Accounting Policies of Northlink Fiscal & Capital Services Ltd. Company

Mar 31, 2015

I) BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS

The financial statements has been prepared in accordance the historical cost convention, accounting Standards issued vide Companies (Accounting Standards), Rules 2006, as prescribed under section 133 of the Companies Act 2013 read with rule 7 of Companies (Accounts) Rule, 2014 and other relevant provisions of the Companies Act 2013 and earlier year financial statement were prepared as per relevant provision of Companies Act 1956 (refer general circular 08/2014 dt. 04/04/2014 of the Ministry Corporate Affairs for applicability of relevant provisions/schedules/rules of the Companies Act, 1956 for the financial statements prepared for the financial year commenced earlier than 01.04.2014) and the provisions of the Companies Act, 2013 (to the extent applicable).

ii) USE OF ESTIMATES

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect reportable amounts of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the year in which the results are known /materialized.

iii) RECOGNITION OF INCOME/EXPENDITURE

All income & expenditure having a material bearing on the financial statements is accounted for on an accrual basis and provision is made for all known losses and liabilities.

Further, sales include revision in prices received from customers with retrospective effect. Similarly, price revision for material purchased has also been included in purchases. Further adjustment, if any, are made in the year of final settlement. Dividend Income is recognize when the right to receive the dividend is established by the balance sheet date. Interest income is recognized on time proportion basis.

iv) FIXED ASSETS

Fixed assets are stated at original cost plus any directly attributable cost of bringing the assets to their working condition for intended use.

v) IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at each balance sheet date to ascertain if there is any indication of impairment based on internal/external factors.

If the carrying amount of the assets exceeds its estimated recoverable amount, an impairment loss is recognized in the profit & loss account to the extent the carrying amount exceeds the recoverable amount. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment, recognized for the assets, no longer exist or has decreased.

vi) DEPRECIATION

The estimated useful lives of fixed assets have been revised in accordance with schedule II to The Companies Act 2013, w. e .f. 1st April, 2014. Further Depreciation has been provided on straight- line method at the appropriate rates in accordance with schedule II of the Companies Act, 2013.

vii) FOREIGN TRANSACTIONS

The Company has not transacted any foreign transaction during the year 2014-15. viii) INVESTMENTS

The company has no investments as on 31.03.2015 .

ix) BORROWING COST

Borrowing cost attributable to acquisitions and construction of assets are capitalized as a part of cost of such assets up to the date when such assets are ready for its intended use and other borrowing cost are charged to Profit & Loss Account. But the company has not taken any loan for the purchase of any capital assets during the year 2014-15.

x) VALUATION OF INVENTORIES

The closing stock has been valued at cost or net realizable value whichever is less as at 31.03.2015 as per Accounting Standard –2 issued by The Institute of Chartered Accountants of India.

xi) EMPLOYEE RETIREMENT BENEFITS

Retirement benefits in the form of Provident Funds/ Pension schemes are defined contribution schemes and the contribution will be charged to the Profit & Loss account of the year when the contribution to the respective funds becomes due. No provision for gratuity has been made for 2014-15.

xii) CURRENT TAXES

Income Tax expense comprises of current tax and deferred tax charge or credit. Provision for current tax is made with reference to taxable income computed for the financial year for which the financial statements are prepared by applying the tax rates as applicable.

Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and loss as current tax. The company recognize MAT credit available as an assets only to the extent 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. In the year in which the company recognize MAT Credit as an assets in accordance with the Guidance Note on Accounting for credit Available in respect of Minimum alternate tax under the Income Tax Act, 1961, the said assets is created by way of credit to the statement of Profit and loss and shown as "MAT Credit Entitlement". The Company reviews the "MAT Credit Entitlement" assets at each reporting date and writes down the assets to the extent the company does not have convincing evidence that it will pay normal tax during the sufficient period.

Deferred income tax charge reflects the impact of current period timing difference between taxable income and accounting income. The deferred tax charge or credit is recognized using prevailing enacted or substantively enacted tax rates. Where there is an unabsorbed depreciation or carry forward loss, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Other deferred tax assets are recognized only to the extent there is reasonable certainty of realization in future. Deferred tax assets/liabilities are reviewed as at each balance sheet date based on developments during the period and available case laws, to reassess realizations/liabilities.

xiii) RESEARCH AND DEVELOPMENT

In accordance with the Accounting Standard (AS)-26, the company has no activity of Research & Development during the year 2014-15.

xiv) EARNINGS PER SHARE

Basic Earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. For the purpose of calculating Diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

xv) CONTINGENT LIABILITIES, CONTINGENT ASSETS & PROVISIONS

Contingent liabilities, if material, are disclosed by way of notes and contingent assets are not recognized or disclosed in the financial statements. A Provision is recognized, when an enterprise has a present obligation as a result of past events and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect of which a reliable estimate can be made for the amount of obligation.

xvi) TECHNICAL KNOW-HOW

The company has not incurred any expenses for the technical know –how.

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Mar 31, 2014

A) BASIS OF ACCOUNTING: The financial statements have been prepared in accordance with Generally Accepted Accounting Principles (GAAP) in India and presented the historical cost convention on accrual basis of accounting to comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 and with the relevant provisions of the Companies Act, 1956.

b) USE OF ESTIMATES: The preparation of consolidated financial statements in conformity with Generally accepted accounting Principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent liabilities on the date of financial statements and reported amounts of income and expenses during the period.

c) The previous years' figures have been regrouped and rearranged wherever considered necessary to make them comparable with current year's figures.

d) INVESTMENTS: - The company has investments as on 31.03.2014 for Rs. 418000/- in the unquoted equity shares and any diminishing in the value of shares is considered temporary and no provision has been made.

e) REVENUE RECOGNITION: - Income and the expenditure has accounted for on accrual basis during the year 2013-14.

f) FIXED ASSETS: - Fixed assets are stated at original cost plus any directly attributable cost of bringing the assets to their working condition for intended use. Assets under the head of Plant & machinery as on 01.04.2013 having W. D. V. of Rs. 45188.77 has been shown under the head of Office Equipment

g) DEPRECIATION: - Depreciation is provided on straight-line method at the appropriate rates in accordance with schedule XIV of the companies Act, 1956. Dep. on Computer purchased prior to 2013-14 has been provided Rs. 26249.35/- after keeping the 5% value as a residual amt. of the gross amt. (i.e. Dep. 26249.35 has been provided instead of 30185.61)

h) FOREIGN TRANSACTIONS: - The Company has no foreign transactions during the year 2013-14.

i) CURRENT ASSETS: - The closing stock has been valued at cost or net realizable value which ever is less as at 31.03.2014 as per Accounting Standard -2 issued by The Institute of Chartered Accountants of India.

j) PROVISIONS: - Provision for Income Tax Rs. 157170.00 and expenses payable has been made for the year 2013-14.

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Mar 31, 2013

1. GENERAL:

The financial statements are prepared under historical cost convention. The expenses are accounted on accrual basis with provision for the known liabilities and losses, if any.

The company is not following prudential norms for income recognition as prescribed by RBI for NBFC. The company has applied to R.B.I. for conversion from A category to B category.

2. NBFC STATUS

The Company has applied for registration with RESERVE BANK OF INDIA and the same has been received.

3. SUBSIDIARY COMPANY

The Company has applied to Company Law Board for investment in subsidiary Company i.e. Northlink Securities Private Limited. However, the permission is still awaited. The Investment in subsidiary has been sold during the year ended 31.03.2004. Therefore subsidiary company M/s Northlink securities (P) Ltd. Has been desubsidiarised.

4. REVENUE RECOGNITION:

Lease Rentals Income is recognized on annual basis and debited to lesser as at the end of the year.

5. FIXED ASSETS:

Fixed assets are stated at cost less accumulated depreciation.

6. DEPRECIATION:

Leased assets are depreciated on written down value method at the rates prescribed by Schedule XIV of the Companies Act, 1956. Depreciation on additions/deletions during the year is provided on pro-rata basis. The company does not follow the revised guidance note issued by the Chartered Accountants of India in respect of Leased Assets acquired on or after 1st April, 1995.

7. OWNED ASSETS: -

Owned assets are depreciated on SLM at the rates prescribed by Schedule XIV of the Companies Act, 1956.

8. Material events occurring after the balance sheet date are taken into consideration.

9. Prior period and extra ordinary items and changes in accounting policies having material impact on the financial affairs of the company, if any, are disclosed.

10. The accounts of the company are prepared as a going concern basis.

11. Borrowing cost that are that are directly attributable to the acquisition, construction or production of a qualifying assets are capitalized as part of the cost of that assets. Other borrowing costs are recognized as an expense in the period in which they are incurred. However no borrowing cost has been capitalized during the year.

12. Amount due from the Company/Firms or Relatives in which the directors of the company are interested during the year is Rs. 422.23 Lacs. (Previous year Rs. 413.75 Lacs)

13. INVESTMENTS: -

Investments are stated at cost. Investments in case of Shivalikwala Steel Mills Ltd., Northlink Securities (P) Ltd. & Shivalik Loha Mills Ltd. were earlier sold at book value.

14. STOCK: -

Stock in hand, if any i.e. shares and securities are valued at lower of cost or market price which ever is less.

15. PRELIMINARY & PRE-OPERATIVED EXPENSES: -

Preliminary & Pre-operative expenses and public issue expenses will be written off over a period of 10 years.

16. CONTINGENT LIABILITIES: -

The Reserve Bank of India has conducted the inspection for the financial year 31.03.2002 and its inspection report CHD. DNBS/16.02.1511/2003-2004 dated 12.08.2003 has reported that the company is in default in maintenance of S.L.R. investment and R.B.I. has imposed penalty of Rs. 104024.00. The company has not paid that amount till today and has not provided any provision for the same.

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Mar 31, 2011

1. GENERAL :

The financial statements are prepared under historical cost convention. The expenses are accounted on accrual basis with provision for the known liabilities and losses, if any.

The company is not following prudential norms for income recognition as prescribed by RBI for NBFC. The company has applied to R.B.I. for conversion from A category to B category.

2. NBFC STATUS

The Company has applied for registration with RESERVE BANK OF INDIA and the same has been received.

3. SUBSIDIARY COMPANY

The Company has applied to Company Law Board for investment in subsidiary Company i.e. Northlink Securities Private Limited. However, the permission is still awaited. The Investment in subsidiary has been sold during the year ended 31.03.2004. Therefore subsidiary company M/s Northlink securities (P) Ltd. Has been desubsidiarised.

4. REVENUE RECOGNITION :

Lease Rentals Income is recognized on annual basis and debited to lesser as at the end of the year.

5. FIXED ASSETS :

Fixed assets are stated at cost less accumulated depreciation.

6. DEPRECIATION :

* Leased assets are depreciated on written down value method at the rates prescribed by Schedule XIV of the Companies Act, 1956. Depreciation on additions/deletions during the year is provided on pro-rata basis. The company does not follow the revised guidance note issued by the Chartered Accountants of India in respect of Leased Assets acquired on or after 1st April, 1995.

7. OWNED ASSETS: -

Owned assets are depreciated on SLM at the rates prescribed by Schedule XIV of the Companies Act, 1956.

8. Material events occurring after the balance sheet date are taken into consideration.

9. Prior period and extra ordinary items and changes in accounting policies having material impact on the financial affairs of the company, if any, are disclosed.

10. The accounts of the company are prepared as a going concern basis.

11. Borrowing cost that are that are directly attributable to the acquisition, construction or production of a qualifying assets are capitalized as part of the cost of that assets. Other borrowing costs are recognized as an expense in the period in which they are incurred. However no borrowing cost has been capitalized during the year.

12. Amount due from the Company/Firms or Relatives in which the directors of the company are interested during the year is Rs. 416.74 Lacs. (Previous year Rs. 394.57 Lacs)

13. INVESTMENTS: -

Investments are stated at cost. Investments in case of Shivalikwala Steel Mills Ltd., Northlink Securities (P) Ltd. & Shivalik Loha Mills Ltd. have been sold at book value.

14. STOCK: -

Stock in hand, if any i.e. shares and securities are valued at lower of cost or market price which ever is less.

15. PRELIMINARY & PRE-OPERATIVED EXPENSES: -

Preliminary & Pre-operative expenses and public issue expenses will be written off over a period of 10 years.

16. CONTINGENT LIABILITIES: -

The Reserve Bank of India has conducted the inspection for the financial year 31.03.2002 and its inspection report CHD. DNBS/16.02.1511/2003-2004 dated 12.08.2003 has reported that the company is in default in maintenance of S.L.R. investment and R.B.l. has imposed penalty of Rs. 104024.00. The company has not paid that amount till today and has not provided any provision for the same.