Accounting Policies of Abhishek Finlease Ltd. Company

Mar 31, 2024

[A] SIGNIFICANT ACCOUNTING POLICIES

1) BASIS OF PREPARATION OF FINANCIAL STATEMENT :-

The financial statements have been prepared under historical cost concept and on accrual
basis, unless otherwise stated. The Company follows accrual basis of accounting. The
accounting policies applied are consistent with those used in previous year.

All the purchase of shares and securities by the company are with a view of trading except
Shares purchased for investment purpose.

2) USE OF ESTIMATES:-

The preparation of financial statements in conformity with generally accepted accounting
policies requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent liabilities at the date of the
financial statements and the reported accounts of revenue and expenses for the years
presented. Actual results could differ from these estimates.

3) REVENUE RECOGNITION:-

Interests on Loans granted are accounted for on accrual basis. However interest on loans
treated as NPA, Substandard & Doubtful recognized only if and when it is actually realized.

The income in respect of dividend from shares is accounted for on cash basis.

Expenses incurred on legal proceedings for recovery of loans and for realization of security for
loans are charged to revenue account.

4) INVESTMENTS :-

Investments are being classified as long term Investments & Current Investments. Investment
intended to be held not more than one year is termed Current Investments. Long Term
investments are stated at cost. Long Term Quoted and Unquoted Investments are taken at cost.

5) FIXED ASSETS & DEPRECIATION :-

Property, Plant and Equipment''s are stated at cost less accumulated depreciation, and
impairment losses if any. Cost comprises the purchase price and any attributable cost of
bringing the asset to its working condition for its intended use.

Depreciable amount for property, plant and equipment is the cost of an asset, or other amount
substituted for cost, less its estimated residual value. Depreciation on property, plant and
equipment is provided on WDV method as per the useful life prescribed in Schedule II to the
Companies Act, 2013. The estimated useful lives and residual values of the Property, plant and
equipment are reviewed at the end of each financial year.

6) INVENTORIES :-

Stock in trade of shares and securities is valued at cost or market value whichever is lower
(where market value is available) however market quotation/values of some of the stock of
shares and securities is not available therefore such shares and securities have been valued at
cost and other have been valued at net realizable value estimated by the management without
verification thereof.

7) OTHER NOTES :-

1. Debtors and Creditors balances as appearing in the Balance-Sheet are subject to confirmation
by the respective parties.

2. (i) In respect of loans amounting to Rs. 45,40,477/- the Company has resorted to available legal

remedies, Civil and Criminal as advised, therefore parties has already given possession of
immovable properties for the said loans and hence, no provision has been made on such loan
in accordance with the Non Banking Financial Companies Prudential Norms(Reserve Bank)
Directions 2007. The management is in the process of recovering the dues by disposing off the
said security so offered. and received and in possession.

(ii) In respect of Loans and advances Rs.5, 52,960/- same become doubtful and management has
treat it Bed debts (Trading Loss).

(iii) Last year by Corporate action Sintex Industries 2160 shares is withdrawn from our company''s
Demat account hence balance become Nil. When company will give the credit of the shares
same will be reflected accordingly.

(iv) During the year company has sold shares worth rupees 3, 71,325/- of Manish N Shah PAN NO
AAKPS1679R which was received as a security against Loan amount and after selling the shares
amount has been credited against his loan account. Address of the Manish N Shah is 32, Prathna
Vihar, Opp.Manekbaug Post Office Ambavadi, Manekbaug , Ahmedabad-380015.

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Mar 31, 2014

1. BASIS OF ACCOUNTING :-

a) The financial statements have been prepared under historical cost concept and on accrual basis, unless otherwise stated.

b) All the purchase of shares and securities by the company are with a view of trading except Shares purchased for investment purpose.

2. REVENUE :-

a) Interests on Loan''s granted are accounted for on accrual basis. However interest on loans treated as NPA, Substandard & Doubtful recognised only if and when it is actually realised.

b) The income in respect of dividend from shares is accounted for on cash basis.

c) Expenses incurred on legal proceedings for recovery of loans and for realisation of security for loans are charged to revenue account.

3. INVESTMENTS

Long Term investments are stated at cost.

4. FIXED ASSETS & DEPRECIATION

Fixed assets are stated at their cost of acquisition including cost of installation and related cost.

The depreciation has been provided on written down value method (W.D.V.) at the rates specified in Schedule XIV to the Companies Act, 1956. On additions, pro-rata depreciation has been provided.

5. INVENTORIES :-

Stock in trade of shares and securities is valued at cost or market value whichever is lower (where market value is available) however market quotation/values of some of the stock of shares and securities is not available therefore such shares and securities have been valued at cost and other have been valued at net realizable value estimated by the management without verification there of.

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Mar 31, 2013

1. BASIS OF ACCOUNTING

a) The financial statements have been prepared under historical cost concept and on accrual basis, unless otherwise stated.

b) All the purchase of shares and securities by the company are with a view of trading except Shares purchased for investment purpose.

2. REVENUE

a) Interests on Loans granted are accounted for on accrual basis. However interest on loans treated as NPA, Substandard & Doubtful recognised only if and when it is actually realised.

b) The income in respect of dividend from shares is accounted for on cash basis.

c) Expenses incurred on legal proceedings for recovery of loans and for realisation of security for 'loans are charged to revenue account.

3. INVESTMENTS

Long Term investments are stated at cost.

4. FIXED ASSETS & DEPRECIATION *

Fixed assets are stated at their cost of acquisition including cost of installation and related cost. The depreciation has been provided on written down value method ( W.D.V. ) at the rates specified in Schedule XIV to the Companies Act, 1956. On additions, pro-rata depreciation has been provided.

5. INVENTORIES,

Stock in trade of shares and securities is valued at cost or market value whichever is lower (where market value is available) however market quotation/values of some of the stock of shares and securities is not available therefore such shares and securities have been valued at cost and other have been valued at net realizable value estimated by the management without verification there of.

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Mar 31, 2012

1. BASIS OF ACCOUNTING

a) The financial statements have been prepared under historical cost concept and on accrual basis, unless otherwise stated.

b) All the purchase of shares and securities by the company are with a view of trading except Shares purchased for investment purpose.

2. REVENUE

a) Interests on Loans granted are accounted for on accrual basis. However interest on loans treated as NPA, Substandard & Doubtful recognised only if and when it is actually realised.

b) The income in respect of dividend from Shares is accounted for on cash basis.

c) Expenses incurred on legal proceedings for recovery of loans and for realisation of security for loans are charged to revenue account.

3. INVESTMENTS

Long Term investments are stated at cost.

4. FIXED ASSETS & DEPRECIATION

Fixed assets are stated at their cost of acquisition including cost of installation and related cost. The depreciation has been provided on written down value method ( W.D.V.) at the rates specified in Schedule XIV to the Companies Act, 1956. On additions, pro- rata depreciation has been provided.

5. INVENTORIES

Stock in trade of shares and securities is valued at cost dr market value whichever is lower (where market value is available) however market quotation/values of some of the stock of shares and securities is not available therefore such shares and securities have been Valued at cost and other have been valued at net realizable value estimated by the management without verification there of.