Accounting Policies of CIFCO Finance Ltd. Company

Mar 31, 2014

A. BASIS OF ACCOUNTING :

The financial statements are prepared under historical cost convention, on accrual basis, and are in accordance with requirements of the Companies Act, 1956 and comply with Accounting Standards referred to in sub-section (3c) of Section 211 of the said Act.

B. USES OF ESTIMATES:

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statements and notes thereto. Difference between actual results and estimates are recognised in the period they materialise.

C. REVENUE RECOGNITION:

Revenue is being recognised as and when there is reasonable certainity of its ultimate realization / collection.

D. FIXED ASSETS:

All the Fixed assets including assets given on lease have been capitalised at cost inclusive of expenses. The fixed assets have been valued at cost less depreciation.

E. METHOD OF DEPRECIATION:

(a) Owned Assets: Depreciation is provided under Straight Line Method at the rates specified in amended Schedule XIV [as per Notification No. GSR756 (E) dated 16.12.93] of the Companies Act, 1956.

(b) Leased Assets:

i) For the assets installed upto March 31, 1990, depreciation is provided to write off 95% of the cost of the asset over the primary period of its lease. By now, all such assets have already been depreciated up to 95% of their cost. Residual value of assets have been written off in accounts.

ii) For the assets installed on or after April 1,1990, depreciation is provided under Straight Line Method at the rates specified in amended Schedule XIV [as per Notification No. GSR 756 (E) dated 16.12.93] of the Companies Act, 1956.

iii) The Company has not given any asset on lease after April 1, 2001 and hence Accounting Standard 19 on "Accounting on Leases" is not applicable to the Company.

(c) Depreciation on assets (whether Owned or Leased) costing less than Rs. 5,000 is provided at 100% in terms of amended Schedule XIV of the Companies Act, 1956 and as further amended by Notification No. GSR 101(E), dated March 1, 1995.

(d) Impairment of Assets :

An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charges to the Profit and Loss Account in the year in which an assets is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

(e) Investments:

As Certified by the management, all investments are intended to be held for a period of more than one year from the date on which such investments are made. Accordingly, all investments are long term investments and are valued at cost.

(f) Treatment of Contigent Liabilities :

No provision is made for contingent liabilities

(g) Taxation :

i) Current tax is determined as an amount of tax payable in respect of taxable income, for the year.

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 is accounted for, using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

iii) Deferred tax assets arising from timing differences are recognised only on the consideration of prudence. [Refer Note 12 to the Accounts].

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Mar 31, 2013

A. BASIS OF ACCOUNTING :

The financial statements are prepared under historical cost convention, on accrual basis, and are in accordance with requirements of the Companies Act, 1956 and comply with Accounting Standards referred to in sub-section(3c) of Section 211 of the said Act.

B. USES OF ESTIMATES :

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statements and notes thereto. Difference between actual results and estimates are recognised in the period they materialise.

C. REVENUE RECOGNITION :

Revenue is being recognised as and when there is reasonable certainity of its ultimate realisation/ collection.

D. FIXED ASSETS :

All the fixed assets including assets given on lease have been capitalised at cost inclusive of expenses. The fixed assets have been valued at cost less depreciation.

E. METHOD OF DEPRECIATION :

(a) Owned Assets :

i) For the assets installed on or after April 2, 1987, depreciation is provided under Straight Line Method at the rates specified in amended Schedule XIV [as per Notification No.GSR 756(E) dated 16.12.93] of the Companies Act, 1956.

ii) For the assets installed prior to April2, 1987, depreciation is provided at the prevalent rates (under Income- tax Rules) at the time of its acquisition.

(b) Leased Assets :

i) For the assets installed upto March 31,1990, depreciation is provided to write off 95% of the cost of the asset over the primary period of its lease. By now, all such assets have already been depreciated up to 95% of their cost.

ii) For the assets installed on or after ApriH, 1990, depreciation is provided under Straight Line Method at the rates specified in amended Schedule XIV [as per Notification No. GSR 756 (E) dated 16.12.93] of the Companies Act, 1956.

iii) Depreciation on Shift Workings of such assets calculated on the basis of information available from the Lessees or otherwise on the maximum number of days of Triple Shift Working. Since information for shift working was not available for the current year, the last available information of shift working has been taken as the basis.

iv) The Company has not given any asset on lease after April 1, 2001 and hence Accounting Standard 19 on "Accounting on Leases" is not applicable to the Company.

(c) Depreciation on assets (whether owned or leased) costing less than Rs. 5,000 is provided at 100% in terms of amended Schedule XIV of the Companies Act, 1956 and as further amended by Notification No.GSR 101(E), dated March 1, 1995.

F. INVESTMENTS:

* As certified by the management, all investments are intended to be held for a period of more than one year from the date on which such investments are made. Accordingly, all investments are long term investments and are valued at cost.

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Mar 31, 2010

1. System of Accounting:

The Company adopts the accrual system of accounting; The accounts of the Company has been prepared on a going concern assumption (Refer Note 1 to the Accounts under Schedule 14].

2. Use of Estimates:

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statements and notes thereto. Difference between actual results and estimates are recognised in th period they materialise.

3. Overall Valuation Policy:

The accounts have been prepared under historical cost convention.

4. Revenue Recognition:

Revenue is being recognised as and when there is reasonable certainty of its ultimate realisation /collection:

5. Fixed Assets.

All the Fixed Assets including assets given on lease have been capitalised at cost inclusive of expenses. The Fixed Assets have been valued at cost less depreciation.

6. Method of Depreciation:

a. Owned Assets:

i. For the Assets installed on or after April 2. 1987. depreciation is provided under Straight Line Method at the rates specified in amended Schedule XIV [as per Notification No.GSR 756(E) dated 16/12.93] of the Companies Act, 1956.

ii. For the Assets installed prior to April 2, 1987, depreciation is provided at the prevalent rates (under Income-tax Rules) at the time of its acquisition.

b. Leased Assets:

i. For the Assets installed upto March 31. 1990, depreciation is provided to write off 95% of the cost of the asset over the primary period of its lease. By now, all such assets have already been depreciated up to 95% of their cost.

ii. For the Assets installed on or after April 1, 1990, depreciation is provided under Straight Line Method at the rates specified in amended Schedule XIV [as per Notification No.GSR 756 (E) dated 16.12.93] of the Companies Act, 1956.

iii. Depreciation on Shift Workings of such assets calculated on the basis of information available from the Lessees or otherwise on the maximum number of days of Triple Shift Working. Since information for shift working was not available lor the current year, the last available information of shift working has been taken as the basis.

iv. The Company has not given any asset on lease after April 1, 2001 and hence Accounting Standard 19 on "Accounting on Leases" is not applicable to the Company.

c. Depreciation on assets (whether Owned or Leased) costing less than Rs. 5,000 is provided at 100% in terms of amended Schedule XIV of the Companies Act, 1956 and as further amended by Notification No.GSR 101(E), dated March 1, 1995.

7. Investments:

As certified by the management, all investments are intended to be held for a period of more than one year from the date on which such investments are made. Accordingly, all investments are long-term investments and are valued at cost.

8. Treatment of Contlgent Liabilities:

No provision is made for conligent liabilities.

9. Taxation:

i. Current tax is determined as an amount of tax payable in respect of taxable income , for the year.

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 is accounted for, using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

iii. Deferred tax assets arising from timing differences are recognised only on the consideration of prudence. [Refer Note 12 to the Accounts]