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

Further, in terms of Draft Guideline on minimum holding period and minimum retentionrequirement for securitisation transaction undertaken by NBFCs dated June 3, 2010, thecompany has opted for investment in SPV’s equity tranche of minimum 5% of the bookvalue of loan being securitised.(b) Assignment of Lease ReceivablesLease Receivables assigned through direct assignment route are de-recognised in thebalance sheet when they are transferred and consideration has been received by theCompany. Profit or loss resulting from such assignment is accounted for in the year oftransaction.VIII. Bond Issue Expenses and Expenses on Loans, Leases and SecuritisationTransactiona) Bond Issue expenses including management fee on issue of bonds (except discount ondeep discount bonds) incurred during the year are charged to Profit and Loss Account.Upfront discount on deep discount bonds is amortised over the tenor of the bonds.b) Documentation, processing & other charges paid on Long Term Loans are charged tothe Profit & Loss Account in the year loan is sanctioned / availed.c) Incidental expenses incurred in connection with the Securitisation transaction executedduring the year are charged to the Profit and Loss Account.IX. Taxes on IncomeTax expense comprises Current Tax and Deferred Tax.Provision for current income tax is made in accordance with the provisions of the IncomeTax Act, 1961.Deferred tax expense or benefit is recognised on timing differences, being the differencebetween taxable incomes and accounting income, that originate in one period and arecapable of reversal in one or more subsequent periods. Deferred tax assets and liabilitiesare measured using the tax rates and tax laws that have been enacted or substantivelyenacted by the balance sheet date.X. Employee BenefitsEmployee Benefits are valued and disclosed in the Annual Accounts in accordance withAccounting Standard -15 (Revised):a) Short-term employee benefits are recognised as an expense at the undiscountedamount in the Profit & Loss Account of the year in which the employees haverendered services entitling them to contributions.b) Long-term employee benefits are recognised as an expense in the Profit & LossAccount for the year in which the employee has rendered services. The expense isrecognised at the present value of the amount payable as per actuarial valuations.Actuarial gain and losses in respect of such benefits are recognised in the Profit andLoss Account.XI. Provisions, Contingent Liabilities and Contingent AssetsThe Company recognises provisions when it has a present obligation as a result of a pastevent. This occurs when it becomes probable that an outflow of resources embodying