Note 1(B): Significant Accounting Policies _
The financial statements of the company have been prepared in accordance with the generally accepted accounting
principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects
1 Basis of Accountin . w>th the accounting standards notified under Section 133 of Companies Act, 2013, read together with paragraph 7 of the
- a ' Companies (Accounts) Rules, 2014 and Companies (Accounting Standards) Amendment Rules, 2016. The financial
statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies
adopted in the preparation of financial statements are consistent with those of previous year.
The preparation 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
2 Use of Estimates : 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.
Pursuant to section 45-IC of the Reserve Bank of India Act, 1934 NBFCs must transfer at least 20% of net profit every year
3 Reserves and Surplus : to reserve fiind. This fund should not be appropriated except for purpose specified by RBI. Any appropriation must be
reported to RBI within 21 days.
Property, Plant and equipment, Capital work in progress are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises the 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. All other repair and
maintenance costs are recognized in profit or loss as incurred. Any trade discounts, rebates and refundable taxes including
GST credit are deducted in arriving at the purchase cost.
^ Plant, property and _ Gains or losses arising from de-recognition of property, plant and equipment are measured as the difference between the net
Equipment ' disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the asset
is derecognized. The company identifies and determines cost of each component/ part of the asset separately, if the
component/ part has a cost which is significant to the total cost of the asset and has useful life that is materially different
from that of the remaining asset.
Property, plant and equipment held for sale is valued at lower of their carrying amount and net realizable value. Any write¬
down is recognized in the statement of profit and loss.
_ _ ... Depreciation is provided on Straight-Line Basis at rates specified in Schedule II of the Companies Act, 2013 based on
5 Deprec.at.on : meMllfeoftheassets
Non-current investments are carried at cost less any other-than-temporary diminution in value, determined on the specific
6 Investments : identification basis.
Profit or loss on sale of investments is determined as the difference between the sale price and carrying value of
investment, determined individually for each investment. Cost of investments sold is arrived using average method.
7 Loans : Loans are valued at Principal Amount.
Income and Expenditures are recognised on accrual basis except income from Non - performing Asset(s) which is
accounted for on actual receipt basis as prescribed by the Prudential Norms for Non - Banking Financial Companies issued
Recoanition of Income & by Reserve Bank of India.
8 --- : The Company adopts accrual concepts in preparation of accounts.
—y- Claims /Refunds not ascertainable with reasonable certainity are accounted for,on final settlement.
Interest Income on fixed deposit is recognized on time proportion basis.
Other Income is accounted for when right to receive such income is established.
|