
out in AS- 2 issued by The Institute of Chartered Accountants of India.
6) Investments are stated at cost.
Others
1) Accounting for taxes on Income- Income Taxes are accounted for in
accordance with Accounting Standard 22 on "Accounting for Taxes on
Income"(AS-22) issued by the Institute of Chartered Accountants of
India. Tax expenses comprise both current and deferred tax.
2) Current tax is determined as the amount of tax payable in respect of
taxable income for the period using the applicable tax rates and tax
laws. Deferred tax assets and liabilities are recognized, subject to
consideration of prudence, on timing differences, being the difference
between taxable incomes and accounting income, that originate in one
period and are capable of reversal in one or more subsequent periods
and are measured using tax rates enacted or substantively enacted as at
the Balance Sheet date. The carrying amount of deferred tax assets and
liabilities are reviewed at each balance sheet date.
3) Contribution to Provident Fund is accounted for on accrual basis and
charged to Profit and Loss Account.
4) Provision for Gratuity Payable has been made in accordance with the
period of qualifying service put in by the each employee of the Company
from the date of joining and upto the end of the financial year. The
calculation is performed annually by an independent actuary.