Statement of Assets and Liabilities for last Five Years and Latest ...

Significant Accounting policies and Other Notes on AccountsA. Significant Accounting PoliciesHalf Year Ended 30 th September, 2012Annexure – VI. Basis for preparation of Financial Statementsa) The financial statements are prepared under the historical cost convention, in accordance withthe Generally Accepted Accounting Principles, provisions of the Companies Act, 1956 and theapplicable guidelines issued by the Reserve Bank of India as adopted consistently by theCompany.b) Use of EstimatesPreparation of financial statements in conformity with Generally Accepted Accounting Principlesrequires Management to make estimates and assumptions that affect the reported amounts ofasset and liabilities, disclosure of contingent assets and liabilities at the date of the financialstatements and the reported amounts of revenue and expenses during the reporting period.Examples of such estimates include estimated useful life of fixed assets and estimated useful lifeof leased assets. The Management believes that estimates used in the preparation of financialstatements are prudent and reasonable. Actual results could differ from these estimates.Adjustments as a result of differences between actual and estimates are made prospectively.II. Revenue Recognitiona) Lease Income in respect of assets given on lease (including assets given prior to 01‐04‐2001) isrecognised in accordance with the accounting treatment provided in Accounting Standard ‐19.b) Lease Rentals on assets taken on lease and sub‐leased to Ministry of Railways (MOR) prior to01.04.2001, are accounted for at the rates of lease rentals provided in the agreements with therespective lessors and the sub‐lessee (MOR), on accrual basis, as per the Revised Guidance Noteon accounting for Leases issued by the Institute of Chartered Accountants of India (ICAI).c) Interest Income is recognised on time proportion basis. Dividend Income is recognised when theright to receive payment is established.d) Income relating to non performing assets is recognised on receipt basis in accordance with theguidelines issued by the Reserve Bank of India.III. Foreign Currency Transactionsa) Initial RecognitionInitial recognition is done at the rates prevailing on the date of transaction:i) for acquisition of assets, andii) for interest payment on Loans, Commitment Charges and expenses.b) Recognition at the end of Accounting PeriodForeign Currency monetary assets and liabilities, other than the foreign currency liabilitiesswapped into Indian Rupees, are reported using the closing exchange rate in accordance with