Mar 31, 2018
1. Significant Accounting Policies
(a) Basis of Accounting
The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles in India (âIndian GAAPâ), including the Accounting Standards noticed under Section 133 of Companies Act, 2013 read with Rule 7 of Company (Accounts) Rules, 2014 (as amended) Companies (Accounting Standards) Amendment Rules, 2016 and the provisions of the RBI applicable as per Master Directions - Non-Banking Financial Company -Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions, 2016 issued vide Notification No. DNBR. PD. 008/03.10.119/ 2016-17 dated September 01, 2016, as amended from time to time (âthe NBFC Master Directions, 2016â).
The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year.
All assets and liabilities have been classified as current or non-current, wherein applicable as per the operating cycle of the Company as per the guidance as set out in the Schedule III of the Companies Act, 2013.
(b) Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Although these estimates are based upon managementâs best knowledge of current events and actions, actual results could differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in the current and future periods.
(c) Classification of Assets and Liabilities as Current and Non-Current
All assets and liabilities are classified as current or non-current as per the Companyâs normal operating cycle and other criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, 12 months has been considered by the Company for the purpose of current/ non-current classification of assets and liabilities.
(d) Property, plant and equipment (including intangible assets)
Fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Cost comprises the purchase price and any attributable cost of bringing the asset to its working condition for its intended use. Subsequent expenditure on fixed asset after its purchase or completion would be recognised as an asset, if it is probable that the expenditure will enable the asset to generate future economic benefits in excess of its originally assessed standard of performance and the expenditure can be measure and attributed to the asset reliably.
The carrying amounts are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing, value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital.
(e) Depreciation
i) Depreciation on fixed assets has been charged at Straight Line method with reference to the economic useful life of its fixed assets as prescribed by Schedule II of the Companies Act, 2013. Depreciation on fixed assets disposed off during the year is provided on pro-rata basis with reference to the date of disposal.
ii) Intangible Assets are amortized on a straight line basis over a period of 3 years from the date when the asset is available for use.
(f) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the collectability is reasonably assured.
Interest on loans is recognized on accrual basis. Income or any other charges on non-performing asset is recognised only when realised and any such income recognised before the asset became nonperforming and remaining unrealised is reversed.
Loan processing fee received upfront are considered to be accrued at the time of entering into a binding agreement upon its receipt and are recognised as revenue immediately.
Interest income on deposits with banks is recognized in time proportion basis taking into account the amount outstanding and the rate applicable.
Income from business correspondent activity is recognised on accrual basis as per the terms of arrangement entered into with the client bank. Revenue from Business Correspondent activities to the extent of services rendered but yet to be billed are treated as âUnbilled revenueâ and are disclosed under other current assets.
Dividend income is accounted when the right to receive the dividend is established.
(g) Borrowing costs
Borrowing cost includes interest and amortization of ancillary costs incurred in connection with the arrangement of borrowings. Ancillary expenditure incurred in connection with the arrangement of borrowings is amortised over the tenure of the respective borrowings.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.
(h) Investment
Investments are classified as Current and Non-current 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. Current Investments are carried at lower of cost or fair value. Non-current investments are stated at cost, provision for diminution in the value is made to recognize a decline other than temporary in the value of such investments.
(i) Asset classification and provisioning
Loan asset classification of the company is given in the table below:
Loss Assets An asset for which, interest/ principal payment has remained overdue for a period of 12 months or more.
(j) Provisioning policy for Loan portfolio
Provision for loan portfolio has been made in accordance with the provisioning requirements for NBFC-ND-SI issued by the RBI vide its circular numbered DNBR.PD. 088/03.10.119/2016-17 dated 1 September 2016 updated as on 9 March 2017. The guidelines requires a minimum provision
(i) 0.40% of the outstanding loan portfolio of standard assets.
(ii) 1 0% of the aggregate unsecured loan instalments which are overdue for more than 3 months and less than 12 months and
(iii) 100% of the aggregate loan instalments which are overdue for 12 months or more.
(k) Retirement & Employee Benefits
(i) Define Contribution Plan
The Company makes specified monthly contribution towards employee provident fund to Government administered provident fund scheme, which is a defined contribution scheme. The Companyâs contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service.
(ii) Define Benefit Plan
Gratuity liability under the Payment of Gratuity Act which is a defined benefit scheme is accrued and provided for on the basis of an actuarial valuation as per projected unit credit method made at the end of each financial year. Actuarial gains / losses are immediately taken to statement of profit and loss and are not deferred.
(iii) Share Based Payments
The Company has formulated an Employees Stock Option Schemes to be administered through a Trust. The scheme provides that subject to continued employment with the Company, employees of the Company are granted an option to acquire equity shares of the Company that may be exercised within a specified period. The Company follows the intrinsic value method for computing the compensation cost for all options granted which will be amortized over the vesting period. Measurement and disclosure of the employee share-based payment Schemes are done in accordance with the Guidance Note on Accounting for Employee Share based Payments, issued by the Institute of Chartered Accountants of India.
(iv) Other short term benefits
Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date.
Expenses relating to other short term benefits is recognised on the basis of amount paid or payable for the period during which services are rendered by the employee.
(l) Provisions and contingent liabilities
A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where 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.
(m) Current Tax and Deferred Tax
Tax expense comprises of current and deferred income tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income-tax Act, 1961. Deferred tax resulting from âtiming differenceâ between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantially enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future and the same is reviewed at each balance sheet.
(n) Foreign Currency Transactions
i. All transactions in foreign currency are recognised at the exchange rate prevailing on the date of the transaction.
ii. Foreign currency monetary items are reported using the exchange rate prevailing at the close of the financial year.
iii. Exchange differences arising on the settlement of monetary items or on the restatement of Companyâs monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or as expenses in the year in which they arise.
(o) Cash and cash equivalent
Cash and cash equivalents for the purpose of cash flow statement comprise cash in hand and cash at bank and short-term investments with an original maturity of three months or less.
(p) Leases
Leases that do not transfer substantially all the risks and rewards of ownership are classified as operating leases. Payments made under operating leases are recognised in the statement of profit and loss on a straight line basis over the lease period unless another systematic basis is more representative of the time pattern of the benefit.
(q) Segment Reporting
The accounting policies adopted for segment reporting are in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole. Primary Segments are identified based on the nature of products, the different risks and returns and the internal business reporting system. Revenue, Expense, Assets and Liabilities which relate to the Company as a whole and could not be allocated to segments on a reasonable basis, has been classified as unallocated. Secondary segment is identified based on geography by location of customers i.e. in India and outside India. Inter-segment revenue have been accounted for based on the transaction price agreed to between the segments, which is primarily market based.
(r) Earning per equity share
The Company reports basic and diluted earning per share in accordance with Accounting Standard-20 on âEarning Per Shareâ. Basic earning per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year. Diluted earning per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.
Mar 31, 2017
1. Company Overview
Capital Trust Limited is a public Company incorporated in India under the provisions of the erstwhile Companies Act, 1956. Its shares are listed on Bombay Stock Exchange and National Stock Exchange. The Company is Non-banking Financial Company which is registered with Reserve Bank of India (''RBI''''). The Company is engaged in the business of Micro Finance and Small Enterprise Loan.
2. Basis of preparation
The financial statements are prepared under historical cost convention in accordance with the generally accepted accounting principles in India ("Indian GAAP"), including the Accounting Standards noti?ed under Section 133 of Companies Act, 2013 read with Rule 7 of Company (Accounts) Rules, 2014 (as amended) and applicable directions issued by RBI. The financial statements have been prepared on accrual basis. The accounting policies adopted in the preparation of financial statements are consistent with those used in the previous year.
All assets and liabilities have been classified as current or non-current, wherein applicable as per the operating cycle of the Company as per the guidance as set out in the Schedule III of the Companies Act, 2013.
3. Significant accounting policies
(a) Use of estimates
i) The preparation of the financial statements in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the year.
ii) Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
iii) The management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal.
(b) Fixed assets (including intangible assets)
Fixed assets are stated at cost, net of depreciation or amortization. The cost of an asset comprises its purchase price and any cost directly attributable for bringing the asset to its working condition and location for its intended use.
(c) Depreciation
Depreciation on all tangible assets is provided on straight line method over the useful lives of assets prescribed under Schedule II of the Act. In respect of additions, depreciation is provided on pro-rata basis from the date of acquisition/installation.
Intangible assets are amortized over a period of 5 years on straight line method.
(d) Investment
Trade investments are the investments made to enhance the Company''s business interests. Investments are either classified as current or noncurrent based on management''s intention at the time of purchase. Current investments are carried at the lower of cost and fair value of each investment individually. Non-current investments are carried at cost less provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.
(e) Revenue recognition
Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the collectability is reasonably assured.
Interest on loans is recognized on accrual basis. In the case of non-performing assets ("NPAs"), interest is recognized upon realization in accordance with the directives of the Systematically Important Non Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2016.
Interest income on deposits with banks is recognized in time proportion basis taking into account the amount outstanding and the rate applicable.
(f) Leases Operating lease
Lease rentals in respect of assets taken on operating lease is charged to the statement of profit and loss on straight line basis over the term of the lease.
(g) Taxes
Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act, 1961. Deferred income taxes reflect the impact of timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier periods.
Deferred tax is measured based on the tax rates and the tax laws 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. In situations where the Company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is a virtual certainty supported by convincing evidence that they can be realized against future taxable profits.
Unrecognized deferred tax assets of earlier years are re-assessed and recognized to the extent that it has become reasonably certain or virtually certain, as the case may be, that future taxable income will be available against which such deferred tax assets can be realized. 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. Any such write-down is reversed to the extent that it becomes reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available.
(h) Asset classification and provisioning
Loan asset classification of the Company is given in the table below:
Particulars Criteria
Standard The asset in respect of which, no
asset default in repayment of principal
or payment of interest is perceived and which does not disclose any problem nor carry more than normal risk attached to the business.
Non-performing An asset for which, interest / asset principal payment has remained overdue for a period of 120 days or more.
Provision for loan portfolio
Provision for loan portfolio has been made in accordance with the provisioning requirements for NBFC-ND-SI issued by the RBI vide its circular numbered DNBR.PD. 088/03.10.119/2016-17 dated 1 September 2016 updated as on 9 March 2017. The guidelines requires a minimum provision (i) 0.35% of the outstanding loan portfolio of standard assets which are overdue for less than 4 months (ii) 10% of the aggregate unsecured loan installments which are overdue for more than 4 months and less than 14 months and 100% of the aggregate loan installments which are overdue for 14 months or more.
Loans write off
Under the following circumstances, loans are written off:
(a) Under extraordinary circumstances such as the death of a customer who has not received life insurance coverage or his/her spouse and/or any other incident where in the opinion of the management, the loan amount is not recoverable.
(b) Where the balance outstanding at the time of closure of loan is insignificant and in the opinion of the management, the cost of collection is not economically viable.
(c) All loss assets as identified in terms of Directions issued by Systematically Important Non-Banking Financial (Non-Deposit Accepting or Holding) Companies Prudential Norms (Reserve Bank) Directions, 2016.
(i) Earning per equity share
The Company reports basic and diluted earnings per share in accordance with Accounting Standard-20 on "Earning Per Share". Basic earnings per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.
(j) Employee benefits
Expenses and liabilities in respect of employee benefits are recorded in accordance with the notified Accounting Standard 15, ''Employee Benefits (Revised 2005) (''Revised AS 15'').
(i) Provident fund
The Company makes contributions to independently constituted trusts recognized by income-tax authorities and regional provident fund. In terms of the Guidance note on implementing the Revised AS 15, issued by the Accounting Standard Board of the Institute of Chartered Accountants of India (the ''ICAI''), the provident fund set up by the Company is treated as a defined benefit plan since the Company has to meet the interest shortfall, if any. Accordingly, the contribution paid or payable and the interest shortfall, if any is recognized as an expense in the period in which services are rendered by the employee.
(ii) Gratuity
Gratuity is a post employment defined benefit plan. The liability recognized in respect of gratuity is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets, together with adjustments for unrecognized actuarial gains or losses and past service costs. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
Actuarial gains and losses arising from experience, adjustments and changes in actuarial assumptions are recorded as expense or income in the statement of profit and loss in the year in which such gains or losses arise.
(iii) Other short term benefits
Expenses relating to other short term benefits is recognized on the basis of amount paid or payable for the period during which services are rendered by the employee.
(k) Provisions and contingent liabilities
A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where 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.
(l) Transaction in foreign currency
All incomes or expenditure in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.
(m) Borrowing costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying asset is capitalizes as part of the cost of that asset wherever applicable. Other borrowing costs are recognized as an expense in the period in which they are incurred.
(n) Cash and cash equivalent
Cash and cash equivalents comprise cash and deposit with banks. 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 into known amounts of cash to be cash equivalents.
(o) Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
(p) Impairment of assets
At the balance sheet date, the Company reviews the carrying amount of fixed assets to determine whether there is any indication that those assets suffered an impairment loss and provides, if any.
(e) During the year 1,550,000 share warrants (previous year: 4,092,500) held by Mr. Yogen Khosla have been converted into equity shares of ''10 each at a price of ''117 aggregating to ''181,350,500 (previous year: ''478,422,500) and balance 1,857,500 share warrants have been forfeited aggregating to ''54,331,875. There are no outstanding share warrants as on 31 March 2017.
(f) During the year 143,915 equity share alloted to Capital Employee Welfare Trust at a price of ''559 aggregating to ''80,448,490 under the scheme of Capital Trust Employee Option Scheme 2016.
(g) Terms and rights attached to equity shares:
The Company has only one class of equity shares having a par value of ''10 per share (previous year ''10 per share). All issued shares rank pari-passu and have same voting rights per share.
The Company declares and pays dividend in Indian rupees, if any. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing general meeting.
In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.\
(j) During the current year, the members of the Company passed a resolution to offer, issue and grant options not exceeding 143,915 under Capital Trust Employee Stock Option Scheme, 2016 through Capital Employee Welfare Trust. 143,915 equity were allotted to Capital Employee Welfare Trust at a value of ''559 per equity share, including a premium of ''549 per equity share.
(k) There are no shares issued pursuant to contract without payment being received in cash, alloted as fully paid up by way of bonus issue and bought back during the last 5 years.
Mar 31, 2016
for the year ended 31st March 2016
SIGNIFICANT ACCOUNTING POLICIES 1. Accounting Policies.
1.1 Corporate Information
Capital Trust Limited is a public company incorporated in India under the provisions of the Companies Act, 1956. Its shares are listed on Mumbai Stock Exchange. The Company is engaged in the Business of Small Enterprise Loan.
1.2 Basis of preparation of financial statements
These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles(GAAP) These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 133 of Companies Act 2013 read with Rule 7 of Company ( Accounts) Rules 2014 and the provision of RBI Act as applicable to NBFC. The financial statements have been prepared on an accrual basis and under the historical cost convention except interest on loan which is classified as nonperforming assets and are accounted for on realization basis. The accounting policies adopted in the preparation of financial statements are consistent of those of the previous year.
1.3 Use of estimates
a) The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the period.
b) Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.
c) The Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be impaired. An impairment loss is recognized wherever the carrying value of an asset exceeds its recoverable amount. The recoverable amount is higher of the asset''s net selling price and value in use, which means the present value of future cash flows expected to arise from the continuing use of the asset and its eventual disposal.
1.4 Recognition of Income & Expenditure
a) Small Enterprise Finance Interest income is accounted in accordance with the terms of agreements with the Borrowers on Accrual basis
b) All other incomes are accounted for on accrual basis.
1.5 Provisions and contingent liabilities
A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where 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.
1.6 Depreciation
a) Depreciation is provided on SLM as per schedule II to the Companies Act 2013 on pro-rata basis with reference to the period of use.
b) Depreciation on additions to assets or on sale/ discernment of assets is calculated on pro-rata basis from the date of such addition or up to the date of such sale/discernment, as the case may be.
1.7 Fixed Assets
All Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Subsequent expenditure, which substantially enhances the previously assessed standard performance of the asset, is added to the carrying value.
1.8 Foreign currency transaction
All incomes or expenditure in Foreign Currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place.
1.9 Retirement Benefits
"The Company has subscribed the "Group Gratuity Scheme of LIC" for purpose of discharging the gratuity liability under the payment of Gratuity Act. The provision of Gratuity is made as per premium due/ payable for the year as per calculation of premium on Actuarial basis certified by a Certified Actuary as required by AS-15. Contributions to the Provident Fund and Superannuation Fund are charged to the Profit & Loss Account.
1.10 Borrowing Costs
Borrowing costs that are directly attributable to the acquisition, construction or production of qualifying asset is capitalizes as part of the cost of that asset wherever applicable. Other borrowing costs are recognized as an expense in the period in which they are incurred.
1.11 Earning Per Share
The Company reports basic and diluted Earnings Per Share in accordance with Accounting Standard-20 on "Earning Per Share". Basic Earnings Per Share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year. Diluted Earnings Per Share is computed by dividing the net profit or loss for the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive.
1.12 Impairment of Assets
At the Balance Sheet date, the Company reviews the carrying amount of Fixed Assets to determine whether there is any indication that those assets suffered an impairment loss and provides ,if any.
1.13 Taxation
a) Provision for tax is created in view of taxes paid/ payable during the Financial year.
b) Deferred tax is calculated at the rates and laws that have been enacted or substantively enacted as of the Balance Sheet date and is recognized on timing difference that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets, subject to consideration of prudence, are recognized and carried forward only to the extent that they can be realized in future.
1.14 Investment
Trade investments are the investments made to enhance the Company''s business interests. Investments are either classified as current or noncurrent based on Management''s intention at the time of purchase. Current investments are carried at the lower of cost and fair value of each investment individually. Noncurrent investments are carried at cost less provisions recorded to recognize any decline, other than temporary, in the carrying value of each investment.
1.15 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.
Mar 31, 2014
1.1 Corporate Information
Capital Trust Limited is a public company incorporated in India under
the provisions of the Companies Act, 1956. Its shares are listed on
Mumbai Stock Exchange. The Company is engaged in the Business of Small
Enterprise Loan.
1.2 Basis of preparation of financial statements
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles(GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. These financial
statements have been prepared to comply in all material aspects with
the accounting sandards notified under Section 211(3C) of companies act
1956. Pursuant to circular no. 15/2013 dated September 13, 2013 of read
with circular 08/ 2014 dated 4th April, 2014, till the standards of
Accounting or any addendum thereto are prescribed by Central Government
in consultation and recommendation of the National Financial Reporting
Authority, the existing Accounting Standards notified under the
Companies Act, 1956 shall continue to apply. Consequently, these
financial statements have been prepared to comply in all material
aspects with the accounting standards notified under Section 211(3C)
[Companies (Accounting Standards) Rules, 2006, as amended] and other
relevant provisions of the Companies Act, 1956.
1.3 Use of estimates
a) The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period.
b) Accounting estimates could change from period to period. Actual
results
could differ from those estimates. Appropriate changes in estimates are
made as the Management becomes aware of changes in circumstances
surrounding the estimates. Changes in estimates are reflected in the
financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes to the financial
statements.
c) The Management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. The recoverable amount is higher
of the asset''s net selling price and value in use, which means the
present value of future cash flows expected to arise from the
continuing use of the asset and its eventual disposal.
1.4 Recognition of Income & Expenditure:-
a) Micro & Small Enterprise Finance Interest income is accounted in
accordance with the terms of agreements with the Borrowers on Accrual
basis
b) All other incomes are accounted for on accrual basis.
1.5 Provisions and contingent liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation
or a present obligation that may, but probably will not, require an
outflow of resources. Where 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.
1.6 Depreciation
a) Depreciation is provided on SLM as per schedule XIV to the Companies
Act 1956 on pro-rata basis with reference to the period of use.
b) Depreciation on additions to assets or on sale/discardment of assets
is calculated on pro-rata basis from the date of such addition or up to
the date of such sale/discardment, as the case may be.
1.7 Fixed Assets:
All Fixed Assets are stated at cost of acquisition or construction less
accumulated depreciation. Subsequent expenditure, which substantially
enhances the previously assessed standard performance of the asset, is
added to the carrying value.
1.8 Foreign currency transaction:
All incomes or expenditure in Foreign Currency, are recorded at the
rates of exchange prevailing on the dates when the relevant
transactions take place.
1.9 Retirement Benefits:
The Company has subscribed the "Group Gratuity Scheme of LIC" for
purpose of discharging the gratuity liability under the payment of
Gratuity Act. The provision of Gratuity is made as per premium
due/payable for the year as per calculation of premium on Actuarial
basis certified by a Certified Actuary as required by AS-15. Out of
this provision of gratuity, some portion is also funded by LIC of
India. Contributions to the Provident Fund and Superannuation Fund are
charged to the Profit & Loss Account.
1.10 Borrowing costs:
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying asset is capitalizes as part
of the cost of that asset wherever applicable. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
1.11 Earning Per Share:
The Company reports basic and diluted Earning Per Share in accordance
with Accounting Standard-20 on "Earning Per Share". Basic Earning Per
Share is computed by dividing the net profit or loss for the year by
the weighted average number of equity shares outstanding during the
year. Diluted Earning Per Share is computed by dividing the net profit
or loss for the year by the weighted average number of equity shares
outstanding during the year as adjusted for the effects of all dilutive
potential equity shares, except where the results are anti-dilutive.
1.12 Impairment of Assets:
At the Balance Sheet date, the Company reviews the carrying amount of
Fixed Assets to determine whether there is any indication that those
assets suffered an impairment loss and provides ,if any.
1.13 Taxation:
a) provision for tax is created in view of taxes paid/payable during
the Financial year.
b) Deferred tax is calculated at the rates and laws that have been
enacted or substantively enacted as of the Balance Sheet date and is
recognized on timing difference that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax
assets, subject to consideration of prudence, are recognized and
carried forward only to the extent that they can be realized in future.
1.14 Investment
Trade investments are the investments made to enhance the Company''s
business interests. Investments are either classified as current or non
current based on Management''s intention at the time of purchase.
Current investments are carried at the lower of cost and fair value of
each investment individually. Non current investments are carried at
cost less provisions recorded to recognize any decline, other than
temporary, in the carrying value of each investment.
1.15 Cash Flow Statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
Details of Terms/ rights attached to equity shares
The company has only one class of equity shares having a par value of Rs.
10 per share. All issued shares rank pari-passu and have same voting
rights per share. In the event of liquidation of the company, the
holders of the equity shares will be entitled to receive remaining
assets of the company, after distribution of preferential amounts. The
distribution will be in proportion to the number of equity shares held
by the shareholders.
Details of Terms/ rights attached to non- convertible redeemable
preference shares 30,00,000 - 18% Preference Shares Rs. 10 each fully
paid up are issued and redeemption period will be defined on or after
the seeking prior approval from members in general meeting in every 12
months by way of Special Resolution.
Mar 31, 2012
1.1 Corporate Information
Capital Trust Limited is a public company incorporated in India under
the provisions of the Companies Act, 1956. Its shares are listed on
Mumbai Stock Exchange. The Company is engaged in the Business of Small
Enterprise Loan.
1.2 Basis of preparation of financial statements
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles(GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards as prescribed by the Companies(Accounting
Standards) Rules, 2006, the provisions of the Companies Act,1956 and
guidelines issued by the Securities and Exchange Board of India(SEBI).
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or are vision to an
existing accounting standard requires a change in the accounting policy
hitherto in use.
1.3 Use of estimates
a) The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period.
b) Accounting estimates could change from period to period. Actual
results could differ from those estimates. Appropriate changes in
estimates are made as the Management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are
reflected in the financial statements in the period in which changes
are made and, if material, their effects are disclosed in the notes to
the financial statements.
c) The Management periodically assesses using, external and internal
sources, whether there is an indication that an asset may be impaired.
An impairment loss is recognized wherever the carrying value of an
asset exceeds its recoverable amount. The recoverable amount is higher
of the asset's net selling price and value in use, which means the
present value of future cash flows expected to arise from the
continuing use of the asset and its eventual disposal.
1.4 Recognition of Income & Expenditure:-
a) Micro FinanceSmall Enterprise Loans Interest income is accounted in
accordance with the terms of agreements with the Borrowers on Accrual
basis
b) Income from Sale of Advances (True Sale) are recognised on Date of
Sale of Assets. In respect of True sale of Loans profit on such sale is
recognisded on the date of sale.
c) All other incomes are accounted for on accrual basis.
1.5 Provisions and contingent liabilities
A provision is recognized if, as a result of a past event, the Company
has a present legal obligation that can be estimated reliably, and it
is probable that an outflow of economic benefits will be required to
settle the obligation. Provisions are determined by the best estimate
of the outflow of economic benefits required to settle the obligation
at the reporting date. Where no reliable estimate can be made, a
disclosure is made as contingent liability. A disclosure for a
contingent liability is also made when there is a possible obligation
or a present obligation that may, but probably will not, require an
outflow of resources. Where 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.
1.6 Depreciation
a) Depreciation is provided on SLM as per schedule XIV to the Companies
Act 1956 on pro-rata basis with reference to the period of use.
b) Depreciation on additions to assets or on sale/discardment of assets
is calculated on pro-rata basis from the date of such addition or up to
the date of such sale/discardment, as the case may be.
1.7 Fixed Assets:
All Fixed Assets are stated at cost of acquisition or construction less
accumulated depreciation. Subsequent expenditure, which substantially
enhances the previously assessed standard performance of the asset, is
added to the carrying value.
1.8 The Company had collected a sum of $.54,88,285/- (Net) from its
members by way of Welfare Fund reflected in Other Liabilities. The Fund
is created exclusively for the utilization of the welfare activities of
the members after successful and timely completion of Loan repayments.
This Fund would be utilized for adjustment of Loan in case of any
eventuality of serious injury or death , insurance premium for death
cases, development of the surrounding area of borrowers villages,
development by way of construction of Roads, Bridges, community centers
in the vicinity of Borrowers living areas, Financial aid for the
education of the members children's, and medical assistance to the
members.
1.9 Foreign currency transaction:
All incomes or expenditure in Foreign Currency, are recorded at the
rates of exchange prevailing on the dates when the relevant
transactions take place.
1.10 Retirement Benefits:
"The Company has subscribed the "Group Gratuity Scheme of LIC" for
purpose of discharging the gratuity liability under the payment of
Gratuity Act. The provision of Gratuity is made as per premium
due/payable for the year as per calculation of premium on Actuarial
basis certified by LIC of India and a counter certificate from a
Certified Actuary as required by AS-15.
Contributions to the Provident Fund and Superannuation Fund are charged
to the Profit & Loss Account.
1.11 Borrowing costs:
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying asset is capitalizes as part
of the cost of that asset wherever applicable. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
1.12 Earning Per Share:
The Company reports basic and diluted Earning Per Share in accordance
with Accounting Standard 20 on "Earning Per Share". Basic Earning Per
Share is computed by dividing the net profit or loss for the year by
the weighted average number of equity shares outstanding during the
year. Diluted Earning Per Share is computed by dividing the net profit
or loss for the year by the weighted average number of equity shares
outstanding during the year as adjusted for the effects of all dilutive
potential equity shares, except where the results are anti-dilutive.
1.13 Impairment of Assets:
At the Balance Sheet date, the Company reviews the carrying amount of
Fixed Assets to determine whether there is any indication that those
assets suffered an impairment loss and provides ,if any.
1.14 Taxation:
a) Current tax is determined on the profit for the year in accordance
with the provisions of the Income tax Act, 1961. Minimum alternate
tax(MAT) paid in accordance with the tax laws is charged off as current
tax during the year.
b) Deferred tax is calculated at the rates and laws that have been
enacted or substantively enacted as of the Balance Sheet date and is
recognized on timing difference that originate in one period and are
capable of reversal in one or more subsequent periods. Deferred tax
assets, subject to consideration of prudence, are recognized and
carried forward only to the extent that they can be realized in future.
1.15 Investment
Trade investments are the investments made to enhance the Company's
business interests. Investments are either classified as current or non
current based on Management's intention at the time of purchase.
Current investments are carried at the lower of cost and fair value of
each investment individually. Non current investments are carried at
cost less provisions recorded to recognize any decline, other than
temporary, in the carrying value of each investment.
1.16 Cash and cash equivalents
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
1.17 Cash flow statement
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non-cash
nature, any deferrals or accruals of past or future operating cash
receipts or payments and item of income or expenses associated with
investing or financing cash flows. The cash flows from operating,
investing and financing activities of the Company are segregated.
1.18 Contingent Liability:
a) Contingent liabilities as defined in Accounting Standard 29 are
disclosed by way of notes to accounts. Provision is made if it becomes
probable that an outflow of future economic benefits will be required
for an item previously dealt with as a contingent liability.
b) Contingent assets as defined in Accounting Standard 29 in accordance
with the Standard not recognised or disclosed in the financial
statements.
Mar 31, 2011
(a) Valuation of Inventories:
(i) Stock of shares is valued at lower of cost or market rate on the
balance sheet date.Market rate is calculated as the last quoted rate on
the balance sheet date.
(b) Use of Estimates:- The Preparation of financial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that effect the reported amounts
of assets and liabilities on the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period. Differences between actual results and estimates are recognised
in the period in which the results are known/materialised.
(c) Depreciation:
(a) Own assets:
Depreciation is provided on SLM as per schedule XIV to the Companies
Act 1956 on pro- rata basis with reference to the period of use.
(d) Recognition of Income & Expenditure:-
(i) Micro Finance Interest income is accounted in accordance with the
terms of agreements with the Borrowers on Accrual basis.
(ii) As all the Hire Purchase assets has already been written off, any
amount received against those written off assets is recognised on cash
basis.
(e) Income on hire purchase transactions and loan transactions are
recognised as per RBIÃs Prudential Norms.
(f) The Company had collected a sum of Rs.19,63,599.59/- (Net) from its
members by way of Welfare Fund reflected in Other Liabilities. The Fund
is created exclusively for the utilization of the welfare activities of
the members after successful and timely completion of Loan repayments.
This Fund would be utilized for adjustment of Loan in case of any
eventuality of serious injury or death , insurance premium for death
cases, development of the surrounding area of borrowers villages,
development by way of construction of Roads, Bridges, community centers
in the vicinity of Borrowers living areas, Financial aid for the
education of the members childrenÃs, and medical assistance to the
members.
(g) Fixed Assets: All Fixed Assets are stated at cost of acquisition or
construction less accumulated depreciation. Subsequent expenditure,
which substantially enhances the previously assessed standard of
performance of the assets, is added to the carrying value.
(h) Foreign Currency Transactions:
(i) Balances in the form of Current Assets and Current Liabilities in
Foreign Currency outstanding at the close of the year are converted in
Indian currency at the appropriate rates of exchange prevailing on the
date of the Balance Sheet. Resultant gain or loss is accounted during
the year.
(ii) All incomes or expenditure in Foreign Currency, are recorded at
the rates of exchange prevailing on the dates when the relevant
transactions take place.
(i) Retirement Benefits:
The Company has subscribed the ÃGroup Gratuity Scheme of LICÃ for
purpose of discharging the gratuity liability under the payment of
Gratuity Act. The premium due/payable for the year has been charged to
Profit & Loss Account as per Acturial basis . Contributions to the
Provident Fund and Superannuation Fund are charged to the Profit & Loss
Account
(j) Borrowing costs:
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying asset is capitalizes as part
of the cost of that asset wherever applicable. Other borrowing costs
are recognized as an expense in the period in which they are incurred.
(k) Earning Per Share:
The Company reports basic and diluted Earning Per Share in accordance
with Accounting Standard 20 on ÃEarning Per ShareÃ. Basic Earning Per
Share is computed by dividing the net profit or loss for the year by
the weighted average number of equity shares outstanding during the
year. Diluted Earning Per Share is computed by dividing the net profit
or loss for the year by the weighted average number of equity shares
outstanding during the year as adjusted for the effects of all dilutive
potential equity shares, except where the results are anti-dilutive.
(l) Impairment of Assets:-
At the Balance Sheet date, the Company reviews the carrying amount of
Fixed Assets to determine whether there is any indication that those
assets suffered an impairment loss and provides, if any.
(m) Taxation:
Income taxes are accounted for in accordance with Accounting Standard
22 on ÃAccounting for taxes on incomeÃ. Income taxes comprise both
current and deferred tax. Current tax is calculated using applicable
tax rates and laws. Deferred tax assets and liabilities are recognised
for future tax consequences attributable to timing differences. The tax
effect of the timing differences that result between taxable income and
accounting income and are capable of reversal in one or more subsequent
periods are recorded as a deferred tax assets or deferred tax
liability.
(n) Contingent Liability:
Contingent liabilities as defined in Accounting Standard 29 are
disclosed by way of notes to accounts. Provision is made if it becomes
probable that an outflow of future economic benefits will be required
for an item previously dealt with as a contingent liability.
Contingent assets as defined in Accounting Standard 29 in accordance
with the Standard not recognised or disclosed in the financial
statements.
Mar 31, 2010
(a) Valuation of Inventories:
(i) Stock of shares is valued at lower of cost or market rate on the
balance sheet date.Market rate is calculated as the last quoted rate on
the balance sheet date.
(b) Use of Estimates:- The Preparation of financial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that effect the reported amounts
of assets and liabilities on the date of the financial statements and
the reported amounts of revenues and expenses during the reporting
period. Differences between actual results and estimates are recognised
in the period in which the results are known/materialised.
(c) Depreciation:
(a) Own assets:
Depreciation is provided on SLM as per schedule XIV to the Companies
Act 1956 on pro-rata basis with reference to the period of use.
(b) Leased assets:
(i) Depreciation on leased assets is charged on pro-rata basis on
straight line method, in accordance with Schedule XIV of the Companies
Act, 1956.
(d) Recognition of Income & Expenditure:-
(i) Micro Finance Interest income is accounted in accordance with the
terms of agreements with the Borrowers on Accrual basis.
(ii) The financial charges in respect of hire purchase transactions and
other items of income and expenditure are accounted for on accrual
basis.
(e) Income on hire purchase transactions and loan transactions are
recognised as per RBIs Prudential Norms.
(f) The Company had collected a sum of Rs. 12,51,617.39/- (Net) from
its members by way of Welfare Fund reflected in Other Liabilities. The
Fund is created exclusively for the utilization of the welfare
activities of the members after successful and timely completion of
Loan repayments. This Fund would be utilized for adjustment of Loan in
case of any eventuality of serious injury or death , insurance premium
for death cases, development of the surrounding area of borrowers
villages, development by way of construction of Roads, Bridges,
community centers in the vicinity of Borrowers living areas, Financial
aid for the education of the members childrens, and medical assistance
to the members.
(g) Fixed Assets: All Fixed Assets are stated at cost of acquisition or
construction less accumulated depreciation. Subsequent expenditure,
which substantially enhances the previously assessed standard of
performance of the assets, is added to the carrying value.
(h) Foreign Currency Transactions:
(i) Balances in the form of Current Assets and Current Liabilities in
Foreign Currency outstanding at the close of the year are converted in
Indian currency at the appropriate rates of exchange prevailing on the
date of the Balance Sheet. Resultant gain or loss is accounted during
the year.
(ii) All incomes or expenditure in Foreign Currency, are recorded at
the rates of exchange prevailing on the dates when the relevant
transactions take place.
(i) Investments:-
(i) All the investment of the company is long term Investments.
(ii) Long term investments in unquoted shares are valued at cost as per
AS- 13 issued by Institute of Chartered Accountants of India. However
necessary provision for depreciation in value of investments have been
made wherever found necessary.
G) Retirement Benefits:
The Company has subscribed the "Group Gratuity Scheme of LIC for
purpose of discharging the gratuity liability under the payment of
Gratuity Act. The premium due/payable for the year has been charged to
Profit & Loss Account as per Acturial basis. Contributions to the
Provident Fund and Superannuation Fund are charged to the Profit & Loss
Account
(k) Borrowing costs:
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying asset is capitalizes as part
of the cost of that asset. Other borrowing costs are recognized as an
expense in the period in which they are incurred.
(I) Earning Per Share:
The Company reports basic and diluted Earning Per Share in accordance
with Accounting Standard 20 on "Earning Per Share". Basic Earning Per
Share is computed by dividing the net profit or loss for the year by
the weighted average number of equity shares outstanding during the
year. Diluted Earning Per Share is computed by dividing the net profit
or loss for the year by the weighted average number of equity shares
outstanding during the year as adjusted for the effects of all dilutive
potential equity shares, except where the results are anti-dilutive.
(m) Impairment of Assets:-
At the Balance Sheet date, the Company reviews the carrying amount of
Fixed Assets to determine whether there is any indication that those
assets suffered an impairment loss and provides ,if any.
(n) Taxation:
Income taxes are accounted for in accordance with Accounting Standard
22 on "Accounting for taxes on income". Income taxes comprise both
current and deferred tax. Current tax is calculated using applicable
tax rates and laws. Deferred tax assets and liabilities are recognised
for future tax consequences attributable to timing differences. The tax
effect of the timing differences that result between taxable income and
accounting income and are capable of reversal in one or more subsequent
periods are recorded as a deferred tax assets or deferred tax
liability.
(o) Contingent Liability.:
Contingent liabilities as defined in Accounting Standard 29 are
disclosed by way of notes to accounts. Provision is made if it becomes
probable that an outflow of future economic benefits will be required
for an item previously dealt with as a contingent liability.
Contingent assets as defined in Accounting Standard 29 in accordance
with the Standard not recognised or disclosed in the financial
statements.