Mar 31, 2016
1 Corporate Information
Capital Trade Links Limited ("the Company") incorporated as a public company under the provisions of the Companies Act, 1956. The 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).
2 Significant Accounting Policies 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 also follows the directions prescribed by the Reserve Bank of India (RBI) for Non-Banking Financial Companies.
Use of Estimates
The preparation of financial statements in conformity with Indian GAAP requires the Management to make judgments, 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 recognized prospectively in current and future periods.
Revenue Recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Interest income on loans given is recognized 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 recognized on a time proportion accrual basis taking into account the amount outstanding and the interest rate applicable.
Profit on sale of investments is recorded on transfer of title from the Company is determined as the difference between the sale price and carrying value of the investment. Dividend income is accounted when the right to receive is established.
Inventories
Items of inventories are measured at lower of cost and net realizable value. Cost of inventories comprises of cost of purchase and other costs. Net realizable value is the estimated selling price in the ordinary course of business, less estimated cost to make the sale.
Tangible and Intangible Assets, Depreciation and Amortization
Tangible/Intangible assets have been stated at cost less accumulated depreciation/amortization and net of impairments, if any. The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable cost of bringing the asset to its working condition for the intended use, net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the assets.
Depreciation on tangible assets is provided on the straight-line method over the useful lives of assets, which is as stated in Part C of Schedule II of the Companies Act, 2013. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis. Depreciation for assets purchased/sold during a period is proportionately charged.
Impairment of Assets
The Management periodically assesses, using external and internal sources, whether there is an indication that an asset may be impaired. An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
Leases
Lease under which the Company assumes substantially all the risks and rewards of ownership are classified as finance leases. Such assets acquired are capitalized at fair value of the asset or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on a straight line basis in the Statement of Profit and Loss over the lease term.
Investments
Investments which are readily realizable and intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges such as brokerage, fees and duties.
Current investments are carried in the financial statement at lower of cost and fair value determined on an individual investment basis. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.
On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the Statement of Profit and Loss.
Foreign Currency Transactions
On initial recognition, all foreign currency transactions are recorded by applying to the foreign currency amount exchange rate between the reporting currency and the foreign currency on the date of the transaction.
Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
Exchange differences arising on settlement of monetary items or on reporting of monetary items at rates different from those at which they were initially recorded during the period or reported in previous financial statements are recognized as income or expense in the period in which they arise.
Cash and Cash Equivalents
Cash and cash equivalents in the cash flow comprise cash/cheques in hand and cash at bank. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.
Taxes on Income
Tax expense comprises of Current 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 Indian Income tax Act, 1961. Minimum alternate tax (MAT) paid in a year is charged to the Statement of Profit and Loss 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 income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws that have been enacted or substantively enacted at the Balance Sheet date. Deferred tax assets 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 realized. If the Company has carry forward of unabsorbed depreciation and tax losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits.
Unrecognized deferred tax assets of earlier years are reassessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.
Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to the Statement of Profit and Loss in the period in which they are incurred.
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 recognized in the Statement of Profit and Loss in the period in which the employee renders the related service.
Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays specified contribution to a separate entity. The Company makes specified monthly contributions towards Employee''s Provident fund and Employee''s State Insurance Scheme which are recognized in the Statement of Profit and Loss during the year in which the employee renders the related service.
Defined benefit plans
A defined benefit plan i.e. gratuity, is a post-employment benefit plan other than defined contribution plan. The liability in respect of defined benefit plans and other post-employment benefits is actuarially determined (using Projected Unit Credit Method) at the Balance Sheet date. Actuarial gains/losses are immediately recognized in the Statement of Profit and Loss.
Compensated absences
The employees can carry-forward a portion of the unutilized accrued compensated absences and utilize it in future service periods. The liability in respect of compensated absences is actuarially determined (using Projected Unit Credit Method) at the Balance Sheet date. Actuarial gains/losses are immediately recognized 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 by the weighted average number of equity shares outstanding during the year.
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.
Provisions, Contingent Liabilities and Contingent Assets
Provision is recognized when the Company has a present obligation as a result of past event and 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 their 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.
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
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.