Notes forming part of the financial statements for the year ended 31st March, 2015 1Corporate Information Capital Trade Links Limited (the company) incorporated as a public limited company is engaged into the business of Non-Banking Financial Institution (NBFI) without accepting public deposits. The. Company is holding a valid Certificate of Registration (COR) from Reserve Bank of India (RBI). 2Significant Accounting Policies Basis of Accounting The Financial Statements of the company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013, (""the 2013 Act""). The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year. The Company follows the directions brscribed by the Reserve Bank of India (RBI) for Non-Banking Financial Companies. Use of Estimates The brparation of financial statements requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) as on the date of the financial statements and the reported income and expenses during the reported period. Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Actual results could differ from these estimates. Any revision in the accounting estimates is recognised prospectively in current and future periods. Revenue Recognition Revenue from interest on loans is recognised on accrual basis, considering the directions issued by the Reserve Bank of India from time to time in terms of the Non-Banking Financial Companies Prudential Norms (Reserve Bank) Directions, 1998. Loans are classified into 'Performing and Non-performing' assets in terms of the said directions. Other interest income is recognised on time proportion basis taking into account the amount outstanding and the rate applicable. Dividend income is accounted when the right to receive is established. Tangible and Intangible Assets, Debrciation and Amortisation Tangible / Intangible assets have been stated at cost less accumulated debrciation / amortisation. Cost includes cost of purchase inclusive of freight, duties and other incidental expenses and all expenditure like site brparation, installation costs and professional fees incurred on the asset before it is ready to be put to use. Debrciation including amortization is provided using useful life method brscribed under Part C of Schedule II of the Companies Act, 2013. Leasehold Land is being amortised over the tenure of respective leases. Fixed assets costing less than Rs. 5,000 are fully debrciated in the year of purchase. For assets purchased and sold during the year, debrciation is provided on pro rata basis by the company. Impairment of Assets The carrying amount of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal / external factors. Impairment loss, if any, is provided in the Statement of Profit and Loss Account to the extent the carrying amount of assets exceeds their estimated recoverable amount. Investments Investments are classified into non-current investments and current investments. Investments, which are intended to be held for more than one year, from the date from which investments are made, are classified as non-current investments and investments, which are intended to be held for less than one year, from the date from which investments are made, are classified as current investments. Non-current investments are accounted at cost and any decline in the value, other than temporary, is provided for, such reduction being determined and made for each investment individually. Current investments are valued at cost (calculated by applying weighted average cost method) or fair value whichever is lower. Cash and Cash Equivalents Cash comprises cash in 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. Foreign Currency Transactions On initial recognition, all foreign transactions are recorded by applying to the foreign currency amount exchange rate between the reporting currency and the foreign currency at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are restated at the rate of exchange brvailing at the Balance Sheet date. Exchange differences arising on settlement of the transaction and on account of restatement of assets and liabilities are dealt with in the Statement of Profit and Loss. Taxes on Income The Income Tax expense comprises Current tax and Deferred tax. Current tax is measured at the amount expected to be paid in respect of taxable income for the year in accordance with the Income tax Act, 1961. Minimum alternate tax (MAT) paid in a year is charged to the statement of profit and loss account as current tax. The company recognizes MAT credit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT credit is allowed to be carried forward. Deferred tax assets and liabilities are recognised for the future tax consequences of timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets arising mainly on account of carry forward of losses and unabsorbed debrciation under tax laws are recognised only if there is virtual certainty of its realisation, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted at the balance sheet date. Changes in deferred tax assets / liabilities on account of changes in enacted tax rates are given effect to in the Statement of Profit and Loss in the period of the change. The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes-down the carrying amount of a deferred tax asset to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax asset can be realized. Employee Benefits -Short-term employee benefits All employee benefits payable/ available within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus, etc. are recognised in the Statement of Profit and Loss in the period in which the employee renders the related service. -Defined contribution plan Company's contribution paid/payable during the year to Provident fund, Pension Fund, Employee's State Insurance Scheme are recognised in the Statement of Profit and Loss based on amount of' contribution required to be made and when services are rendered by the employees. Borrowing Costs Borrowing costs other than those directiy attributable to qualifying fixed assets are recognized as an expense in the period in which they are incurred. Provisions, Contingent Liabilities and Contingent Assets Provision is recognised when there is a brsent obligation as a result of past event; it is probable that an outflow of resources will be required to settie the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its brsent value and are measured based on best estimate of the expenditure required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are not recognized but are disclosed in the notes unless the outflow of resources is remote. Contingent assets are neither recognised nor disclosed in the financial statements. Operating Leases Leases where the lessor effectively retains substantially all the risks and rewards of ownership, are classified as operating leases. Operating lease payments are recognised as an expense in the the Statement of Profit and Loss. Earnings per Share Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the year. The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue and stock split. For the purpose of calculating diluted earnings per share, the net profit or loss for die year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue equity shares were exercised or converted during the year. 1.The Company does not have any other segment of business. Hence, the Segmental reporting regulations are not applicable to the Company. 2.Disclosures required under Section 32 of the Micro, Small and Medium Enterprises Development Act, 2006 There are no Micro and Small Enterprises, to whom the company owes dues, which are outstanding for more than 45 days at the Balance sheet date. The above information regarding Micro Enterprises and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. 3.The Company has complied with the prudential norms on income recognition and provisioning requirements against performing and non-performing assets as per the provisions of Reserve Bank of India (RBI). 4.All assets and liabilities have been classified as current or non-current based on assumption of operating cycle with duration of 12 months. 5. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure. In terms of our report attached. For A. C. Gupta & Associates Chartered Accountants FirrffRemX No. 008079N Membership No. 008565 For and op-behalf of the Board of Directors N^tjraj Garg Director DIN- 00002770 Amar Nath Director DJN - 06524521 Anshika Garg Company Secretar Place: New Delhi Date: 27th'May, 2015 |