Devki Leasing and Finance

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS
 
 The accompanying financial statement have been prepared under the
 historical cost convention, going concern and on the accrual basis of
 accounting in accordance with the provisions of the Companies Act, 1956
 & comply with the accounting standards issued by the Institute of
 Chartered Accountants of India to the extent applicable.
 
 1.2 ACCOUNTING ESTIMATES
 
 The preparation of the financial statements in accordance with
 generally accepted accounting principles often requires that Company
 officials makes estimates & assumption that affect the reported amount
 of Assets & Liabilities and disclosure of contingent Assets and
 liabilities as on the date of financial statement & the reported
 amounts of revenue & expenses. During the reported period Company
 officials believes that the estimates used in the preparation of the
 financial statement are prudent & reasonable, actual results could
 differ from these estimates.
 
 1.3 FIXED ASSETS
 
 Fixed assets are stated at cost
 
 1.4 DEPRECIATION
 
 The Company has not charged Depreciation on its fixed assets.
 
 1.5 REVENUE RECOGNITION
 
 Revenue is recognized only when it can be reliably measured and it is
 reasonable to expect ultimate collection.. Interest Income is
 recognized on time proportion basis taking into account the amount
 outstanding and rate applicable.
 
 1.6 TAXES ON INCOME
 
 Tax expenses comprises of Current tax and deferred tax. Current Tax
 Provision, if any, has been made on the basis of reliefs and deduction
 available under the Income- Tax Act, 1961. Deferred tax resulting from
 timing difference between taxable and accounting income is accounted
 for using the tax rates and laws that are enacted or substantively
 enacted as on the Balance Sheet date. The deferred tax assets is
 recognised and carried forward only to the extent that there is a
 reasonable certainty that the assets can be realised in future.
 However, where there is unabsorbed depreciation or carry forward losses
 under taxation laws, deferred tax assets are recognized only if there
 is virtual certainty of realisation of such assets. Deferred tax assets
 are reviewed as at each Balance Sheet date.
 
 1.7. CONSISTENCY :
 
 These Financial statements have been prepared on basis consistent with
 previous years and accounting policies not specifically referred hereto
 are consistent with generally accepted accounting principles.
 
 1.8. IMPAIRMENT OF ASSETS:
 
 In accordance with the Accounting Standard (As-28 ) in  Impairment of
 Assets  issued by The Institute of Chartered accountants of India ,
 during the year the company has reassessed its fixed assets and is of
 the view that no further impairment / reversal is considered to be
 necessary in view of its expected realizable .
 
 1.9. SEGMENTAL REPORTING:
 
 Being the company having only one line of operation and working in a
 single geographical area and in accordance with the provisions of AS
 -17. Hence segmental report is not furnished.
 
 1.10. INVESTMENTS
 
 Investments that are intended to be held for more than a year, from the
 date of acquisition, are classified as long term investments and are
 carried at cost. Provision for diminution in the value of long term
 investments is made only if such a decline is other than temporary.
 
 1.11 CONTINGENT LIABILITIES
 
 Contingent liability that may arise due to delayed / non-compliance of
 certain fiscal statutes amount unascertainable.