Accounting Policies of Capfin India Ltd. Company

Mar 31, 2015

1. Basis of Preparation of Financial Statement

The financial statements have been prepared and presented under the historical cost convention on the accrual basis i.e. mercantile system of accounting and on the basis of going concern with the accounting principles generally accepted in India 'GAAP' and comply with all material aspects of the accounting standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014. Accounting policies not specifically referred to otherwise are consistent with the generally accepted accounting principles followed by the company. Historical costs are not adjusted to reflect the changing value in the purchasing power of money.

2. 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 the disclosure of contingent liabilities as at the date of financial statements and reported amounts of revenue and expenses during the year. The Management believes that the estimates used in the preparation of the financial statements are prudent and reasonable. Future results could differ from those estimates and the difference between the actual results and the estimates are recognized in the periods in which the results are known/materialize.

3. Fixed Assets

Fixed assets are stated at cost of acquisition (net of CENVAT, where ever applicable), less accumulated depreciation till the end of financial year. Cost is inclusive of freight, duties, levies, installation expenses and any directly attributable cost of bringing the assets to their working condition for intended use which are capitalized till the assets are ready to be put to use.

4. Depreciation

Consequent to enforcement of Companies Act, 2013, Depreciation on Fixed Assets is provided to the extent of depreciable amount on Straight Line Method as per Schedule II of the said Act taking into account the useful life of the assets as given in the schedule.

5. Inventories

Inventory is physically taken and valued by the management at lower of cost or net realisable value.

6. Impairment

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized in the profit and loss account. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost and is accordingly reversed in the statement of profit and loss.

7. Employee Benefits

No provision of gratuity or any estimated contingent liability has been determined since the Payment of Gratuity Act, 1972 is not applicable to the enterprise for the time being. The provision of Employees' Provident Funds and Miscellaneous Provisions Act, 1952 were not applicable to the enterprise during the year.

8. Investments

Non Current Investments in equity shares have been valued at cost. Provision for diminution in the value of Non Current investments is made only if such a decline is other than temporary.

9. Foreign Currency Transactions

There were no transactions in foreign currency.

10. Current Assets and Loans and Advances

In the opinion of the directors of the company, the Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amounts at which they are stated.

12. Income Tax :

An amount of ' 40,673/- (Previous year : ' 66,766/-) has been provided towards Current Income Tax Liability during the year. Deferred Income Tax Asset as on 31st March, 2015 was ' NIL /- (Previous year : ' 4,173/-) and Deferred Income Tax Liability as on 31st March, 2015 was ' 5,838 /- (Previous year : ' NIL/-)

13. Earnings Per Share

Basic earnings/ (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

14. Tax Expenses

Provision for income tax comprises of current tax and deferred tax charge or release. Current

income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian income tax act, 1961. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income and expenditure that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless there is "virtual certainty" that sufficient future taxable income will be available against which such deferred tax assets will be realized.

15. Contingent Liabilities and Provisions

The company recognizes a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Current Year : Nil (Previous Year : Nil)

16. Others

Accounting policies not specifically referred to are consistent and in consonance with generally accepted accounting principles and conventions.

Previous period figures have been regrouped wherever necessary to conform to current year's presentation.

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Mar 31, 2014

1. Basis of Preparation of Financial Statement

The financial statements have been prepared and presented under the historical cost convention on the accrual basis i.e. mercantile system of accounting and on the basis of going concern with the accounting principles generally accepted in India 'GAAP' and comply with the mandatory Accounting Standards, Guidance Notes and other pronouncements issued by The Institute of Chartered Accountants of India to the extent applicable and with the relevant provisions of the Companies Act, 1956. Historical costs are not adjusted to reflect the changing value in the purchasing power of money.

2. 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 the disclosure of contingent liabilities on the date of financial statements. Actual results if they differ from those estimates are recognized in the current and future periods.

3. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. Depreciation on fixed assets of the company has been on Straight Line Method, pro-rata on monthly balances and at the rates specified in schedule XIV of the Companies Act, 1956.

4. Depreciation

Depreciation on fixed assets of the company has been charged on Straight Line Method in the manner and at the rates specified in schedule XIV of the Companies Act, 1956.

5. Employee Benefits

The leave encashment expenses are accounted for on accrual basis. No provision of gratuity or any estimated contingent liability has been determined since The Payment of Gratuity Act, 1972 is not applicable to the enterprise for the time being. The provision of Employees' Provident Funds and Miscellaneous Provisions Act, 1952 were not applicable to the enterprise during the year.

6. Investments in unquoted equity shares have been valued at cost.

7. Foreign Currency Transactions

There were no transactions in foreign currency.

8. Inventories

Inventory is physically taken and valued by the management at lower of cost or net realisable value.

9. With regard to clause 3(ii) of part II of Schedule VI of the Companies Act, 1956, in respect of its activities relating to sale and purchase of securities held as stock in trade, the company does not fall under the category of clause 3(ii)(a) "Manufacturing Company" or clause 3(ii)(b) "Trading Company" or clause 3(ii)(c) "company rendering or supplying services" but falls under the category of "other companies" as given in clause 3(ii)(e).

10. In the opinion of the directors of the company, the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amounts at which they are stated.

11. Income Tax :

An amount of Rs 66,766/- (Previous year : Rs 51,196/-) has been provided towards Current Income Tax Liability during the year. Deferred Income Tax Asset as on 31st March, 2014 was Rs 4,173/- (Previous year : Rs 5,389/-).

12. Managerial Remuneration NIL

13. Auditors Remuneration

Audit Fees Rs 5,618/-

14. Tax Expenses

Provision for income tax comprises of current tax and deferred tax charge or release. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian income tax act, 1961. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income and expenditure that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless there is "virtual certainty" that sufficient future taxable income will be available against which such deferred tax assets will be realized.

15. Earnings Per Share

Basic earnings/ (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

16. Contingent Liabilities and Provisions

The company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Accounting policies not specifically referred to are consistent and in consonance with generally accepted accounting principles and conventions.

17. Previous period figures have been regrouped wherever necessary to conform to current year's presentation.

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Mar 31, 2013

1. Basis of Preparation of Financial Statement

The financial statements have been prepared and presented under the historical cost convention on the accrual basis i.e. mercantile system of accounting and on the basis of going concern with the accounting principles generally accepted in India 'GAAP' and comply with the mandatory Accounting Standards, Guidance Notes and other pronouncements issued by The Institute of Chartered Accountants of India to the extent applicable and with the relevant provisions of the Companies Act, 1956. Historical costs are not adjusted to reflect the changing value in the purchasing power of money.

2. 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 the disclosure of contingent liabilities on the date of financial statements. Actual results if they differ from those estimates are recognized in the current and future periods.

3. Fixed Assets

Fixed assets are stated at cost less accumulated depreciation. Depreciation on fixed assets of the company has been on Straight Line Method, pro-rata on monthly balances and at the rates specified in schedule XIV of the Companies Act, 1956.

4 Depreciation

Depreciation on fixed assets of the company has been charged on Straight Line Method in the manner and at the rates specified in schedule XIV of the Companies Act, 1956.

5. Employee Benefits

The leave encashment expenses are accounted for on accrual basis. No provision of gratuity or any estimated contingent liability has been determined since The Payment of Gratuity Act, 1972 is not applicable to the enterprise for the time being. The provision of Employees' Provident Funds and Miscellaneous Provisions Act, 1952 were not applicable to the enterprise during the year.

6. Investments in unquoted equity shares have been valued at cost

7. Foreign Currency Transactions

8. Inventories

Inventory is physically taken and valued by the management at lower of cost or net realisable value.

9. With regard to clause 3(ii) of part II of Schedule VI of the Companies Act, 1956, in respect of its activities relating to sale and purchase of securities held as stock in trade, the company does not fall under the category of clause 3(ii)(a) "Manufacturing Company" or clause 3(ii)(b) "Trading Company" or clause 3(ii)(c) "company rendering or supplying services" but falls under the category of "other companies" as given in clause 3(ii)(e).

10. In the opinion of the directors of the company, the Current Assets, Loans and Advances have a value on realisation in the ordinary course of business at least equal to the amounts at which they are stated.

11. Income Tax :

An amount of Rs. 51,196/- (Previous year : Rs. 84,932/-) has been provided towards Current Income Tax Liability during the year. Deferred Income Tax Asset as on 31st March, 2013 was Rs. 5,389/- (Previous year : Rs. 6,522/-).

12. Managerial Remuneration NIL

13. Auditors Remuneration

Audit Fees Rs. 5,000/-

14. Tax Expenses

Provision for income tax comprises of current tax and deferred tax charge or release. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian income tax act, 1961. Deferred tax is recognized, subject to consideration of prudence, on timing differences, being difference between taxable and accounting income and expenditure that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized unless there is "virtual certainty" that sufficient future taxable income will be available against which such deferred tax assets will be realized.

15. Earnings Per Share

Basic earnings/ (loss) per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

16. Contingent Liabilities and Provisions

The company recognises a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation that the likelihood of outflow of resources is remote, no provision or disclosure is made.

Accounting policies not specifically referred to are consistent and in consonance with generally accepted accounting principles and conventions.

17. Previous period figures have been regrouped wherever necessary to conform to current year's presentation.