1.1 Change in Accounting Policy:
Presentation and disclosure of Financial Statement
During the year ended 31sl March, 2012 revised Schedule VI notified
under the Companies Act, 1956 has become applicable to the Company for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI does not impact recognisation and measurement
principle followed for preparation of financial statements. However, it
has significant impact on presentation and disclosure made in the
financial statements. The Company has also re-classified the previous
year figures in accordance with the requirement applicable in the
1.2 Accounting Convention:
The Company prepares its financial statements in accordance with
Generally Accepted Accounting Principles (GAAP) under historical cost
convention on accrual basis (except dividend income) and also in
accordance with requirements of the Companies Act, 1956. It follows the
directions prescribed by Resen/e Bank of India for Non-Banking
Financial Companies and as per the applicable accounting standards
issued by the Institute of Chartered Accountants of India (ICAI).
1.3 Fixed Assets:
Fixed Assets are stated at historical cost less accumulated
depreciation and impairments, if any. Direct costs are capitalized
until fixed assets are ready for use.
Depreciation on Fixed Assets both owned & leased is provided on
Straight Line Method at the rates given in Schedule XIV of the
Companies Act, 1956. Full depreciation is provided on the individual
low cost»assets (below Rs. 5000).
1.5 Current Assets:
i. Stock of shares & securities are stated at cost or net realizable
value whichever is lower.
ii. Valuation of repossessed assets:
Assets when repossessed are treated as Stock of Vehicles repossessed.
Such stock is revalued as on year end and are stated at cost or net
realizable value whichever is lower, and the difference between such
valuation and the book value of the asset, if a loss, is written-off.
1.6 Revenue Recognition: ''
i. Income from financing transactions is accounted for/on the basis of
Internal Rate of Return method, as per Accounting Standard-19.
ii. Incomes from dividend are accounted for on receipt basis.
iii. All other income is accounted for on accrual basis.
1.7 Foreign Currency Transactions:
i. Foreign Exchange Transactions in respect of purchase and sale of
Travellers Cheques and currencies are recorded at the exchange rate
prevailing at the time of transaction.
ii. Closing Stock of foreign currency notes & coins and Travellers
Cheques are valued at cost price or market price whichever is lower.
1.8 Retirement Benefits:
In accordance with the Payment of Gratuity Act, 1972, the Company
provides for gratuity, a defined benefit retirement plan (''the Gratuity
Plan'') covering eligible employees. The Gratuity Plan provides a
lump-sum payment to vested employees at retirement, death,
incapacitation or termination of employment, of an amount based on the
respective employee''s salary and the tenure of employment with the
Liabilities with regard to the Gratuity Plan are determined by
actuarial valuation at each Balance Sheet date using the projected unit
1.9 The Statutory maintenance of minimum percentage of liquid assets is
based on deposits liabilities as per directions given by Reserve Bank
1.10 Non-Performing Assets: Identification of Non-Performing Assets
(NPAs) has been done as per the guidelines of Non- Banking Financial
Companies (Prudential Norms) Directions, 1998 prescribed by the Reserve
Bank of India. Company has written off the amount as per the guideline