COMPANY'S OVERVIEW Incorporation 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 BSE Id :531067. The Company is a Non-Banking Finance Company (not accepting public deposits] registered with Reserve Bank of India as an Investment company. NBFC Certificate The company has received the certificate of registration under section 45 (1 )A of the Reserve Bank of India Act, 1934 to commence the business of non Banking Financial Institution since 20.03.1993. The company has been carrying on the business of NBFC and in terms of the condition of the certificate it has not accepted Public deposits. Necessary resolution is to be passed by the company every year. Applicability of Prudential Regulations to NBFCs-ND with Assets less than Rs. 500crore Consequent to the redefining of "systemic significance' the NBFCs-ND with asset size of less than Rs, 500 crore, are exempted from the requirement of maintaining CRAR and complying with Credit Concentration Norms. They shall not be subjected to any regulation either prudential or conduct of business regulations viz., Fair Practices Code (FPC), KYC, etc., if they have not accessed any public funds and do not have a customer interface. Accordingly this provision is not applicable to this company SIGNIFICANT ACCOUNTING POLICIES Basis of brparation The financial statements have been brpared 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 (' N BF C- N D'). The Accounting policies are consistent with those used in the brvious year. Use of estimates The brparation 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 Debrciation Tangible Fixed Assets are shown at cost less accumulated debrciation. Debrciation on Owned Assets is provided to the extent of debrciable amount on the Straight line method (SLM) on a pro-rata basis based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013 Consequent to the enactment of the Act, the company has recomputed the debrciation based on the useful life of the asset as brscribed 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 brvailing 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 compises cash on hand and demand deposits with banks. Cash equivalents are short term 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 t"e 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 of 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 |