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Notes to Accounts of B N Rathi Securities Ltd.

Mar 31, 2015

1. Corporate Information:

B.N. Rathi Securities Limited ("BNRSL" or "the Company") was incorporated under the Companies Act, 1956 ("the Act") on September 30, 1985.

The Company is primarily engaged in the business of broking in securities. The Company also deals in depository operations and institutional equities. The Company is listed on Bombay Stock Exchange Limited ("BSE").

Basis of preparation of financial statements

The financial statements are prepared with generally accepted accounting principles in India under the historical cost convention and on an accrual basis of accounting.

The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 , and with the relevant provisions of the Act, pronouncements of The Institute of Chartered Accountants of India (''ICAI'').

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained.

2. Rights, preferences and restrictions attached to equity shares:

The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

3. Contingent liabilities :

i) Bank Guarantees :

Particulars 2014-15 2013-14

Bank Guarantees 4,50,00,000 3,00,00,000

ii) The company had filed appeal before ITAT against the order passed by CIT-Appeals, for the assessment year 2010-11, which came up during the year and was referred back to the assessing officer for the reassessing the valuation. The same is not quantified as of date.

4. Gratuity :

The Company has a defined benefit gratuity plan. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet:

5.The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

6. Segment reporting

The Company''s operations predominantly consist only of Broking activities. Hence, there are no reportable segments under Accounting Standard - 17 "Segment Reporting" (AS-17).

During the year, the company''s business has been carried out in India. The conditions prevailing in India being uniform, no separate geographical disclosures are considered necessary. There are no other reportable segments.

7. Related party disclosures as per AS 18:

a) Names of the related parties and nature of relationship:

Nature of Relationship Name of Related Party

Subsidiaries: B.N. Rathi Comtrade Private Limited B.N. Rathi Industries Private Limited

Key Management Personnel (KMP): Hari Narayan Rathi - Managing Director Chetan Rathi - Executive Director

Relatives of Key Management Personnel (KMP): Chanda Devi Rathi -Wife of Hari Narayan Rathi Nisha Rathi - Wife of Chetan Rathi Anuradha Pasari - Daughter of Hari Narayan Rathi Govind Narayan Rathi - Brother of Hari Narayan Rathi

8. Lease obligation as Lessee (Lease Payments):

Lease payments made under cancellable operating leases have been recognized as an expens in the Statement of Profit and Loss.

9. There is no balance confirmation available for the receivables and payables outstanding as on March 31, 2015 and such balances are subject to confirmation and reconciliation.

10. Due to Micro and Small enterprise:

The principal amount remaining unpaid as at March 31, 2015 in respect of enterprises covered under "Micro, Small and Medium Enterprises Development Act, 2006" (MSMEDA) is Rs. Nil.

In respect of transactions with "Suppliers" who constitute Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 disclosures relating to interest paid/payable are not applicable.

11. During FY 2012-13, company entered into an agreement for sale of land with Mrs. Hari Gayathri, wife of Mr. Venkata Appa Rao Yeleswarapu, client of the company. Mr. Venkata Appa is liable to pay Rs.34,43,070 to the company as on January 31,2013. In the process of recovery, the company entered into an agreement for sale of land on February 01, 2013 with his wife for a consideration of Rs.14,74,864./ The consideration is to be treated as advance receivable by her from the company against the amount payable by her husband. The registration of land in the favour of company is pending. The company has decided to disclose the consideration under the head "Long term loans & advances" as ''Property pending for registration & possession.'' The company has filed a suit for specific performance for the same. The status of the case is ''pending'' and recovery of the same is doubtful.

12. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

1. Information required to be furnished pursuant to clause 4-A.4-C and 4-D of part -II Schedule VI to the Companies Act, 1956 is not provided as the same is not applicable to the Company.

2. The Company has not paid remuneration to any of it''s employees exceeding Rs. 24,00,000/- per annum or Rs.2,00,000/- per month as the case may be .

3. Contingent Liability:

(i)on behalf of the Company. HDFC Bank have given Bank Guarantees of Rs 300.00 Lakhs (Previous Year Rs. 300.00 Lakhs) to NSCCL and BSE.

(ii) In the absence of information Income tax contingent liability in respect other appeals could not be quantified.

4. The Company has obtained a net profit 3,54,475/- in share trading. The aggregate value of shares purchased worked out Rs.1814.79 Crores and the sale thereof worked out to Rs.1818.33 Crores The above profit has been included in other income.

5. Provision for Income tax is Rs. 17,04,945/- made for the year.

6. Subsidiary Company M/s B N Rathi Comtrade Private Limited is member of MCX.NCDEX and National Spot Exchange.

7. During the year, the company has written off balance in VSATs Fixed Assets written down value of Rs 12, 63,778/- as the Assets become obsolescence and recorded in the minutes of the Board of Directors Meeting.

8. Bad Debts written off Rs.57, 727/-during the year.

9. During the year, the company has become Trading member of MCX Stock Exchange for Equity and Derivative Segment.

10. During the year the Company has purchased Equity shares of M/s B N Rathi Industries Private Limited by transfer from related parties Rs 99,700/-as per the Board of Directors resolution. Consequently to holding 99.70% Equity Shares, M/s B N Rathi Industries Private Limited became the Subsidiary Company.

11. During the year, the company has entered in to agreement for sale of land with Smt.Hari Gayatri spouse of the client Mr Venkata Appa Rao Yeleswarapu. It was informed that the client has outstanding due to the company of Rs 34, 43,070/- towards purchase & sale of shares as on 31.01.2013.Further informed that during the course of recovery the company accordingly entered into agreement of sale vide agreement dated 01.02.2013 with the clients''s wife and agreed to treat Rs 14, 74,864/-as advance from the company against amount payable by her husband to the company registration infavour of the company. The company has disclosed in the financial statement the amount of Rs. 14, 78,464/- under Loans & Advances "Property Pending for Registration and possession".

12. Related Party Disclosure:

Key Management Personnel: Hari Narayan Rathi Relatives of Key Management Personnel:

Sri . Govind Narayan Rathi brother of Sri Hari Narayan Rathi Smt. Chanda Devi Rathi wife of Sri Hari Narayan Rathi Sri Chetan Rathi son of Sri Hari Narayan Rathi Smt Nisha Rathi Daughter-ln-Law of Sri Hari Narayan Rathi Smt Anuradha Pasari Daughter of Sri Hari Narayan Rathi Sri Amit Rathi son of Govind Narayan Rathi Subsidiary : M/s B N Rathi Comtrade Private Limited M/s B N Rathi Industries Private Limited

13. As required by Accounting Standard 20 Earning Per Share issued by Institute of Chartered accountants of India (ICAI) .basic earning per share has been calculated by dividing net profit after tax weighted average number of equity shares outstanding during the year as per details given below:

14. Figures of the previous year have been regrouped or re-arranged wherever Considered necessary.


Mar 31, 2012

1. Information required to be furnished pursuant to clause 4-A.4-C and 4-D of part -II Schedule VI to the Companies Act, 1956 is not provided as the same is not applicable to the Company.

2. The Company has not paid remuneration to any of it's employees exceeding Rs. 24,00,000/- per annum or Rs.2,00,000/- per month as the case may be .

3. Contingent Liability:

(i) on behalf of the Company. HDFC Bank & Axis Bank have given Bank Guarantees of Rs 300.00 Lakhs (Previous Year Rs. 450.00 Lakhs) to NSCCL and BSE.

(ii) In the absence of information Income tax contingent liability in respect other appeals could not be quantified.

4. The Company has obtained a net profit 3,46,254/- in share trading. The aggregate value of shares purchased worked out Rs.27.32 Crores and the sale thereof worked out to Rs.27.35 Crores The above profit has been included in other income.

5. Provision for Income tax is Rs. 15,49,162/- made for the year.

6. Subsidiary Company M/s B N Rathi Comtrade Private Limited is member of MCX,NCDEX and National Spot Exchange.

7. Bad Debts written off Rs. 57,727/- during the year.

8. Related Party Disclosure:

Key Management Personnel: Hari Narayan Rathi Relatives of Key Management Personnel:

Sri . Govind Narayan Rathi brother of Sri Hari Narayan Rathi

Smt. Chanda Devi Rathi wife of Sri Hari Narayan Rathi

Sri Chetan Rathi son of Sri Hari Narayan Rathi

Smt Nisha Rathi Daughter-In-Law of Sri Hari Narayan Rathi

Smt Anuradha Pasari Daughter of Sri Hari Narayan Rathi

Sri Amit Rathi son of Govind Narayan Rathi

Subsidiary : M/s B N Rathi Comtrade Private Limited

9. Figures of the previous year have been regrouped or re-arranged wherever Considered necessary.


Mar 31, 2011

1. Information required to be furnished pursuant to clause 4-A, 4-C and 4-D of part-ll Schedule VI to the Companies Act, 1956 is not provided as the same is not applicable to the Company.

2. The Company has not paid remuneration to any of it's employees exceeding Rs. 24,00,000/- per annum or Rs. 2,00,000 per month as the case may be.

3. Contingent Liability :

(i)On behalf of the company, HDFC Bank & AXIS Bank have given Bank Guarantees of Rs 450.00 Lakhs (Previous Year Rs.400.00 Lakhs) to NSCCL and IL&FS.

(ii) The Company has disputed Income Tax demand Rs.1,44,656/- for the Assessment year 2006-07 and Rs 79,900/- for the Asst Year 2007-08 and appeals are pending disposal.

(iii) In the absence of information Income tax contigent Liability in respect other appeal could not be quantified.

4. Taxes on Income: Current tax is determined on taxable income for the period . Deferred tax isrecognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.Deferred Tax assets on difference between WDV of assets as per Companies Act and Income Tax Act is Rs.23,600/-

5. The Company has incurred a net loss of Rs 10096/- in share Trading. The aggregate value of shares purchased worked out Rs. 581.65 Lakhs and the sale thereof worked out to Rs.581.75 Lakhs. The above loss has been included in other income.The above profit has been included imother income.

6. Provision for Income Tax is Rs 27,49,801/- made for the year.

7. During the year an amount of Rs. 1,51,642/- has been transferred to General Reserves from out of profits.

8. Subsidiary company M/s. B N Rathi Comtrade Private Limited is member of MCX & NCDEX Exchanges.

9. Bad Debts written off Rs 32,644/- during the year.

10. Related Party Disclosure:

Key Managment Personnel: Sri HARI NARAYANRATHI

Relatives of Key Management Personnel

Sri. Badri Narayan Rathi father of Sri. HARI NARAYANRATHI

Smt. Basanthi Devi Rathi Mother of Sri. HARI NARAYANRATHI

Sri. Govind Narayan Rathi brother of Sri. HARI NARAYANRATHI

Smt. Chanda Devi Rathi wife of Sri. HARI NARAYANRATHI

Smt. Kamala Devi Rathi Sister-in-law of Sri. HARI NARAYANRATHI

Sri. Chetan Rathi Son of Sri.HARI NARAYANRATHI

Smt. Nisha Rathi Daughter-in-law of Sri. HARI NARAYANRATHI

Smt. Neetha Rathi Sister-in-law of Sri.HARI NARAYANRATHI

Smt. Sunita Rathi Sister-in-law of Sri.HARI NARAYANRATHI

Smt. Anuradha Pasari Daughter of Sri.HARI NARAYANRATHI

11. Figures of the Previous Year have been re-grouped or re-arranged wherever considered necessary.


Mar 31, 2010

1. Information required to be furnished pursuant to clause 4-A, 4-C and 4-D of part-ll Schedule VI to the Companies Act, 1956 is not provided as the same is not applicable to the Company.

2. The Company has not paid remuneration to any of its employees exceeding Rs. 24,00,000/- per annum or Rs. 2,00,000 per month as the case may be.

3. Contingent Liability :

(i)On behalf of the company, HDFC Bank & Karur Vysya Bank have given Bank Guarantees of Rs 400.00 Lakhs (Previous Year Rs.300.00 Lakhs) to NSCCL and IL&FS. (ii) The Company has disputed Income Tax demand Rs.1,44,656/- for the Assessment year 2006-07 and Rs 79,900/- for the Asst Year 2007-08 and appeals are pending disposal.

(iii) In the absence of information Income tax contigent Liability in respect other appeal could not be quantified.

4. Taxes on Income: Current tax is determined on taxable income for the period Rs. 45 lakhs. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets on difference between WDV of assets as per Companies Act and Income Tax Act is Rs.23,600/-

5. The Company has incurred a net loss of Rs 84,654/- in share Trading. The aggregate value of shares purchased worked out Rs. 42.24 Lakhs and the sale thereof worked out to Rs.43.08 Lakhs. The above loss has been included in other income.Profit on Sale of Stock In Trade Rs 1,94,394/- included under other imcome.

6. During the year the Promoters have subscribed Share Capital Rs 20,80,000 by conversion of 208000 warrants into equity shares of Rs 10/- each at apremium of Rs 12/- per share.

7. During the year, the company has sold the Land for Rs 46,00,000/- and the same has been disclosed under the other income.

8. Preferential Convertible Warrants of Rs 11,92,400/- have been forfeited due to lapse of period for conver sion and the same transferred to Capital Reserve.

9. During the year an amount of Rs. 2,16,150/- has been transferred to General Reserves from out of profits.

10. Subsidiary company M/s. B N Rathi Comtrade Private Limited is member of MCX & NCDEX Exchanges.

11. During the year, preliminary Expenses Rs. 76,236/- and Expenses Rs. 75,000/- incurred in Connection with increase of authorised capital of M/s. B N Rathi Comtrade Private Limited were absorbed by the company and the same has been debited to profit and Loss account.

12. Bad Debts written off Rs 3, 33,775/- during the year.

14. Figures of the Previous Year have been re-grouped or re-arranged wherever considered necessary.

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