Accounting Policies of Amrapali Capital & Finance Services Ltd. Company

Mar 31, 2015

( I ) COMPANY'S OVERVIEW :

Amrapali Capital & Finance Services Limited ('The Company') was incorporated on 20-05-1994 vide Certificate of Incorporation No. U65910DN1994PLC000362 under the Companies Act, 1956. Subsequently CIN was changed to L65910DN1994PLC000362, pursuant to listing of equity shares to the Stock exchange. The Company is engaged in the business of financing activities and broking activities.

(A) Basis of Preparation of Financial Statements :

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis, except Bonus and Municipal Taxes which are recorded on cash basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 133 and other relevant provisions of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014.

All assets and liabilities have been classified as current or non-current as per the Company's operating cycle and other criteria set out in the Revised Schedule VI to the Companies Act, 2013.

(B) Change In Accounting Policy:

The company is using the Written Down Value (WDV) method for calculation of tangible fixed assets for earlier years. Now, as per Schedule II of Companies Act, 2013 useful lifes have been specified for various types of assets. Due to this change over, the company is changing its policy from Written Down Value (WDV) method to Streight Line Method (SLM) for charging depreciation.

(C) Inventories :

Inventories are valued at cost or market value whichever is lower.

(D) Depreciation :

The company has changed the method of providing depreciation on fixed assets from Written Down Value method to Straight Line Method based on the years as prescribed under Schedule II to the Companies Act 2013. On additions/deletions, pro rata depreciation has been provided.

(E) Exceptional Item:

The company has revised its policy of providing depreciation on fixed assets effective April 1, 2014. Depreciation is now provided on a straight line basis for all assets as against the policy of providing on written down value basis for all assets and straight basis for others. Further the remaining useful life has also been revised wherever appropriate based on an evaluation. The carrying amount as on April 1, 2014 is depreciated over the revised remaining useful life. As a result of these changes, the depreciation charges for the year ended March 31, 2015 is higher, the effect relating (excluding deferred tax of Rs. 1.24 lacs which has been shown as an "Exceptional Item" in the statement of profit and Loss.

(F) Revenue Recognition :

Revenue is recognised based on the nature of activity, when consideration can be reasonably measured and there exists reasonable certainty of its recovery.

(G) Fixed Assets :

Fixed assets are stated at cost of acquisition or construction less accumulated depreciation. All costs relating to the acquisition and installation of fixed assets are capitalized.

(H) Investments :

Investments in unquoted shares are valued and shown at cost.

(G) RELATED PARTY TRANSACTIONS:-

Disclosure of transactions with Related Parties ,as required by Accounting Standard 18-" Related Party Disclosures" as specified in the Companies (Accounting Standard) Rules 2006 (as amended) has been set out in a separate statement annexed to this note. Related parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by the management and information available with the company.

(K) EARNINGS PER SHARE:-

The Company reports basic and diluted earnings per share (EPS) in accordance with the Accounting Standard 20 prescribed under The Companies (Accounting Standards) Rules, 2006 (as amended). The Basic EPS has been computed by dividing the income available to equity shareholders by the weighted average number of equity shares outstanding during the accounting year. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the year.

(L) PROVISION FOR TAXATION :-

Tax expenses comprises of current tax and deferred tax:-

(i) CURRENT TAX:-

Provision for taxation has been made in accordance with the direct tax laws prevailing for the relevant assessment years.

(ii) DEFERRED TAXATION:-

In accordance with the Accounting Standard 22 – Accounting for Taxes on Income, prescribed under The Companies (Accounting Standards) Rules, 2006 (as amended), the deferred tax for timing differences between the book and tax profits for the year is accounted for by using the tax rates and laws that have been enacted or substantively enacted as of the Balance Sheet Date.

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Mar 31, 2014

Basis of Preparation of Financial Statements:

The Company has applied provisions of the Companies Act, 1956 for preparation of its financial statements. The Financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. Accounting policies have been followed consistently except as stated specifically.

Inventories:

Inventories are valued at cost or market value whichever is lower.

Investments:

Long term investments are stated at cost less provision for diminution other than temporary, if any, in the value of such investments.

Fixed Assets and Depreciation:

Fixed Assets are stated at historical cost less accumulated depreciation. The company has provided depreciation on fixed assets using the WDV method at the rates prescribed in the Income Tax Rules.

Impairment of Fixed Assets:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount.

Borrowing Costs:

Borrowing costs comprising interest, finance charges, etc. to the extend related / attributed to the qualifying assets, if any, are capitalized up to the date of completion and ready for intended use. Other borrowing costs are charged to the profit and loss account in the period of their accrual.

Provisions, Contingent Liabilities and Contingent Assets:

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

Liabilities which are of contingent nature (if any) are not provided but are disclosed at their estimated amount in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in financial statements.

Taxes on Income:

Taxes on income is computed using the tax effect accounting method whereby such taxes are accrued in the same period as the revenue and expense to which they relate.

Current tax liability is measured using the applicable tax rate and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rates and the tax laws that have been enacted / substantially enacted at the balance sheet date.

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Mar 31, 2013

Basis of Preparation of Financial Statements:

The Company has applied provisions of the Companies Act, 1956 for preparation of its financial statements. The Financial statements are prepared and presented under the historical cost convention on accrual basis of accounting, in accordance with the accounting principles generally accepted in India and comply with the mandatory Accounting Standards issued by the Institute of Chartered Accountants of India. Accounting policies have been followed consistently except as stated specifically.

Inventories:

Inventories are valued at cost or market value whichever is lower.

Investments:

Long term investments are stated at cost less provision for diminution other than temporary, if any, in the value of such investments.

Fixed Assets and Depreciation:

Fixed Assets are stated at historical cost less accumulated depreciation. The company has provided depreciation on fixed assets using the WDV method at the rates prescribed in the Income Tax Rules.

Impairment of Fixed Assets:

Fixed Assets are reviewed for impairment losses whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the carrying amount of the assets exceeds its recoverable amount.

Borrowing Costs:

Borrowing costs comprising interest, finance charges, etc. to the extend related / attributed to the qualifying assets, if any, are capitalized up to the date of completion and ready for intended use. Other borrowing costs are charged to the profit and loss account in the period of their accrual.

Provisions, Contingent Liabilities and Contingent Assets:

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

Liabilities which are of contingent nature (if any) are not provided but are disclosed at their estimated amount in the Notes on Accounts. Contingent assets are neither recognized nor disclosed in financial statements.

Taxes on Income:

Taxes on income is computed using the tax effect accounting method whereby such taxes are accrued in the same period as the revenue and expense to which they relate.

Current tax liability is measured using the applicable tax rate and tax laws and the necessary provision is made annually. Deferred tax asset / liability arising out of the tax effect of timing difference is measured using the tax rates and the tax laws that have been enacted / substantially enacted at the balance sheet date.

Note:

Vehicle Loans including current maturities is secured by hypothecation of Vehicles against which the loans have been taken.

Notes:

(A) Balances with banks held as margin money or securities include deposits amounting to Rs,104,375,000/- as on 31st March,2013 (As at 31 March, 2012 Rs. 175,801,446/-) which have an original maturity of more than 12 months.

Note: Other borrowing costs would include commitment charges, loan processing charges, guarantee charges, loan facilitation charges, discounts / premiums on borrowings, other ancillary costs incurred in connection with borrowings or amortisation of such costs, etc.