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Accounting Policies of Capman Financials Ltd. Company

Mar 31, 2014

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

i. The financial statements have been prepared in compliance with all material aspects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 (as amended and the relevant provisions of the Companies Act, 1956.

ii. Financial Statements are based on historical cost and are prepared on accrual basis except for certain financial instruments which are measured at fair value.

iii. The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the results of operations during the reporting period end.

iv. Accounting Policies have been consistently applied by the company and are consistent with those used in the previous year and except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2. FIXED ASSETS:

i. Fixed assets are stated at cost of acquisition or construction (net of MODVAT/ CENVAT credit availed), net of accumulated depreciation, amortization and impairment losses if any, except freehold land which is carried at cost less impairment losses.

ii. Advances paid towards the acquisition of fixed assets outstanding at each Balance Sheet date and the cost of fixed assets not ready for their intended use before such date are disclosed under Capital Work in Progress.

iii. Machinery spares which can be used only in connection with a particular item of fixed asset and the use of which is irregular are capitalized at cost net of MODVAT/ CENVAT.

3. DEPRECIATION:

i. Depreciation is provided on Straight Line Method ("S.L.M"). The depreciation rates prescribed in Schedule XVI to the Companies Act, 1956 are considered as the minimum rates. If the management''s estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule, depreciation at a higher rate based on the management''s estimate of useful life/ remaining life.

ii. Depreciation on additions to fixed assets is provided on a pro-rata basis from the date of acquisition or installation and in the case of new project, from the date of commencement of commercial production. Depreciation on assets sold, discarded, demolished or scrapped is provided upto the date on which the said asset is sold, discarded, demolished or scrapped.

iii. In respect of an asset for which impairment loss is recognised, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

iv. Where depreciable assets are revalued, depreciation is provided on the revalued amount and the additional depreciation on accretion to assets on revaluation is transferred from revaluation reserve to the Statement of Profit and Loss Account.

v. Asset costing less than Rs. 5,000/- are fully charged to the Statement of Profit and Loss account in the year of acquisition.

4. CASH AND BANK BALANCES :

i. Cash and Bank balances in the Balance Sheet comprise cash at bank including fixed deposits, cheques in hand and cash in hand.

ii. Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

5. REVENUE RECOGNITION:

i. Profit or loss from sale of investments in shares and securities, whether held as current investment or long term investment, are recognized on transaction dates.

ii. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

iii. In respect of other heads of income, the Company follows the practice of accounting of such income on accrual basis subject to the prudential norms as may be applicable.

6. EMPLOYEE BENEFITS:

i. Short term Employee benefits:

All employee benefits payable wholly within twelve months rendering the services are classified as short term employee benefits. Benefits such as salaries, wages and short term compensated absences, etc. and the expected cost of ex-gratia is recognized in the period in which employee renders the related services.

ii Post Employee Benefits :

Gratuity shall be provided on the basis of payment and no provision has been made for the same on accrual basis.

7. TAXATION:

i. Income Tax:

The Current charge for income taxes is calculated in accordance with the relevant tax regulations. Tax liability for taxes has been computed after considering Minimum Alternative Tax (MAT). The excess tax paid under MAT provisions being over and above regular tax liability can be carried forward and set off against future tax liabilities computed under regular tax provisions. Accordingly, MAT credit has been recognized, wherever applicable on the balance sheet which can be carried forward for the period of ten year form the year of recognition.

ii. Deferred Tax:

Deferred tax assets and liabilities are recognized for the future tax consequences attributed to timing differences that result between profit offered for income taxes and the profit as per the financial statements.

Deferred tax assets and liabilities are measured using the tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a changes in tax rates is recognized in the period that includes the enactment / substantive enactment date.

Deferred tax assets on timing differences are recognized only if there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized however, deferred tax assets on the timing difference when unabsorbed depreciation and losses carried forward exist, are recognized only to the extent that there is virtual income will be available against which such deferred tax assets can be realized.

Deferred tax assets are reassessed for the appropriateness of their respective carrying amounts at each balance sheet date.

The Company offsets, on a year on year basis, it''s current and non current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

8. PROVISIONS AND CONTINGENT LIABILITIES:

i. Provisions are recognized when the company event, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of obligation.

ii. 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, where there is a possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

i. Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated.

Contingent assets are neither recognized nor disclosed in the financial statements

9. EARNINGS PER SHARE:

i. Basic:

The number of equity share used in computing basic earning per share is the weighted average number of share outstanding during the year.

ii. Diluted:

The number of equity share used in computing diluted earnings per share comprises the weighted average number of equity share considered for deriving basic earning per share and also the weighted average number of equity share that could have been issued on the conversion of all dilutive potential equity shares.

Dilutive potential equity share are deemed converted as of the beginning of the period unless issued at a later date. The number of equity share adjusted for any stock splits and bonus share issued.

10. CASH FLOW STATEMENT :

Cash Flow are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of part or future cash receipts or payments. The cash flows from regular revenue generating investing and financing activities of the company are segregated.


Mar 31, 2013

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

i. The financial statements have been prepared in compliance with all material aspects with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006 (as amended and the relevant provisions of the Companies Act, 1956.

ii. Financial Statements are based on historical cost and are prepared on accrual basis except for certain financial instruments which are measured at fair value.

iii. The preparation of financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of financial statements and the results of operations during the reporting period end.

iv. Accounting Policies have been consistently applied by the company and are consistent with those used in the previous year and except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

2. FIXED ASSETS:

i. Fixed assets are stated at cost of acquisition or construction (net of MODVAT/ CENVAT credit availed), net of accumulated depreciation, amortization and impairment losses if any, except freehold land which is carried at cost less impairment losses.

ii. Advances paid towards the acquisition of fixed assets outstanding at each Balance Sheet date and the cost of fixed assets not ready for their intended use before such date are disclosed under Capital Work in Progress.

iii. Machinery spares which can be used only in connection with a particular item of fixed asset and the use of which is irregular are capitalized at cost net of MODVAT/ CENVAT.

3. DEPRECIATION:

i. Depreciation is provided on Straight Line Method ("S.L.M"). The depreciation rates prescribed in Schedule XVI to the Companies Act, 1956 are considered as the minimum rates. If the management''s estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule, depreciation at a higher rate based on the management''s estimate of useful life/ remaining life.

ii. Depreciation on additions to fixed assets is provided on a pro-rata basis from the date of acquisition or installation and in the case of new project, from the date of commencement of commercial production. Depreciation on assets sold, discarded, demolished or scrapped is provided up to the date on which the said asset is sold, discarded, demolished or scrapped.

iii. In respect of an asset for which impairment loss is recognized, depreciation is provided on the revised carrying amount of the assets over its remaining useful life.

iv. Where depreciable assets are revalued, depreciation is provided on the revalued amount and the additional depreciation on accretion to assets on revaluation is transferred from revaluation reserve to the Statement of Profit and Loss Account.

v. Asset costing less than Rs. 5,000/- are fully charged to the Statement of Profit and Loss in the year of acquisition.

4. CASH AND BANK BALANCES :

i. Cash and Bank balances in the Balance Sheet comprise cash at bank including fixed deposits, cheques in hand and cash in hand.

ii. Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

5. REVENUE RECOGNITION:

i. Profit or loss from sale of investments in shares and securities, whether held as current investment or long term investment, are recognized on transaction dates.

ii. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

iii. In respect of other heads of income, the Company follows the practice of accounting of such income on accrual basis subject to the prudential norms as may be applicable.

6. EMPLOYEE BENEFITS:

Short term Employee benefits:

All employee benefits payable wholly within twelve months rendering the services are classified as short term employee benefits. Benefits such as salaries, wages and short term compensated absences, etc. and the expected cost of ex-gratia is recognized in the period in which employee renders the related services.

7. TAXATION:

i. Income Tax:

The Current charge for income taxes is calculated in accordance with the relevant tax regulations. Tax liability for taxes has been computed after considering Minimum Alternative Tax (MAT). The excess tax paid under MAT provisions being over and above regular tax liability can be carried forward and set off against future tax liabilities computed under regular tax provisions. Accordingly, MAT credit has been recognized, wherever applicable on the balance sheet which can be carried forward for the period of ten year form the year of recognition.

ii. Deferred Tax:

Deferred tax assets and liabilities are recognized for the future tax consequences attributed to timing differences that result between profit offered for income taxes and the profit as per the financial statements.

Deferred tax assets and liabilities are measured using the tax rate and tax laws that have been enacted or substantively enacted by the balance sheet date. The effect on deferred tax assets and liabilities of a changes in tax rates is recognized in the period that includes the enactment / substantive enactment date.

Deferred tax assets on timing differences are recognized only if there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized however, deferred tax assets on the timing difference when unabsorbed depreciation and losses carried forward exist, are recognized only to the extent that there is virtual income will be available against which such deferred tax assets can be realized.

Deferred tax assets are reassessed for the appropriateness of their respective carrying amounts at each balance sheet date.

The Company offsets, on a year on year basis, it''s current and non current tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such assets and liabilities on a net basis.

8. PROVISIONS AND CONTINGENT LIABILITIES:

i. Provisions are recognized when the company event, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of obligation.

ii. 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, where there is a possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

i. Loss contingencies arising from claims, litigation, assessment, fines, penalties, etc. are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated.

Contingent assets are neither recognized nor disclosed in the financial statements

9. EARNINGS PER SHARE:

i. Basic:

The number of equity share used in computing basic earning per share is the weighted average number of share outstanding during the year.

ii. Diluted:

The number of equity share used in computing diluted earnings per share comprises the weighted average number of equity share considered for deriving basic earnings per share and also the weighted average number of equity share that could have been issued on the conversion of all dilutive potential equity shares.

Dilutive potential equity share are deemed converted as of the beginning of the period unless issued at a later date. The number of equity share adjusted for any stock splits and bonus share issued.

10. CASH FLOW STATEMENT :

Cash Flow are reported using the indirect method, whereby net profits before tax is adjusted for the effects of transactions of non cash nature and any deferrals or accruals of part or future cash receipts or payments. The cash flows from regular revenue generating investing and financing activities of the company are segregated.

Company has issued only one category of Equity Shares as stated above. Company does not have any kind of Outstanding Preference Shares or Convertible Warrant or any other kind of instrument other than the Equity Shares as stated above

For the period of Five Years immediately preceding, 31st March, 2013 company has not:-

(i) allotted any Shares as fully paid up pursuant to contract(s) without payment being received in cash

(ii) allotted any shares as fully paid up by way of bonus shares.

(iii) bought back any shares.

The Company has transferred an amount of Rs. 9,33,244/- (P.Y. Rs. 6,99,365/-) to the Reserve Fund in accordance with the provisions of Section 45-IC of the RBI Act, 1934.

The Company has transferred an amount of Rs. 1,41,264/- (P.Y. Rs. 1,25,319/-) to a separate account titled as Contingent Provisions against Standard Assets in accordance with RBI Notification No. DNBS.223/CGM (US) - 2011 dated January 17, 2011 and the balance of the account has been shown under the head Reserves and Surplus


Mar 31, 2012

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:

The accounts have been prepared under historical cost convention, on the accrual basis of accounting and the same are in accordance with the generally accepted accounting principles and the provisions of The Companies Act, 1956.

2. FIXED ASSETS:

Fixed assets are stated at cost less accumulated depreciation.

3. DEPRECIATION:

Depreciation is provided on straight line method on pro-rata basis at the rates and in the manner specified in Schedule XIV to The Companies Act, 1956.

4. INCOME RECOGNITION:

i. Profit or loss from sale of investments in shares and securities, whether held as current investment or long term investment, are recognized on transaction dates.

ii. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

iii. In respect of other heads of income, the Company follows the practice of accounting of such income on accrual basis subject to the prudential norms as may be applicable.

5. TAXATION:

Provision for Current Income Tax payable for a year is made after considering exemptions / deductions as may be available and at the rates applicable under The Income Tax Act, 1961.

Deferred Tax Assets and Liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence and using the tax rates and tax laws that have been enacted. The carrying amount of deferred tax asset / liability is reviewed at each balance sheet date.

6. EARNINGS PER SHARE:

Basic earnings per share is calculated by dividing the net profit or loss, after taxation, for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is calculated by taking into account the weighted average number of shares outstanding during the period and further adjusted for the effects of all dilutive potential equity shares. However at present the company does not have any outstanding dilutive potential equity shares.


Mar 31, 2010

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accounts have been prepared under historical cost convention, on the accrual basis of accounting and the same are in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

2. FIXED ASSETS

Fixed assets are stated at cost less accumulated depreciation.

3. DEPRECIATION

Depreciation is provided on straight line method on pro-rata basis at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

4. INVESTMENTS

Investment activity is one of the segments of the business activities carried on by the Company and the investments are dealt accordingly as follows:

i. Investments in quoted shares and securities are held and stated at cost and any gain or loss arising on sale of investments is accounted for in the year of sale.

ii. Investments in quoted shares and securities are either current investments or long term investments and any diminution in the value of such investments is provided for by transfer to a provision account.

iii. Investments in un-quoted shares and securities being long term investments are stated at cost. However provision for diminution, other than temporary, in the value of such investments, if any, is made to recognize a decline.

5. STOCK-IN-TRADE

Stock-in-Trade consists of Shares and Securities and the same is valued scrip- wise at cost or market value whichever is lower.

6. INCOME RECOGNITION

i. Profit or loss from dealing in shares and securities and derivatives are recognized on transaction dates.

ii. Profit or loss from sale of investments in shares and securities, whether held as current investment or long term investment, are recognized on transaction dates.

iii. Dividend income is accounted on receipt basis.

iv. Interest income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

v. In respect of other heads of income, the Company follows the practice of accounting of such income on accrual basis subject to the prudential norms as may be applicable.

7. TAXATION

Provision for Current Income Tax payable for a year is made after considering exemptions / deductions as may be available and at the rates applicable under the Income Tax Act, 1961.

Deferred Tax Assets and Liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence and using the tax rates and tax laws that have been enacted. The carrying amount of deferred tax asset / liability is reviewed at each balance sheet date.

8. EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the net profit or loss, after taxation, for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is calculated by taking into account the weighted average number of shares outstanding during the period and further adjusted for the effects of all dilutive potential equity shares. However at present the company does not have any outstanding dilutive potential equity shares.

 
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