Accounting Policies of Coimbatore Lakshmi Investment & Finance Co. Ltd. Company

Mar 31, 2013

A FIXED ASSETS AND DEPRECIATION:

The fixed''assets of the company have been written off

B. INVESTMENTS:

i. Long Term Investments are stated at cost. Diminutions in value of investments, other than temporary, are provided for.

ii. Current Investments are carried at lower of cost or market value.

C. STOCK IN TRADE:

Stock In trade is valued at lower of cost and net realisable value.

D. REVENUE RECOGNITION:

a) The income from operation has been recognized on accrual as per the prudential norms prescribed by the Reserve Bank of India.

b) Finance charges in respect of hire purchase ate recognized as income on diminishing balance basis.

c) Lease rentals received are accounted on monthly lease receipt basis. In respect of any transaction pertaining to part of the month, lease receipts are considered as accrued at the end of the month.

d) Bill discounting charges are recognized as income at the time of discounting of bills irrespective of the period for which the bills are discounted.

e) Documentation charges are recognized as income at the time of execution of documents.

NOTES TO THE FINANCIAL STATTEMENTS FOR THE YEAR ENDED 31.03.2013

f) Servicing charges collected for perusal and processing of proposals are recognized as Income on completion of perusal and processing.

g) Penal/additional interest and additional finance charges are considered as accrued as and when received or agreed and confirmed by the borrowers.

h) All other income and expenses are accounted for on their accrual.

E. BORROWING COSTS:

The borrowing costs in respect of, assets which take substantial time for completion and put to use are capitalized to the carrying cost of the asset: -

a) In respect of specific borrowings, the interest directly attributable to the period as.reduced by any Income on temporary investment of those borrowing is capitalized.

b) In respect of general borrowings, at appropriate capitalization rates based on the borrowing for the relevant period.

F. EMPLOYEE BENEFITS:

Short-term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related service is rendered,

Post Employment Benefits: The liability in respect of Employee''s Gratuity has been provided as per the Group Gratuity Scheme of the Life Insurance Corporation of India and the payment has been made directly to the Life Insurance Corporation.

G. ACCOUNTING STANDARDS:

The mandatory Accounting standards'' prescribed by the Department of Company Affairs have been followed wherever applicable.

H. GOING CONCERN CONCEPT:

The accounts have been prepared on a going concern concept as the Company is continuing its ''. activities of recovering its dues from its borrowers and repayment of fixed deposits.

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Mar 31, 2011

I) Fixed Assets

a) The fixed assets of the company have been written off.

ii) Investments:

Long Term Investments are stated at cost.

iii) Stock in Trade:

Stock in Trade is valued at lower of cost and net realizable value.

iv) Revenue recognition:

a) The income from operation has been recognized on accrual as per the prudential norms prescribed by the Reserve Bank of India.

b) Finance charges in respect of hire purchase are recognized as income on diminishing balance basis.

c) Lease rentals received are accounted on monthly lease receipt basis. In respect of any transaction pertaining to part of the month, lease receipts are considered as accrued at the end of the month.

d) Bill discounting charges are recognized as income at the time of discounting of bills irrespective of the period for which the bills are discounted.

e) Documentation charges are recognized as income at the time of execution of documents.

f) Servicing charges collected for perusal and processing of proposals are recognized as income on completion of perusal and processing,

g) Penal/additional interest and additional finance charges are considered as accrued as and when received or agreed and confirmed by the borrowers.

h) All other income and expenses are accounted for on their accrual.

v) Borrowing Cost:

The borrowing costs in respect of assets which take substantial time for completion and put to use are capitalized to the carrying cost of the asset:-

a) In respect of specific borrowings, the interest directly attributable to the period as reduced by any

Income on temporary investment of those borrowing is capitalized.

b) In respect of general borrowings, at appropriate capitalization rates based on the borrowing for

the relevant period. -

vi) Retirement Benefits:

Gratuity : The liability in respect of Employee's Gratuity has been provided as per the Group Gratuity Scheme of the Life Insurance Corporation of India and the payment has been made directly to the Life Insurance Corporation.

vii) Accounting standards:

The Mandatory Accounting standards prescribed by the Ministry of Corporate Affairs have been followed wherever applicable.

viii) Going concern concept:

The accounts have been prepared on a going concern concept as the Company is continuing its activities of recovering its dues from its borrowers and repayment of fixed deposits.