A. SIGNIFICANT ACCOUNTING POLICIES: 1. Basis of brparation: The financial statements are brpared under the historical cost convention in accordance with Generally Accepted Accounting Principles (GAAP), and materially comply with the mandatory accounting standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 2013. All income and expenditure having a material bearing on the financial statements are recognized on the accrual basis. 2. Revenue recognition: Income from hire purchase advances are accounted by adopting internal rate of return method for the installments due as per the agreement. 3. Debrciation: Debrciation on fixed assets is provided using the Written down Value method, based on rates specified in as per Part "C"of schedule II of the Companies Act 2013. Debrciation is charged on a pro-rata basis for assets purchased/sold during the year. Individual assets costing Rs. 5,000 or less are debrciated in full in the year of purchase. 4. Investments: Investments are stated at the lower of cost or market value. Any decline in the value of investments other than temporary is charged to the Profit and Loss Account. 5. Stock on Hire: Stock on hire has been valued at the amount advanced less installments received. Others Points: (a) The company has surrendered its NBFC license during April 2014 and hence it has discontinued its operations as a Non Banking Finance Loan Company during the year under review. Balance amount in statutory reserve transferred to general reserve and balance amount in contingent Provision against Standard asset also transferred to surplus in profit and Loss account. (b) The company has a proposal to demerge. The necessary procedures are being carried out subject to the approval of the regulatory authorities. 8. Expenditure in Foreign Currency: NIL 9. Contingent Liability not provided for: NIL 10. Taxes on Income: Provision for current tax is made for the amount of tax payable in respect of taxable income for the year under the Income Tax Act, 1961. The Net cumulative effect of the timing differences, as contemplated under the standard, results in a deferred tax asset. The company as a matter of conservative accounting policy, has not reflected this in the financial statements. Previous year's figures have been regrouped and reclassified wherever necessary to conform to the current year's brsentation. This is the Notes referred to in our report of even date addressed to the members of the Company. On behalf of the Board of Directors, K.M. Narasimhan K.V. Aiyappan Chairman T.V. Srinivasan Muthulakshmi Ganesh Directors P. Sankaran Executive Director For R. BHASKAR & Co. Chartered Accountants F.N0.OO886OS " R. BHASKAR, Proprietor M.No.026584 Place: Chennai -17 Date: 27-05-2015 |