Accounting Policies of Contil India Ltd. Company

Mar 31, 2015

Basis of preparation

The financial statements have been prepared under historical cost convention as a going concern on accrual basis and in accordance with generally accepted accounting principles in India, the relevant provisions of the Companies Act, 2013 and the guidelines issued by the Reserve Bank of India as applicable to a Non Banking Finance (Non-Deposit Accepting) Company ('NBFC-ND'). The Accounting policies are consistent with those used in the previous year.

Use of estimates

The preparation of financial statements in conformity with 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 the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

Fixed Assets and Depreciation

Tangible Fixed Assets are shown at cost less accumulated depreciation. Depreciation on Owned Assets is provided to the extent of depreciable amount on the Straight line method (SLM) on a pro-rata basis based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 Consequent to the enactment of the Act, the company has recomputed the depreciation based on the useful life of the asset as prescribed in Schedule - II to the Act. As per transitional provision carrying value of assets is adjusted in the opening balance of retained earnings in respect of assets where the remaining useful life is " Nil".

Investments

In terms of NBFC Prudential Norms (Reserve Bank) Directions, 1998. Investments (intended to be held for more than a year are) classified as long term are generally carried at cost comprising of acquisition and incidental expenses. No provision is made for the diminution in the value of long term investment, since in the opinion of the Board, it is a temporary phenomenon and no provision is necessary. Investment other then long term investments are classified as Current investments. Current investments are carried at lower of cost and market value if quoted.

Inventories

Materials / goods held for resale or trading purposes are valued at cost or net realizable value whichever is lower.

Foreign Currency Transactions

The transactions in foreign currencies are stated at the rates of exchange prevailing on the dates of transactions. The net gain or loss on account of exchange rate differences either on settlement or on translation of short term monetary items is recognized in the statement of Profit and Loss.

Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are shortterm balances (with an original maturity of twelve months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate realization /collection.

* Interest Income is recognized on its accrual on the basis of the contracted rate.

* Dividend Income is accounted for on its receipt basis or where right of receipt of dividend is recognized.

* Rent income is recognized as per the terms of an Agreement on accrual basis.

Taxation

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year. A Provision is made for the current tax based on tax liability computed in accordance with relevant rates and tax laws. A provision is made for deferred tax for all timing differences arising between taxable incomes and accounting income at currently enacted tax rates. Deferred tax assets shall recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness ot their respective carrying values at each balance sheet date.

Contingent Liabilities

Contingencies which are material and future outcome of which cannot be ascertained, with, reasonable certainty are treated as contingent liabilities. As reported by the management, there are no contingent liability as on 31.3.2015

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Mar 31, 2014

Basis of preparation

The financial statements have been prepared under historical cost convention on an accrual basis and in accordance with generally accepted accounting principles in India, the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India as applicable to a Non Banking Finance (Non - Deposit Accepting) Company ("NBFC-ND"). The Accounting policies are consistent with those used in the previous year.

Use of estimates

The preparation of financial statements in conformity with 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 the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

Fixed Assets and Depreciation

Fixed assets are shown at cost less accumulated depreciation. Depreciation on owned Assets is provided on straight Line Method at the rates and in the manner laid down in schedule XIV to the Companies Act, 1956.

Investments

Investments intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and market value if quoted. All other investments are considered as long term investments and are carried at cost. No provision is made for the diminution in the value of long term investments, since in the opinion of the Board, it is a temporary phenomenon and no provision is necessary.

Cash and Cash equivalent

Cash comprises cash on hand and demand deposits with banks, Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate realization/collection.

* Interest Income is recognized on its accrual on the basis of the contracted rate.

* Dividend Income is accounted for on its receipt basis or where right of receipt of dividend is recognized.

* Rent income is recognized as per the terms of an Agreement on accrual basis.

Segment Reporting

The company is engaged primarily in the business of Investment activity and there is no separate reportable segment. Accordingly, income, expenses and other financial data relating to businesses other than the business of Investments are shown under ''Unallocated Reconciling Items'' as per Accounting Standard AS 17 issued by ICAI.

Taxation

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year.

A Provision is made for the current tax based on tax liability computed in accordance with relevant rates and tax laws.

A provision is made for deferred tax for all timing differences arising between taxable incomes and accounting income at currently enacted tax rates. Deferred tax assets shall recognized only if there is reasonable certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Suppliers covered under the Micro, Small and Medium Enterprise:

They have not furnished the information regarding filing of necessary memorandum with appointed authority. In view of this, the information required under Schedule VI of the Companies Act, to that extent is not given.

Contigent Liabilities:

Contingencies which are material and future outcome of which cannot be ascertained, with reasonable certainty are treated as contingent liabilities. There are no contingent liability as on 31.3.2014.

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Mar 31, 2013

Basis of preparation

The financial statements have been prepared under historical cost convention on an accrual basis and in accordance with generally accepted accounting principles in India, the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India as applicable to a Non Banking Finance (Non - Deposit Accepting ) Company ("NBFC-ND"). The Accounting policies are consistent with those used in the previous year.

Use of estimates

The preparation of financial statements in conformity with 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 the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

Fixed Assets and Depreciation

Fixed assets are shown at cost less accumulated depreciation, Depreciation on owned Assets is provided on straight Line Method at the rates and in the manner laid down in schedule XIV to the Companies Act, 1956.

Investments

Investments intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and market value if quoted. All other investments are considered as long term investments and are carried at cost. No provision is made for the diminution in the value of long term investments, since in the opinion of the Board, it is a temporary phenomenon and no provision is necessary.

Cash and Cash equivalent

Cash comprises cash on hand and demand deposits with banks, Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate realization /collection.

- Interest Income is recognized on its accrual on the basis of the contracted rate.

- Dividend lncome is accounted foronitsreceip tbasisor whererigh to freceipt ofdividendis recognized.

- Rent Income is recognized as per the terms of an Agreement on accrual basis.

Segment Reporting

The company is engaged primarily in the business of investment activity and there is no separate reportable segment. Accordingly, income, expenses and other financial data relating to businesses other than the business of investments are shown under "Unallocated Reconciling Items" as per Accounting Standard AS 17 issued by ICAI.

Taxation

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year. A provision is made for the current tax based on tax liability computed in accordance with relevant rates and tax laws. A provision is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted tax rates. Deferred tax assets shall recognized only if there is reasonable certainty that they will be realize and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

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Mar 31, 2012

Basis of preparation

The financial statements have been prepared under historical cost convention on an accrual basis and in accordance with generally accepted accounting principles in India, the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India as applicable to a Non Banking Finance Company (Non - Deposit Accepting) Company ("NBFC-ND"). The Accounting policies are consistent with those used in the previous year.

Use of estimates

The preparation of financial statements in conformity with 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 the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

Fixed Assets and Depreciation

Fixed assets are shown at cost less accumulated depreciation. Depreciation on owned assets is provided on straight line Method at the rates and in the manner laid down in schedule XIV to the Companies Act, 1956. Investments

Investments intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and market value if quoted. All other investments are considered as long term investments and are carried at cost. No provision is made for the diminution in the value of long term investments, since in the opinion of the Board, it is a temporary phenomenon and no provision is necessary. Cash and Cash equivalent

Cash comprises cash on hand and demand deposits with banks, Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

Revenue Recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate realization / collection.

- Interest Income is recognized on its accrual on the basis of the contracted rate.

- Dividend Income is accounted for on its receipt basis or where right of receipt of dividend is recognized.

- Rent Income is recognized asperthetermsofan Agreement on accrual basis.

Segment Reporting

The company is engaged primarily in the business of investment activity and there is no separate reportable segment. Accordingly, income, expenses and other financial data relating to businesses other than the business of investments are shown under "Unallocated Reconciling Items" as per Accounting Standard AS 17 issued by ICAI.

Taxation

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year.

A provision is made for the current tax based on tax liability computed in accordance with relevant rates and tax laws.

A provision is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted tax rates. Deferred tax assets shall recognized only if there is reasonable certainty that they will be realize and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

Disclosure in respect of Global Venture

In terms of the Global Venture integrated as a Corporate Alliance, The Company through the Canadian business House Viz. CONTIL CANADA LTD. has embarked upon the development of commodity trading in global arena and has subscribed 43.70% of the capital of the CONTIL CANADA LTD.

Note : During the year, no income has been received or accrued from the corporate alliance abroad. The Liability of our Company is limited to the fund based commitment towards equity only.

Suppliers covered under the Micro, Small and Medium Enterprise:

They have not furnished the information regarding filling of necessary memorandum with appointed authority. In view of this, the information required under Schedule VI of the Companies Act, to that extent is not given.

Contingent Liabilities:

Contingencies which are material and future outcome of which cannot be ascertained, with reasonable certainty are treated as contingent liabilities. There are no contigent liabilities as on 31st March, 2012.

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Mar 31, 2011

(1) Back Ground

The company was incorporated on October 27,1994 in the name of Continental Credit & Investment Ltd. The name of the company has subsequently been changed to Contil India Ltd. vide fresh certificate dated December 26, 2007 received under the hand of Registrar of Companies, Gujarat. The listing of the company has been done on a Bombay Stock Exchange vide security trade Name Contil India BSEId: 531067. The Company is Non-Banking Finance Company (not accepting public deposit) registered with Reserve Bank of India as an investment company.

(2) Basis of preparation

The financial statements have been prepared under historical cost convention on an accrual basis and in accordance with generally accepted accounting principles in India, the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India as applicable to a Non Banking Finance Company (Non Deposit Accepting) ("N BFC-N D"). The Accounting policies are consistent with those used in the previous year.

(3) Use of estimates

The preparation of financial statements in conformity with 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 the financial statements and the results of operations during the reporting period end. Although these estimates are based upon management's best knowledge of current events and actions, actual results could differ from these estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

(4) Fixed Assets and Depreciation

Fixed assets are shown at cost less accumulated depreciation. Depreciation on owned assets is provided on straight line Method at the rates and in the manner laid down in schedule XIV to the Companies Act, 1956.

(5) Investments

Investments intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and market value if quoted. All other investments are considered as long term investments and are carried at cost. No provision is made for the diminution in the value of long term investments, since in the opinion of the Board, it is a temporary phenomenon and no provision is necessary.

(6) Valuation of Inventory

During the year, company has indulged into trading of Agro Commodities. Inventories are valued at cost or net realizable value whichever is lower.

(7) Cash and Cash equivalent

Cash and cash equivalents in the cash flow statement which is prepared in accordance with Accounting Standard AS 3 issued by the Institute of Chartered Accountants of India comprise cash at bank and in hand and liquid term investments with an original maturity of one month or less.

(8) Revenue Recognition

Revenue is recognized when there is reasonable certainty of its ultimate realization / collection.

Sales are shown net of taxes and discounts.

Interest income is recognized on its accrual on the basis of the contracted rate.

Dividend income is accounted for on its receipt basis orwhere right or receipt of dividend is recognized.

Rent Income is recognized as per the terms of an Agreement on accrual basis.

(9) Foreign Currency Transaction

Foreign currency transactions are accounted at the exchange rate prevailing on the date of transactions. Exchange differences arising on actual payments/realizations are recognized as gain or loss as the case may be in the profit and loss account.

(10) Segment Reporting

The company is engaged primarily in the business of investment activity and there is no separate reportable segment. Accordingly, income, expenses and other financial data relating to businesses other than the business of investments are shown under "Unallocated Reconciling Items" as per Accounting Standard AS 17 issued by ICAI.

(11) Taxation

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year.

A provision is made for the current tax based on tax liability computed in accordance with relevant rates and tax laws.

A provision is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted tax rates. Deferred tax assets shall recognized only if there is reasonable certainty that they will be realize and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

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Mar 31, 2010

(1) Back Ground

The company was incorporated on October 27, 1994in the name of Continental Credit & Investment Ltd. The name of the company has subsequently been changed to Contil India Ltd. vide fresh certificate dated December 26, 2007 received under the hand of Registrar of Companies, Gujarat. The listing of the company has been done on a Bombay Stock Exchange vide security trade Name Contil India BSEId : 531067. The Company is Non-Banking Finance Company registered with Reserve Bank of India as a Non Public deposit accepting company. It is classified as an investment company.

(2) Bash of preparation

The financial statements have been prepared under historical cost convention on an accrual basis and in accordance with generally accepted accounting principles in India, the relevant provisions of the Companies Act, 1956 and the guidelines issued by the Reserve Bank of India as applicable to a Non Banking Finance Company ("NBFCj. The Accounting policies are consistent with those used in the previous year.

(3) Use of estimates

The preparation of financial statements in conformity with 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 the financial statements and the results of operations during the reporting period end. Although these estimates are based upon managements best knowledge of current events and actions, actual results could differ from these estimates. Differences between the actual results and estimates are recognized in the year in which the results are known / materialized.

(4) Fixed Assets and Depreciation

Fixed assets are shown at cost less accumulated depreciation. Depreciation on owned assets is provided on straight line Method of the rates and in the manner laid down in schedule XI V to the Companies Act, 1956.

(5) Investments

Investments intended to be held for not more than a year are classified as current investments. Current investments are carried at lower of cost and market value if quoted. All other investments are considered as long term investments and are carried at cost.

(6) Valuation of Inventory

During the year, company has indulged into trading of Agro Commodities. Inventories are valued at cost or net realizable value whichever is lower.

(7) Cash and Cash equivalent

Cash and cash equivalents in the cash flow statement which is prepared in accordance with Accounting Standard AS 3 issued by the Institute of Chartered Accountants of India comprise cash at bank and in hand and liquid term investments with an original maturity of one month or less.

(8) Revenue Recognition

Revenue is recognized when there is reasonable certainty of its ultimate realization / collection.

- Sales are shown net of taxes and discounts.

- Interest income is recognized on its accrual on the basis of the contracted rate.

- Dividend income is accounted for on its receipt basis or where right or receipt of dividend is recognized.

- Rent Income is recognized as per the terms of an Agreement on accrual basis.

(9) Foreign Currency Transaction

Foreign currency transactions are accounted at the exchange rate prevailing on the date of transactions. Exchange differences arising on actual payments/realizations are recognized as gain or loss as the case may be in the profit and loss account.

(10) Segment Reporting

The company is engaged primarily in the business of investment activity and there is no separate reportable segment. Accordingly, income, expenses and other financial data relating to businesses other than the business of investments are shown under-Unallocated Reconciling Items" as per Accounting Standard AS I/issued by lCAI.

(11) Taxation

Tax expense for the year, comprising current tax and deferred tax is included in determining the net profit for the year.

A provision is made for the current tax based on tax liability computed in accordance with relevant rates and tax laws.

A provision is made for deferred tax for all timing differences arising between taxable income and accounting income at currently enacted tax rates. Deferred tax assets shall recognized only if there is reasonable certainty that they will be realize and are reviewed for the appropriateness of their respective carrying values at each balance sheet date.

C. EXPENDITURE IN FOREIGN CURRENCY - NIL

D. EARNING IN FOREIGN CURRENCY (Export on FOB basis) - NIL

E. VALUE OF IMPORTS ON CIF BASIS - Import of Traded Goods 31,863.15 USD (Equivalent INR 14,86,734.58}