Note 1 : SIGNIFICANT ACCOUNTING POLICIES 1. Basis of accounting These financial statements have been brpared under the historical cost convention, on the accrual basis of accounting and complying with the accounting standards as brscribed under Section 133 of Companies Act, 2013 ('the Act') read with Rule 7 of the Companies (Accounts) Rules, 2014 and generally accepted accounting principles in India, the provisions of the Act (to the extent notified) and regulations of Reserve Bank of India to the extent applicable. 2. Method of Accounting The company follows the mercantile system of accounting. 3. Use of Estimates The brparation of the financial statements in conformity with the generally accepted accounting principles requires the management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from the estimates and assumptions used in brparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized. Examples of such estimates include future obligations under employee retirement benefit plans, provision for income taxes. 4. Investment Investments are classified into current investments and non current investments. Investments that are intended to be held for one year or more as on the date of Balance Sheet are classified as non current investments and investments that are intended to be held for less than one year as on the date of Balance Sheet are classified as current investments. Non current investments are valued at cost. Provision for diminution in value of non current investments is made if in the opinion of management such a decline is other than temporary. Current investments are valued at cost or market/fair value, whichever is lower. Net asset value of units declared by mutual funds is considered as market value. 5. Inventories Inventories are valued at cost or Net Realisable Value whichever is lower. 6. Fixed Assets Fixed Assets are stated at cost less accumulated debrciation thereon. The cost of fixed assets comprises purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use. Profit or loss on disposal of the assets is determined as the difference between the carrying amount of the assets at the time of the disposal and the proceeds, and is accounted for in the year of disposal. 7. Debrciation Debrciation is provided on Written Down Value Method on all assets except for Immovable Property which is treated as investment on which debrciation is provided on Straight Line Method. Debrciation is provided based on useful life of the assets as brscribed in Schedule II of the Companies Act, 2013. The Company provides pro-rata debrciation from the date on which asset is acquired / put to use. In respect of assets sold, pro-rata debrciation is provided up to the date on which the asset is sold. 8. Revenue Recognition: a) Dividend Income is accounted when the right to receive the dividend is established. b) Profit earned on sale of Investment is recognized on trade date/basis. Profit/Loss on sale of investments is determined based on the weighted average cost of investments sold. c) All other incomes are accounted for on accrual basis. d) In case of Non Performing Assets, interest income is recognized on receipt basis, as per prudential norms issued by Reserve Bank of India (RBI). 9. Borrowing Cost Borrowing cost attributable to the acquisition and construction of qualifying assets are capitalized less as part of the cost of respective assets up to the date when such asset is ready for its intended use. Other borrowing cost is charged to revenue. 10. Taxation Income-tax expense comprises current tax (i.e. amount of tax for the period determined inaccordance with the income-tax law), deferred tax charge or credit (reflecting the tax effect of timing differences between accounting income and taxable income for the period). Current Tax: : Provision for current tax is made on the basis of estimated taxable income for the accounting year in accordance with the Income Tax Act, 1961. Deferred Tax The deferred tax charge or credit and the corresponding deferred tax liabilities and assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the asset can be realized in future; however, where there is unabsorbed debrciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of the assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written-up to reflect the amount that is reasonable/virtually certain (as the case may be) to be realized. 11. Retirement Benefit A. Short term employee benefit is recognized as an expense at undiscounted amount in the Profit & Loss Account of the year in which the relevant services is rendered. B. Retirement Benefit Provident Fund: Company's contribution paid/payable for the year on account of Provident Fund and Family Pension Fund are charged to Profit and Loss Account. Gratuity: Gratuity is post employment benefit and is in the nature of Defined Benefit Plan. The Liability recognized in the balance sheet in respect of gratuity is the brsent value of defined benefit obligation at the balance sheet date together with the adjustments for unrecognized actuarial gain or losses and the past service costs. The defined benefit obligation is calculated at or near the balance sheet date by an independent actuary using the projected unit credit method. Superannuation: During the year, the Company has contributed to the Employees Superannuation Fund as per the LIC Scheme in that behalf. Leave Encashment: As per company's leave encashment policy employee may encash all unavailed leaves at the end of the financial year accrued to him/her and it is not carried forward. 12. Provisions, Contingent Liabilities and Contingent Assets The Company creates a provision when there is brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a brsent obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. If it is no longer probable that the outflow of resources would be required to settle the obligation, the provision is reversed. Contingent assets are not recognized in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an economic benefit will arise, the asset and related income are recognized in the period in which the change occurs. 1. Schedule to Balance sheet of NBFC as required in terms of Paragraph 13 of Non - Banking Financial (Non - Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007" given in Annexure I 2. Previous year figures have been rearranged, regrouped & recast wherever necessary. For and on behalf of the Board of TIMES GUARANTY LTD. S Sivakumar Director [DIN: 00105562] Aashu Madhan Director [DIN:07058431] Prajakta Powle Company Secretary Membership No:20135 Pramod Karmarkar Chief Financial Officer Place : Mumbai Date : May 28, 2015 |