1.1 Basis of Preparation These financial statements have been brpared to comply with Generally Accepted Accounting Principles in India (Indian GAAP), the Accounting Standards notified under the relevant provisions of the Companies Act, 2013 and Reserve Bank of India Regulations in relation to Non Banking Finance Companies to the extend applicable to the Company. The financial statements are brpared on accrual basis under the historical cost convention. The financial statements are brsented in Indian rupees rounded off to the nearest rupees in Lakhs. 1.2 Use of Estimates The brparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known/materialized. 1.3 Fixed Assets Tangible Fixed Assets are stated at Cost less accumulated debrciation and Impairment loss, if any. All Costs, including financing costs till the date asset is ready for use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the Fixed Assets are capitalized. Intangible Intangible assets are carried at cost less accumulated amortization and accumulated impairment losses if any. 1.4 Debrciation Debrciation on tangible fixed assets is provided on a straight-line basis at the rates and in the manner brscribed in Schedule II to the Companies Act, 2013 over their useful life. 1.5 Investments Long Term Investments Long term investments are stated at cost as per Accounting Standard (AS 13) on "Accounting for Investments". Provision for diminution is made to recognize a decline, other than temporary, in the value of such investments. Current Investments Current Investments are stated at the lower of cost or market value. 1.6 Revenue Recognition Interest income is recognized in the Statement of Profit and Loss as it accrues except in the case of Non Performing Assets (NPA) where it is recognized, upon realization. Dividend on investments is accounted when the right to receive payment is established. Profit earned from sale of securities is recognized on a trade date basis. The cost of securities is computed based on a weighted average basis. 1.7 Provisions for Non Performing Assets (NPA) and Doubtful Debts Sundry debtors, loans and advances and receivables are identified as bad/ doubtful based on the duration of the delinquency. The duration is set at appropriate levels for each product. NPA provisions are made based on the management's assessment of the degree of impairment and the level of provisioning meets the prudential norms brscribed by the Reserve Bank of India. 1.8 Taxes on Income Provision for current tax is made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a virtual/reasonable certainty that the asset will be realized in future. 1.9 Employee Benefits (i) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit & Loss of the year in which the related service is rendered. (ii) Post employment and other long term benefits are recognized as an expense in the Statement of Profit & Loss for the year in which the employee has rendered services. The expense is recognized at the brsent value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit &Loss. 1.10 Provisions, Contingent Liabilities And Contingent Assets A provision is recognised when the Company has a brsent obligation 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 reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are not recognised but disclosed in the financial statements. A contingent asset is neither recognised nor disclosed in the financial statements As per our report attached For and on behalf of Board of Directors For Chaturvedi & Shah Chartered Accountants Firm Registration No.: 101720W H N Singh Rajpoot Director DIN: 00080836 S K Tamhane Director DIN: 03179129 Amit Chaturvedi Partner Membership No.: 103141 Shruti Joshi Manager & Company Secretary M.No.: A19112 Parasmal Rakhecha Chief Financial Officer PAN: ADGPR1077B Place: Mumbai Date: 28th May, 2015 |