Accounting Policies of Franklin Leasing & Finance Ltd. Company

Mar 31, 2024

Note 3: Summary of significant accounting

This note provides a list of the significant accounting policies adopted in the preparation of these financial statements. These policies
have been consistently applied to all the years presented, unless otherwise stated.

Revenue recognition

(i) Interest income

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be
reliably measured. Interest is recognised on a time proportion basis taking into account the amount outstanding and the rate applicable.

(ii) Dividend income

Dividend income on equity shares is recognised when the Company''s right to receive the payment is established, which is generally
when shareholders approve the dividend.

(iii) Other income

Other revenues are recognised as per applicable and relevant Ind AS.

(iv) Taxes

Incomes are recognised net of the Goods and Service Tax, wherever applicable.

Expenditures

(i) Finance Costs

Borrowing costs on financial liabilities are recognised as per relevant Ind AS.

(ii) Depreciation, Amortization and impairment

Depreciation has been provided using the written down value method as per the rates prescribed under schedule II of the Companies
Act, 2013.

(iii) Taxes

Expenses are recognised net of the Goods and Services Tax/Service tax, except where the input tax is not statutorily permitted.

Cash and cash equivalents

Cash and cash equivalents include cash on hand, other short term, highly liquid investments with original maturities of three months or
less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

Financial instruments

Financial intruments, comprising of financial assets and liabilities are being recorded as per relevant Ind AS and the changes in significant
changes (increase or decrease) in the credit risk are being monitored and accordingly impairment on financial instruments is recoginsed
against such instruments as per relevant Ind AS.

Investments

The policy opted for recording investments is at amortised cost as per the relevant Ind AS.

Taxes

(i) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from ot paid to the taxation authorities, in
accordance with the Income Tax Act, 1961.

(ii) Deferred tax

Deferred tax is provided using the Balance sheet approach on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date.Deferred tax liabilities are recognised for all taxable
temporary differences and deferred tax assets are recognised for deductible temporary differences to the extent that it is probable that
taxable profits will be available against which the deductible temporary differences can be utilised.

Inventories

Inventories of shares have been recorded at lower of cost and net realisable value as per relevant Ind AS.Net realisable value is the
estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the
sale.

Property, plant and equipment

Property, plant and equipment are carried at historical cost (amortised cost) of acquisition less accumulated depreciation and impairment
losses, consistent with the criteria specified in Ind AS 16 ''Property, Plant and equipment''.

Impairment of financial assets

The policy opted for recoginsing impairment on financial instruments is as per the Expected Credit loss in n coming financial years and
accordingly financial assets are categorised are monitored upon for their timely recovery and resultanlty the Expected Credit loss is
provided for.

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Mar 31, 2018

1. Summary of significant accounting policies

a. Changes in accounting policy

There is no change in accounting policy compared to previous year. The company has also reclassified previous year’s figure in accordance with the requirements applicable for the current year.

b. Use of estimates

The preparation of Financial Statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current event and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period.

c. Revenue recognition

Having regard to the size, nature and level of operation of the business, the company is applying accrual basis of accounting for recognition of income earned and expenses incurred in the normal course of business.

d. Fixed assets:

The company does not have any Fixed Assets at the end of the year.

e. Inventories

The company have inventories to the tune of Rs.48,89,512/-. Proper records of the inventories have been kept by the company. Inventories have been valued at cost or net realizable value whichever is lower.

f. Depreciation

The company charged depreciation on its fixed assets on WDV method as per rates prescribed under Schedule II of the Companies Act, 2013. But as the company does not have any fixed assets hence no depreciation was provided during the year.

g. Taxes on income

Current taxes on income have been provided by the Company in accordance with the relevant provisions of the Income Tax Act, 1961. Deferred Taxes has been recognised on timing differences between accounting income and taxable income subject to consideration of prudence.

Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed depreciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realize the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date.

h. Provisions and Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resource embodying economic benefits will be require to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are review at the end of each reporting date and adjusted to reflect the current best estimates.

There is no Contingent Liabilities or Contingent Assets during the year.

i. Earning Per Share

Basic Earning per Share has been calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted Earning per Share has been computed by dividing the net profit after tax by the weighted average no. of equity shares considered for deriving basic Earning per Share and also the weighted average no. of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

j. Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, cash at bank and short term investments with the original maturity of three months or less.

k. Previous year figures

The company has reclassified previous year figures to conform to current year''s classification.

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Mar 31, 2016

1. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under Companies Act 2013.

The financial statements have been prepared on accrual basis and under the historical cost convention. The accounting policies not specifically referred, are consistently applied from the past accounting periods.

2. Summary of significant accounting policies

a. Changes in accounting policy

There is no change in accounting policy compared to previous year. The company has also reclassified previous year''s figure in accordance with the requirements applicable for the current year.

b. Revenue recognition

Having regard to the size, nature and level of operation of the business, the company is applying accrual basis of accounting for recognition of income earned and expenses incurred in the normal course of business.

c. Fixed assets:

Fixed Assets are valued at cost of purchase and/or construction as increased by necessary expenditure incurred to make them ready for use in the business. During the year, the book value of the assets have become NIL. Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful lives as specified in Schedule II. Accordingly, carrying value is depreciated over the revised remaining useful lives.

d. Inventories

The company does have minimal Inventories during the year of which proper records have been maintained.

e. Depreciation

The company charged depreciation on its fixed assets on WDV method based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

f. Taxes on income

Current taxes on income have been provided by the Company in accordance with the relevant provisions of the Income Tax Act, 1961. Deferred Taxes has been recognized on timing differences between accounting income and taxable income subject to consideration of prudence.