Accounting Policies of United Leasing & Industries Ltd. Company

Mar 31, 2024

Note-20 Significant Accounting Policies

1. Basis of preparation

The financial statements are prepared under the historical cost convention, on an accrual
basis and comply with the Accounting Standards (AS) specified under section 133 of
Companies Act, 2013, read with the Rule 7 of Companies (Accounts) Rules, 2014. The
preparation of financial statements requires the management to make the estimates and
assumptions considered in the reported amounts of asset and liabilities (including
contingent liabilities) as of the date of the financial statements and reported income and
expenses. The management believes that the estimates used in the preparation of the
financial statements are the prudent and reasonable. Future results could differ from these
estimated.

2. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation/amortization (including other
expenses related to acquisition and installation) adjusted by revaluation of certain fixed
assets.

3. Depreciation / Amortization:

Depreciation is provided on a pro-rata basis on straight line method over the estimated useful lives
of the assets determined by Schedule II of the Companies Act,2013, except for certain assets
where lower useful life has been used and for which technical evaluation has been made by the
Management. The useful life adopted is as under:

4. Investments:

Current investments are stated at lower of cost or market value. Long-term investments are
stated at cost. Provision for diminution in value of long-term investments is made only if
such a decline is other than temporary in the opinion of the management.

5. Inventories:

Inventories are valued at the lower of Cost or Net Realizable Value except stores & spares
which is valued at cost.

6. Revenue Recognition:

Sales are accounted for on accrual basis. Interest income from deposits and loans &
advances and is recognized on accrual basis.

7. Retirement Benefit:

Provident fund is accounted for on accrual basis while Leave Encashment & Gratuity is
accounted for on cash basis.

8. Foreign currency transactions:

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the
exchange rate between the reporting currency and the foreign currency at the date of the
transaction to the foreign currency amount.

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Mar 31, 2015

1. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation/amortization (including other expenses related to acquisition and installation) adjusted by revaluation of certain fixed assets.

2. Depreciation / Amortization:

Depreciation is provided on a pro-rata basis on straight line method over the estimated useful lives of the assets determined by Schedule-II of the Companies Act,2013, accept for certain assets where lower useful life has been used and for which technical evaluation has been made by the Management.The useful life adopted is as under :

Depreciation of Assets Useful life (in Years)

Factory Building 30

Plant & Machinery 15

Furniture & Fixtures 10

Office Equipments 5

Computers 6

Vehicles 10

A.C.& A.C.Equipments 15

3. Investments:

Current investments are stated at lower of cost or market value. Long-term investments are stated at cost. Provision for diminution in value of long term investments is made only if such a decline is other than temporary in the opinion of the management.

4. Inventories:

Inventories are valued at the lower of Cost or Net RealizableValue except stores & spares which is valued at cost.

5. Revenue Recognition:

Sales are accounted for on accrual basis. Interest income from deposits and loans & advances and is recognized on accrual basis.

6. Retirement Benefit:

Provident fund is accounted for on accrual basis while Leave Encashment & Gratuity is accounted for on cash basis.

7. Foreign currency transactions:

Initial Recognition

Foreign currency transactions are recorded in the reporting currency, by applying the exchange rate between the reporting currency and the foreign currency at the date of the transaction to the foreign currency amount.

8. Provision for Current and Deferred Tax:

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per Income Tax Act, 1961. Deferred tax resulting from "timing difference" between book and taxable profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is reasonable certainty that the assets will be adjusted in future.

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Mar 31, 2014

1.1 Income from Finance Operation is distributed over the period of the contract.

1.2 Depreciation for the year has been provided on straight line basis as per Schedule-XIV of the Companies Act,1956.

1.3 Fixed Assets are stated at acquisition cost less accumulated depreciation.

1.4 Fixed Assets include assets given on lease which have been abandoned with lessees and have virtually no realizable value.

1.5 Investments are valued at cost.

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Mar 31, 2013

1.1 Income from finance operation is distributed over the period of the contract.

1.2 Depreciation for the year has been provided on straight line basis as per Schedule-XIV of the Companies Act, 1956.

1.3 Fixed assets are stated at acquisition cost less accumulated depreciation.

1.4 Fixed assets include assets given on lease which have been abandoned with lessees and have virtually no realizable value.

1.5 Investments are valued at cost.

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Mar 31, 2011

A) Income from Finance Operation is distributed over the period of the contract.

b) Depreciation for the year has been provided on straight line basis as per Schedule-XIV of the Companies Act, 1956.

c) Fixed Assets are stated at acquisition cost less accumulated depreciation.

d) Fixed Assets include Assets given on Lease which have been abandoned with Lesses and have virtually no realizable value.

e) Investments are valued at cost.

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Mar 31, 2010

A) Income from Finance Operation is distributed over the period of the contract.

b) Depreciation for the year has been provided on straight line basis as per Schedule-XIV of the Companies Act, 1956.

c) FixedAssets are stated at acquisition cost less accumulated depreciation.

d) Fixed Assets include Assets given on Lease which have been abandoned with Lesses and have virtually no realizable value.

e) Investments are valued at cost.

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Mar 31, 2005

A) Income from Finance Operation is distributed over the period of the contract.

b) Lease Income is accounted for by accruing Lease Rentals for the year.

c) Depreciation for the year has been provided on straight Line basis as per Schedule-XIV of the Companies Act 1956.

d) Fixed Assets are stated at acquisition cost less accumulated depreciation.

e) Investments are valued at cost.

f) Raw Materials are valued at cost

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Mar 31, 2004

A) Income from Finance Operation is distributed over the period of the contract.

b) Lease Income is accounted for by accruing Lease Rentals for the year.

c) Depreciation

i) Depreciation for the year has been provided on straight Line basis as per Schedule-XIV of the Companies Act 1956.

ii) In respect of Leased Assets disposed off, additional depreciation is provided in the year of disposal to bring the written down value of the assets in question to the same value as its consideration.

d) Fixed Assets are stated at acquisition cost less accumulated depreciation.

e) Investments are valued at cost.

f) Raw Materials are valued at cost.

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Mar 31, 2003

A) Income from Finance Operation is distributed over the period of the contract.

b) Lease Income is accounted for by accruing Lease Rentals for the year.

c) i) Depreciation for the year has been provided on straight line basis as per Schedule - XIV to the Companies Act, 1956.

ii) In respect of Leased Assets disposed off, additional depreciation is provided in the year of disposal to bring the written down value of the asset in question to the same value as its consideration.

d) Fixed Assets are stated at acquisition cost less accumulated depreciation.

e) Investments are valued at cost.

f) Preliminary Expenses are written off in equal instalments over 10 years.

g) Raw Material is valued at cost and Work in Progress is valued at lower of estimated cost or net realisable value.

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Mar 31, 2002

A) Income from Finance Operation is distributed over the period of the contract.

b) Lease Income is accounted for by accruing lease rentals for the year.

c) i) Depreciation for the year has been provided on straight line basis as per Schedule - XIV to the Companies Act, 1956.

ii) In respect of leased assets disposed off, additional depreciation is provided in the year of disposal to bring the written down value of the asset in question to the same value as its consideration.

d) Fixed Assets are stated at acquisition cost less accumulated depreciation.

e) Investments are valued at cost.

f) Preliminary Expenses are written off in equal instalments over 10 years.

g) Raw Material is valued at cost and Work in Progress is valued at lower of estimated cost or net realisable value.

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Mar 31, 2001

A) Income from Finance Operation is distributed over the period of the contract.

b) Lease Income is accounted for by accruing lease rentals for the year.

c) i) Depreciation for the year has been provided on straight line basis as per Schedule - XIV to the Companies Act, 1956 except on lease assets where no income is accruing.

ii) In respect of leased assets disposed off.additional depreciation is provided in the year of disposal to bring the written down value of the asset in question to the same value as its consideration.

d) Fixed Assets are stated at acquisition cost less accumulated depreciation.

e) Investments are valued at cost.

f) Preliminary Expenses are written off in equal instalments over 10 years.

g) Gratuity is accounted for on accrual basis.

h) Raw Material is valued at cost and Work in Progress is valued at lower of estimated cost or net realisable value.