SCHEDULE - 1 Corporate Information
Abhishek Finlease Limited was incorporated in the year 1995. The Company is a listed Public company having its registered office at 402, Wall Street-1, Opp. Gujarat Colledge, Ellisbridge , Ahmedabad -380006 in Gujarat. The Company currently operates as a Non-Deposit Taking Core Investment Company registered with the Reserve Bank of India with effect from 1998.
SCHEDULE - 2 Significant Accounting Policies And Notes On Accounts
[A] SIGNIFICANT ACCOUNTING POLICIES
1) BASIS OF PREPARATION OF FINANCIAL STATEMENT :-
The financial statements have been prepared under historical cost concept and on accrual basis, unless otherwise stated. The Company follows accrual basis of accounting. The accounting policies applied are consistent with those used in previous year.
All the purchase of shares and securities by the company are with a view of trading except Shares purchased for investment purpose.
2) USE OF ESTIMATES:-
The preparation of financial statements in conformity with generally accepted accounting policies requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported accounts of revenue and expenses for the years presented. Actual results could differ from these estimates.
3) REVENUE RECOGNITION:-
Interests on Loans granted are accounted for on accrual basis. However interest on loans treated as NPA, Substandard & Doubtful recognized only if and when it is actually realized.
The income in respect of dividend from shares is accounted for on cash basis.
Expenses incurred on legal proceedings for recovery of loans and for realization of security for loans are charged to revenue account.
4) INVESTMENTS :-
Investments are being classified as long term Investments & Current Investments. Investment intended to be held not more than one year is termed Current Investments. Long Term investments are stated at cost. Long Term Quoted and Unquoted Investments are taken at cost.
5) FIXED ASSETS & DEPRECIATION :-
Property, Plant and Equipment's are stated at cost less accumulated depreciation, and impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use.
Depreciable amount for property, plant and equipment is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on property, plant and equipment is provided on WDV method as per the useful life prescribed in Schedule II to the Companies Act, 2013. The estimated useful lives and residual values of the Property, plant and equipment are reviewed at the end of each financial year.
6) INVENTORIES :-
Stock in trade of shares and securities is valued at cost or market value whichever is lower (where market value is available) however market quotation/values of some of the stock of shares and securities is not available therefore such shares and securities have been valued at cost and other have been valued at net realizable value estimated by the management without verification thereof.
7) OTHER NOTES :-
1. Debtors and Creditors balances as appearing in the Balance-Sheet are subject to confirmation by the respective parties.
2. (i) In respect of loans amounting to Rs. 45,40,477/- the Company has resorted to available legal
remedies, Civil and Criminal as advised, therefore parties has already given possession of immovable properties for the said loans and hence, no provision has been made on such loan in accordance with the Non Banking Financial Companies Prudential Norms(Reserve Bank) Directions 2007. The management is in the process of recovering the dues by disposing off the said security so offered. and received and in possession.
(ii) Last year by Corporate action Sintex Industries 2160 shares is withdrawn from our company's Demat account hence balance become Nil. When company will give the credit of the shares same will be reflected accordingly.
3. Provision for Taxation for the Current year has been made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961.
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