The financial statements have been prepared on a Going Concern
basis, on historical cost convention, as per provisions of the Companies Act,
1956 and after taking into account the applicable guidelines issued by the Reserve
Bank of India to Non Banking Financial Companies from time to time and in accordance
with the mandatory Accounting Standards issued by the Institute of Chartered Accountants
Assets (including assets given on lease upto 31.03.2001) have been stated at cost
less accumulated depreciation and impairment, if any. Cost refers to cost of acquisitions/revalued
term Investments are valued at cost. Cost refers to actual cost of acquisition
/ carrying cost. Provisions for diminution in value, if any, is made if decline
is permanent nature. Current Investments are valued at lower of cost or market
value. Investments in Immovable Properties are valued at cost. Other Investments
are stated at cost less provision for decline in value, if any.
are stated at lower of cost or net realizable value less provision for obsolescence,
vehicles in hand are valued at the Principal or Principal and Interest amount
due from hirers or at net realisable value, whichever is lower.
on Lease and Assets at Gas Division : Pro-rata on straight line method, as per
rates prescribed in Schedule XIV to the Companies Act, 1956.
Fixed Assets : Pro-rata on Written Down Value method as per rates prescribed under
the Income Tax Act, 1961 or as per rates prescribed in Schedule XIV to the Companies
Act, 1956, whichever is higher.
costing Rs.5,000/- or below are fully depreciated in the year of acquisition.
write off is made in respect of lease relating to leasehold lands.
depreciation is provided in respect of Investments in Land and Buildings held
as Investments, (other than those under development) as the amount set aside under
Property Reserve is considered adequate to cover such depreciation.
on Land & Building is provided on composite cost, where cost of Land is not
of Assets & Provisioning
Assets are classified into Performing and Non Performing
categories based on their record of recovery as prescribed by the Reserve Bank
of India's Prudential Norms and after considering adjustments effected, if any.
Provisions are being made as per Reserve Bank of India's Prudential Norms.
Charges on hire purchase/ loan against Hypothecation contracts and income from
finance lease transactions are computed using Internal Rate of Return method which
ensures a constant periodic rate of return on net finance amount outstanding.
Rentals are accounted for as per terms of lease agreements. However, in compliance
of the guidance note issued by the Institute of Chartered Accountants of India,
and applicable to transactions entered into prior to 01.04.2001, the differential
between the Capital Recovery Component comprised (based on the Internal Rate of
Return method) in the lease rentals and the depreciation referred to in Para 6(a)
above, (for all assets acquired on or beginning from 1st April, 1995 from accounting
year 1995-96 and in respect of assets acquired upto 1.4.1995 prospectively from
the accounting year 1996-97) is carried to "Lease Equalisation" in the
Profit & Loss Account.
from Non Performing Assets is recognised when realised.
Discounting Charges are accounted for on accrual basis except in case of Non Performing
Assets, wherein it is recognised on realisation basis.
charges from hires / lessees are accounted for on realisation basis in view of
Income in the Profit & Loss Account is recognised on accrual basis.
on Post Office Savings Bank Account, Insurance claims etc. are accounted for on
is accounted for on accrual basis when the right to receive dividend is established.
for Gratuity payble to eligible employees and for leave encashment is made based
on actuarial valuation.
Fund contribution for all employees is charged to revenue each year
for Gratuity payble to eligible employees and for leave encashment is made on
Fund contribution for all employees is charged to revenue each year.
Tax is recognised, subject to consideration of prudence, on timing differences,
representing the difference between the taxable income/ (loss) and the accounting
income/ (loss) that originated in one period and are capable of reversal in one
or more subsequent periods. Deferred Tax assets and liabilities are measured using
tax rates and the tax laws that have been enacted or substantively enacted by
the Balance Sheet date. Deferred Tax assets viz. unabsorbed depreciation and carry
forward losses are recognised if there is 'virtual certainty' that sufficient
future taxable income will be available against which such deferred tax assets
can be realised.
carrying amounts of assets are reviewed at each Balance Sheet date to ascertain
impairment based on internal/external factors. An impairment loss is recognised
when the carrying amount of an asset exceeds its realisable value. The realisation
value is greater of the assets net selling price and value in use.
Contingent Liabilities and Contingent Assets
are recognised for liabilities that can be measured only by using a substantial
degree of estimation, if
Company has a present obligation as a result of past event,
probable outflow of resources is expected to settle the obligation and
amount of obligation can be reliably estimated
expected in respect of expenditure required to settle a provision is recognised
only when it is virtually certain that the reimbursement will be received.
liability is disclosed in the case of.
present obligation arising from the past event, when it is not probable that an
outflow of resources will be required to settle the obligation.
possible obligation, of which the probability of outflow of resources is remote.
Assets are neither, recognised nor disclosed.
Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet