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Accounting Policies of Capital Trade Links Ltd. Company

Mar 31, 2015

1 Corporate Information

Capital Trade Links Limited (the company) incorporated as a public limited company is engaged into the business of Non-Banking Financial Institution (NBFI) without accepting public deposits. The. Company is holding a valid Certificate of Registration (COR) from Reserve Bank of India (RBI).

Basis of Accounting

The Financial Statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013, (""the 2013 Act""). The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

The Company follows the directions prescribed by the Reserve Bank of India (RBI) for Non-Banking Financial Companies.

Use of Estimates

The preparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reported period. Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision in the accounting estimates is recognised prospectively in current and future periods.

Revenue Recognition

Revenue from interest on loans is recognised on accrual basis, considering the directions issued by the Reserve Bank of India from time to time in terms of the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998. Loans are classified into 'Performing and Non-performing' assets in terms of the said directions.

Other interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable.

Dividend income is accounted when the right to receive is established.

Tangible and Intangible Assets, Depreciation and Amortisation

Tangible / Intangible assets have been stated at cost less accumulated depreciation / amortisation, Cost includes cost of purchase inclusive of freight, duties and other incidental expenses and all expenditure like site preparation, installation costs and professional fees incurred on the asset before it is ready to be put to use.

Depreciation including amortization is provided using useful life method prescribed under Part C of Schedule II of the Companies Act, 2013. Leasehold Land is being amortised over the tenure of respective leases.

Fixed assets costing less than Rs. 5,000 are fully depreciated in the year of purchase. For assets purchased and sold during the year, depreciation is provided on pro rata basis by the company.

Impairment of Assets

The carrying amount of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal / external factors. Impairment loss, if any, is provided in the Statement of Profit and Loss Account to the extent the carrying amount of assets exceeds their estimated recoverable amount.

Investments

Investments are classified into non-current investments and current investments. Investments, which- are intended to be held for more than one year, from the date from which investments are made, are classified as non-current investments and investments, which are intended to be held for less than one year, from the date from which investments are made, are classified as current investments. Non- current investments are accounted at cost and any decline in the value, other than temporary, is provided for, such reduction being determined and made for each investment individually. Current investments are valued at cost (calculated by applying weighted average cost method) or fair value whichever is lower.

Cash and Cash Equivalents

Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Foreign Currency Transactions

On initial recognition, all foreign transactions are recorded by applying to the foreign currency amount exchange rate between the reporting currency and the foreign currency at the date of the transaction.

Monetary assets and liabilities denominated in foreign currencies are restated at the rate of exchange prevailing at the Balance Sheet date.

Exchange differences arising on settlement of the transaction and on account of restatement of assets and liabilities are dealt with in the Statement of Profit and Loss.

Taxes on Income

The Income Tax expense comprises Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961.

Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss account as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward.

Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income mat originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets arising mainly on account of carry forward of losses and unabsorbed depreciation under tax laws are recognised only if there is virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Statement of Profit and Loss in the period of the change. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized.

Employee Benefits

- Short-term employee benefits

All employee benefits payable/available within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus, etc. are recognised in the Statement of Profit and Loss in the period in which the employee renders the related service.

- Defined contribution plan

Company's contribution paid/payable during the year to Provident fund, Pension Fund, Employee's State Insurance Scheme are recognised in the Statement of Profit and Loss based on amount of contribution required to be made and when services are rendered by the employees.

Borrowing Costs

Borrowing costs other than those directly attributable to qualifying fixed assets are recognized as an expense in the period in which they are incurred.

Provisions, Contingent Liabilities and Contingent Assets

Provision is recognised when there is a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are measured based on best estimate of the expenditure 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. Contingent Liabilities are not recognized but are disclosed in the notes unless the outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements.

Operating Leases

Leases where the lessor effectively retains substantially all the risks and rewards of ownership, are classified as operating leases. Operating lease payments are recognised as an expense in the Statement of Profit and Loss.

Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue and stock split.

For the purpose of calculating diluted earnings 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 dilutive potential equity shares. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised - or converted during the year.


Mar 31, 2014

A. Basis of preparation of financial statements

The financial statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles in India including Accounting Standards notified by the Government of India / issued by the Institute of Chartered Accountants of India (ICAI), as applicable, and the relevant provisions of the Companies Act, 1956.The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

The Company follows the prudential norms for income recognition, asset classification and provisioning as prescribed by Reserve Bank of India (RBI) for preparation of Financial Statement.

B. Use of estimates

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the year. Example of such estimates includes future obligations under employee retirement benefit plans, estimated useful life of fixed assets, warranty on sales, provision for obsolete and slow moving inventory, etc. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in current and future periods.

C. Current-Non-current classification

All assets and liabilities are classified into current and non-current.

Assets

An asset is classified as current when it satisfies any of the following criteria:

a. It is expected to be realized in, or is intended for sale or consumption in ,the company''s normal operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is expected to be realized within 12 months after the reporting date; or

d. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.

Current assets include the current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

a. It is expected to be settled in the company''s normal operating cycle;

b. It is held primarily for the purpose of being traded;

c. It is due to be settled within 12 months after the reporting date; or

d. The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of liability that could, at option of the counterparty, result in its settlement by the issue of equity instruments do not affects its classification.

Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current.

D. Revenue recognition

a) Income on Loan Transaction

Interest Income is recognised under the Internal Rate of Return method to provide a constant periodic rate of return on net investment outstanding on the Loan contracts. In the case of Non Performing Loans, interest income is recognised upon realisation, as per RBI guidelines. Unrealised interest recognised as income in the previous period is reversed in the month in which the loan is classified as Non Performing.

b) Other Interest Income

Interest income is recognized on time proportion basis considering the amount outstanding and the rate applicable.

c) Provision for Standard/ Non- Performance Assets and Doubtful Debts

The Company Provide an allowance for loan receivables based on the prudential norms issued by the RBI relating to income recognition, assets classification and provisioning for the Non-performing Assets.

In addition the company provided provision for standard assets as required by direction issued by RBI

E. Fixed assets

Tangible fixed assets

Tangible fixed assets are recorded at cost of acquisition less accumulated depreciation and less accumulated impairment loss, if any. Cost is inclusive of inward freight, duties, taxes and incidental expenses related to acquisition and installation expenses incurred to bring the assets to their working condition for intended use. Tangible fixed assets under construction and cost of assets not put to use before the year end, are disclosed as capital work in progress.

Subsequent expenditures related to an item of tangible fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Depreciation on fixed assets is provided under the written down value method at the minimum rates specified as per Schedule XIV of the Companies Act, 1956. In the opinion of the management, the rates of depreciation used represent the estimated economic useful life of fixed assets.

Assets individually costing Rs. 5,000 or less are fully depreciated in the year of the purchase.

Depreciation on additions is being provided on pro rata basis from the date of such additions. Similarly, depreciation on assets sold/disposed off during the year is being provided up to the dates on which such assets are sold/disposed off. Modification or extension to an existing asset, which is of capital nature and which becomes an integral part thereof is depreciated prospectively over the remaining useful life of that asset.

Intangible fixed assets

Intangible assets which are acquired by the Company are measured initially at cost. After initial recognition, an intangible asset is carried at its cost less any accumulated amortization and/or less accumulated impairment loss, if any. Subsequent expenditure is capitalized only when it increases the future economic benefits from the specific asset to which it relates.

Intangible assets are amortised on written down value method. In view of the management, the rates of amortisation used represent the estimated economic useful life of such assets:

F. Foreign currency transactions

Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the balance sheet date are translated at the rates of exchange prevailing on that date. Gains/ (losses) arising on account of realisation/ settlement of foreign exchange transactions and on translation of foreign currency assets and liabilities are recognised in the statement of Profit and Loss.

G. Leases

Where the lessor effectively retains substantially all the risks and benefits of ownership of the leased assets are classified as operating leases. Operating lease charges are recognised as an expense in the statement of Profit and Loss.

H. Employee benefits

Short term employee benefits

All employee benefits payable/available within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognised in the Profit and Loss Account in the period in which the employee renders the related service.

Defined benefit plan

Gratuity is a defined benefit plan. The present value of obligations under such defined benefit plans is determined based on actuarial valuation carried out by an independent actuary at the end of the year using the projected unit credit method. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations. Actuarial gains and losses are recognised immediately in the Profit and Loss Account.

I. Taxation

Income tax expenses comprise current tax (i.e. the amount of tax for the period determined in accordance with the income tax laws) and deferred tax charge or credit (reflecting the tax effects of timing differences between the accounting income and the taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using tax rates that have been enacted, or substantively enacted, by the Balance Sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainty that the assets can be realised in the future, however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realised.

J. Provisions and contingent liabilities

A provision is created when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. 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. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

K. Earnings per share

Basic earnings per share are calculated by dividing the net profit/ (loss) attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.

L. Cash and cash equivalents

Cash and cash equivalents include cash in hand, demand deposit with banks, other short term highly liquid investments with original maturities of three months or less.


Mar 31, 2013

1.1 BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on the accrual basis of the accounting and in accounting standard issued by the Institute of Chartered Accountants of India, as referred to in Section 211(3C) of the Companies Act,1956.

1.2 FIXED ASSETS

Fixed Assets are slated at historical cost less accumulated depreciation.

1.3 DEPRECIATION

Depreciation on fixed assets is provide on W.D.V.method at the rates and in the manner as prescribed in the schedule XIV to the Companies Act,1956.

1.4 INVENTORIES

Stock represents shares and securities. All shares and securities are valued at east.

1,5 REVENUE RECOGNITIONS

All revenues, costs, assets and liabilities are accounted for on accrual basis except in case where not practically possible

16 CASH AND CASH EQUIVALENTS

Cash and Cash equivalents comprise of cash at bank and cash in hand Company considers all highly liquid investments with an original maturity of three months or less from date of purchase, to be cash equivalents.

1.7 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENTS ASSETS

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that three will be an outflow of resources. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require as out flow of resources. Contingent assets are neither recognized nor disclosed in the financial statements.

1.8 BORROWING COSTS

Borrowing costs that are attributable to the acquisition , construction or production of qualifying assets are capitalized as a part of the cost of such asset. Other borrowing costs are charged to statement of profit and loss as incurred .

1.9 TAXATION

The tax expenses comprises of current tax & deferred tax charged or credited to the statement of profit and loss for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax expenses or benefit is recognized using the tax rates and tax laws that have been enacted by the balance sheet date in the event of unabsorbed depreciation or carry forward losses. Deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized . other deferred tax assets are recognized only to the extent there is a reasonable certainty or realization in future.

Minimum Alternate Tax(MAT) paid in a year is charged to the statement of profit & Loss as current tax . the company recognized MAT credit available as an asset only to the extent that there is convincing evidence that Company will pay normal income tax during the specified period ,i.e., the period for which MAT credit is allowed to be carried forward.


Mar 31, 2012

1.1 BASIS OF ACCOUNTING

The financial statements are prepared under the historical cost convention, on the accrual basis of the accounting and in accordance with the accounting standard issued by the Institute of Chartered Accountants of India, as referred to in Section 211 (3C) of the Companies Act, 1956.

1.2 FIXED ASSETS

Fixed Assets are stated at historical cost less accumulated depreciation.

1.3 DEPRECIATION

Depreciation on fixed assets is provided on W.D.V. method at the rates and in the manner as prescribed in the schedule XIV to the Companies Act, 1956.

1.4 INVENTORIES

Stock represents shares and securities. All shares and securities are valued at cost.

1.5 REVENUE RECOGNITIONS

All revenues, costs, assets and liabilities are accounted for on accrual basis except in case where not practically possible.

1.6 CASH AND CASH EQUIVALENTS

Cash and Cash equivalents comprise of cash at bank and cash in hand . The Company considers all highly liquid investments with an original maturity of three months or less from date of purchase, to be cash equivalents.

1.7 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENTS ASSETS

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources . A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require as out flow of resources . Contingent assets are neither recognized nor disclosed in the financial statements.

1.8 BORROWING COSTS

Borrowing costs that are attributable to the acquisition , construction or production of qualifying assets are capitalized as a part of the cost of such asset. Other borrowing costs are charged to statement of profit and loss as incurred .

1.9 TAXATION

The tax expenses comprises of current tax & deferred tax charged or credited to the statement of profit and loss for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax expenses or benefit is recognized using the tax rates and tax laws that have been enacted by the balance sheet date in the event of unabsorbed depreciation or carry forward losses ,deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which such deferred tax assets can be realized . other deferred tax assets are recognized only to the extent there is a reasonable certainty or realization in future.

Minimum Alternate Tax(MAT) paid in a year is charged to the statement of profit & Loss as current tax . the company recognized MAT credit available as an asset only to the extent that there is convincing evidence that Company will pay normal income tax during the specified period ,i.e., the period for which MAT credit is allowed to tbe carried forward.


Mar 31, 2011

AS 1-DISCLOSURE ON ACCOUNTING POLICIES

The Accounts are maintained on historical cost convention and mercantile basis.

AS 2- VALUATION OF INVENTORIES

Stock in trade is valued at cost price or market value whichever is lower, following the FIFO Basis .

AS 3- CASH FLOW STATEMENT

Pursuant to the listing agreement with stock Exchange, Cash Flow Statement is attached to the Balance Sheet and Profit and loss Account

AS 5- NET PROFIT OR LOSS FOR THE. PERIOD. PRIOR PERIOD ITEM AND CHANGE IN ACCOUNTING POLICIES.

Net Profit for the Period

All items of income and expense in the period are included in the determination of net profit for the period, unless specifically mentioned elsewhere in the financial statements or is required by an Accounting Standard

Prior Period Item

No Prior Period Item has been arises during the year.

AS 6- DEPRECIATION ACCOUNTING

Depreciation has been provided on written down value method at the rate and in the manner prescribed in the Schedule XIV the Companies Act, 1956.

AS 7- REVENUE RECOGNITION

I. Interest is accounted for on accrual basis.

II. Dividend income is accounted for on receipt basis.

AS 8- ACCOUNTING FOR FIXED ASSETS

The Gross Block of Fixed assets are disclosed at the cost of acquisition, which includes Taxes, Duties and other identifiable direct expenses, if any incurred up to the date the assets is put to use.

AS 9- ACCOUNTING FOR EFFECT IN FOREIGN EXCHANGE RATES

The above standard is not applicable as there was no Foreign exchange transaction during the year.

AS 10- ACCOUNTING OF INVESTMENT

As the company has not made any investments during the said period, information regarding the value and valuation of the investment is not applicable.

AS 11- ACCOUNTING FOR EMPLOYEE BENEFITS

The above standard is not applicable to the company during the period under review .

AS 12- BORROWING COST

As per the recommendations of Accounting Standard 16 "Borrowing Cost" Borrowing cost that is directly attributable to the acquisition, construction or production of the qualifying asset is capitalized as part of cost of that asset if any. All other borrowing cost is recognized as an expense in the year in which they were incurred.

AS 13- RELATED PARTY DISCLOSURE

RELATED PARTIES:

I. Where Control exist:

> Key Management Personnel

Sh.Harish . C.Agrawal

Sh. Suresh. C. Agrawal

AS 14- EARNING PER SHARE

There are no diluted earning per share because there are no dilutive potential equity shares

AS 15- ACCOUNTING FOR TAXES ON INCOME

Current Tax is determined as the amount of tax payable in respect of taxable income for the period based on applicable tax rate and laws. Deferred Tax is recognized subject to consideration of prudence in respect of deferred tax Liabilities, on timing difference, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and is measured using tax rate and laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets/Liabilities are reviewed at each Balance Sheet date re-assess realization.

AS 16 - DISCONTINUING OPERATIONS

The Company has not discontinued any operation during the year

AS-17 INTANGIBLE ASSETS

An intangible asset is an identifiable non-monetary asset, without physical substance, held for use in the production or supply of goods or services, for rental to others, or for administrative purposes. Since the company does not possess any intangible assets hence no amortization of such assets has been taken into account.

AS 18 - IMPAIRMENT OF ASSETS

The carrying amounts of assets are reviewed at each Balance Sheet date for any indication of impairment based on internal /external factors. Impairment occurs where the carrying value exceeds the estimated recoverable amount. The recoverable amount is greater of the assets estimated net realizable value and value in use. There is no indication of impairment during the year and hence no provision has been made for the same.

AS 19- PROVISION. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources.

Contingencies are recorded when it is probable that a liability that a liability will be incurred, and the amount can reasonably be estimated. Where no reliable estimate can be made, a disclosure is made as contingent liability. There is no contingent liability during the year.

GENERAL

Accounting Policies not specifically referred to otherwise as consistant and in consonance with generally accepted accounting principles.

 
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