a) Basis of Preparation
The Financial Statements are prepared and presented under the historical cost convention in
accordance with the Generally Accepted Accounting Principles (GAAP), and provisions referred to in
Section 133 of The Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and
other relevant provisions of The Companies Act, 2013 and accounting standards issued by The Institute
of Chartered Accountants of India (ICAI) as applicable. The Company also follows the directions
prescribed by the Reserve Bank of India (RBI) for Non-Banking Finance Companies to the extent
applicable.
b) Income Recognition
Interest income on loans are accounted on accrual basis. Loans are classified into "Performing and Non¬
Performing Assets in terms of the directions issued by the RBI from time to time". Income recognition
on non-performing advances are made in accordance with the RBI guidelines. Additional Finance
Charges, Cheque bounce charges, Field visit charges and other penal / servicing charges are recognized
as income on realization due to uncertainty in their collection.
c) Interest on Loans
Repayment of the Loans are by way of equated monthly installments (EMIs) comprising principal and
interest. The interest is calculated on the outstanding balances at monthly rests. EMIs commence once
the entire loan is disbursed. Pending commencement of EMI, pre-equated monthly installment interest
(PEMI) is payable every month. Interest on loan assets classified as "Non-Performing" is recognized
only on actual receipt.
d) Income from Investment
Interest income from investment is accounted on an accrual basis. Dividend Income on investments is
recognized when the right to receive the same is established.
e) Segment Reporting
The Company is primarily engaged in the business of financing. All the activities of the Company
revolve around the main business. Accordingly, there are no separate business and geographical
reportable segment, as per the Accounting Standard on 'Segment Reporting' (AS 17) issued by The
Institute of Chartered Accountants of India notified under The Companies (Accounting Standards)
Amendment Rules, 2011.
f) Property, Plant and Equipment
Property, Plant and Equipment (PPE) are stated at cost less accumulated depreciation and impaired
losses, if any.
Depreciation on PPE is provided on pro-rata basis on "Written Down Value Method" from the date of
installation based on life assigned to each asset in accordance with Schedule II of The Companies Act,
2013.
g) Intangible Assets & Amortization: -
The Company does not have any intangible Asset.
h) Impairment of Assets
Impairment losses (if any) on Assets are recognized in accordance with the Accounting Standard on
'Impairment of Assets' (AS 28). The Company assesses at each Balance sheet date whether there is any
indication that an asset may be impaired. If any such indication exists, the Company estimates the
recoverable amount of the assets. An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value.
i) Leases
In accordance with the Accounting Standard on Leases (AS 19), the following disclosures in respect of
operating leases are made:
The Company has taken office premises under operating leases which are generally cancellable and
have no specific obligation for renewal. The total lease payments are recognized as per lease terms in
the Statement of Profit and Loss under 'Rent Expenses' under note 20.
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