Integrated Finance Company Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2012

1. Financial Statements are prepared under the historical cost convention, in accordance with Accounting Standards applicable in India, issued by The Institute of Chartered Accountants of India (ICAI) and Directions prescribed by the Reserve Bank of India for Non-Banking Financial Companies.

2 Valuation of Fixed Assets:

Fixed assets are carried at cost or revalued value less accumulated depreciation. Assets on lease are further stated net of balance in the Lease Terminal Adjustment Account.

3. Valuation of Investments:

Long-term investments are stated at cost and provision for decline in value, other than temporary, has been considered wherever necessary.

4. Valuation of Stock on Hire: Stock on Hire stated at aggregate of:

a. Agreement value less amount received

b. Cost of re-acquiring the securitised contracts

c. Cost of acquiring the receivables

d. The additional finance charges accrued less amount received and

e. The other charges recoverable from the hirer.

5. Income recognition:

a. Income in respect of Hire purchase and Lease:

i. Finance Charges in respect of Hire Purchase is accounted in proportion to outstanding installments bearing to the sum of total installments, which is similar to the apportionment based on implicit rate.

ii. Lease income is accounted as per the terms of the lease agreements.

iii. Additional Finance Charges are recognised on receipt basis or at the time of new facilities granted or on securitisation.

iv. Other charges i.e., cheque dishonored charges, insurance are recognized on accrual basis.

b. Incomes from Services are recognized on accrual basis.

6. Depreciation/Amortisation:

a. Own Asset: Depreciation is provided on "Straight line" basis at rates prescribed in Schedule XIV to the Companies Act, 1956. Assets costing Rs.5,000/ - or less have been fully depreciated. b. Leased Assets: Cost less the residual value is depreciated over the lease period on "Straight line" basis. As recommended in the Guidance Note on Accounting for leases (Revised) issued by ICAI lease equalisation account, which represents the excess of annual lease charges over statutory depreciation is deducted from lease income.

7. Retirement Benefits:

Contribution to Provident fund is made monthly at predetermined rate to the provident fund authorities for eligible persons and accounted on accrual basis.

In respect of the Gratuity, contribution is made to Life Insurance Corporation of India (LIC) through an independent trust. Contribution is charged to profit and loss account as they become due. Premium is paid on the basis of actuarial valuation made by LIC.

In respect of the superannuation, contribution at predetermined rate is made to LIC; contribution is charged to profit and loss account as they become due.

8. Taxes on Income:

Tax is determined in accordance with the tax laws applicable for the year.

---

Mar 31, 2011

1. Financial Statements are prepared under the historical cost convention, in accordance with Accounting Standards applicable in India, issued by The Institute of Chartered Accountants of India (ICAI) and Directions prescribed by the Reserve Bank of India for Non-Banking Financial Companies.

2. Valuation of Fixed Assets:

Fixed assets are carried at cost or revalued value less accumulated depreciation. Assets on lease are further stated net of balance in the Lease Terminal Adjustment Account.

3. Valuation of Investments:

Long-term investments are stated at cost and provision for decline in value, other than temporary, has been considered wherever necessary.

4. Valuation of Stock on Hire:

Stock on Hire stated at aggregate of:

a. Agreement value less amount received

b. Cost of re-acquiring the securitised contracts

c. Cost of acquiring the receivables

d. The additional finance charges accrued less amount received and

e. The other charges recoverable from the hirer.

5. Income recognition:

a. Income in respect of Hire purchase and Lease:

i. Finance Charges in respect of Hire Purchase is accounted in proportion to outstanding installments bearing to the sum of total installments, which is similar to the apportionment based on implicit rate.

ii. Lease income is accounted as per the terms of the lease agreements.

iii. Additional Finance Charges are recognised on receipt basis or at the time of new facilities granted or on securitisation. iv. Other charges i.e., cheque dishonored charges, insurance are recognized on accrual basis.

b. Incomes from Services are recognized on accrual basis.

6. Depreciation/Amortisation:

a. Own Asset: Depreciation is provided on "Straight line" basis at rates prescribed in Schedule XIV to the Companies Act, 1956. Assets costing Rs.5,000/- or less have been fully depreciated.

b. Leased Assets: Cost less the residual value is depreciated over the lease period on "Straight line" basis. As recommended in the Guidance Note on Accounting for leases (Revised) issued by ICAI lease equalisation account, which represents the excess of annual lease charges over statutory depreciation is deducted from lease income.

7. Retirement Benefits:

Contribution to Provident fund is made monthly at predetermined rate to the provident fund authorities for eligible persons and accounted on accrual basis. In respect of the Gratuity, contribution is made to Life Insurance Corporation of India (LIC) through an independent trust. Contribution is charged to profit and loss account as they become due. Premium is paid on the basis of actuarial valuation made by LIC. In respect of the superannuation, contribution at predetermined rate is made to LIC; contribution is charged to profit and loss account as they become due.

8. Taxes on Income:

Tax is determined in accordance with the tax laws applicable for the year.

II. BALANCE SHEET:

9. Preference Share Capital:

Particulars of privately placed redeemable Cumulative Non-Convertible Preference Shares

The period of redemption of cumulative redeemable preference shares issued by the Company, which was originally, due for redemption on 27.12.2000 was extended with the consent of preference shareholder in terms of Section 106 of the Companies Act, 1956. As per revised terms the shares are redeemable after 36 months from the date they become originally due for redemption i.e. on 27.12.2003.

10. Secured Loans:

(A) Bonds: Secured by the hypothecation of Fixed Assets, Loans and Advances, unquoted investments, lease receivables and Stock on Hire other than charged/hypothecated to secured lenders and income receivables by the Company for the business contracts for UTI Bank both present and future as may be notified from time to time.

(B) From Banks:

Secured by hypothecation of vehicles and machinery covered by Hire Purchase/Lease Agreement by a deed of hypothecation in favour of a consortium of banks ranking pari-passu inter se.

(C) From Companies:

The other secured loans are secured by immovable properties of the Company at Mumbai and Kozhicode and receivables from specific party.

(D) In regard to the security offered to the secured lenders in the form of charge on various receivables, inspite of the difficulties faced by the management in the recovery of the receivables, the management is confident of eventually recovering these dues and hence in the opinion of the management there is no potential sacrifice on adequacy of security at present. Hence taking into consideration of the management the secured lenders are considered as adequately secured.

---

Mar 31, 2010

1. Financial Statements are prepared under the historical cost convention, in accordance with Accounting Standards applicable in India, issued by The Institute of Chartered Accountants of India (ICAl) and Directions prescribed by the Reserve Bank of India for Non-Banking Financial Companies.

2. Valuation of Fixed Assets:

Fixed assets are carried at cost or revalued value less accumulated depreciation. Assets on lease are further stated net of balance in the Lease Terminal Adjustment Account.

3. Valuation of Investments:

Long-term investments are stated at cost and provision for decline in value, other than temporary, has been considered wherever necessary.

4. Valuation of Stock on Hire:

Stock on Hire stated at aggregate of:

a Agreement value less amount received

b. Cost of re-acquiring the securitised contracts

c. Cost of acquiring the receivables

d The additional finance charges accrued less amount received and e. The other charges recoverable from the hirer.

5. Income recognition:

a. Income in respect of Hire purchase and Lease:

i. Finance Charges in respect of Hire Purchase is accounted in proportion to outstanding installments bearing to the sum of total installments, which is similar to the apportionment based on implicit rate.

ii. Lease income is accounted as per the terms of the lease agreements.

iii. Additional Finance Charges are recognised on receipt basis or at the time of new facilities granted or on securitisation. iv. Other charges i.e., cheque dishonored charges, insurance are recognized on accrual basis.

b. Incomes from Services are recognized on accrual basis.

6. Depreciation/Amortisation:

a. Own Asset: Depreciation is provided on "Straight line" basis at rates prescribed in Schedule XIV to the Companies Act, 1956. Assets costing Rs.5,000/- or less have been fully depreciated.

b. Leased Assets: Cost less the residual value is depreciated over the lease period on "Straight line" basis. As recommended in the Guidance Note on Accounting for leases (Revised) issued by 1CAI lease equalisation account, which represents the excess of annual lease charges over statutory depreciation is deducted from lease income.

7. Retirement Benefits:

Contribution to Provident fund is made monthly at predetermined rate to the provident fund authorities for eligible persons and accounted on accrual basis. In respect of the Gratuity, contribution is made to Life Insurance Corporation of India (LIQ through an independent trust. Contribution is charged to profit and loss account as they become due. Premium is paid on the basis of actuarial valuation made by LIC. In respect of the superannuation, contribution at predetermined rate is made to LIC; contribution is charged to profit and loss account as they become due.

8. Taxes on Income:

Tax is determined in accordance with the tax laws applicable for the year.