Tirupati Fin-Lease Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2024

1 Corporate Information

Tirupati Finlease Limited ("The Company") Is a public limited company Incorporated and domiciled in
India. The Business of our Company is TRADING & INVESTMENT IN SHARES & SECURITIES & FINANCE
having principal place of business at B/10 MADHAVPURA MARKET, SHAHIBAUG,AHMEDABAD.

1.1 Statement of compliance

The financial statements of the Company have been prepared in accordance with Indian Accounting
Standards (Ind AS) notified under the section 133 of the Companies Act 2013, read together with the
Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act.

1.2 Basis of preparation and presentation

The financial statements have been prepared and presented under the historical cost convention on
an accrual basis of accounting except for Defined Benefit Plan measured at fair value.

1.3 Functional and Presentation Currency

The financial statements are presented in Indian Rupees, the currency of the primary economic
environment in which the Company operates.

1.4 Use of estimates and judgements

The preparation of financial statements are In conformity with the recognition and measurement
principles of Ind AS which requires management to make critical judgments, estimates and
assumptions that affect the reporting of assets, liabilities, income and expenditure.

Estimates and underlying assumptions are reviewed on an ongoing basis and any revisions to the
estimates are recognized in the period in which the estimates are revised and future periods are
affected.

1.5 Foreign currency transactions

No Such Transaction where reported

1.6 Property, plant and equipment

Property, plant and equipment are carried at cost less accumulated depreciation and impairment
losses, if any. The cost of property, plant and equipment comprises its purchase price net of any trade
discounts and rebates, any import duties and other taxes (other than those subsequently recoverable
from the tax authorities).

Pre-operative expenditure comprising of revenue expenses incurred in connection with project
implementation during the period upto commencement of commercial production are treated as part
of the project costs and are capitalized. Such expenses are capitalized only if the project to which they
relate, involve substantial expansion of capacity or upgradation.

An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from its use. Difference between the sales proceeds and the carrying
amount of the asset Is recognized in statement of profit and loss.

1.7 Depreciation

Depreciation on all fixed assets Is provided on Written Down Value as per the useful life prescribed in
Schedule II to the Companies Act, 2013. Depreciation on Property, plant and equipment
purchased/acqulred during the year is provided on pro-rata basis according to the period each asset
was put to use during the year. Similarly, depreciation on assets sold/discarded/demolished during the
year is provided on pro-rata basis.

1.8 Inventories

Inventories are valued at the lower of cost and net realizable value. The cost incurred in bringing the
inventory to their existing location and conditions are determined as follows:

(a) Raw materials are valued at cost (Weighted average cost method) or net realizable value,
whichever is lower.

(b) Finished goods are valued at cost or net realizable value whichever is lower. Cost thereof is
determined on absorption costing method.

(c) Packing materials are valued at cost by using FIFO method.

(d) Fuel is valued at cost by using Weighted Average method.

The cost of purchase of inventories comprise the purchase price, import duties and other taxes (other
than those subsequently recovered by the company from tax authorities) and transport, handling and
other costs directly attributable to bringing the inventory to their existing location and conditions.
Trade discounts, rebates and other similar items are deducted in determining the costs of purchase.

Net realizable value is the estimated selling price in the ordinary course of business less the estimated
costs of completion and the estimated costs necessary to make the sales.

1.9 Financial instruments
Borrowings

Borrowings are measured at amortized cost using effective interest method.

Trade Receivables

Trade receivables are amounts due from customers for sale of goods or services performed in the
ordinary course of business. Trade receivables are initially recognized at its transaction price which is
considered to be its fair value and are classified as current assets as it is expected to be received
within the normal operating cycle of the business.

Trade Payables

Trade payables are amounts due to vendors for purchase of goods or services acquired in the ordinary
course of business and are classified as current liabilities to the extent It is expected to be paid within
the normal operating cycle of the business.

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De-recognition of financial assets and liabilities

The Company derecognizes a financial asset when the contractual right to the cash flows from the
asset expires or it transfers the rights to receive the contractual cash flows on the financial asset in a
transaction which substantially all the risk and rewards of ownership of the financial asset are
transferred. If the Company retains substantially all the risk and rewards of ownership of a transferred
financial asset, the Company continues to recognize the financial asset and also recognizes a
collateralized borrowing for the proceeds received.

The Company derecognizes a financial liability when its contractual obligations are discharged,
cancelled or expired; the difference between the carrying amount of derecognized financial liability
and the consideration paid is recognized as profit or loss.

Impairment of financial assets

A financial asset is assessed at each reporting date to determine whether there is any objective
evidence indicating impairment. A financial asset is considered to be impaired, if objective evidence
indicates that one or more events had a negative effect on the estimated future cash flows of that
asset.

1.10 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and term deposits
with an original maturity of three months or less, which are subject to an insignificant risk of changes
in value.

1.11 Revenue Recognition

The income From operation for companies sales of shares and securities and other income are all
accounted on the accrual basis. It has applied the principles laid down in Ind AS 115 and determined
that there is no change required in the existing revenue recognition methodology.

Interest income from a financial asset is recognized when it is probable that the economic benefits will
flow to the Company and the amount of income can be measured reliably. Interest income is accrued
on a time basis. Dividend income is accounted for when the right to receive it is established.

1.12 Taxes

Income tax expense comprises current and deferred tax expense. Income tax expenses are recognized
in statement of profit and loss, except when they relate to items recognized in other comprehensive
income or directly in equity, in which case, Income tax expenses are also recognized in other
comprehensive income or directly in equity respectively.

1.13 Employee Benefits

No Such Cost incurred

1.14 Borrowing cost

Borrowings costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for the intended use or sale.

All other borrowing costs are recognized as expenses in the period in which it is incurred.

1.15 Earning per share

Basic Earnings per share is computed by dividing the profit/(loss) after tax (including the post-tax
effect of extraordinary items, if any) by the weighted average number of equity shares outstanding
during the year. Diluted Earnings per share is computed by adjusting the profit/(loss) after tax
(including the post-tax effect of extraordinary items, if any) by the weighted average number of equity
shares outstanding for the effects of all dilutive potential equity shares.

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Mar 31, 2014

1 Corporate information

The Business of our Company is TRADING & INVESTMENT IN SHARES & SECURITIES & FINANCE having principal place of business at B/10 MADHAVPURA MARKET, SHAHIBAUG.AHMEDABAD.

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). The order of presentation may be customised for each Company.

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Inventories

Inventories are valued on the basis of Fifo method at the market prise as on 31/03/2014 after providing for obsolescence and other losses, where considered necessary. When market prise is not available then valued at rupees 1 or 2.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. A Cash and cash equivalents includes Foreign currency on hand at the end of year.

2.5 Depreciation and amortisation

Depreciation has been provided on the WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.Assets costing less than " 5,000 each are fully depreciated in the year of capitalisation.

2.6 Revenue recognition Sales

The income From operation for companies sales of shares and securities and other income are all accounted on the accrual basis.

2.7 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.8 Tangible fixed assets

Fixed assets, except Capital work in Progress are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in the project cost till commissioning of the project.

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in- progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

2.9 Intangible assets

Intangible assets are computer Software which is recorded at cost less accumulated depriciation.

2.10 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets. Impairment of investment property is determined in accordance with the policy stated for Impairment of Assets.

2.11 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

2.12 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss

2.14 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

a) Sales and Purchase of shares are accounted on the basis of the transaction made at national, Bombay and ahmedabad stock exchange of the completed valans.

b) All debit and credit balances and accounts squared up during the year are subject to confirmation from respective parties.

c) In the opinion of the Board of Directors, Current Assets, loans & Advances are approximately of the value at which these are stated in the Balance Sheet, if realized in the ordinary course of business.

d) Break up of the accumulated deferred tax liability/assets:

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Mar 31, 2013

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). The order of presentation may be customised for each Company.

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention.The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Inventories

Inventories are valued on the basis of Fifo method at the market prise as on 31/03/2013 after providing for obsolescence and other losses, where considered necessary. When market prise is not available then valued at rupees 1 or 2.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. A Cash and cash equivalents includes Foreign currency on hand at the end of year

2.5 Depreciation and amortisation

Depreciation has been provided on the WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.Assets costing less than RS. 5,000 each are fully depreciated in the year of capitalisation

2.6 Revenue recognition

Sales

The income From operation for companies sales of shares and securities and other income are all accounted on the accrual basis.

2.7 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.8 Tangible fixed assets

Fixed assets, except Capital work in Progress are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in the project cost till commissioning of the project

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in- progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

2.9 Intangible assets

Intangible assets are computer Software which is recorded at cost less accumulated depreciation

2.10 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

Investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets Impairment of investment property is determined in accordance with the policy stated for Impairment of Assets.

2.11 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

2.12 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax Accordingly MAT s recognised as an asset in the Balance Sheet when it is probable that future economic berefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in ore or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date Deferred tax liabilities are recognised for all timing differences.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

2.14 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past everts and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.

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Mar 31, 2012

The significant accounting policies have been predominantly presented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) The order of presentation may be customised for each Company.

2.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on accrual basis under the historical cost convention .The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

2.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

2.3 Inventories

Inventories are valued on the basis of Fifo method at the market prise as on 31/03/2012 after providing for obsolescence and other losses, where considered necessary. When market prise is not available then valued at rupees 1 or 2.

2.4 Cash and cash equivalents (for purposes of Cash Flow Statement)

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. A Cash and cash equivalents includes Foreign currency on hand at the end of year.

2.5 Depreciation and amortisation

Depreciation has been provided on the WDV method as per the rates prescribed in Schedule XIV to the Companies Act, 1956.Assets costing less than ' 5,000 each are fully depreciated in the year of capitalisation.

2.6 Revenue recognition

Sales

The income From operation for companies sales of shares and securities and other income are all accounted on the accrual basis.

2.7 Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

2.8 Tangible fixed assets

Fixed assets, except Capital work in Progress are carried at cost less accumulated depreciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its intended use and other incidental expenses incurred up to that date. Exchange differences arising on restatement / settlement of long-term foreign currency borrowings relating to acquisition of depreciable fixed assets are adjusted to the cost of the respective assets and depreciated over the remaining useful life of such assets. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits from such asset beyond its previously assessed standard of performance.

Fixed assets acquired and put to use for project purpose are capitalised and depreciation thereon is included in the project cost till commissioning of the project.

Capital work-in-progress:

Projects under which assets are not ready for their intended use and other capital work-in-progress are carried at cost, comprising direct cost, related incidental expenses and attributable interest.

2.9 Intangible assets

Intangible assets are computer Software which is recorded at cost less accumulated depriciation.

2.10 Investments

Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

investment properties are carried individually at cost less accumulated depreciation and impairment, if any. Investment properties are capitalised and depreciated (where applicable) in accordance with the policy stated for Tangible Fixed Assets. Impairment of investment property is determined in accordance with the policy stated for Impairment of Assets.

2.11 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

2.12 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences.

Current and deferred tax relating to items directly recognised in equity are recognised in equity and not in the Statement of Profit and Loss.

2.14 Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes.