Yule Financing & Leasing Company Ltd. कंपली की लेखा नीति

Mar 31, 2012

1. Accounting Convention

The financial statements have been prepared under the historic cost convention in accordance with applicable standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets .

Fixed Assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties and levies and other attributable cost of bringing to their working condition. In case of lease assets, which are repossessed/taken into custody, are removed from fixed assets and are shown under “Other Current Assets".

3. Depreciation

Depreciation is provided as per written down value method as provided in Schedule XIV of the Companies Act, 1956.

4. Lease Accounting

The Company applied the rate of depreciation as prescribed under Schedule XIV under Companies Act. 1956 on its existing lease assets. The difference between the applicable depreciation rate as stated above and that stipulated in the lease agreement is provided for when the primary lease period terminates.

5. Investments

Investments are bifurcated into “Current" investments and “Long Term" investments.

Current investments are valued at the lower of cost and market value of each investment individually. Long Term investments are valued at cost. However, in case of Government approved Securities where the cost price is higher than the face value, the premium is amortized over the remaining period of maturity. Provision for diminution is made if there is permanent decline in the value and such reduction are determined and made for each investment individually.

Unquoted shares are valued at cost of break-up value of the shares as per the last audited balance sheet of the Company concerned, whichever is less.

Investments in Units of Mutual Funds which are not quoted in the market are valued at lower of cost or latest NAV/repurchase price declared by the Mutual Fund in respect of each particular scheme. Commercial Papers and Treasury Bills are valued at carrying cost.

Unquoted debentures depending on the tenor are treated as long term loans or other facilities for the purpose of income recognition and asset classification.

6. Stock on Hire Purchase

Stock on hire purchase is valued at agreement value less amounts received/receivable. The amounts receivable from the hirers are reflected as Sundry Debtors. In case of stock on hire, which are repossessed/taken into custody are shown under "Other Current Assets”.

7. Other Current Assets

The above include leased assets and stock on hire repossessed/taken into custody/awarded and rights acquired which are shown as “Assets and Rights acquired/repossessed/awarded in satisfaction of claims" and these are valued at lower of book value and estimated realisable value.

8. Revenue Recognition

[i] Hire purchase finance charges are accounted for on accrual basis and are recognised so as to produce a constant percentage periodic return on the hire pruchase outstanding install ments.

[ii] Lease rental, bill discounting charges and interest are accounted for on accrual basis.

[iii] Income from non-performing assets is recognised in accordance with the guidelines to Non-banking Financial Companies on prudential norms for income etc. issued by the Reverse Bank of India as m odified from time to time. Further, provisions for Hire Purchase & Lease Assets, Loans and Advances and Other Current Assets are made in accordance with such guidelines.

[ivj Art work, Insurance Agency Commission, Designing. Printing and Scanning etc. are accounted for on completion of job.

9. Management Fees/Processing charges

Mangement fees / processing charges are considered as income in the year the asset has been given on lease / hire purchase.

10. Advertisement, Printing & Stationery & Brokerage

Advertisement, Printing & Stationery & Brokerage, reimbursement of expenses for mobilisation of public deposits are charged to Profit and Loss Account in the year these are incurred asper guidelines provided in Accounting Standard 26 (AS-26).

11. Share Isseu and Promotional Expenses

Share Issue and Promotional Expenses are charged to Profit and Loss Account in the year these are incurred as per guidelines provided in Accounting Standard 26 (AS-26).

12. Employees Benefits

Short term employee benefits (benefits which are payable within 12 months after the end of the period in which the employees rendered service) are measured at cost. The company does not have any defined obligation pertaining to post retirement medical benefits, pension and superannuation for existing I surviving employees. As such medical expenses are measured on cost to company basis.

Long term employee (benefits which are payable after the end of 12 months from the end of the period in which the employees renderd service) and post employment benefits (benefits which are payable after completion of employment i.e. gratuity and leave encashment) are measured on a discounted basis by the projected unit credit method on the basis of annual third party actuarial valuations.

13. Taxation

Current tax is determined on tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence, on timing differences between taxable income and accounting income that orginiate in one period and are capable of reversal in one or more subsequent period. Deferred tax asset is recognized on unabsorbed depreciation and carry forward losses only if there is virtual certainity of realization in future. Deferred tax assets/liabilities are reviewed at each balance sheet date based on development during the year and available judicial pronouncements, to reassess realisation I liability.

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Mar 31, 2011

1. Accounting Convention

The financial statements have been prepared under she historic cost convention in accordance with applicable standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cosi is inclusive of freight, duties and levies and other attributable cost of bringing to their working condition. In case of (ease assets, which are repossessed taken into custody, are removed from fixed assets and are shown under "Other Current Assets".

3. Depreciation

Depreciation is provided as per written down value method as provided in Schedule XIV of the Companies Act. 1956.

4. Lease Accounting

The Company applied the rate of depreciation as prescribed under Schedule XIV under Companies Act, 1958 on its existing lease assets, The difference between the applicable depreciation rate as stated above and that stipulated in the lease agreement is provided for when the primary lease period terminates.

5. Investments

Investments are bifurcated into "Current" investments and "Long Term" investments.

Current investments are valued at the lower of cost and market value of each investment individually.

Long Term investments are valued at cost. However, in case of Government approved Securities where the cost price is higher than the face value, the premium is amortised over the remaining period of maturity. Provision for diminution is made if there is permanent decline in the value and such reduction are determined and made for each investment individually.

Unquoted shares are valued at cost of break-up value of the shares as per the last audited balance sheet of the Company concerned, whichever is less.

Investments in Units of Mutual Funds which are not quoted .in the market are valued at lower of cost or latest NAV/repurchase price declared by the Mutual Fund in respect of each particular scheme.

Commercial Papers and Treasury Bills are valued at carrying cost.

Unquoted debentures depending on the tenor are treated as long term loans or other facilities for the purpose of income recognition and asset classification.

6. Stock on Hire Purchase

Stock on hire purchase is valued at agreement value less amounts received/receivable. The amounts receivable from the hirers are reflected as Sundry Debtors. In case of stock on hire, which are respossessed. Taken into custody are shown under "Other Current Assets".

7. Other Current Assets

The above include leased assets and stock on hire repossessed/taken into custody forwarded and rights acquired which are shown as "Assets and Rights acquired 'repossessed/awarded in satisfaction of claims" and these are valued at lower of book value and estimated realisable value.

8 Revenue Recognition

[i) Hire purchase finance charges are accounted for on accrual basis and are recognised so as to produce a constant percentage periodic return on the hire purchase outstanding installments,

[ii] Lease rental, bill discounting charges and interest are accounted for on accrual basis.

(iii] Income from non-performing assets is recognised in accordance with the guidelines to Men-banking Financial Companies on prudential norms 'or income etc. issued by the Reverse & Lease Assets, Loans and Advances and Other Current Assets are made in accordance with sucti guidelines.

[iv] Art work. Insurance Agency Commission, Designing, Printing and Scanning etc. are accounted for on completion of job.

9. Management Fees Processing charges

Mongered fees / processing charges are considered as income in the year the asset has been given on tease / hire purchase.

10. Advertisement, Printing & Stationery & Brokerage

Advertisement. Printing & Stationery & Brokerage, reimbursement of expenses for mobilization of public deposits are charged to Profit and Loss Account in the year these are incurred as per guidelines provided in Accounting Standard 26 (AS-26).

11. Share Issue and Promotional Expenses

Share Issue and Promotional Expenses are charged to Profit and Loss Account in the year these are incurred as per guidelines provided in Accounting Standard 26 (AS-26).

12. Employees Benefits

Short term employee benefits (benefits which are payable within 12 months after fire end of the period in which the employees rendered service) are measured at cost. The company does not have any defined obligation pertaining to post retirement medical benefits, pension and superannuation for existing / surviving employees. As such medical expenses are measured on cost to company basis.

Long term employee (benefits which are payable after the end of 12 months from .the end of the period in which the employees rendered service} and post employment benefits (benefits which are payable after completion of employment i.e. gratuity and leave encashment) are measured on a discounted basis by the projected unit credit method on the basis of annual third party actuarial valuations.

13. Loans against deposits held by the Company itself

The interest income on above is accounted for on cash basis.

14. Taxation

Current tax is determined on tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence, on timing difference between taxable income and accounting income that ordinate in one period and are capable of reversal in one or more subsequent period. Deferred tax asset is recognized on unabsorbed depreciation and carry forward fosses only if there is virtual certainty of realisation in future. Deferred tax assets/liabilities are reviewed at each balance sheet date based on development during the year and available judicial pronouncements, to reassess realisation ' liability.

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Mar 31, 2010

1. Accounting Convention

The financial statements have been prepared under the historic cost convention in accordance with applicable standards and relevant presentational requirements of the Companies Act, 1956.

2. Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost is inclusive of freight, duties and levies and other attributable cost of bringing to their working condition. In case of lease assets, which are repossesed/taken into custody, are removed from fixed assets and are shown under "Other Current Assets".

3. Depreciation

Depreciation is provided as per written down value method as provided in Schedule XIV of the Companies Act, 1956.

4. Lease Accounting

The Company applied the rate of depreciation as prescribed under Schedule XIV under Companies Act, 1956 on its existing lease assets. The difference between the applicable depreciation rate as stated above and that stipulated in the lease agreement is provided for when the primary lease period terminates.

5. Investments

Investments are bifurcated into "Current" investments and "Long Term" investments.

Current investments are valued at the lower of cost and market value of each investment individually.

Long Term investments are valued at cost. However, in case of Government approved Securities where the cost price is higher than the face value, the premium is amortised over the remaining period of maturity. Provision for diminution is made if there is permanent decline in the value and such reduction are determined and made for each investment individually.

Unquoted shares are valued at cost of break-up value of the shares as per the last audited balance sheet of the Company concerned, whichever is less.

Investments in Units of Mutual Funds which are not quoted in the market are valued at lower of cost or latest NAV/repurchase price declared by the Mutual Fund in respect of each particular scheme.

Commercial Papers and Treasury Bills are valued at carrying cost.

Unquoted debentures depending on the tenor are treated as long term loans or other facilities for the purpose of income recognition and asset classification.

6. Stock on Hire Purchase

Stock on hire purchase is valued at agreement value less amounts received/receivable. The amounts receivable from the hirers are reflected as Sundry Debtors. In case of stock on hire, which are respossessed/taken into custody are shown under "Other Current Assets".

7. Other Current Assets

The above include leased assets and stock on hire repossessed/taken into custody/awarded and rights acquired which are shown as "Assets ana Rights acquired/repossessea/awarded in satisfaction of claims" and these are valued at lower of book value and estimated realisable value.

8. Revenue Recognition

|i) Hire purchase finance charges are accounted for on accrual basis and are recognised so as to produce a constant percentage periodic return on the hire purchase outstanding instalments. [ii] Lease rental, bill discounting charges and interest are accounted for on accrual basis.

[iii] Income from non-performing assets is recognised in accordance with the guidelines to Non-banking Financial Companies on prudential norms for income etc. issued by the Reserve Bank of India as modified from time to time. Further, provisions for Hire Purchase & Lease Assets, Loans and Advances and Other Current Assets are made in accordance with such guidelines.

[iv] Art work, Insurance Agency Commission, Designing, Printing and Scanning etc. are accounted for on completion of job.

9. Management Fees/Processing charges

Management fees/processing charges are considered as income in the year the asset has been given on lease/hire purchase.

10. Advertisement, Printing & Stationery and Brokerage

Advertisement, Printing and Stationery, Brokerage, reimbursement of expenses for mobilisation of public deposits are charged to Profit and Loss Account in the year these are incurred as per guidelines provided in Accounting Standard 26 |AS-26).

XI. Share Issue and Promotional Expenses

Share issue and Promotional Expenses are charged to Profit and Loss Account in the year these are incurred as per guidelines provided in Accounting Standard 26 (AS-26).

12. Employee Benefits

Short term employee benefits (benefits which are payable within 12 months after the end of the period in which the employees rendered service) are measured at cost. The company does not have any defined benefit obligation pertaining to post retirement medical benefits, pension and superannuation for existing/surviving employees. As such medical expenses are measured on cost to company basis.

Long term employee (benefits which are payable after the end of 12 months from the end of the period in which the employees rendered service) and post employment benefits (benefits which are payable after completion of employment i.e. gratuity and leave encashment) are measured on a discounted basis by the projected unit credit method on the basis of annual third party actuarial valuations.

13. Loans against deposits held by the Company itself The interest income on above is accounted for on cash basis.

14. Taxation

Current tax is determined on tax payable in respect of taxable income for the period. Deferred tax is recognized subject to the consideration of prudence, on timing differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period. Deferred tax asset is recognized on unabsorbed depreciation and carry forward losses only if there is virtual certainity of realisation in future. Deferred tax assets/liabilities are reviewed at each balance sheet date based on development during the year and available judicial pronouncements, to reassess realisation/ liability.