A. Corporate Information: Ushakiran Finance Limited is a Non- Banking
Finance Company listed on the Bombay Stock Exchange. It is engaged in
the business of Financing, investments etc.,
B. Basis of Accounting:
The financial statements are prepared on the basis of historical cost
convention and the accounts are prepared in accordance with the
generally accepted accounting policies and accounting standards
notified undet1 section 211 (3C) Companies (Accounting Standards)
Rules, 2006 and provisions of the Companies Act, 1956 as adopted
consistently by the Company, unless otherwise stated.
C. Use of Estimates:
Estimates and assumptions used in the preparation of the financial
statements are based on management''s, evolution of the relevant facts
and circumstances as of the date of the Financial statements which may
differ from the actual results at a subsequent date.
D. Prudential Norms:
The company compiles its Financial Statements in accordance with the
prudential norms prescribed by the Reserve Bank of India in respect of:
a) Income recognition. ''
b) Provisioning for standard, substandard, doubtful and loss Assets:
c) Accounting for Investments.
E. Revenue Recognition:
Income from interest is accounted on due basis, subject to income
recognition and prudential norms of Reserve Bank of India as mentioned
above, interest income on Non-performing, doubtful/loss assets etc.,
are recognized as and when the amount is received and appropriated
towards interest. Dividend Income is accounted when the right to
receive the dividend is established.
All the expenses are accounted on accrual basis.
G. Fixed Assets:
Fixed Assets are stated at cost of acquisition.
Depreciation has been provided on written down vaiue method as per
Schedule XIV of the Companies Act, 1956.
Investments (Long Term) are stated at cost of acquisition.
The diminution in the value of quoted investments has been provided, if
such decline is other than temporary in the opinion of management.
Shares and Securities held as Stock-in-Trade are vatued scrip wise at
cost or market value whichever is lower.
K. Provisions, Contingent Liabilities and Contingent Assets:
Provisions involving substantial degree of estimation iri
measuremenfare recognized when there is present obligation as a result
of past events and it is probable that there will be an outflow of
resources. Contingent Liabili- ties are not recognized but are
disclosed in the notes to accounts. Con* tingent Assets are neither
recognized nor disclosed in the financial state- ments.
L. Retirement and other employee benefits:
All employees benefits due wholly within a year of rendering services
are classified as short term benefits. These benefits like salaries,
wages short term compensation absences, expected cost of bonus,
ex-gratia are recognized as expenses on accrual basis of undiscounted
amounts in the Profit and Loss Account. Retirement benefits to the
Employees will be provided as and when the relevant acts are applicable
to the Company.
M. Accounting for taxes on income: .
(a) Current Tax is determined as the amount of tax payable in respect
of its taxable income as per the provisions of the Income Tax Act,
(b) Deferred tax is recognized, subject to consideration of prudence in
respect of deferred tax asset, on timing difference, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods and measured using relevant enacted tax rates.
N. Earnings per Share:
Basic earnings per share is computed and disclosed using the weighted
average number of equity shares outstanding during the year. DHutive
earnings per share is computed and disclosed using the weighted average
number of equity and dilutive equivalent shares outstanding during the
year, except when the results would be anti-dilutive.