a) CORPORATE INFORMATION
The company is incorporated on 28.01.1991 with the Registrar of Companies, Chennai with the object of providing Housing
Loans. The Registered office of the company is located at No.480, 3rd floor, Anna Salai, Nandanam, Chennai-600035.
b) Method of Accounting
The Company accounts have been prepared under historical cost convention on an accrual basis except for certain financial
assets and Defined Benefit Plans which are measured at Fair Value. The Financial Statements, prepared in accordance with
the Division III of Schedule III to the Companies Act, 2013, comply with the Indian Accounting Standards referred to in Section
133 of the Act, read with Companies (Accounts) Rules, 2015(as amended) and the relevant provisions of the Companies Act
2013.The company has adopted all the applicable Ind AS standards.
c) Revenue Recognition and Prudential Norms
The Company follows NHB/ RBI's Prudential Norms for recognition of Income and Provisioning for Non-Performing
Assets.
Interest on Housing Loans
Repayment of housing loans is by way of Equated Monthly Installments (EMI's) comprising of principal and interest. Interest
is calculated every half year on the opening balance at the beginning of the respective half year/year. EMI commence once
the entire loan is disbursed. Pending commencement of EMI, pre EMI interest payable is recognized every month. Interest on
loan assets classified as “non-performing” is recognised only on realisation.
Interest income from bank deposits is recognized on accrual basis.
d) Property, Plant and Equipment and Depreciation (PPE)
PPE are shown at carrying Cost. i.e.., cost less depreciation. Depreciation is calculated on written down value method over
the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. On transition to Ind AS, the company
has elected to continue with the carrying value of all its Property, Plant and Equipment recognized as on 01.04.2016,
measured as per the previous GAAP and use that carrying amount as the deemed cost of PPE.
e) Cash and Cash Equivalents.
Cash and Cash Equivalents include cash on hand, deposits held at call with financial institutions, other short-term investments
which are highly liquid and subject to insignificant risk, for the purpose of presentation in the Statement of Cash Flows.
f) Financial Assets.
The financial assets are classified at fair value or at amortized cost depending on the entity's business model and the
contractual terms of the cash flows. For assets measured at fair value, in accordance with the applicable Ind AS, changes in
the Fair Value, gain or loss, are recorded either in ‘Profit and Loss' or ‘Other Comprehensive Income'.
g) Off-setting Financial Instruments
Financial assets and liabilities are offset, and the net amount is reported in the Balance Sheet where there is a legally
enforceable right, in the normal course of business, to offset the recognized amounts and there is an intension to settle on a
net basis or realize the asset and settle the liability simultaneously.
h) Impairment of Assets.
Tangible assets are tested for impairment by the management whenever the circumstances indicate that the carrying cost
may not be recoverable. The impairment loss is recognized in the profit and Loss account.
Other Financial Assets are assessed based on the expected credit losses associated with its assets carried at amortized
cost and its significance.
i) Income Tax:
The current charge for income tax is calculated in accordance with the provisions of the Income Tax Act applicable to the company.
Deferred tax charge/credits reflect the tax effects on timing difference between accounting income and taxable income for
the year on account of depreciation and the benefit arising out of carried over unabsorbed losses of the company.
j) Segment Reporting
RBI vide letter no CO.DoR.RG.No. S3544/23-27-014/2023-24 dated 22.09.2023 cancelled the NHB licence w.e.f
21.09.2023 and in the order. As stated in the RBI's order dated 22.09.2023, “Cancellation shall not prevent the company
from recovering loans from the borrowers and the repayment of all the outstanding claims against the company, if any, under
applicable laws”. The only business activity of the company is housing finance even though license is cancelled company is
making all efforts to recover the dues.
k) Earnings per share.
Basic earnings per share is computed by dividing the profit/(loss) attributable to the ordinary equity shares by the weighted
average number of equity shares outstanding during the year.
Diluted earnings per share is computed by adjusting dividing the profit/(loss) and the weighted average number of shares by
taking into account the conversion of dilutive potential equity shares.
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