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

6) Fixed AssetsFixed assets are stated at cost, less accumulated depreciation. Cost include allexpenses incurred to bring the assets to their present location and condition.Depreciation on fixed assets is charged on straight line method at the rates prescribedin Schedule XIV to the Companies Act, 1956, on pro-rata basis.7) (a) Securitisation of Lease ReceivablesLease Receivables securitised out to Special Purpose Vehicle in a securitisationtransaction are de-recognised in the balance sheet when they are transferred andconsideration has been received by the Company. In terms of the guidelines onSecuritisation of Standard Assets issued by the Reserve Bank of India vide their circularno.DBOD.No.B.P.BC.60/21.04.048/2005-06 dated 1 st February 2006, the Companyamortises any profit arising from the securitisation over the life of the Pass ThroughCertificates (PTCs) / Securities issued by the Special Purpose Vehicle (SPV). Loss, ifany, is recognised immediately in the Profit & Loss Account.(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.8) Bond Issue Expenses and Expenses on Loans, Leases and Securitisation Transactiona) Bond Issue expenses including management fee on issue of bonds (except discounton deep discount bonds) incurred during the year are charged to Profit and LossAccount. Upfront discount on deep discount bonds is amortised over the tenor of thebonds.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 transactionexecuted during the year are charged to the Profit and Loss Account.9) Taxes on IncomeTax expense comprises of Current Tax and Deferred Tax.Provision for current income tax is made in accordance with the provisions of theIncome Tax Act, 1961.Deferred tax expense or benefit is recognised on timing differences, being thedifference between taxable incomes and accounting income, that originate in oneperiod and are capable of reversal in one or more subsequent periods. Deferred taxassets and liabilities are measured using the tax rates and tax laws that have beenenacted or substantively enacted by balance sheet date.