Accounting Policies of Shalibhadra Finance Ltd. Company

Mar 31, 2023

NOTE 1 - Significant Accounting Policies

A1 Background

SHALIBHADRA FINANCE LIMITED (“the Company”) is a public Company domiciled in India and incorporated under the provisions of Companies Act, 1956. The Company is incorporated with an object to carry on the business of Financing. The Company''s shares are listed on Bombay Stock Exchange (BSE) in India. The Company is registered as NBFC with The Reserve Bank of India (Asset Finance Company)

B) Basis of Preparation

I. Statement of compliance with Ind AS

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) notified under Companies (Indian Accounting Standards) Rules, 2015 as amended from time to time.

For all periods up to and including the year ended 31^st March 2018, the Company had prepared its financial statements in accordance with the Accounting Standards notified under Section 133 of the Companies Act, 2013 read together with the Companies (Accounts) Rules 2014 (referred as “Indian GAAP”). Thereafter the Company''s annual financial statements are prepared complying in all material respects with the Ind AS notified under Section 133 of the Companies Act, 2013.

The Company has consistently applied the accounting policies used in the preparation of its opening Ind AS

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Balance Sheet at 1 April 2018 throughout all periods presented, as if these policies had always been in effect and are covered by Ind AS 101 “First-time adoption of Indian Accounting Standards"".

II. Going concern

These financials are prepared on going concern as the Company has earned profits during the year and in the preceding previous years;

III. Fair value measurement

Fair value is the price that would be received on selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

Fair values, as applicable, have been determined for measurement and / or disclosure purpose using methods as prescribed in “Ind AS 113 Fair Value Measurement”.

IV. Use of significant accounting estimates, judgement and assumptions

The preparation of these financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make estimates and assumptions that affect the reported balances of assets and liabilities, disclosure of contingent liabilities as on the date of financial statements and reported amounts of income and expenses for the periods presented. The Company based its assumptions and estimates on parameters available when the financial statements were prepared.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

Estimates and Assumptions

In preparing these financial statements, the management has made judgments, estimates and assumptions which are prudent and reasonable.

Key assumptions concerning the future and key sources of estimation at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are described below.

Difference between the actual results and estimates are recognized in the period in which the results are known/ materialized.

V. Presentation and disclosure of financial statement

All assets and liabilities have been classified as current and non-current as per Company"s normal operating cycle and other criteria set out in Schedule III of the Companies Act, 2013 for a company whose financial statements are made in compliance with the Companies (India Accounting Standards) Rules, 2015.

Based on the nature of products / services and time between acquisition of assets for processing / rendering of services and their realization in cash and cash equivalents, operating cycle is less than 12 months, however for the purpose of current/ non- current classification of assets and liabilities, period of 12 months have been considered as its normal operating cycle.

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is treated as current when it is:

• Expected to be realized or intended to be sold or consumed in normal operating cycle

• Held primarily for the purpose of trading

• Expected to be realized within twelve months after the reporting period, or

• Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in normal operating cycle

• It is held primarily for the purpose of trading

• It is due to be settled within twelve months after the reporting period, or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

VI. Property, Plant and Equipment and Depreciation Recognition and measurement

Under the previous GAAP, property, plant and equipment were carried at historical cost less depreciation and impairment losses, if any. On transition to Ind AS, the Company has availed the optional exemption under Ind AS 101 and accordingly it has used the carrying value as at the date of transition i.e. 1 April 2018 as the deemed cost of the property, plant & equipment under Ind AS.

Properties plant and equipment are stated at their cost of acquisition. Cost of an item of property, plant and equipment includes purchase price including non-refundable taxes and duties, borrowing cost directly attributable to the qualifying asset, any costs directly attributable to bringing the asset to the location and condition necessary for its intended use and the present value of the expected cost for the dismantling/decommissioning of the asset.

Subsequent costs are included in the assets carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company. All other repair and maintenance costs are recognised in statement of profit and loss as incurred.

Capital work-in-progress comprises of cost incurred on property, plant and equipment under construction / acquisition that are not yet ready for their intended use at the Balance Sheet Date.

Depreciation and useful lives

Depreciation on the property, plant and equipment (other than freehold land and capital work in progress) is provided on a straight-line method (SLM) over their useful lives which are in consonance of useful life mentioned in Schedule II to the Companies Act, 2013. Depreciation in respect of fixed assets put to use during the year is provided on a pro-rata basis with reference to the date of installation of assets

VII. Inventories

Inventory for the Company is the total Loan Outstanding on Vehicle Loan.

In the opinion of the management, 2/3^rd of the loan stock is classified as current & 1/3^rd is classified as non-current.

VIII. Revenue recognition

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government and discounts given to the customers. The Company has applied the guidelines mentioned in Ind AS 18 for Revenue Recognition.

Interest on Vehicle Loans

Income / Interest from vehicle loan is accounted for on an accrual basis and is recognized so as to produce a constant periodic return on the amount financed. Interest on fixed deposits with Bank on cash basis

Other Income

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

IX. Taxes on income

Tax expense comprises current and deferred tax. Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.

The deferred tax resulting from timing difference between taxable and accounting income is accounted using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred Tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognized as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

X. Investments in equity instruments at FVTOCI

The quoted and unquoted Equity investments are initially measured at fair value plus transaction costs. Subsequently, they are measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in the .Reserve for equity instruments through other comprehensive income". The cumulative gain or loss is not reclassified to profit or loss on disposal of the investments.

There are no equity investments which are held for trading.

XI. Cash and cash equivalent

Cash and cash equivalents include cash in hand, bank balances, deposits with banks (other than on lien) and all short term and highly liquid investments that are readily convertible into known amounts of cash and are subject to an insignificant risk of changes in value.

For the purpose of cash flow statement, cash and cash equivalent as calculated above also includes outstanding bank overdrafts as they are considered an integral part of the Company''s cash management.

XII. Cash flow statement

Cash flows are reported using the indirect method, where by net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities are segregated.

XIII. Provisions, contingent liabilities, contingent assets

A provision is recognized when the Company has a present obligation (legal or constructive) as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risk specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources is remote, no provision or disclosure is made.

The Company does not recognize a contingent asset but discloses its existence in the financial statements if the inflow of economic benefits is probable. However, when the realization of income is virtually certain, then the related asset is no longer a contingent asset, but it is recognized as an asset.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

XIV. Earnings per share

Basic earnings per share are computed using the net profit for the year attributable to the shareholders" and weighted average number of shares outstanding during the year. The weighted average numbers of shares also includes fixed number of equity shares that are issuable on conversion of compulsorily convertible preference shares, debentures or any other instrument, from the date consideration is receivable (generally the date of their issue) of such instruments.

Diluted earnings per share is computed using the net profit for the year attributable to the shareholder" and weighted average number of equity and potential equity shares outstanding during the year including share options, convertible preference shares and debentures, except where the result would be anti-dilutive. Potential equity shares that are converted during the year are included in the calculation of diluted earnings per share, from the beginning of the year or date of issuance of such potential equity shares, to the date of conversion.

Prudential Norms

In terms of guidelines issued by Reserve Bank of India to Non Banking Financial Companies on prudential norms for income recognition, assets classification, provisioning for Bad Debts etc., the following additional information is given. No new provisions for non-performing assets are required in current year.

Contingent Provision is made against standard Assets at the rate of 0.25% of standard assets made as per RBI Circular No. DNBS. PD. CC. No. 207/03.02.002/2010-11 dated 17 January, 2011.

Other additional information forming part of Financial statements

1) Impact of Covid-19 pandemic on operations of the company pursuant to SEBI Circular No. SEBI/HO/CFD/CMDl/CIR/P/2020/84 dated May 20, 2020:

In accordance with the board approved moratorium policy read with the Reserve Bank of India (RBI) guidelines relating to „COVID-19 - Regulatory Package", the Company has granted moratorium on the payment of installments falling due between March 1,2020 and August 31,2020 to all eligible borrowers.

Majority of company’s customers are agriculturists and farmers in rural areas. The pandemic has not materially impacted the cash flows of these customers. Based on assessment by the Company, this moratorium will not significantly increase the credit risk faced by the company.

During the initial period of lockdown, offices of the company were shut in line with government directives. During this period, no disbursements were done however collections continued as the banks remained functional throughout the period. With recent relaxations given by government, offices of the company have resumed work with limited staff.

2) Contingent Liability :

During the year Income Tax authorities have raised demand of Rs. 7.79 crores for AY 2017-18 by making addition to our income of Rs. 7.78 crores being total amount of EMI deposited by our 26,376 customers (Average deposit per customer Rs. 2,954) directly in our various bank accounts in normal course of business at various bank branches during demonetization period assuming that they are all unexplained deposit of SBNs (500/1000 notes). Company has preferred an appeal against the order which is pending with CIT (Appeals). Company has also got order from income tax department for abeyance of demand till final outcome of appeal. Company has paid Rs 40 lacs on account. Company is advised by our consultant that it has very strong case and is confident of getting favorable order. As per advice of our consultant we will not make any provision in the books till final outcome of appeal.

3) The Company is having many bank accounts of various branch offices of the Company wherein customers deposit their EMI directly in the closest bank branch. There is a delay in receiving the customer-wise details from the banks. Thus, bank reconciliation of bank accounts is under progress since it is carried out by the account staff manually and there is high volume of transaction.

4) Deferred Tax Asset, other than unabsorbed depreciation and brought forward losses, is recognized only if there is reasonable certainty that will be realized in future and are reviewed for their appropriateness

5) In the opinion of the Board of Directors the current assets, loans and advances have a value of realization in the ordinary course of business at least equal to the amount of which these are stated in the Balance Sheet.

6) Other information required by relating to exports, imports and earning in foreign currency, remittances in foreign currency transaction are not applicable.

7) The company considers its financing business as single segment hence IND-AS 108 on segment reporting is not applicable to the company.

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Mar 31, 2018

Note 1 - Significant Accounting Policies

(I) Accounting Policies

a. Interest on Vehicle Loans

Income / Interest from vehicle loan is accounted for on an accrual basis and is recognized so as to produce a constant periodic return on the amount financed.

Interest on fixed deposits with Bank on cash basis

b. Other Income

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

c. Method of Depreciation

The company provides depreciation on Straight Line Method.

d. Expenses

Expenditure is accounted for an accrual basis.

e. Fixed Assets

The fixed assets have been valued at cost less Depreciation.

f. Closing Stock

Loan stock of vehicles is valued at cost less installment accrued and due.

In the opinion of the management, 2/3^rd of the loan stock is classified as current & 1/3^rd is classified as noncurrent.

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Mar 31, 2016

(I) ACCOUNTING POLICIES

a. Interest on Vehicle Loans

Income / Interest from vehicle loan is accounted for on an accrual basis and is recognized so as to producer constant periodic return on the amount financed.

Interest on fixed deposits with Bank on cash basis

b. Other Income

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

c. Method of Depreciation

He company provides depreciation on Straight Line Method

d. Expenses

Expenditure is accounted for an accrual basis.

e. Fixed Assets

The fixed assets have been valued at cost less Depreciation.

f. Closing Stock

Loan stock of vehicles is valued at cost less installment accrued and due.

In the opinion of the management, 2/3^rd of the loan stock is classified as current & 1/3^rd is classified as non-current.

(II) Prudential Norms

In terms of guidelines issued by Reserve Bank of India to Non Banking Financial Companies on prudential norms for income recognition, assets classification, provisioning for Bad Debts etc., the following additional information is given:

No new provisions for non-performing assets are required in current year.

(III) Exceptional item represents Contingent Provision against standard Assets at 0.25% of standard assets made as per RBI Circular No. DNBS. PD. CC. No. 207/03.02.002/2010-11 dated 17 January ,2011

(IV) The company has not prepared bank reconciliation statement for a few bank accounts for the period under review. The company is finding it very difficult to reconcile for a few bank accounts in time due to similar installment cheques, non-computerization by bank etc. However, the company has taken suitable remedial measures and bank reconciliation statements for die balance accounts will be completed shortly.

(V) In the opinion of the Board of Directors the current assets, loans and advances have a value of realization in the ordinary course, of business at least equal to the amount of which these ace stated in the Balance Sheet.

(VI) Managerial Remuneration u/s 198 of Companies Act 1956 is NIL (P.Y: NIL).

(VII) Other information required by relating to exports, imports and earning in foreign currency, remittance in foreign currency transaction are not applicable.

(VIII) The company considers its financing business as single segment hence Accounting Standard 17 on segment reporting issued by The institute of Chartered Accountants of India is not applicable to the company.

(IX) Previous year’s figures have been regrouped, recasted and rearranged wherever necessary.

(X) RELATED PARTIES DISCLOSURES UNDER ACCOUNTING STANDARD 18 OF ICAI:

XII. Income Tax is computed in accordance with Accounting standard 22-Accountmg far taxes on Income, notified by companies. ( Accounting Standards.) Rules, 2006. Tax. expenses. are accounted in the. same period to which the revenue and expenses relate.

XIII. Deferred Tax, other than unabsorbed depreciation and brought forward losses, is recognized only if there is reasonable certainty that will be resized in future and are reviewed for their appropriateness

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Mar 31, 2015

(I) ACCOUNTING POLICIES

a. Interest on Vehicle Loans

Income / Interest from vehicle loan is accounted for on an accrual basis and is recognized so as to produce a constant periodic return on the amount financed.

Interest on fixed deposits with Bank on cash basis

b Other Income

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

c. Method of Depreciation

The company provides depreciation on Straight Line Method .

d. Expenses

Expenditure is accounted for an accrual basis.

e. Fixed Assets

The fixed assets have been valued at cost less Depreciation.

f. Closing Stock

Loan stock of vehicles is valued at cost less installment accrued and due.

In the opinion of the management, 2/3rd of the loan stock is classified as current & l/3rd is classified as non current.

(II) PRUDENTIAL NORMS

In terms of guidelines issued by Reserve Bank of India to Non Banking Financial Companies on prudential norms for income recognition, assets classification, provisioning for Bad Debts etc., the following additional information is given:

No new provisions for non-performing assets are required in current year.

(III) Exceptional item represents Contingent Provision against standard Assets at 0.25% of standard assets made as per RBI Circular No. DNBS. PD. CC. No. 207/03.02.002/2010-11 dated 17 January ,2011

(IV) The company has not prepared bank reconciliation statement for a few bank accounts for the period under review. The company is finding it very difficult to reconcile for a few bank accounts in time due to similar installment cheques, non-computerization by bank etc. However, the company has taken suitable remedial measures and bank reconciliation statements for the balance accounts will be completed shortly.

(V) In the opinion of the Board of Directors the current assets, loans and advances have a value of realization in the ordinary course of business at least equal to the amount of which these are stated in the Balance Sheet.

(VI) Managerial Remuneration u/s 198 of Companies Act 1956 is NIL (P.Y: NIL).

(VII) Other information required by relating to exports, imports and earning in foreign currency, remittance in foreign currency transaction are not applicable.

(VIII) The company considers its financing business as single segment hence Accounting Standard 17 on segment reporting issued by The Institute of Chartered Accountants of India is not applicable to the company.

(IX) Previous year's figures have been regrouped, recasted and rearranged wherever necessary.

(X) RELATED PARTIES DISCLOSURES UNDER ACCOUNTING STANDARD 18 OF ICAI: A. Particulars of Party where control exists/Relative of parties where control exists:

Name of the Related Party Nature of Relationship

(i) M/s Shalibhadra Capital Market Party where control exists Ltd.

(ii) M/s Financial Analysts And Investment Rating Limited Party where control exists

(iii) Mr, Amit M.Doshi Relative Party where control exist

(iv) Mr. Amit M.Doshi HUF Relative Party where control exist

(v) Mrs.Heena A.Doshi Relative Party where control exist

(vi) Mrs.Kala M.Doshi Relative Party where control exist

(vii) Mr. Minesh M.Doshi HUF Relative Party where control exist

(viii) Mr. Minesh M. Doshi Relative Party where control exist

(ix) Mr. Mukund H.Doshi Relative Party where control exist

(x) Mr, Mukund H .Doshi HUF Relative Party where control exist

(xi) Mrs. Sheetal M Doshi Relative Party where control exist

(xii) Mr. Bharat V. Doshi Relative Party where control exist

B. Key Management Personnel:

Name of the Related Party Nature of Relationship

(i) Mr. Minesh M.Doshi Managing Director

E. Income Tax is computed in accordance with Accounting standard 22-Accounting for taxes on Income, notified by companies (Accounting Standards) Rules, 2006. Tax expenses are accounted in the same period to which the revenue and expenses relate.

F. Deferred Tax, other than unabsorbed depreciation and brought forward losses, is recognized only if there is reasonable certainty that will be realized in future and are reviewed for their appropriateness

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Mar 31, 2014

I ACCOUNTING POLICIES

a. interest on Vehicle Lomns

Income I Interest from vehicle loan is accounted for on an accrual basis -and is: recognized so as to produce a constant periodic return on the amount financed.

Interest on fixed depostis with Bank on Cash basis

b Other Income

In respect of other heads of income the Company follows the practice of accounting for such income on accrual basis except for interest income on delayed payment charges which arc aecmtnlsd on the basis of the certainly of collection and /or receipt basis.

c. Method of Depreeiattori

The company provides depreciation on Straight Line Method at the rates and 11 the manner specified in the Schedule XIV of the Compnniti Act 1956.

d. Expenses

Expenditure IS accounted for rm accrual basis.

f. Fixed Assets

The fixed assets have been valued at cost less Depreciation,

g. Closing stock

Load stock of vehicles is valued at cost less installtment accrued and due.

In Ac opinion of the management. 23th of the loan slock is classified as current &. 1/3rd is classified as non carrear.

II) PRCONENTAL NORMS

In terms of guidelines issued by ReserveRank of India in Non Banking Financial Companies on prudential norms far income recognition, assets classification, provisioning for Bad Debts etc., the following additional iniijnrmlon is given:

No new provisions for noo-ptftfdrniirg assets are required in current year.

(Ill) Execution al item represents Cnntingcqil Premnitit) against standard Assets si 0,25% of standard assets made as per RBI Circular No. DNBH. pD. CC. No. 207/03.02.002/2010-11 dated 17 January .201 1

(IV) The company has not prepared bank recortciliution statement for a few hank accounts For the period under review. The company is Ending it very difficult to reconcile for a few hank accounts in time due to similar installment cheques. Qon-computmzation by bank etc. However, the company tins taken suitable remedial measures and bank reconciliation statements fitr the balance accounts will be completed shortly,

(V) In the opinion of the Board of Directors the current assets, loans and advances have a value of realization in the ordinary course of business at least equal to the amount of which these are stated in the Balance Sheet,

(VT) Managerial Remuneration u/s 198 of Companies Act 1956 is NIL (P.Y: NFL),

(VII) Other information required by Patt II Schedule VI of the Companies Act. 1956, relating m exports, imports and earning m foreign currency, remittance m foreign currency transection arc not applicable.

(VIII The company considers its financing business as single segment hence Accounting Standard 17 on segment reporting issued by The Institute of Chartered Accountants of India is not applicable to the company,

(IX) Previous year's figures have been regrouped, recasted and rearranged wherever necessary.

(X) RELATED parties disclosures UNDER ACCOUNTING STANDARD Id OF ICAI: A. Particulars of Party where control fiisIs/Rrlative of parties where control exists:

Name of the Related Party Nature of relationship

(i) M/s Shalihhadra Capital Party where control exists Market Ltd.

(ii) M/s Financial Analysts And Rating Limited Party where Investment control exists

(iii) Mr. Anut M.Doshi Relative Party where cantml exist

(Tv) Mr. AmilM.Do.shi HUF Relative Party where control exist

(v) Mrs.Heem. A-Dtethi Relative Party where control exist

(vi) Mre.KaLa M.Dosfai Relative Party where control exist

fvii) Mr. Mincsh M-Dosha HUF Relative Party where control exist

(viii) Mr. Mmesh M. Doshi Relative Party where control exist

(ix) Mr. Makund H.Dosht Relative Party where control exist

(x) Mr. Mulcnod H .Doshi HUF Relative Party where control exist

(xi) Mrs. Sheefal M Doshi Relative Party where control exist

B. Key Management Personnel:

Name of the Related Party Nature of Rrfatfemhlp

(i) Mr Minesh M.Doshi Managing Director

F. Income Tax is computed Eel accordance with Accounting standard Accounting for taxes on Income, ?otiGtd by companies (Accounting Standards) Rules, 2006. Tint expenses we accounted in the same period to which the revenue and expenses relate,

G, Deferred Tax, other than unahsorbed depreciation and brought forward losses, is recognized only if there is reasonable certainty that will be realized in future and ate reviewed for their appropriateness

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Mar 31, 2013

A. Interest on Vehicle Loans

Income / Interest from vehicle loan is accounted for on an accrual basis and is recognized so as to produce a constant periodic return on the amount financed.

b. Interest on fixed deposits with Bank on cash basis.

b Other Income

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

a. Method of Depreciation

The company provides depreciation on Straight Line Method at the rates and in the manner specified in the Schedule XIV of the Companies Act 1956.

b. Expenses

Expenditure is accounted for an accrual basis.

f. Fixed Assets

The fixed assets have been valued at cost less Depreciation.

g. Closing Stock

Loan stock of vehicles are valued at cost less installment accrued and due.

In the opinion of the management, 2/3rd of the loan stock is classified as non current & 1 /3 rd is classified as current.

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Mar 31, 2012

A. Interest on Vehicle Loans

Income / Interest frpm vehicle loan is accounted for on qn accrual basis and is recognized so as to produce a constant periodic return on the amount financed.

b Other Income

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

d. Method of Depreciation

The company provides depreciation on Straight Line Method at the rates and in the manner specified in the Schedule XIV of the Companies Act 1956.

e. Expenses

Expenditure is accounted for an accrual basis.

£ Fixed Assets

The fixed assets have been valued at cost less Depreciation.

g. Closing Stock

Loan stock of vehicles are valued at cost less installment accrued and due.

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Mar 31, 2010

A. Interest / Hire Purchase on Vehicle Loans

Income / Interest from Hire Purchase transactions / vehicle loan is accounted for on an accrual basis and is recognized so as to produce a constant periodic return on the amount financed.

b. Lease Finance

(i) Lease rentals have been considered as per the terms of the Agreement entered into with the lessees.

(ii) Lease processing charges or Management fees and/or other services charges have bee considered as income in the year in which the agreements have been signed.

c. Other Income

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

b. Method of Depreciation

(i) The company provides depreciation on Straight Line Method at the rates and in the manner specified in the Schedule XIV of the Companies, Act 1956. In case of leased assets purchased after 01.04.1996, the Company is providing Lease Equalization charges as per guidance note on Accounting for leases (revised) as recommended by institute of Chartered Accountants of India.

(ii) Management has, out of abundant caution, during the current financial year provided more depreciation on certain fixed assets given on lease after considering the life and net realizable value of such assets.

c. Expenses

Expenditure is accounted for an accrual basis.

f. Fixed Assets

All fixed assets including assets given on lease have been capitalized at cost inclusive of expenses. The fixed assets have been valued at cost less Depreciation.

g. Investments

All investments are valued AT COST (which includes brokerage).

h. Closing Stock

Hire purchase stock and loan stock of vehicles are valued at cost less installment accrued and due.

(II) PRUDENTIAL NORMS

In terms of guidelines issued by Reserve Bank of India to Non Banking Financial Companies on prudential norms for income recognition, assets classification, provisioning for Bad Debts etc., the following additional information is given:

a. No new provision for non-performing assets are required in current year.

b. As certified by the management, all investments are intended to be held for more than one year from the date on which such investments are long term investments and not current investment and have been valued at cost.

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Mar 31, 2009

A. Interest/ Hire Purchase on Vehicle Loans

Income / Interest from Hire Purchase transactions / vehicle loan is accounted for on an accrual basis and is recognized so as to produce a constant periodic return on the amount financed.

B. Interest & Dividend Income

Income on debentures and Dividend income have been accounted for on cash basis. However, interest on loans given is accounted on accrual basis.

C. Lease Finance

(i) Lease rentals have been considered as per the terms of the Agreement entered into with the lessees.

(ii) Lease processing charges or Management fees and/or other services charges have been considered as income in the year in which the agreements have been signed.

Other Income

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

D. Method of Depreciation

(i) The company provides depreciation on Straight Line Method at the rates and in the manner specified in the Schedule XIV of the Companies, Act 1956. In case of leased assets purchased after 01.04.1996, the Company is providing Lease Equalization charges as per guidance note on Accounting for leases (revised) as recommended by institute of Chartered Accountants of India.

(ii) Management has, out of abundant caution, during the current financial year provided more depreciation on certain fixed assets given on lease after considering the life and net realizable value of such assets.

E. Expenses

Expenditure is accounted for an accrual basis

i. FixedAssets All fixed assets including assets given on lease have been capitalized at cost inclusive of expenses. The fixed assets have been valued at cost less Depreciation.

j. Investments

All investments are valuedAT COST (which includes brokerage).

k. Closing Stock

(l) Hire purchase stock and loan stock of vehicles are valued at cost less installment accrued and due.