1. SIGNIFICANT ACCOUNTING POLICIES:
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 recognised 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 recognised as per lease terms in the Statement of
Profit and Loss under 'Rent Expenses' under note 20.
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