Accounting Policies of Amrapali Capital & Finance Services Ltd. Company

Mar 31, 2024

Note: - 1 Significant accounting policies:

1.0 Corporate Information

Amrapali Capital & Finance Services Limited (''The Company''] was incorporated
on 20-05-1994 vide Certificate of Incorporation No. L65910GJ1994PLC118992
under the Companies Act, 1956. The Company is engaged in the business of
broking activities, shares trading, commodity trading and financing activities.
The company is recognized broker of BSE & NSE and main activity of the
company is broking activities.

1.0 Basis of preparation of financial statements

a. Accounting Convention: -

These financial statements of the Company have been prepared in accordance
with Generally Accepted Accounting Principles in India (“Indian GAAP”].
Indian GAAP comprises mandatory accounting standards as prescribed under
Section 133 of the Companies Act, 2013 (“the Act”] read with the Rule 7 of the
Companies (Accounts] Rules, 2014. The financial statements have been
prepared on an accrual basis and under the Historical Cost Convention and the
Companies (Accounting Standards] Amendment Rules 2016 and the relevant
provisions of the Companies Act, 2013.

b. Functional and Presentation Currency

The functional and presentation currency of the company is Indian rupees.
This financial statement is presented in Indian rupees.

All amounts disclosed in the financial statements and notes are rounded off to
lakhs the nearest INR rupee in compliance with Schedule III of the Act, unless
otherwise stated.

Due to rounding off, the numbers presented throughout the document may
not add up precisely to the totals and percentages may not precisely reflect
the absolute figures.

c. Use of Estimates and Judgments

The preparation of financial statement in conformity with accounting
standard requires the Management to make estimates, judgments, and
assumptions. These estimates, judgments and assumptions affects the
application of accounting policies and the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of
financial statement and reported amounts of revenue and expenses during
the period. Accounting estimates could change form period to period. Actual
result could differ from those estimates. As soon as the Management is aware
of the changes, appropriate changes in estimates are made. The effect of such
changes are reflected in the period in which such changes are made and, if
material, their effect are disclosed in the notes to financial statement.

Estimates and underlying assumptions are reviewed at each balance sheet
date. Revisions to accounting estimates are recognised in the period in which
the estimate is revised and in future periods affected.

d. Current and Non - Current Classification

An asset or a liability is classified as Current when it satisfies any of the
following criteria:

i. It is expected to be realized / settled, or is intended for sales or
consumptions, in the Company''s Normal Operating Cycle;

ii. It is held primarily for the purpose of being traded.

iii. It is expected to be realized / due to be settled within twelve months after
the end of reporting date;

iv. The Company does not have an unconditional right to defer the
settlement of the liability for at least twelve months after the reporting
date.

All other assets and liabilities are classified as Non - Current.

For the purpose of Current / Non - Current classification of assets and
liabilities, the Company has ascertained its operating cycle as twelve months.
This is based on the nature of services and the time between the acquisition of
the assets or liabilities for processing and their realization in Cash and Cash
Equivalents.

1.1 Basis of Preparation

a) Property, Plant & Equipment and Intangible Assets:-

i. The company has adopted Cost Model to measure the gross carrying
amount of Property Plant & Equipment.

ii. Tangible Property Plant & Equipment are stated at cost of acquisition less
accumulated depreciation. Cost includes the purchase price and all other
attributable costs incurred for bringing the asset to its working condition

for intended use.

iii. Intangible assets are stated at the consideration paid for acquisition and
customization thereof less accumulated amortization.

iv. Cost of fixed assets not ready for use before the balance sheet date is
disclosed as Capital Work in Progress.

v. Cost of Intangible Assets not ready for use before the balance sheet date is
disclosed as Intangible Assets under Development.

b) Depreciation / Amortisation : -

Depreciation has been provided under Straight Line Method at the rates
prescribed under schedule III of the Companies Act, 2013 on single shift and
Pro Rata Basis to result in a more appropriate preparation or presentation of
the financial statements.

In respect of assets added/sold during the year, pro-rata depreciation has
been provided at the rates prescribed under Schedule II.

Intangible assets being Software are amortized over a period of its useful life
on a straight line basis, commencing from date the assets is available to the
company for its use.

c) Impairment of Assets:-

An asset is treated as impaired when the carrying cost of an asset exceeds its
recoverable value. An impairment loss is charged to the Statement of Profit
and Loss in the year in which an asset is identified as impaired. The
impairment loss recognized in prior period is reversed if there has been a
change in the estimate of the recoverable amount.

d) Investments:-

• Long term investments are stated at cost. Provision for diminution in the
value of long-term investment is made only if such decline is other than
temporary.

• Current investments are stated at lower of cost or market value. The
determination of carrying amount of such investment is done on the basis
of specific identification.

e) Government Grants and Subsidies:-

The Company is entitled to receive any subsidy from the Government
authorities or any other authorities in respect of manufacturing or other
facilities are dealt as follows:

• Grants in the nature of subsidies which are non - refundable are credited
to the respective accounts to which the grants relate, on accrual basis,
where there is reasonable assurance that the Company will comply with
all the necessary conditions attached to them.

• Grants in the nature of Subsidy which are Refundable are shown as
Liabilities in the Balance Sheet at the Reporting date.

f) Retirement Benefits:-

a) Short Term Employee Benefits:

All employee benefits payable within twelve months of rendering the service
are classified as short term benefits. Such benefits include salaries, wages,
bonus, short term compensated absences, awards, ex-gratia, performance
pay etc. and the same are recognised in the period in which the employee
renders the related service.

b) Employment Benefits:

i) Defined Contribution Plans:

The company has Defined Contribution Plans for post-employment
benefit in the form of Provident Fund which are administered by the
Regional Provident Fund Commissioner. Provident Fund are classified as
defined contribution plans as the company has no further obligation
beyond making contributions. The company''s contributions to defined
contribution plans are charged to the Statement of Profit and Loss as and
when incurred.

ii) Defined Benefit Plans:

a) Gratuity:

The company has defined benefit plan for post-employment benefit in the
form of gratuity for the employees which are administered through Life
Insurance Corporation of India. Liability for the said defined plan is
provided on the basis of valuation as at the Balance Sheet date, carried
out by an independent actuary. The actuarial method used for measuring
the liability is the Projected Unit Credit Method.

b) Leave Encashment:

The Management has decided to pay all the pending leave of the year for
the year in which the same has become payable and pending dues are
cleared.

g) Valuation of Inventory: -

Inventories are valued at lower of cost or net realizable value whichever is
lower as per FIFO Method.

“Net Realizable Value” is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated cost necessary to
make the sales of the products.

h) Revenue Recognition

Revenue is recognized when it is probable that economic benefit associated
with the transaction flows to the Company in ordinary course of its activities
and the amount of revenue can be measured reliably, regardless of when the
payment is being made. Revenue is measured at the fair value of
consideration received or receivable, taking into the account contractually
defined terms of payments, net of its returns, trade discounts and volume
rebates allowed.

Revenue includes only the gross inflows of economic benefits, including the
excise duty, received and receivable by the Company, on its own account.
Amount collected on behalf of third parties such as sales tax, value added tax
and goods and service tax (GST] are excluded from the Revenue.

Sale of goods is recognized at the point of dispatch of goods to customers,
sales are exclusive of Sales tax, Vat, GST and Freight Charges if any. The
revenue and expenditure are accounted on a going concern basis.

Interest Income is Recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable i.e. on the basis of
matching concept..

Dividend from investments in shares / units is recognized when the
company.

As per a recent ICAI opinion, the benefit of DEPB is recognized in the year of
export itself, provided no uncertainty exists,

Other items of Income are accounted as and when the right to receive arises.

i) Accounting for effects of changes in foreign exchange rates :-

Transactions denominated in foreign currencies are normally recorded at the
exchange rate prevailing at the time of the transactions.

Any income or expenses on account of exchange difference either on
settlement or on Balance sheet Valuation is recognized in the profit and loss
account except in cases where they relate to acquisition of fixed assets in
which case they are adjusted to the carrying cost of such assets.

Foreign currency transactions accounts are given in the notes of accounts.

Commodity Hedging: - The realized gain or loss in respect of commodity
hedging contracts, the principal period of which has expired during the year,
is recognized in profit and loss account. In respect of contracts, that are
outstanding as on date of Balance sheet are valued at prevailing market price
and the resultant loss, if any, is provided.

j] Borrowing Cost :-

Borrowing Cost includes the interest, commitments charges on bank
borrowings, amortization of ancillary costs incurred in connection with the
arrangement of borrowings.

Borrowing costs that are directly attributable to the acquisition or
construction of qualifying property, plants and equipments are capitalized as
a part of cost of that property, plants and equipments. The amount of
borrowing costs eligible for capitalization is determined in accordance with
the Accounting Standards - 16 “Borrowing Costs”. Other Borrowing Costs are
recognized as expenses in the period in which they are incurred.

In accordance with the Accounting Standard - 16, exchange differences
arising from foreign currency borrowings to the extent that they are
regarded as adjustments to interest costs are recognized as Borrowing Costs
and are capitalized as a part of cost of such property, plants and equipments
if they are directly attributable to their acquisition or charged to the
Standalone Statement or Profit and Loss.

k] Related Party Disclosure :-

The Disclosures of Transaction with the related parties as defined in the
related parties as defined in the Accounting Standard are given in notes of
accounts.

l] Accounting for Leases :-

A lease is classified at the inception date as finance lease or an operating
lease. A lease that transfers substantially all the risk and rewards incidental
to the ownership to the Company is classified as a finance lease.

The Company as a lessee:

a) Operating Lease:- Rental payable under the operating lease are charged
to the Standalone Statement of Profit and Loss on a Straight line basis over
the term of the relevant lease.

b) Finance Lease:- Finance lease are capitalized at the commencement of the
lease, at the lower of the fair value of the property or the present value of the
minimum lease payments. The corresponding liability to the lessor is
included in the Balance Sheet as a finance lease obligation. Lease payments
are apportioned between finance charges and the reduction of the lease
obligation so as to achieve a constant rate of interest on the remaining
balance of the liability. Finance charges are charged directly against the
income over the period of the lease.

The Company has not provided any of its assets on the basis of operating
lease or finance lease to others.

m) Cash flow:-

Cash flows are reported using the indirect method, whereby net profit before
tax is adjusted for the effects of transactions of a non-cash nature and any
deferrals of past or future cash receipts and payments. The cash flows from
regular operating, investing and financing activities of the company are
segregated.

n) Earnings Per Share :-

The Company reports the basic and diluted Earnings per Share (EPS) in
accordance with Accounting Standard 20, “Earnings per Share”. Basic EPS is
computed by dividing the Net Profit or Loss attributable to the Equity
Shareholders for the year by the weighted average number of equity shares
outstanding during the year. Diluted EPS is computed by dividing the Net
Profit or Loss attributable to the Equity Shareholders for the year by the
weighted average number of Equity Shares outstanding during the year as
adjusted for the effects of all potential Equity Shares, except where the
results are Anti - Dilutive.

The weighted average number of Equity Shares outstanding during the
period is adjusted for events such a Bonus Issue, Bonus elements in right
issue, share splits, and reverse share split (consolidation of shares) that have
changed the number of Equity Shares outstanding, without a corresponding
change in resources.

o) Taxes on Income :-

1. Current Tax: -

Provision for current tax is made after taken into consideration benefits
admissible under the provisions of the Income Tax Act, 1961.

2. Deferred Taxes:-

Deferred Income Tax is provided using the liability method on all
temporary difference at the balance sheet date between the tax basis of
assets and liabilities and their carrying amount for financial reporting
purposes.

I. Deferred Tax Assets are recognized for all deductible temporary

differences to the extent that it is probable that taxable profit will
be available in the future against which this items can be utilized.

II. Deferred Tax Assets and liabilities are measured at the tax rates
that are expected to apply to the period when the assets is realized
or the liability is settled, based on tax rates ( and the tax] that have
been enacted or enacted subsequent to the balance sheet date.

p) Discontinuing Operations :-

During the year the company has not discontinued any of its operations.

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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.