NOTES FORMING PART OF THE FINANCIAL STATEMENTS 1. Significant accounting policies a. Basis of brparation : The financial statements of the company have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP) to comply in all material respects with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared under the historical cost convention on accrual basis. The accounting policies adopted in the brparation of financial statements are consistent with those of brvious year. b. Use of estimates : The brparation of financial statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. c. Tangible fixed assets : Fixed assets are stated at cost, net of accumulated debrciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price. d. Debrciation on tangible fixed assets : Debrciation on fixed assets is calculated on a straight-line basis using the useful life as brscribed under the Schedule II to the Companies Act, 2013. e. Advances : Advances are classified under four categories i.e., (i) standard assets, (ii) sub-standard assets, (iii) doubtful assets, (iv) Loss assets in accordance with the RBI guidelines. Provisions on standard assets is made as stipulated in RBI guidelines. f. Impairment of assets : Carrying amount of assets is reviewed at Balance Sheet date, if there is indication of impairment, based on the internal and external factors. The assets are treated as impaired when the carrying amount of asset exceeds its recoverable amount. An impairment loss, if any, is charged to Profit and Loss account in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior year, is recorded when there is an indication that impairment loss recognized for the assets no longer exists or has decreased. g. Investments : Long-term investments are carried at cost. h. Inventories : Inventories are valued at cost or net realiable value, whichever is lower. i. Revenue recognition : Revenue is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Interest Interest Income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "other income" in the statement of profit and loss. j. Retirement and other employee benefits All employee benefits are in short term in nature and are expensed as and when they accrues. k. Income taxes Income taxes comprise current tax, deferred tax and earlier year tax. Current taxes are accrued for on the basis of tax payable to tax authorities in accordance with the Income Tax Act 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. l. Earnings per share Basic earnings per share are calculated by dividing the net profit or loss for the year 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. m. Provisions A provision is recognized when the company has a brsent obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. n . Co nti n gen t l i abi l i ti es The company does not recognize a contingent liability but discloses its existence in the financial statements. Particulars as per RBI Notification Particulars as required to be furnished by a non-deposit taking Non-Banking Financial Companies as required in terms of para 13 of Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2007 vide notification no. DNBS. 192 / DG (VL)-2007 dated February 22, 2007, issued by the RBI is given in Annexure - I attached hereto. Disclosures as required under section 186(4) of the Companies Act, 2013 The Company being an NBFC company, provisions of Section 186 of the Companies Act 2013 are not applicable. Previous Year Figures The company has reclassified brvious year figures to conform to this year's classification. In terms of our report of the even date annexed hereto: For VIRENDRA SURANA & CO. Chartered Accountants Firm's Registration No. 319179E V. K. Surana Partner Membership No. 054470 Place : Kolkata Date : May 30, 2015 For and on behalf of the Board of Directors TYPHOON FINANCIAL SERVICES LIMITED Ashok Chhajer Sushma Chhajer Sumruti Anand Managing Director Director Company Secretary Place : Ahmedabad Date : May 30, 2015 |