Mar 31, 2018
Notes to Financial Statements Notel: Introduction
Apoorva Leasing Finance and Investement Co. Ltd. (''the Company'') is a public limited Company incorporated in India, with its registered office in New Delhi. The Company is listed on the Bombay Stock Exchange (BSE).
These financial statements of the Company for the year ended March 31, 2018 were authorised for issue by the Board of Directors on 30.05.2018.
Note2: BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES
Basis of preparation of financial statements
(a) Statement of Compliance
The financial statements have been prepared in accordance with the Indian Accounting Standards (''Ind AS'') notified under Companies (Indian Accounting Standards) Rules, 2015, as amended by Companies (Indian Accounting Standards) Rules, 2017 and the other relevant provisions of the Companies Act, 2013. For all the periods upto and including year ended March 31, 2017, the Company prepared, its financial statements in accordance with the Accounting Standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Previous Indian GAAP''J.The Company has adopted all issued Ind AS standards and the adoption was carried out in accordance with Ind AS 101. Reconciliation and explanations of the effect of the transition from Previous Indian GAAP to Ind AS on the Company''s Balance Sheet, Statement of Profit &Loss and Statement of Cash Flows are provided in Note No. 5 (10) (C), and the impact of the transition has been taken in the opening retained earnings on the date of transition i.e. 1st April, 2016.
(b) Historical Cost Convention
The financial statements have been prepared on a historical cost basis, except, certain financial assets and liabilities, measured at fair value (C) Functional and presentation currency
Items included in the financial statements of Company are measured using the currency of the primary economic environment in which the Company operates ("the functional currency"). Indian rupee is the functional currency of the Company.
The financial statements are presented in Indian Rupees which is the Company''s presentation in Indian Rupees has been rounded up to the nearestlacs except where otherwise indicated.
(d) Use of Estimates
The preparation of financial statements in conformity withlnd AS requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an ongoing basis.
Note No. 3: Recent Accounting Pronouncements
a. Amendment to Ind AS 7:
Effective April 1, 2017, the Company adopted the amendment to Ind AS 7, which require the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the Balance Sheet for liabilities arising from financing activities, to meet the disclosure requirement. The adoption of amendment did not have any material impact on the financial statements.
b. Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.
c. Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity''s contracts with customers.
The standard permits two possible methods of transition:
⢠Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors
⢠Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)
The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.
The new standards will be effective from April 1, 2018. The company is evaluating the requirements of the amendment and the effect on the financial statements is being evaluated.
Note No. 4: Significant Accounting Policies
The financial Statement have been prepared inconformity with generally accepted accounting principle to comply in all material respect with the notified accounting standards as prescribed section 133 of the companies Act, 2013 (''the Act'') read with relevant rules issued thereunder.
4.1 Operating Cycle
All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013 and Ind AS 1 - Presentation of Financial Statements based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents. The Company has identified twelve months as its operating cycle
4.2 Property, Plant and Equipment -Tangible Assets
Property, plant and equipment are stated at cost less accumulated depreciation and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by the management. The company depreciates property, plant and equipment over their estimated useful lives using the written down value method and the estimated useful lives of assets are as follows:
Assets |
Useful life (in years) |
Office Equipment |
5 years |
Computer Equipment |
3 yea rs |
Management believes that the useful lives as given above best represent the period over which the assets are expected to be used. Subsequent expenditures relating to property, plant and equipment are capitalized only when it is probable that future economic benefits associated with these will flow to the company and the cost of the item can be measured reliably. The cost and related accumulated depreciation are eliminated from the financial statements upon sale or retirement of the asset and the resultant gains or losses are recognized in the Statement of Profit and Loss.
4.3 Impairment of Assets
Property, plant and equipment are evaluated for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. For the purpose of impairment testing, the recoverable amount (i.e. the higher of the fair value less cost to sell and the value in use) is determined on an individual asset basis unless the asset does not generate cashflows that are largely independent of those from other assets. In such cases, the recoverable amount is determined for the CGU (Cash Generating Unit) to which the asset belongs.
4.4 Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Interest income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred. The company is not required to capitalize any amount during the financial year as borrowing cost.
4.5 Leases
Leases are classified as finance leases whenever the terms of the lease, transfers substantially all the risks and rewards of the ownership to the lessee. All other leases are classified as operating leases.
Company as a lessee
Operating lease payments are recognized as an expense in the statement of profit or loss account on straight line basis over the lease term.
Company as a lessor
Rental income from operating lease is recognized on straight line basis over the term of the relevant lease. Initial direct costs having substantial amount incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis as rental income. Contingent rents are recognized as revenue in the period in which they are earned.
Since company has not entered into any financial lease during the periods mentioned in financial statement, therefore no related policy provided here.
4.6 Accounting of Inventories
Inventories are stated at cost. The cost is calculated on FIFO weighted average method. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to its present location and condition and includes, where applicable, appropriate overheads based on normal level of activity. Obsolete, slow moving and defective inventories are identified from time to time and, where necessary, a provision is made for such inventories.
4.7 Investment in Properties
Property that is held for long- term rental yields or for capital appreciation or both, and that is not occupied by the Company, is classified as investment property. Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment property is measured at cost and accumulated impairment losses, if any. Subsequent costs are added to the carrying amount only when it is probable that it will increase its useful life. All other repairs and maintenance are charged to the Statement of Profit and Loss during the period in which they are incurred.
4.8 Investment in Subsidiaries and Associates
Investment in subsidiaries, associates and joint ventures are carried at cost less accumulated impairment, if any. Upon first-time adoption of Ind AS, the Company has elected to measure its investments in subsidiaries at Previous Indian GAAP''s carrying amount as its deemed cost on the date of transition to Ind AS i.e. 1st April, 2016.
4.9 Financial instruments, Financial assets, Financial liabilities and Equity Instruments
Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the relevant instrument and are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through profit or loss) are added to or deducted from the fair value on initial recognition of financial assets or financial liabilities. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date when the Company commits to purchase or sell the asset
4.9.1 Financial Assets Recognition:
Financial assets include Investments, Trade Receivables, Advances, Security Deposits, Cash and Cash equivalents. Such assets are initially recognised at transaction price when the Company becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss.
Classification:
Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification.
Financial assets are classified as those measured at:
(a) Amortized cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or interest.
(b) Fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are subsequently measured at fair value, with unrealized gains and losses arising from changes in the fair value being recognized in other comprehensive income.
(c) Fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealized gains and losses arising from changes in the fair value being recognized in the Statement of Profit and Loss in the period in which they arise.
Trade Receivables, Advances, Security Deposits, Cash and Cash equivalents etc. are classified for measurement at amortized cost while investments may fall under any of the aforesaid classes. However, in respect of particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at initial recognition may be made to present subsequent changes in fair value through other comprehensive income.
4.9.2 Debt Instruments:
a) Measured at mortised cost: Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely payments of principal and interest, are subsequently measured at amortized cost using the effective interest rate (''EIR'') method less impairment, if any. The amortization of EIR and loss arising from impairment, if any is recognized in the Statement of Profit and Loss.
b) Measured at fair value through other comprehensive income: Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognized in the other comprehensive income (OCI). Interest income measured using the EIR method and impairment losses, if any are recognized in the Statement of Profit and Loss. On derecognition, cumulative gain or loss previously recognized in OCI is reclassified from the equity to ''other income'' in the Statement of Profit and Loss.
c) Measured at fair value through profit or loss: A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL. Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any, recognized as ''other income'' in the Statement of Profit and Loss.
4.9.3 Equity Instruments:
All investments in equity instruments classified under financial assets are initially measured at fair value, the Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL.
The Company makes such election on an instrument-by-instrument basis. Fair value changes on an equity instrument are recognized as other income in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognized in OCI. Amounts recognized in OCI are not subsequently reclassified to the Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognized as ''other income'' in the Statement of Profit and Loss.
De-recognition:
Financial assets are de-recognized when the right to receive cash flows from the assets has expired, or has been transferred, and the Company has transferred substantially all of the risks and rewards of ownership, if the asset is one that is measured at:
(a) amortized cost, the gain or loss is recognized in the Statement of Profit and Loss;
(b) fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are reclassified to the Statement of Profit and Loss unless the asset represents an equity investment in which case the cumulative fair value adjustments previously taken to reserves is reclassified within equity.
4.10 Fair Value Measurement
The company measures financial instruments (investment in mutual funds and listed shares) at fair value at each balance sheet date.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:
(i) in the principal market for asset or liability, or
(ii) in the absence of a principal market, in the most advantageous market for the asset or liability.
The principal or the most advantageous market must be accessible by the company.
The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3-Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.
4.11 Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand and demand deposits with banks which are short-term, highly liquid investments that are readily convertible into cash and which are subject to an insignificant risk of changes in value.
Statement of Cash Flows and Cash and Cash Equivalents
Statement of cash flows is prepared in accordance with the indirect method prescribed in the relevant Accounting Standard. For the purpose of presentation in the Statement of cash flows, Cash and cash equivalents comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. In the balance sheet, bank overdrafts are shown within borrowings in current liabilities.
4.12 Revenue Recognition
a) Interest Income
In respect of loan, the income is accrued by applying the interest rate in the transaction on declining balance on the amount financed for the period of the agreement.
b) Dividend income on investments is accounted for as and when the right to receive the same is established.
c) Revenue is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of returns and discounts to customers. Revenue from the sale of goods is shown to include taxes such as VAT and Goods and Services Tax which are payable in respect of sale of goods and services. Revenue from the sale of goods is recognized when significant risks and rewards of ownership have been transferred to the customer, which is mainly upon delivery, the amount of revenue can be measured reliably and recovery of the consideration is probable.
4.13 Employee Benefits
The company has liability only on account of short term employee benefits to employees like Salary, wages which is accounted as expenses in the year of payment. As per Management, there is no liability of the company on account of Gratuity.
4.14 Provisions, contingents Liabilities and contingent Assets
I. A Provision is recognized when the company has present obligation as a result of past event and it is probable that outflow of resources will be required to settle the obligation and in respect of which a reliable estimate can be made. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.
II. Contingent Liabilities are disclosed separately by way of note to financial statements after careful evaluation by the managements of the facts and legal aspects of the matter involved in case of:
a) At present obligation arising from the past event, when it is not probable that an outflow of resources will be required to settle the obligation.
b) A possible obligation, unless the probability of outflow of resources is remote.
III. Contingent Assets are neither recognized, nor disclosed in the financial statements.
4.15 Taxation
Taxes on income comprise current taxes and deferred taxes. Current tax in the Statement of Profit and Loss is provided as the amount of tax payable in respect of taxable income for the period using tax rates and tax laws enacted during the period, together with any adjustment to tax payable in respect of previous years. Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation purposes (tax base), at the tax rates and tax laws enacted or substantively enacted by the end of the reporting period. Deferred tax assets are recognized for the future tax consequences to the extent it is probable that future taxable profits will be available against which the deductible temporary differences can be utilized. Income tax, in so far as it relates to items disclosed under other comprehensive income or equity, are disclosed separately under other comprehensive income or equity, as applicable. Deferred tax assets and liabilities are offset when there is legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on net basis, or to realize the asset and settle the liability simultaneously.
4.16 Earnings per share
Basic earnings per share is calculated by dividing the net profit or loss (including other comprehensive income) for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted averages number of equity shares outstanding during the year.
NOTES TO THE FINANCIAL STATEMENTS
Note-5
OTHERNOTESFORMINGPARTOFTHESTANDALONE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH, 2018
5.1 Previous year figures have been reworked, regrouped, & reclassified wherever necessary to confirm to the current year presentation.
5.2 In the opinion of Board of Director, the current Assets, loans & advances have a value on realization in the ordinary course of business at
least equal to the amount at which these are stated. Only Loan given to M/s Brys International Pvt. Ltd. of Rs. 500000/- is doubtful
5.3 During the year, the company has traded in Derivatives, and the company has suffered loss of Rs. 84,93,328/- from forex currency
trading and earn profit of Rs. 29,37,661/- from commodity trading.The turnover of these in Rs. 34,19,88,898/- from currency and Rs97,47,12,521 /- from commodity trading during the year. The Purchase of Forex currency trading Rs. 35,04,53,465/- and commodity trading Rs. 97,34,21,878/- during the year. The total purchase and sale figure of trading in future and option are huge figures of turnover which not is reflected in trading A/c keeping in consideration that the true and fair view of state of the affairs of the company would not look meaningful and will look potentially misleading as an indicator level of the company business. The company only included gross loss from trading in future and option operation in other expense as stated in note no 21 of the profit and loss account. This method is as per last year.
5.4 The company''s business activity falls within two primary/ secondary business segment viz. Financing & Derivatives Activity and the
income and expenses couldn''t be bifurcate of both activity hence The disclosure requirement of Ind AS-108"operating segment "notified by the central government under companies Act, is not applicable
5.5 Related Party Disclosure:
As per Ind AS-24 on related Party disclosure notified by the central government under the companies Act, there aresome related Party transactions during the year. The disclosure of related party transactions is as follows.
List of related Parties and relationships
Subsidiaries: |
Key Management Personnel (KMP) : |
Yukati E Services Limited |
Mr. Atul Singh Tyagi |
Cloud Business Advisory Limited |
Mrs. Anupama Singh Tyagi |
Space Height construction Pvt. Ltd. |
Ms. NikitaRohilla |
Associate: |
Mrs. Neha Nimja |
Antriksh Stocks and shares brokers Pvt. Ltd. |
Mr. Suresh |
Avancer Infra Solution Pvt. Ltd. |
Ms. Aditi Bhola |
Summer Infotech Pvt. Ltd.( Subsidiary as per section 2(87) (ii) of companies act 2013) |
Entities in which Key Management Personnel or their Relatives have significance influence |
Akshat Commodity Ltd. |
Solitare Satyam IT Park Pvt. Ltd. |
Related party Transaction
Nature of Transaction |
Subsidiaries |
Associate |
Entities in which Key Management Personnel or their Relatives have significance influence |
KMP |
Remuneration |
- |
- |
- |
4130792 |
Interest Income |
147739 |
24247099 |
360370 |
- |
Loans and advances Given |
3000000 |
34300000 |
10500000 |
- |
Purchase of Property |
- |
- |
- |
8200000 |
Closing Balances |
||||
Loans & Advances |
3000000 |
54110000 |
8100000 |
- |
Interest Receivable |
132965 |
956237 |
324333 |
- |
5.6 Earnings per Share "Ind AS-33" notified by the by the central government under the companies Act
Particulars |
Year ended March 31, 2018 |
|
(A) |
Profit after taxationas Statement of Profit and Loss (in Rupees) |
2,78,00,407 |
(B) |
Weight Average number of equity Shares outstanding during the year |
19,974,900 |
(C) |
Nominal value of Equity shares (in rupees) |
10.00 |
(D) |
Basic Earnings per Share |
1.39 |
(E) |
Diluted Earnings per share |
1.39 |
5.7 |
Payment to Auditor |
2017-2018 |
2016-2017 |
Audit Fee |
25,000/- |
15000/- |
5.8 Contingent Liabilities & Pending Litigation
a. There is a pending Income Tax case A.Y. 2011-12. The Income tax Department has issued the notice u/s 148 for reassessment of income for A.Y. 2011-12the case is still pending. The management is hopeful to get decision in favor of the company.
b. The company has received a notice from Registrar of the company for winding up of the company. There is no significant or material order passed during the year by any regulator, court or tribunal impacting the going concern status of the Company or its future operations.
5.9 There are no micro, Small and Medium Enterprises, to whom the Company owes dues which outstanding for more than 45 days as at 31st March 2018. This information as required to be disclosed under the micro, small and medium Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with company.
5.10 (a) First-time adoption of Ind AS
The Company w.e.f. 1 April, 2016 has adopted Indian Accounting Standards (Ind AS) notified under section 133 of Companies Act 2013 read with relevant rules issued thereunder and the other relevant provisions of the Companies Act, 2013, with a transition date of 1 April, 2016. For all the periods'' upto and including year ended 31 March, 2017, the Company prepared, its financial statements in accordance with the Accounting Standards notified under section 133 of the Companies Act, 2013, read with relevant rules issued thereunder. The adoption of Ind AS has been carried out in accordance with Ind AS 101 ''First-time Adoption of Indian Accounting Standards''. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended 31 March, 2018, together with the comparative information as at and for the year ended 31 March, 2017 and the opening Ind AS Balance Sheet as at 1 April, 2016, the date of transition to Ind AS. The accounting policies asset out in Note 1 which are in accordance with IndAS, have been applied in preparing these financial statements. In preparing these Ind AS financial statements, the Company has availed certain exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous Indian GAAP have been recognised directly in equity under retained earnings. This note explains the adjustments made by the Company in restating its financial statements prepared under previous Indian GAAP, including the Balance Sheet as at 1 April, 2016 and the financial statements as at and for the year ended 31 March, 2017.
(b) Ind AS mandatory exceptions
i) Estimates
On assessment of the estimates made under the Previous Indian GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous Indian GAAP are made by the Company, wherever required for the relevant reporting dates reflecting conditions existing as at that date.
ii) Classification and measurement of financial assets
Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurementof financial assets accounted at amortized cost based on facts and circumstances existing at thedate of transition, if retrospective application is impracticable. Accordingly, the Company hasdetermined the classification of financial assets bases on facts and circumstances that exist onthe date of transition to Ind AS.
iii) De-recognition of financial assets and financial liabilities
Ind AS 101 requires an entity to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. Accordingly the Company has applied the de-recognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.
(c) Transition to Ind AS - Reconciliations
The following reconciliations provide the explanations and quantification of the differences arising from the transition from Previous Indian GAAP to Ind AS in accordance with Ind AS 101:
I. Reconciliation of Equity as at 1 April, 2016
II. A. Reconciliation of Equity as at 31 March, 2017
B. Reconciliation of Statement of Profit and Loss for the year ended 31 March, 2017
III. Adjustments to Statement of Cash Flows for the year ended 31 March, 2017
Previous Indian GAAP figures have been reclassified / regrouped wherever necessary to conform to financial statements prepared under Ind AS.
Reconciliation of Equity as at 1 April, 2016
Sub Notes |
As per Previous Indian GAAP |
Adjustments |
As per Ind AS |
|
ASSETS |
||||
Non current Assets |
||||
Property, plant and equipment |
0.00 |
0.00 |
||
Capital work in progress |
0.00 |
0.00 |
||
Investment property |
8.86 |
8.86 |
||
Goodwill |
0.00 |
0.00 |
||
Financial assets |
||||
Investments |
2679.00 |
1.12 |
2680.12 |
|
Trade Receivables |
0.00 |
0.00 |
||
Loans |
0.00 |
0.00 |
||
Other non-current financial assets |
0.00 |
0.00 |
||
Other non-current assets |
0.00 |
0.00 |
||
Total Non-current assets |
2687.86.00 |
2688.98 |
||
Current assets |
||||
Inventories |
0.00 |
0.00 |
||
Financial assets |
||||
Investment |
0.00 |
0.00 |
||
Trade receivables |
4.21 |
4.21 |
||
Cash and cash equivalents |
3581.95 |
3581.95 |
||
Bank balances other than cash and cashequivalents |
0.00 |
0.00 |
||
Loans |
4117.82 |
4117.82 |
Mar 31, 2015
(a) Basis for preparation of Financial Statements:
The financial Statement have been prepared in conformity with generally
accepted accounting principle to comply in all material respect with
the notified accounting standards as prescribed section 133 of the
companies Act, 2013 ('the Act') read with rule 7 of Companies Accounts
Rules, 2014.
The financial statements have been prepared under the historical cost
convention on an accrual basis. The accounting policies have been
consistently applied by the company and are consistent with those used
in the previous year. The company adopts accrual system of accounting
unless otherwise stated.
All assets and liabilities have been classified as current or
non-current as per the criteria set out in the Schedule III to the
Companies Act, 2013. The necessary details pursuing the provision of
the schedule III to the Companies Act, 2013 have been given to the
extent applicable during the year.
(b) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the result of operations during the reposting
year end. Although these estimates are based upon management's best
knowledge of current events and actions, actual result could differ
from these estimates. Any revisions to the accounting estimates are
recognized prospectively in the current and future years.
(c) Fixed Assets
Fixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and any attributable cost of bringing the
assets to its working condition for its intended use.
Intangible Assets expected to provide future enduring economic benefits
are carried at cost less accumulated amortization and impairment
losses, if any. Cot comprise of purchase price and directly
attributable expenditure on making the assets ready for its intended
use.
(d) Depreciation & Impairment of Assets
Depreciation on fixed assets is provided on written down value method
over the useful life in the manner prescribed in Schedule-II to the
Companies Act, 2013.
(e) Investment
Long-term investments are stated at cost. Provision of diminution in
the value of long-term investments is made only if such a decline is
other than temporary in the opinion of the management. As in case of
Apoorva Leasing Finance & Investments Company Limited such decline is
presumed to be temporary hence no provision has been created.
Current Investments are carried at lower of cost and market value/ fair
value, computed category wise.
(f) Accounting of Inventories:
Stock in trade should be valued at cost or market price whichever is
lower.
(g) Employee Benefits
Company do not follow the provision of the accounting Standard-15
"Employee benefits" as the company do not have employee more than 10
personnel's. So it is the policy of the company that any kind of
provision mentioned in the AS -15 will not be entertained. And the
company does not make provision for gratuity also.
In case the company's employee limits goes beyond the prescribed limits
then AS-15 for Employee benefits will be taken into consideration.
(h) Revenue Recognition
(i) Loan Income
In respect of loan agreements, the income is accrued by applying the
impact rate in the transaction on declining balance on the amount
financed for the period of the agreement.
(ii) Dividend income on investments is accounted for as and when the
right to receive the same is established.
(i) Provisions, contingents Liabilities and contingent Assets
(i) A Provision is recognized when the company has present obligation
as a result of past event and it is probable that outflow of resources
will be required to settle the obligation and in respect of which a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
(ii) Contingent Liabilities are disclosed separately by way of note to
financial statements after careful evaluation by the managements of the
facts and legal aspects of the matter involved in case of:
(a) At present obligation arising from the past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
(b) A possible obligation, unless the probability of outflow of
resources is remote.
(iii) Contingent Assets are neither recognized, nor disclosed in the
financial statements.
(j) Taxation
Provisions for current tax is made in accordance with and at the rates
specified under the Income Tax A 1961, in accordance with Accounting
Standard 22- 'Accounting for taxes on Income', issued by the Institute
Chartered Accountant of India.
(k) Earning per share
Basic earning per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
attributable taxes) by the weighted averages number of equity shares
outstanding during the year.
For the purpose of calculating diluted earning per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all diluted potential equity shares.
(l) Cash and Cash Equivalents
Cash and cash equivalents in the cash flow statements comprise cash at
bank and in hand and highly liquid investments that are readily
convertible into known amount of cash.
Mar 31, 2014
(a) Basis for preparation of Accounts:
The financial Statement have been prepared in conformity with generally
accepted accounting principle to comply in all material respect with
the notified accounting standards CAS') under companies accounting
standards Rules, 2006, as amended, the relevant provisions of the
companies Act. 1956 ('the Act') and the guidelines issued by the
Reserve Bank of India CRB!') ns applicable to an Non - Banking Finance
Company ('NBFC'). The financial statements have been prepared under the
historical cost convention on an accrual basis. The accounting policies
have been consistently applied by the company and are consistent with
those used in the previous year. The company adopts accrual system of
accounting unless otherwise stated.
(b) Use of Estimates
Ihe preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial slaten an ! the result of operations during the reposting
year end. Although these estimates a re based upon management's best
knowledge of current events and actions, actual result coni 1 cilTcr
from these estimates. Any revisions to the accounting estimates are
recognized pmspv.:'vely n the current and future years.
(c) Fixed Assets
i ixed Assets are stated at cost less accumulated depreciation. Cost
comprises the purchase price and an am nab, * cost of bringing the
assets to its working condition for its intended use.
Intangible Assets expected to provide future enduring economic benefits
are carried at cost less accumulated numizaiion and impairment losses,
if any. Cot comprise of purchase price and directly atlriln:! mle
expenditure on making the assets ready for its intended use.
(d) depreciation & Impairment of Assets
Depreciation vets is provided on written down value method, at the rates
and in ihe manner p Schedule-XIV to the Companies Act, 1956.
(e) Investment
Long term in stated at cost. Provision of diminution in the value of
long-term such n decline is other than temporary in the opinion of the
Sital Leasing & Finance Limited such decline is presumed
(I) Revenue Recognition
(i) Loan Income
In respect of loan agreements, the income is accrued by applying the
impact rate in the transaction on declining balance on the amount
financed for the period of the agreement.
(ii Dividend income on investments is accounted for as and when the
right to receive the same is established.
(g) Provisions, contingents labilities and contingent Assets
(i) A Provision recognised when the company has present obligation as a
result of past event and i ml outflow of resources will be required to
settle the obligation and in respect of which a reliable estimate can
be made. Provisions are not discounted to their present value and :v
determined based on best estimate required to settle the obligation at
the balance slice ;mc. i hese are reviewed at each balance sheet date
and adjusted to reflect the current best v 'inntos.
m) Contingent I mm lilies arc disclosed separately by way of note to
financial statements after careful ev; don v the managements of the
facts and legal aspects of the matter involved in case
(a) At present obligation arising from the past event, when it is not
probable that resources will he required to settle the obligation.
(b ) A possible opplication. unless die probability of outflow nf
resources is remote.
(iii) Contigent assest are neither recognized, nor disclosed in the
financial statements.
(j) Taxation
Provisions for is made in accordance with and at the rates specified
under the Income Tax Act 1961 accordance with Accounting Standard 22-
'Accounting for taxes on Income', issued by the Institute of Chartered
Accountant of India.
(k) Earnig per share ling per share
Basic earning share is calculated by dividing the nei profit or loss
for the year attributable deducting attributable taxes) by the weighted
averages number
Mar 31, 2013
A) GENERAL
(a) The Financial Statements are drawn up In accordance with Historical
Cost Convention and on the Going Concern Concept. Income and Expenses
are accounted for on Accrual Basis except where otherwise indicated.
(b) Accounting Policies not specifically referred to otherwise are
consistent with generally accepted Accounting Principles followed by the
company.
B) INCOME FROM INVESTMENTS & LOANS & ADVANCES
Income from Investments in Interest Bearing Securities, Loans and
Advances Is Accounted for on Accrual Basis. Dividend Income from
Investments in Shares Is Recognized accruing as Income of that year in
which Dividend is received by the Company.
C) INVENTORY VALUATION
Stock In Trade of Trade Investments in Quoted Equity Shares of Joint
Stock Company is valued Script wise at lower of Cost or Market Value
and Stock In Trade Investments in Unquoted Equity Shares of Joint Stock
Companies is valued Script wise at Lower of Cost or Breakup/Fair Value.
However Stock In Trade of Trade investments in Quoted Equity Shares of
Joint Stock Companies issued on Preferential Basis is valued at Cost as
there is no Market Value Of such shares. Furthermore there is no
Inventory of Shares as on 31st March' 2013.
D) INVESTMENTS
(a) During the year the company has treated all fresh purchase of
shares as Investment.
(b) During the year company has sold Investments and invests the money
in better projects for better return.
(c) Investments (Long Term) are valued at Acquisition Cost (including
brokerage & Transfer expenses) No provision is made for diminution in
the value of Long Term Investments, As in the opinion of the management
the diminution is temporary and Not permanent.
E) DEFERRED TAXATION
Tax Liability of the company is estimated considering the Provisions of
the Income Tax Act 1961, Deferred Tax is recognized subject to the
consideration of Prudence, On Timing Difference, Being the difference
between Taxable Income and Accounting Income that originate in one
Period and are capable of reversal in one or more Subsequent periods.
ii) In the opinion of the management, The value on realization of
Current Assets, Loans and Advances in the ordinary course of business
will not be less than the Amount at which these are stated in the
Balance Sheet.
iii) The management has confirmed that adequate Provision has been made
for all the known and determined Liabilities and the same is not in
excess of the amount reasonably required . It is further confirmed that
there is no Liability of the Company as on 31st March, 2013 in respect
of Retirement Benefits, If any payable to its Employee (s).
iv) Disclosure as required in terms of Related Party Disclosure (As
identified by the Management) In terms of Accounting Standard - 18
Related Party Disclosure issued by the Institute Of Chartered
Accountants of India is duly made.
v) In the opinion of the management the company has only single Business
Segment of Investment & Finance Activities; therefore no Segment
Reporting has been Presented In Terms Of Accounting Standard-17 of
"Segment Reporting" Issued by the Institute of Chartered Accountant of
India.
vi) Payment to Auditor 2012 -2013 2011-2012
Audit Fee 5000.00 4,500.00
vii) Expenditure & Earning in Foreign Currency - Nil
viii) Payment to Director Remuneration - Nil
Mar 31, 2012
A) GENERAL
(a) The Financial Statements are drawn up In accordance with Historical
Cost Convention and on the Going Concern Concept, Income and Expenses
are accounted for on Accrual Basis except where otherwise indicated.
(b) Accounting Policies not specifically referred to otherwise are
consistent with generally accepted Accounting Principles followed by the
company.
B) INCOME FROM INVESTMENTS & LOANS & ADVANCES
Income from investments in Interest Searing Securities, Loans and
Advances is Accounted for on Accrual Basis. Dividend Income from
Investments in Shares is Recognized accruing as income of that year in
which Dividend is received by the Company.
C) INVENTORY VALUATION
Stock In Trade of Trade Investments in Quoted Equity Shares of Joint
Stock Company is valued Script wise at lower of Cost or Market Value and
Stock In Trade Investments in Unquoted Equity Shares of Joint Stock
Companies is valued Script wise at Lower of Cost or Breakup/Fair Value.
However Stock In Trade of Trade Investments in Quoted Equity Shares of
Joint Stock Companies issued on Preferential Basis is valued at Cost as
there is no Market Value Of such shares. Furthermore there is no
inventory of Shares as on 31st March' 2012.
D) INVESTMENTS
(a) During the year the company has treated all fresh purchase of
shares as Investment.
(b) Investments (Long Term) are valued at Acquisition Cost (including
brokerage & Transfer expenses) No provision is made for diminution in
the value of Long Term Investments, As in the opinion of the management
the diminution is temporary and Not permanent.
E) DEFERRED TAXATION
Tax Liability of the company Is estimated considering the Provisions of
the Income Tax Act 1961, Deferred Tax is recognized subject to the
consideration of Prudence, On Timing Difference, Being the difference
between Taxable income and Accounting Income that originate in one
Period and are capable of reversal in one or more Subsequent periods.
i) As informed to us by the management, Sundry Creditors does not
include any Amount payable to Small Scale Industrial Units,
ii) In the opinion of the management, The value on realization of
Current Assets, Loans and Advances in the ordinary course of business
will not be less than the Amount at which these are stated in the
Balance Sheet
iii) The management has confirmed that adequate Provision has been made
for all the known and determined Liabilities and the same is not in
excess of the amount reasonably required. It is further confirmed that
there is no Liability of the Company as on 31st March, 2012 in respect
of Retirement Benefits If any payable to its Employee (s).
iv) There is no Related Party Transaction during the year so no Related
Party Disclosure is required in terms of Related Party Disclosure (As
identified by the Management) In terms of Accounting Standard -18
Related Party Disclosure issued by the Institute Of Chartered
Accountants of India
v) In the opinion of the management the company has only single Business
Segment of Investment & Finance Activities; therefore no Segment
Reporting has been Presented In Terms Of Accounting Standard-17 of
"Segment Reporting" Issued by the Institute of Chartered Accountant of
India
vi) Payment to Auditor 2011 -2012 2010-2011
Audit Fee 4,500- 3,240/-
vii) Expenditure & Earning in Foreign Currency - Nil
iii) Payment to Director Remuneration - Nil
Mar 31, 2011
I) Significant Accounting Policies Followed in the Preparation of
Financial Statements:
A) GENERAL
(i) The Financial Statements are drawn up in accordance with historical
cost convention and on the going concern concept income and expenses are
accounted for on accrual basis except where otherwise indicated.
(ii) Accounting policies not specifically referred to otherwise are
consistent with generally accepted accounting principles followed by
the company.
B) INCOME FROM INVESTMENTS & LOANS
Income from investments in interest bearing securities, loans and
advances is accounts for on accrual basis.
Dividend income from investments in shares is recognised accruing as
income of that year in which dividend is received by the company.
C) INVENTORY VALUATION
Stock in trade of trade investments in quoted equity shares of joint
stock company is valued scriptwise at lower of cost or market value and
stock in trade investment in unquoted equity shares of joint stock
companies in valued scriptwise at lower of cost or breakup/fair value
however stock in trade of trade investments in quoted equity shares of
joint stock companies issued on preferential basis is valued at cost as
there is not market value or such shares. Furthermore there is no
inventory of shares as on 31st March' 2011.
D) INVESTMETNS :
(i) During the year the company has treated all fresh purchase of
shares as investment.
(ii) Investments (Long Term ) are valued at acquisition cost (Including
Brokerage & Transfer Expenses) no provision is made for diminution in
the value of long term investments, as in the opinion of the management
the dimmuation is temporary and not permanent.
E) DEFERRED TAXATION :
(i) Tax liability of the company is estimated considering the provisions
of the income Tax act 1961, deferred tax is recognised subject to the
consideration of prudence, On timing defference, being the difference
between taxable income and accounting income that originate in one
period and are capable of reversal in one or more subsequent periods.
(ii) As informed to us by the management, sundry creditors does not
include any amount payable to small scale industrial units.
(iii) In the opinion of the management, the value on realisation of
current assets, loans and advances in the ordinary coures of business
will not be less than the amount at which these are stated in the
balance sheet
(iv) The management has confirmed that adequate provision has been made
for all the known and determined' liabilities and the same is not in
excess of the amount reasonably required. It is further confirmed that
there is (v) liability of the c°mPany as on 31 st March,2011 in respect
of retirement benefits,if any payable to its employees(s).
(v) Related party disclosure (As Identified by the Management) in terms
of accounting standard -18 related party desclosure issued by the
Institute Of Chartered Accountant Of India are as follows
(vi) In the opinion of the management the company has only single
business segment of investment & finance activities, therefore no
segment reporting has been presented in terms of accounting standard-17
of "segment reporting" issued by the institute of chartered accountant
of india.
(vii) Payment To Auditor 2010-2011 2009 - 2010
Audit Fee 3,240/- 3,240/-
(viii) Expenditure & Earning In Foreign Currency - Nil
(ix) Payment To Director Remuneration - Nil
(xi) Previous years figures have been regrouped / rearranged, wherever
considred necessary to compare with current year's figures.
ii) The details pursuant to provisions of part ii of schedule vi to the
companies act, 1956 have been given to the extent applicable to the
company.
(xiii) Schedules 1 to 11 and particualrs attached herewith of shares
held as stock in trade form an integral part of the balance sheet and
the profit and loss account of the company.
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