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

accordance with the provisions of Accounting Standard – 11 (AS 11) issued by theInstitute of Chartered Accountants of India.Foreign Currency Liabilities swapped into Indian Rupees are stated at the referencerates fixed in the swap transactions, and not translated at the year end rate.c) Exchange Differencesi) Exchange differences arising on the actual settlement of monetary assets andliabilities at rates different from those at which they were initially recorded duringthe year, or reported in previous financial statements, other than the exchangedifferences on settlement of foreign currency loans and interest thereon recoverableseparately from the lessee under the lease agreements, are recognised as income orexpenses in the year in which they arise.ii) In respect of forward exchange contracts, the difference between the forward rateand exchange rate on the date of transaction are recognised as income or expensesover the life of the contract.IV. InvestmentsInvestments are classified into long term investments and current investments based onintent of Management at the time of making the investment. Investments intended to beheld for more than one year, are classified as long-term investments.Current investments are valued at the lower of the cost or the market value. Long-terminvestments are valued at cost unless there is depreciation, other than temporary, in theirvalue.V. Leased AssetsLease arrangements where the risks and rewards incidental to ownership of an assetsubstantially vest with the lessee, are recognised as financial leases and are shown asReceivable in the Balance Sheet at an amount equal to the net investment in the lease, inaccordance with Accounting Standard -19 ‘Leases’ issued by the Institute of CharteredAccountants of India.VI. Fixed AssetsFixed assets are stated at cost, less accumulated depreciation. Cost includes all expensesincurred to bring the assets to their present location and condition.Depreciation on fixed assets is charged on straight line method at the rates prescribed inSchedule XIV to the Companies Act, 1956, on pro-rata basis.VII. (a) Securitisation of Lease ReceivablesLease Receivables securitised out to Special Purpose Vehicle in a securitisation transactionare de-recognised in the balance sheet when they are transferred and consideration hasbeen received by the Company. In terms of the guidelines on Securitisation of StandardAssets issued by the Reserve Bank of India vide their circular no.DBOD.No.B.P.BC.60/21.04.048/2005-06 dated 1 st February 2006, the Company amortisesany profit arising from the securitisation over the life of the Pass Through Certificates(PTCs) / Securities issued by the Special Purpose Vehicle (SPV). Loss, if any, is recognisedimmediately in the Profit & Loss Account.