1.0 Corporate Information
Amrapali Fincap Limited is a Limited Company, incorporated under the provisions of
Companies Act, 1956 and having CIN: L74999GJ2004PLC044988. The Company is mainly
engaged in the business of trading in Shares, Commodity, Future & Options and Financing
activities. The Company has carried out financing activities out of its own surplus funds. The
Registered office of the Company is situated 19-20-21, 3rd Floor, Narayan Chambers, Behind
Patang Hotels, Ashram Road, Ahmedabad. - 380009.
1.1 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. 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.
1.2 Basis of Preparation
a) Presentation and Disclosure of Standalone Financial Statements
These standalone financial statements have been prepared as per “Schedule - III” notified
under the Companies Act, 2013. The Company has also reclassified / regrouped / restated
the previous year figures in accordance with the requirements applicable in the current
year.
b) Property, Plant & Equipment and Intangible Assets: -
i. The company has adopted Cost Model to measure the gross carrying amount of fixed
assets.
ii. Tangible Fixed assets 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.
c) Depreciation / Amortization: -
Depreciation has been provided under Written down value Method at the rates prescribed
under schedule II 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 are available to the company for its use.
d) 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 recognised in prior period is
reversed if there has been a change in the estimate of the recoverable amount.
e) 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.
f) 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.
g) Valuation of Inventory: -
Inventories are valued at lower of cost or net realizable value whichever is lower as per
FIFO Method.
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.
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.
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 is 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 equities 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 item 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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