Accounting Policies of Sterling Holiday Financial Services Ltd. Company

Mar 31, 2014

1.1.1 INCOME RECOGNITION

a. Income from Advisory Services is recognised on the basis of work completed from time to time.

b. The Company has followed the prudential norms for Income Recognition and Provisioning for Bad and Doubtful Debts as prescribed by the Reserve Bank of India for Non Banking Financial Companies, except stated otherwise in Notes on Accounts.

c. Profit on sale of Sterling Starter and Sterling Happy Vistas Units are recognised in the year of sale.

1.1.2 DEPRECIATION AND AMORTISATION POLICY

Depreciation on owned and leased assets is provided on Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act, 1956, as amended.

In respect of leased assets, the Company amortises the entire cost of the leased assets during the Primary Lease period in accordance with Guidance Note on Accounting for Leases (Revised) issued by the Institute of Chartered Accountants of India.

1.1.3 FIXED ASSETS

Fixed assets are carried at historical cost less accumulated depreciation. Assets on lease are further adjusted for balance in Lease Adjustment Account.

1.1.4 VALUATION OF INVESTMENTS

All Investments are treated as long term investments and are valued at cost.

1.1.5 RETIREMENT BENEFITS

The Company has taken a policy with Life Insurance Corporation of India to meet its future liability towards gratuity and the payment made to LIC is being accrued periodically. Liability towards leave encashment is estimated and provided for.

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Mar 31, 2013

1.1.1 INCOME RECOGNITION

a. Income from Advisory Services is recognised on the basis of work completed from time to time.

b. The Company hac followed the prudential norms for Income Recognition and Provisioning for Bad and Doubtful Debts as prescribed by the Reserve Bank of India for Non Banking Financial Companies, except stated otherwise in Notes on Accounts.

c. Profit on sale of Sterling Starter and Sterling Happy Vistas Units are recognised in the year of sale.

1.1.2 DEPRECIATION AND AMORTISATION POLICY

Depreciation on owned and leased assets is provided on Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act, 1956, as amended.

In respect of leased assets, the Company amortises the entire cost of the leased assets during the Primary Lease period in accordance with Guidance Note on Accounting for Leases (Revised) issued by the Institute of Chartered Accountants of India.

1.1.3 FIXED ASSETS

Fixed assets are carried at historical cost less accumulated depreciation. Assets on lease are further adjusted for balance in Lease Adjustment account.

1.1.4 VALUATION OF INVESTMENTS

All Investments are treated as long term investments and are valued at cost.

1.1.5 RETIREMENT BENEFITS

The Company has taken a policy with Life Insurance Corporation of India to meet its future liability towards gratuity and the payment made to LIC is being accrued periodically. Liability towards leave encashment is estimated and provided for.

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Mar 31, 2012

1.1.1 INCOME RECOGNITION

a. Income from Advisory Services is recognised on the basis of work completed from time to time.

b. The Company has followed the prudential norms for Income Recognition and Provisioning for Bad and Doubtful Debts as prescribed by the Reserve Bank of India for Non Banking Financial Companies, except stated otherwise in Notes on Accounts.

c. Profit on sale of Sterling Starter and Sterling Happy Vistas Units are recognised in the year of sale.

1.1.2 DEPRECIATION AND AMORTISATION POLICY

Depreciation on owned and leased assets is provided on Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act, 1956, as amended.

In respect of leased assets, the Company amortises the entire cost of the leased assets during the Primary Lease period in accordance with Guidance Note on Accounting for Leases (Revised) issued by the Institute of Chartered Accountants of India.

1.1.3 FIXED ASSETS

Fixed assets are carried at historical cost less accumulated depreciation. Assets on lease are further adjusted for balance in Lease Adjustment account.

1.1.4 VALUATION OF INVESTMENTS

All Investments are treated as long term investments and are valued at cost.

1.1.5 RETIREMENT BENEFITS

The Company has taken a policy with Life Insurance Corporation of India to meet its future liability towards gratuity and the payment made to LIC is being accrued periodically. Liability towards leave encashment is estimated and provided for.

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Mar 31, 2011

1.1 INCOME RECOGNITION

a. Income from Advisory Services is recognised on the basis of work completed from time to time.

b. The Company has followed the prudential norms for Income Recognition and Provisioning for Bad and Doubtful Debts as prescribed by the Reserve Bank of India for Non Banking Financial Companies, except stated otherwise in Notes on Accounts.

c. Profit on sale of Sterling Starter and Sterling Happy Vistas Units are recognised in the year of sale.

1.2 DEPRECIATION AND AMORTISATION POLICY

Depreciation on owned and leased assets is provided on Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act, 1956, as amended. In respect of leased assets, the Company amortises the entire cost of the leased assets during the Primary Lease period in accordance with Guidance Note on Accounting for Leases (Re- vised) issued by the Institute of Chartered Accountants of India.

1.3 FIXED ASSETS

Fixed assets are carried at historical cost less accumulated depreciation. Assets on lease are further adjusted for balance in Lease Adjustment account.

1.4 VALUATION OF INVESTMENTS

Ail Investments are treated as long term investments and are valued at cost.

1.5 RETIREMENT BENEFITS

The Company has taken a policy with Life Insurance Corporation of India to meet its future liability towards gratuity and the payment made to LIC is being accrued periodically. Liability towards leave encashment is estimated and provided for.

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Mar 31, 2010

1.1 INCOME RECOGNITION

a. Income from Advisory Services is recognised on the basis of work completed from time to time.

b. The Company has followed the prudential norms for Income Recognition and Provisioning for Bad and Doubtful Debts as prescribed by the Reserve Bank of India for Non Banking Financial Companies, except stated otherwise in Notes on Accounts.

c. Profit on sale of Sterling Starter and Stei ;,ng Happy Vistas Units are recognised in the year of sale.

1.2 DEPRECIATION AND AMORTISATION POLICY

Depreciation on owned and leased assets is provided on Written Down Value Method at the rates prescribed in Schedule XIV to the Companies Act. 1956, as amended. In respect of leased assets, the Company amortises the entire cost of the leased assets during the Primary Lease period in accordance with Guidance Note on Accounting for Leases (Revised) issued by the Institute of Chartered Accountants of India.

1.3 FIXED ASSETS

Fixed assets are earned at historical cost less accumulated depreciation. Assets on lease are further adjusted for balance in Lease Adjustment account.

1.4 VALUATION OF INVESTMENTS

All Investments are treated as long term investments and are valued at cost.

1.5 RETIREMENT BENEFITS

The Company has taken a policy with Life Insurance Corporation of India to meet its future liability towards gratuity and the payment made to LIC is being accrued periodically. Liability towards leave encashment is estimated and provided for. 2 BALANCE SHEET

2.1 SECURED DEBENTURES Debentures of Rs.2.83,800 includes:

a) 19.5% debentures of Rs. 1.19.000 redeemable at par at the end of 17 months and 25 days from the date of allotment (i.e 1st March, 1997).

b) Zero Coupon Bonds of Rs.1.64,800 with a maturity value of Rs.2,20,000 redeemable at the end of 17 months and 25 days from the date of allotment (i.e 1st March, 1997).

c) An amount of Rs.2,70,000 has been deposited with ICICI Bank Limited, the Trustee, from and out of which the remaining debenture holders will be paid as and when the request is received from the debenture holders.

2.2 SECURED LOANS FROM BANKS

a) Secured by hypothecation of assets covered by Hire Purchase and Lease Agreements and assignment of Lease Rentals. The loans are also secured by personal guarantee of three Directors.

b) During the year, the Company has paid One Time Settlement to the Catholic Syrian Bank Limited. As per the OTS proposal, Company has paid an amount of Rs.60,00,000. Accordingly interest waived aggregating to Rs.47,80,766 is written back to the Profit & Loss Account and reflected as an exceptional item.. Principal waiver of Rs.40,00,000 is reflected under Capital Reserve.

2.3 Loans and advances includes a sum of Rs.217.29 lakhs (Rs.217.29 lakhs) advanced to certain companies out of which a sum of Rs.117.38 lakhs (Rs. 117.38 lakhs) is to a subsidiary company. The above amounts have been advanced towards investment in shares in the respective companies which are pending allotment. No provision is considered necessary at this point of time as the proposed investments are considered long term in nature and wherever possible the Company is tokinq steps to recover the amount.

2.4 Loans and advances include Loans to officers of the Company Rs. 49,505 (Rs. 49,505) [Maximum amount due at any time during the year Rs.41,000 (Rs.41,000)].

2.5 Sundry Creditors for other finance includes amounts due to Group Company Rs.6,45,707 (Rs.6,45,707).

2.6 No provision is considered in the accounts in respect of diminution in value of investments aggregating to Rs. 192.41 lakhs (Rs.228.10 lakhs) as in the opinion of the management the same is considered as long term in nature.

2.7 Confirmation of balances have not been received in respect of hire purchase, lease, bills, inter- corporate deposits, loans and advances, certain bank accounts, unsecured loans, secured loans and other liabilities. Adjustments if any which may arise upon confirmation is not ascertainable at this stage and not provided for.

2.8 Provision aggregating to Rs.229.16 lakhs (Rs.228.82 lakhs) is not considered in respect of certain Non-Performing Advances (NPA) in deviation to RBI guidelines for provisioning.

2.9 No provision is considered in the accounts in respect of interest payable to Banks and Debenture Holders and the same will be considered at the time of settlement of dues to them.

2.10 During the year 2000 - 2001 Reserve Bank of India had rejected the Certificate of Registration given to the Company.