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Accounting Policies of Bhilwara Tex-Fin Ltd. Company

Mar 31, 2015

2.1 BASIS OF ACCOUNTING

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. The financial statements are prepared in accordance with the accounting standards notified by the Central Government, in terms of section 133 of the Companies Act, 2013 read with Rule 7 and guidelines issued by the Securities and Exchange Board of India(SEBI) and the guidelines issued by the Reserve Bank of India ('RBI') as applicable to a Non Banking Finance Company ('NBFC'). The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2.2 USE OF ESTIMATES

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenues and expenses during the reporting periods. Difference between the actual results and estimates are recognized in the period in which the results are known materialized.

2.3 REVENUE RECOGNITION

a) Interest income is recognized on accrual basis except in case of nonperforming assets where it is recognized upon realization as per RBI Guidelines.

b) Penal interest is recognized as income on realization.

c) Dividend income is accounted on an accrual basis when the company's right to receive the dividend is established.

2.4 INVESTMENTS

Investment is long term in nature and is valued at cost.

2.5 FIXED ASSETS

The company does not possess any fixed assets.

2.6 Earning Per Share

Basic earnings 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 year. For the purpose of calculating diluted earnings per share, the net profit or loss for the 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.

2.7 TAXATION

i) Current Tax: Provision for current tax is made on the estimated taxable income at the rate applicable to the relevant assessment year.

ii) Minimum Alternative Tax : In the event the income tax liability as per normal provisions of the Income Tax Act, 1961 is lower than the tax payable as per section 115J ( Minimum Alternative Tax ), tax is provided as per Section 115J.

iii) Deferred Tax : In accordance with the Accounting Standard, the deferred tax for the timing difference is measured using the tax rates and tax laws that have been enacted or substantially enacted by the Balance Sheet date.

Deferred tax assets arising from timing difference are recognized only on the consideration of prudence.

2.8 Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles.

2.9 EMPLOYEE BENEFITS

Short Term Employee Benefits: (i.e. benefits payable within one year) are recognized in the period in which employee services are rendered.

Contributions towards Provident Fund are recognized as expense. Provident Fund contributions in respect of all employees are made to Provident Fund Authorities, as applicable.

Liability towards Gratuity covering eligible employees is provided for in the books.


Mar 31, 2014

1.1 SYSTEM OF ACCOUNTING

The financial statement is prepared under the historical cost convention on an accrual basis and is in accordance with the requirement of the companies Act, 1956.

2.2 REVENUE RECOGNITION

a) Interest income is recognized on accrual basis except in case of nonperforming assets where it is recognized upon realization as per RBI Guidelines.

b) Penal interest is recognized as income on realization.

c) Dividend income is accounted on an accrual basis when the company''s right to receive the dividend is established.

2.3 INVESTMENTS

Investment is long term in nature and is valued at cost.

2.4 FIXED ASSETS

The company does not possess any fixed assets.

2.5 TAXATION

Income Taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income" (AS-22) issued by the Institute of Chartered Accountants of India. Tax expenses comprise both current and deferred tax.

Current Tax is determined as the amount of tax payable in respect of taxable income for the period using the applicable tax rates and tax laws. Deferred tax assets and liabilities are recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. The carrying amount of deferred tax assets and liabilities are reviewed at each Balance Sheet date.

2.6 Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles.

2.7 Foreign Currency converted into Indian Rupee is N.A.

2.8 Contingent Liability is Nil. (Previous Year Nil).

2.9 Debit balances of debtors are subjected to confirmation and reconciliation form respective parties. The final adjustment, if any, in the account of parties shall be known only after confirmation / reconciliation, the amount of which could not be ascertained.

In compliance of Sec. 45 IC of the Reserve Bank of India Act, 1934, the company has transferred a sum of Rs. 119,601/- to Special reserve Fund. The reserve fund so created is available for utilization for specified purposes as may be prescribed by the Reserve Bank from time to time.


Mar 31, 2013

1.1 SYSTEM OF ACCOUNTING

The financial statement is prepared under the historical cost convention on an accrual basis and is in accordance with the requirement of the companies Act, 1956.

1.2 REVENUE RECOGNITION

a) Interest income is recognized on accrual basis except in ease of nonperforming assets where it is recognized upon realization as per RBI Guidelines.

b) Penal interest is recognized as income on realization.

c) Dividend income is accounted on an accrual basis when the company''s right to reactive the dividend is established.

1.3 INVESTMENTS

Investment is long term in nature and is valued at cost.

1.4 FIXED ASSETS

The company does not possess any Fixed Assets.

1.5 TAXATION

Income Taxes are accounted for in accordance with Accounting Standard 22 on "Accounting for Taxes on Income" (AS-22) issued by the Institute of Chartered Accountants of India. Tax expenses comprise both current and deferred tax.

Current Tax is determined as the amount of tax payable in respect of taxable income for the period using the applicable tax rates and tax laws. Deferred tax assets and liabilities are recognized, subject to consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income, that originate in one period and are eatable of reversal in one or more subsequent periods and are measured using tax rates enacted or substantively enacted as at the Balance Sheet date. The carrying amount of deferred tax assets and liabilities are reviewed at each Balance Sheet date. ''

1.6 Accounting policies not specifically referred to otherwise are consistent and in accordance with generally accepted accounting principles,

1.7 Foreign Currency converted into Indian Rupee is N.A.

1.8 Contingent Liability is Nil. (Previous Year Nil).

1.9 Debit balances of debtors are subjected to confirmation and reconciliation form respective parties. The ) : final adjustment, if any, in the account of parties shall be known only after confirmation / reconciliation the amount of which could not be ascertained. of the Reserve Bank of India Act, 1934, the company has transferred a sum of Ks. 129,296/- to Special reserve Fund. The reserve fund so created is available for utilization for specified purposes as may be prescribed by the Reserve Bank from time to time.

1.10 Remuneration and perquisites to the directors is Rs. Nil.

1.11 There are certain parties to whom advances in the nature of loans have been given by the company. As per management, principal and interest thereon is recoverable at a later date as per stipulations made with ! respective parties. As such, interest income is accounted for on yearly basis, but (Loir recovery is deferred to a later date.

1.12 S 110 rebated Party transaction as in accordance with Accounting Standard 18 issued by the institute of Chartered Accountants of India,

1.13 Segment Reporting

The Company operates in one segment only namely Finance, Investment and related consultancy.

Therefore, information about segment reporting in line with AS-17 of ICAI has not been given.

1.14 Previous year''s figures have been regrouped and rearranged wherever necessarily.

1.15 Additional information pursuant to the provision of paragraphs 3, 4C & 4D of part II of schedule VI of the Companies Act, 1956.


Mar 31, 2010

1. We have audited the attached Balance Sheet of M/s Bhilwara Tex-Fin Limited as at 31st March 2010, the Profit & Loss Account and Cash Flow Statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits.

2. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An Audit includes examining, on a test basis, evidence supporting the amounts and disclosers in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

3. As required by the Companies (Auditors Report) Order 2003, as amended by the companies (Auditors Report) (Amendment) Order, 2004 (together the Order) issued by the Central Govt, of India in terms of the section (4A) of section 227 of the Companies Act, 1956, of India (the Act) and on the basis of such checks of the books and records of the company as we give in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the Order.

4. Subject to above and further to our comment in the Annexure referred to above, we report that:

i) We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

ii) In our opinion, proper books of account as required by law have been kept by the company as far as appears from our examination of those books.

iii) The Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report are in agreement with the books of accounts.

iv) In our opinion, the Balance Sheet, Profit & Loss Account and Cash Flow Statement dealt with by this report comply with the Accounting standard referred to in sub-section 3(C) of section 211 of Companies Act, 1956.

v) On the basis of the written representations received from the Directors, and taken on the records by the Board of Directors, we report that none of the Directors is disqualified as on 31st March 2010 from being appointed as a Director in the terms of Clause (g) of Sub-section (1) of Section274 of the companies Act, 1956.

vi) In our opinion and to the best of our information and according to the explanation given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting

a) In the case of Balance Sheet of the state of affairs of the Company as at 31 st March 2010,

b) In the case of Profit & Loss Account of the Loss for the year ended 31 st March 2010.

c) In the case of Cash Flow Statement, of the cash flows for the year ended on that date.

ANNEXURE TO THE AUDITORS REPORT FOR THE YEAR ENDED 31st MARCH 2010 Re: Bhilwara Tex-Fin Ltd.

i. (a) The Company does not own any fixed assets. Hence, this clause is not applicable. (b)Not applicable in view of (a) above. (c) Not applicable in view of (b) above. ii. (a) The Company does not own any fixed assets. Hence, this clause is not applicable.

(b) Not applicable in view of (a) above.

(c) Not applicable in view of (a) above.

iii. (a) The company has not given loans to any parties covered in the register maintained under Section 301 of the Companies Act, 1956.

(b) Not applicable in view of (a) above.

(c) Not applicable in view of (a) above.

(d) Not applicable in view of (a) above.

(e) During the year, company has not taken loans from party covered in the register maintained under section 301 of the Companies Act, 1956.

(f) Not applicable in view of (e) above.

(g) Not applicable in view of (e) above.

iv. In our opinion and according to the information and explanation given to us there are adequate internal control procedures commensurate with the size of the company and the nature of its business with regards to the sale of shares. During the courses of our audit, no major weakness has been noticed in the internal controls.

v. (a) Based upon the audit procedures applied by us and according to the information and explanation given to us, we are of the opinion, that the company has not made any transaction that required to be entered into the register maintained under section 301 of the Act, 1956.

(b) Not applicable in view of (a) above.

vi. The company has not accepted any deposits from the public within the meaning of section 58A and 58AA of the companies Act, 1956 and Companies (Acceptance of Deposits) Rules, 1975.

vii. In our opinion, the company has an internal audit system commensurate with the size and nature of its business.

viii. The Company is not required to maintain the cost records under clause (d) of sub section (1) of Section 209 of the Act.

ix. (a) According to the records of the company, the company is regular in depositing with appropriate authorities undisputed statutory dues including provident fund, investor education protection fund, employees state insurance, income tax, sales tax, wealth tax, custom duty, excise duty, cess and other statutory dues applicable to it.

(b) According to the information and explanations given to us, no undisputed amounts payable in respect of income tax, wealth tax, sales tax, customs duty and excise duty were outstanding, as at 31st March 2010 for a period of more than six months from the date they became payable.

(c) According to the records of the company, there are no dues of sales tax, income tax, custom tax / wealth tax, excise duty / cess which have not been deposited on account of any dispute.

x. In our opinion, the accumulated losses of the company are not more than fifty percent of its net worth. The company has incurred cash losses of Rs. 86,980/-during the financial year covered by our audit and Rs 265,404/- in the immediately preceding financial year.

xi. In our opinion, and according to the information and explanations given to us, the Company has not availed any loan or credit from financial institution or banks.

xii. The company has not granted loans and advances on the basis of security by the way of pledge of shares, debentures and other securities.

xiii. In our opinion, and to the best of our information and according to the explanations provided by the management, we are of the opinion that the company is neither a Chit Fund nor a nidhi / mutual benefit society. Hence, in our opinion, the requirements of Clause 4 (xiii) of the order do not apply to the company.

xiv. The company is maintaining proper records for all transaction related to dealing or trading in shares, securities, debentures and other investments. Timely entries have also been made in the said record. The shares, debentures and other securities have been held by the company in its own name except to the extent exemption u/s 49 of the Act.

xv. According to the information and explanation given to us, the Company has not provided guarantee of any type for loan taken by others.

xvi. According to the records of the company, the company has not obtained any term loan. Hence, comments under the clause are not called for.

xvii. According to the information and explanation given to us, the fund raised by the company on long term basis has not been applied for short term purpose.

xviii. The Company has not made any preferential allotment of shares to parties covered in the register maintained under section 301 of the Act.

xix. The Company has not issued debenture of any type during the financial year.

xx. The company has not raised any money by public issue during the financial year.

xxi. Based on our examination of the books and records of the company and according to the information and explanation given to us, no fraud on or by the company has been noticed.

For Nagar Goel & Chawla

Chartered Accountants

Sd/-

Place : New Delhi (Deepak Nagar)

Dated : 4th September 2010 Partner

Membership No.:- 87456

 
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