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Accounting Policies of Amrapali Fincap Ltd. Company

Mar 31, 2016

Significant Accounting Policies and Financial Statements:

(I). COMPANY''S OVERVIEW :

The company was incorporated on November 4, 2004 in the name of Amrapali Fincap Private Limited (''The Company'') vide Certificate of Incorporation No. U65999GJ2004PTC044988 under the Companies Act, 1956. The company has changed its name from "Amrapali Fincap Private Limited" to "Amrapali Fincap Limited" by converting the company from private limited to public limited company and the same has been registered with Registrar of Companies as on May 6, 2015 with under Companies Act, 2013.

Further, during the F.Y. 2015-16, the company has come up with Initial Public Issue of 35,40,000 equity shares of Rs. 10/- each at premium of Rs. 110/- per Equity share amounting to total Rs. 42,48,00,000/-. The issue was open during July 20, 2015 to July 22, 2015 and complied with all the requirements as per chapter XB of SEBI (ICDR) Regulation, 2009. After this the company has made the application to BSE for listing of securities on BSE SME portal and the same has been approved by the BSE. Therefore, the company listed on the BSE SME portal from August 5, 2015.

The Company is engaged in the business of trading in Shares, Commodity, Future & options and Financing activities. The company has carried out financing activities out of its own surplus funds.

(II). Significant Accounting Policies:

1. 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. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 133 of the Companies Act, 2013and 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 III to the Companies Act, 2013.

2. Inventories:

Inventories are valued at lower of cost or net realizable value.

3. Depreciation :

Depreciation on fixed assets is provided on Straight balance Method based on the useful life of the assets as prescribed under Schedule II to the Companies Act, 2013. On additions/deletions, pro rata depreciation has been provided.

4. Revenue Recognition :

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

5. 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.

6. Investments:

Investments are valued and shown at cost.

7. Borrowing Costs:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use. All other borrowing costs are charged to Statement of Profit and Loss account.

8. 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 shown as under. 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.

9. 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.

10. Provisions:

The company recognizes provision when there is a present obligation of the enterprise arising from past events, the settlement of which is expected to result in an outflow from the enterprise of recourses embodying economic benefits which can be measured only by using substantial degree experience of similar transactions.

(III). GENERAL NOTES:

As regards the other Accounting Standards, they are statutorily applicable to our Company i.e. Amrapali Fincap Limited but as there are no transactions inviting those Accounting Standards, no specific disclosures on the same are made.

(IV). OTHER NOTES FORMING PART OF THE ACCOUNTS:

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