Capfin India Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

Mar 31, 2025

2. Significant accounting policies

a) Basis of Preparation of Accounts

The financial statements have been prepared on a historical cost basis, except for certain financial instruments which are measured at
fair value at the end of each reporting period, as explained in the accounting policies below. Fair value is the price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

b) Functional and presentation currency

The financial statements are presented in Indian Rupees which is the functional currency of the Company and the currency of the primary
economic environment in which the Company operates.

c) Use of estimates, judgments and assumptions

The preparation of financial statements in conformity with the Ind AS requires the management to make judgments, estimates and
assumptions that affect the application of accounting policy and reported amounts of assets and liabilities and the disclosure of
contingent assets and liabilities, at the end of the reporting period and reported amounts of revenues and expenses for the year
presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis.
Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected.

d) Recognition of Income

i) Interest income

Under Ind AS 109 interest income and expenses are recorded using the effective interest rate (EIR) method for all interest bearing
financial instruments measured at amortised cost. The EIR is the rate that exactly discounts estimated future cash receipts through the
expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the financial asset
The EIR (and therefore, the amortised cost of the asset) is calculated by taking into account any discount or premium on acquisition, fees
and costs that are an integral part of the EIR.

ii) Dividend income

Dividend income on equity shares is recognised when the Company''s right to receive the payment is established, which is generally when
shareholders approve the dividend.

iii) Net gain/(loss) on fair value changes

Financial assets are subsequently measured at fair value through profit or loss (FVTPL) or fair value through other comprehensive income
(FVOCI), as applicable. The Company recognises gains/losses on fair value change of financial assets measured as FVTPL.

e) Expenditures

Expenses are recognized on accrual basis.

f) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash on hand and balances with banks in current accounts.

g) Cash flow statement

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of
transactions of non-cash nature and any deferrals or accruals of past / future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based on the available information.

h) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of
another entity. Financial assets and financial liabilities are recognised when the Entity becomes a party to the contractual provisions of
the instruments.

i) Financial assets

1) Financial assets measured at amortised cost

A ''financial asset'' is measured at amortised cost if both the following conditions are met: (a) The financial asset is held within a business
model with the objective to hold financial assets in order to collect contractual cash flows

(b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding.

After initial measurement at fair value plus directly attributable costs, these financial assets are subsequently measured at amortised cost
using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses
arising from impairment are recognised in the Statement of Profit and Loss.

Business model: The business model reflects how the company manages the assets in order to generate cash flows. That is, whether the
company''s objective is solely to collect the contractual cash flows from the assets or is to collect both the contractual cash flows and
cash flows arising from the sale of assets. If neither of these is applicable (e.g. financial assets are held for trading purposes), then the
financial assets are classified as part of ''other'' business model and measured at FVPL.

SPPI Test: Where the business model is to hold assets to collect contractual cash flows or to collect contractual cash flows and sell, the
Company assesses whether the financial instruments'' cash flows represent solely payments of principal and interest (the ''SPPI test''). In
making this assessment, the Company considers whether the contractual cash flows are consistent with a basic lending arrangement i.e.,
interest includes only consideration for the time value of money, credit risk, other basic lending risks and a profit margin that is consistent
with a basic lending arrangement. Where the contractual terms introduce exposure to risk or volatility that are inconsistent with a basic
lending arrangement, the related financial asset is classified and measured at fair value through profit or loss. The amortised cost, as
mentioned above, is computed using the effective interest rate method.

2) Financial Instruments at fair value through other comprehensive income

Company classifies equity instruments at FVTOCI, resultantly, all fair value changes on the instrument, excluding dividends, are recognised
in the OCI. There is no recycling of the amounts from OCI to P & L, even on the sale of investment. However, the company may transfer
the cumulative gain or los within equity.

3) Financial Instruments at fair value through profit and loss

The Company classifies financial assets which are held for trading under FVTPL category. They are valued at fair value as on the balance
sheet date.

All investments into mutual funds and non-convertible debentures are measured at fair value and are classified under this category.

ii) Financial Liabilities

Initial recognition - Financial liabilities are classified and measured at amortized cost. All financial liabilities are recognized initially at fair
value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The company''s financial
liabilities include trade and other payables, loans and borrowings including bank overdrafts.

Subsequent Measurement - Financial liabilities are subsequently carried at amortized cost using the effective interest method.
i) Impairment of financial assets

The company assesses at each reporting date whether a financial asset (or a group of financial assets) held at amortised cost for
impairment based on evidence or information that is available without undue cost or effort.

j) Determination of Fair Value

Fair value is the price at the measurement date, at which an asset can be sold or paid to transfer a liability, in an orderly transaction
between market participants at the measurement date.

The fair values of financial instruments measured at amortised cost are measured and disclosed in the said financial statements.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data is available to measure
fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value
hierarchy described as follows:

i) Level 1 financial instruments: Those where the inputs used in the valuation are unadjusted quoted prices from active markets for
identical assets or liabilities that the Company has access to at the measurement date. The Company considers markets as active only if
there are sufficient trading activities with regards to the volume and liquidity of the identical assets or liabilities and when there are
binding and exercisable price quotes available on the balance sheet date.

ii) Level 2 financial instruments: Those where the inputs that are used for valuation and are significant, are derived from directly or
indirectly observable market data available over the entire period of the instrument''s life. Such inputs include quoted prices for similar
assets or liabilities in active markets, quoted prices for identical instruments in inactive markets and observable inputs other than quoted
prices such as interest rates and yield curves, implied volatilities, and credit spreads. In addition, adjustments may be required for the
condition or location of the asset or the extent to which it relates to items that are comparable to the valued instrument. However, if
such adjustments are based on unobservable inputs which are significant to the entire measurement, the Company will classify the
instruments as Level 3.

iii) Level 3 financial instruments: Those that include one or more unobservable input where there is little market activity for the
asset/liability at the measurement date that is significant to the measurement as a whole.

k) Taxes

Income tax expense comprises of current and deferred income tax. Current / Deferred tax is recognized in the Statement of Profit and
Loss except to the extent it relates to an item which is recognized directly in equity or in other comprehensive income in which case the
related income tax is also recognised accordingly. Deferred tax assets and deferred tax liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities; and the deferred tax assets and the deferred tax liabilities
relate to income taxes levied by the same taxation authority.

i) Current taxes

Current income tax expense includes income tax payable by the company on its taxable profits for the period. Advance tax and provision
for income tax are provided after offsetting advance tax paid and provision for tax arising in the same tax jurisdiction and where the
relevant tax paying units intends to settle the asset and liabilities on net basis.

ii) Deferred taxes

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of
assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carry-forwards and tax credits. Deferred
tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible
temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized. Deferred tax assets and
liabilities are measured based on the tax rates that are expected to apply in the period when the asset is realized or the liability is settled,
based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax
liabilities and when they relate to income taxes levied by the same taxation. The carrying amount of deferred tax assets are reviewed at
each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or
part of the deferred tax asset to be utilised.

Unrecognised deferred tax assets are reassessed at each reporting date and are recognised to the extent that it becomes probable that
future taxable profit will allow the deferred tax asset to be recovered.

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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.