a) Basis for Preparation of Accounts:
The financial statement has been prepared on the historical cost
convention on accrual basis of accounting in accordance with applicable
accounting standards in India. A summary of important accounting
policies applied consistently is set out below. The financial
statements have also been prepared with relevant presentational
requirement of the Companies Act, 1956.
b) Fixed Assets:
Fixed assets are stated at their original cost of acquisition including
taxes, duties, freight and other incidental expenses related to
acquisi- tion, construction and installation of the assets concerned.
Depreciation on fixed assets is provided on straight-line method at the
rates and in the manner prescribed in Schedule XIV to the Companies
Long-term investments are stated at cost. Provision of diminution in
the value of long-term investments is made only if; such a decline is
other than temporary in the opinion of the management.
e) Employee Benefits:
(i) Gratuity: Provision for gratuity has been made as per the
calculation received from Life Insurance Corporation under the Gratuity
Scheme taken by the company.
(ii) Leave encashment: Leave encashment benefits are paid / provided in
its entirely in the accounts for the year.
(iii) Provident Fund: Provision for provident fund is made as ‘The
Employees Provident Fund and Miscellaneous Provisions Act, 1952'' is
applicable to the com- pany. Other employee benefits are accounted for
on accrual basis.
f) Revenue Recognition:
(i) Loan Income In respect of loan agreements, the income is accrued by
applying the implicit rate in the transaction on declining balance on
the amount financed for the period of the agreement.
(ii) Loan installments received are apportioned between interest income
and principal portion. The principal amount is reduced from the loan
outstanding, so as to achieve the constant rate of interest on the
remaining balance of the Liability.
(iii) Dividend income on investments is accounted for as and when the
right to receive the same is established.
(iv) No income is recognized in respect of Non-Performing assets, if
any, as per the prudential norms for income recognition introduced for
Non Banking Financial Corporation by Reserve Bank of India vide its
notification no.DFC.No.119/DG/(SPT)-98 date 31-01-1998 and revised
notification no. DNBS.192/DG (VL)-2007 dated 22/02/2007.
g) Expense Accounting:
(i) The Company follows the policy of paying Interest on Collateral
Money to customers on due basis. (ii) All other expenditures are
accounted for on accrual basis.
Provisioning in the case of Non-Performing assets is made in accordance
with the guidelines of the prudential norms prescribed by the Reserve
Bank of India.
(i) Provision for current tax is made in accordance with and at the
rates specified under the Income-Tax Act, 1961.
(ii) In accordance with Accounting Standard 22 –‘Accounting for taxes
on Income'', issued by the Institute of Chartered Accountants of India,
the deferred tax for timing differences between the book and tax
profits for the year is accounted for using the tax rates and laws that
have been enacted or substantively enacted as of the balance sheet
(iii) Deferred tax assets arising from the timing differences are
recognized to the extent there is reasonable certainty that the assets
can be realized in future.
(B) NOTES TO ACCOUNTS
I Disclosures pursuant of requirement of AS-14 issued by the Institute
of Chartered Accountants of India.
i. Amalgamation of erstwhile Unitel Credit Private Limited (the
Transferor Company) with Intec Capital Limited (the Transferee Company)
in terms of the Scheme of Amalgamation framed under Sections 391 and
394 of the Companies Act, 1956, was approved by the Hon''ble High Court
of Delhi at New Delhi vide its order dated 20th January,
2011.Certificate copy of the order of Honorable High court at New Delhi
was filed on dated 11th February, 2011 with the registrar of companies,
NCT of Delhi by erstwhile transferor company and Transferee Company.
ii. The Transferor Company was incorporated on 24th November, 1994 as a
Private Limited Company with the name Unitel Credit Private Limited.
The transferor company was a registered NBFC and principal business of
the said Company was of assets/equipment funding to the SME sector.
The Salient features of the Scheme of Amalgamation were as follows:
1. All assets and liabilities including Income Tax and all other
statutory liabilities of the transferor Company will be transferred to
and vested in the Transferee Company with effect from the Appointed
Date i.e. Ist April, 2009.
2. All the employees of the Transferor Company in service, on the
Effective Date shall become the employees of the Transferee Company on
and from such date without any break or interruption in service and
upon terms and conditions not less favorable than those subsisting in
the concerned Transferor Company on the said date.
3. The appointed date for Amalgamation is 1st day of April, 2009.
4. The Transferee Company will issue and allot 1.76 (one) Equity Share
of Rs. 10/- credited as fully paid-up to the members of the Transferor
Company for every 1 (one) fully paid up Equity Share of Rs. 10/- each
held in the Transferor Company prior to the amalgamation.
iii. In terms of the Scheme of Amalgamation, as approved by the Hon''ble
Delhi High Court, the amalgamation is operative with effect from the
Appointed Date i.e. 1st April, 2009. Hence, it has been given effect to
in the present audited accounts for the year ended 31st March, 2011.
Accordingly, the present audited accounts of the Transferee Company are
consists of financial figures of the Transferee Company clubbed with
those of Transferor Company, for the year ended 31st March, 2011.
iv. In terms of the Scheme, the Transferee Company has issued and
allotted 58,32,428 Equity shares of Rs. 10/- each fully paid-up, which
shall rank pari passu in all respect, including dividend, with the
existing Equity Shares of the Transferee Company, to the members of the
Transferor Company in exchange of 100% Share Capital of the transferor
v. The Scheme of Amalgamation has been accounted for under the Pooling
of Interests Method as prescribed under the Accounting Stand- ard-14
(AS-14). Accordingly, all the assets, liabilities and reserves of each
of the Transferor Companies have been recorded in the Company''s books
at their existing book values and in the same form.
vi. Since the Scheme of Amalgamation has been given effect to in the
current year accounts as explained elsewhere, the current year figures
are not comparable with the previous year figures.
vii. The fixed assets acquired due to merger of Unitel Credit (P) Ltd.
are reflected including the values in fixed asset schedule in the gross
block as well as written down value as on 01.04.2010.
viii. The proportionate depreciation of Rs. 3,27,387/- claimed by Unitel
Credit (P) ltd. in their profit & loss account upto merger has been
reduced from the total depreciation as per the fixed asset schedule and
the net amount has been charged to profit & loss account.
ix. The difference between the consideration and the value of net
identifiable assets acquired is treated as goodwill in the books of
Intec Capital Limited.