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Accounting Policies of Goenka Business & Finance Ltd. Company

Mar 31, 2016

1 Nature of operations

The company is carrying on the business of an investment company and to invest-in, acquire or hold shares, bonds, securities, etc. Its main business is to acquire and hold and otherwise deal in the moneys from time to time in such manner as may be determined to borrow and raise money with or without security and/or by the issue or sale of any bonds, mortgages, debentures and to devote any money so raised to any of the objects of all kinds upon such terms as may be arranged.

2 Basis of preparation

These financial statements have been prepared to comply in all material aspects with the Generally Accepted Accounting Principles in India, Indian Accounting Standards as notified under section 211(3C) [Companies (Accounting Standards) Rules, 2006, as amended] and the relevant provisions of the Companies Act, 2013. These financial statements have been prepared under the historical cost convention on an accrual basis. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

2 Significant Accounting Policies i) Use of Estimates

The preparation of the financial statements in conformity with Generally Accepted Accounting Principles(GAAP). It requires management of the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures relating to contingent liabilities as of the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates.

ii) Tangible Fixed Assets

Tangible fixed Assets are stated at cost, net of accumulated depreciation and accumulated impairment losses. The cost comprises purchase price, borrowing costs (if capitalization criteria are met) and directly attributable cost of bringing the asset to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of tangible fixed asset is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses on existing tangible fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

iii) Depreciation on Tangible Fixed Assets

Depreciation is provided using the Written Down Value Method as per the rates prescribed under schedule II of the Companies Act, 2013.

iv) Impairment

Notes to financial statements for the year ended as on 31st March 2016_

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 assets. If such recoverable amount of the asset or the recoverable amount of cash-generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. 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 depreciable historical cost.

v) Revenue Recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

a) Interest

Interest is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

vi) Current and Deferred Tax

Tax expense comprises of current and deferred tax. 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 enacted in India and tax laws prevailing in the respective tax jurisdictions where the company operates. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred income taxes reflects the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years. Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the reporting date.

Notes to financial statements for the year ended as on 31st March 2016_

Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets are recognized for deductible timing differences 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 realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

At each balance sheet date the Company re-assesses unrecognized deferred tax assets. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be that sufficient future taxable income will be available against which such deferred tax assets can be realized.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set-off current tax assets against current tax liabilities and the deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.

viii) Foreign currency transactions and balances

a) Initial recognition

Foreign currency transactions are recorded in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of the transaction/average rate.

b) Conversion

Foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction; and non-monetary items which are carried at fair value or other similar valuation denominated in a foreign currency are reported using the exchange rates that existed when the values were determined.

c) Exchange differences

Exchange differences arising on the settlement of monetary items or on reporting Company''s monetary items at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognized as income or as expenses in the year in which they arise. There is no foreign currency transactions during the year.

vii) 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 period.

viii) Provisions and Contingent Liabilities

A provision is recognized when the company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation.

There is no contingent liability as on 31st March 2016.


Mar 31, 2015

A) Principle & Practice:

The Financial Statements have been prepared under the historical cost convention, in accordance with generally accepted accounting principles (GAAP) in India, including the Accounting standards notified under the relevant provisions of the Companies Act, 2013. The Financial Statements have been prepared under the historical cost convention and ongoing concern concept. The Accounting policies adopted in the preparation of financial statements are consistent with those of the previous year.

b) Use of estimates: -

The preparation of financial statements in conformity with Indian GAAP requires the management to, make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting year. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future years.

OF System of Accounting:

Generally Mercantile System of Accounting is followed except filing fees and other unascertained items which have been taken on cash basis.

d) Recognition of Income & Expenses:

Items of Income and Expenditure are recognized on accrual basis save as above.

e) Fixed Assets & Depreciation:

i) Fixed Assets are stated at historical cost less depreciation provided on WDV

method. ii) Depreciation on fixed assets have been provided in the accounts based on the useful life of the assets and at the rate prescribed in schedule II to the Companies Act, 2013.

f) ' Current Assets & Liabilities:

In the opinion of the Board, all the Assets other than Fixed Assets and Non-Current Investments are at least approximately of the value stated in the accounts, if realized in the ordinary course of business, unless otherwise stated. The provision of all the known liabilities are adequate and are not in excess of the amount considered reasonably necessary by the management.

g) Method of valuation:

i) Non-Current Investments in securities are valued at cost. No Provision for diminution in value of Investments is made as diminution, if any, is temporary. ii) Stock was valued at cost or market value, whichever was lower.

h) Contingent Liabilities & Commitments:

Contingent Liabilities are provided in the Accounts on the best judgment basis depending upon the degree of certainty of the contingency. Commitments are provided on the basis of estimated amount of and period of occurrence. The balances of both, not provided for, are disclosed by way of notes. However, there is no known or expected contingent liability or commitment at the year end.

i) Earnings per Share:

Basic earnings (Con) per share are calculated by dividing the net profit or loss for the year 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 period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects for all dilutive potential equity shares.

j) Employees Benefits

The Company has applied the revised Accounting Standard (AS)-15- employees

Benefits notified under the Companies (Accounting Standard) Rules, 2006.

(i) Employees Benefits of Short term nature are recognized as expense as and when it accrues. (ii) Long term and post employment benefit is recognized as expense as and when it accrues or is most likely to accrue in future.

k) Provision for Taxation:

Provision for Taxation has been made as per Income Tax Act 1961 and Rules made there under.

I) NBFC Requirements regarding transfer of profit to reserve : 20% of profit after Tax (rounded off to next hundred) for the current year have been transferred to

Statutory Reserve Fund appropriating the Statement of Profit & Loss as per requirement of the R.B.I. Act.

m) Contingent Provision against Standard Assets:

Contingent Provision @ 0.25% against Standard Loans is made as per R.B.I. requirement for NBFC appropriating surplus of the Statement of Profit & Loss.

n) Recognition of Deferred Tax

The Company recognizes deferred tax assets and liabilities in terms with Accounting Standard 22 issued by the Institute of Chartered Accountants of India on "Accounting for Taxes on Income". Deferred tax is recognized on timing differences (being the difference between taxable income under Income Tax Act and Accounting Income) which originate in one period and are capable of reversal in subsequent period. Deferred Tax Assets over & above Deferred Tax Liabilities are recognized only if there is reasonable certainly of recouping them against taxable Profit in foreseeable future. All such assets and liabilities are reviewed on each Balance Sheet date to reflect the changed position.


Mar 31, 2014

A) Principle & Practice:

The Financial Statements have been prepared under the historical cost convention, in accordance with generally accepted accounting principles, following Accounting standards and other provisions of the Companies Act, and ongoing concern concept.

b) System of Accounting:

Generally Mercantile System of Accounting is followed except loss on speculation of shares, filing fees and other unascertained items which have been taken on cash basis.

c) Recognition of Income & Expenses:

Items of Income and Expenditure are recognized on accrual basis save as above.

d) Fixed Assets & Depreciation:

i) Fixed Assets are stated at historical cost less depreciation provided on WDV method.

ii) Depreciation on fixed assets have been provided in the accounts in the manner and at the rate prescribed in schedule XIV to the Companies Act, 1956.

e) Current Assets & Liabilities:

In the opinion of the Board, all the Assets except Fixed Assets (there is no Non-current Investment) are at least approximately of the value stated in the accounts, if realized in the ordinary course of business, unless otherwise stated. The provision of all the known liabilities are adequate and are not in excess of the amount considered reasonably necessary by the management.

f) Method of valuation:

Stock in Trade of shares are valued at cost without recognizing temporary diminution in their values.

g) Contingent Liabilities & Commitments:

Contingent Liabilities are provided in the Accounts on the best judgment basis depending upon the degree of certainty of the contingency. Commitments are provided on the basis of estimated amount and period of occurrence. The balance of both of them not provided for, are disclosed by way of note. However, there is no known or expected Contingent Liability or Commitment at the end of the year.

h) Provision for Gratuity:

Provision for Gratuity is made when there is a reasonable certainty of Staff continuing the service for minimum eligible period or has completed such period. However, it has not been made in the accounts as there is no such reasonable certainty or completion at the year end.

i) Provision for Taxation:

Provision for Taxation has been made in accordance with Income Tax Act & Rules there under.

j) NBFC Requirements regarding transfer of profit to reserve :

20% of profit after Tax (rounded off to next hundred) have been transferred to Statutory Reserve Fund appropriating the statement of Profit & Loss as per requirement of the R.B.I. Act.

k) NBFC Requirement for Contingent Provisioning on Standard Assets:

Contingent Provisioning @ 0.25% on Standard Loans outstanding at the year end has been made appropriating the surplus of the Statement of Profit & Loss.

Recognition of Deferred Tax

The Company recognizes deferred tax assets and liabilities in terms with Accounting Standard 22 issued by the Institute of Chartered Accountants of India on "Accounting for Taxes on Income". Deferred tax is recognized on timing differences (being the difference between taxable income under Income Tax Act and Accounting Income) which originate in one period and are capable of reversal ' in subsequent period. Deferred Tax Assets over & above Deferred Tax Liabilities are recognized only if there is reasonable certainly of recouping them against taxable Profit in foreseeable future. All such assets and liabilities are reviewed on each Balance Sheet date to reflect the changed I position.


Mar 31, 2013

A) Principle & Practice:

The Financial Statements have been prepared under the historical cost convention, in accordance with generally accepted accounting principles, following Accounting standards and other provisions of the Companies Act, and ongoing concern concept.

b) System of Accounting:

Generally Mercantile System of Accounting is followed except loss on speculation of shares, filing fees and other unascertained items which have been taken on cash basis.

c) Recognition of Income & Expenses:

Items of Income and Expenditure are recognized on accrual basis save as above.

d) Fixed Assets & Depreciation:

i) Fixed Assets are stated at historical cost less depreciation provided on WDV method.

ii) Depreciation on fixed assets have been provided in the accounts in the manner and at the rate prescribed in schedule XIV to the Companies Act, 1956.

e) Current Assets & Liabilities:

In the opinion of the Board, all the Assets except Fixed Assets (there is no Non-current Investment) are at least approximately of the value stated in the accounts, if realized in the ordinary course of business, unless otherwise stated. The provision of all the known liabilities are adequate and are not in excess of the amount considered reasonably necessary by the management.

f) Method of valuation:

Stock in Trade of shares are valued at cost without recognizing temporary diminution in their values. The other items are valued at cost or market value whichever is lower. However, there is no stock of other items at the year end.

g) Contingent Liabilities & Commitments:

Contingent Liabilities are provided in the Accounts on the best judgment basis depending upon the degree of certainty of the contingency. Commitments are provided on the basis of estimated amount and period of occurrence. The balance of both of them not provided for, are disclosed by way of note. However, there is no known or expected Contingent Liability or Commitment at the end of the year.

h) Provision for Gratuity:

Provision for Gratuity is made when there is a reasonable certainty of Staff continuing the service for minimum eligible period or has completed such period. However, it has not been made in the accounts as there is no such reasonable certainty or completion at the year end.

i) Provision for Taxation:

Provision for Taxation has been made in accordance with Income Tax Act & Rules there under.

j) NBFC Requirements regarding transfer of profit to reserve :

20% of profit after Tax (rounded off to next hundred) have been transferred to Statutory Reserve Fund appropriating the Profit & Loss statement as per requirement of the R.B.I. Act.

k) NBFC Requirement for Contingent Provisioning on Standard Assets:

It is made @0.25% upon Standard Financial Assets. However, no such Provision is made for the year as there is no Loan Outstanding at the end of the year.

l) Recognition of Deferred Tax

The Company recognizes deferred tax assets and liabilities in terms with Accounting Standard 22 issued by the Institute of Chartered Accountants of India on "Accounting for Taxes on Income". Deferred tax is recognized on timing differences (being the difference between taxable income under Income Tax Act and Accounting Income) which originate in one period and are capable of reversal in subsequent period. Deferred Tax Assets over & above Deferred Tax Liabilities are recognized only if there is reasonable certainly of recouping them against taxable Profit in foreseeable future. All such assets and liabilities are reviewed on each Balance Sheet date to reflect the changed position.


Mar 31, 2012

A) Principle & Practice:

The Financial Statements have been prepared under the historical cost convention, in accordance with generally accepted accounting principles, following Accounting standards and other provisions of the Companies Act, and ongoing concern concept.

b) System of Accounting:

Generally Mercantile System of Accounting is followed except loss on speculation of shares, filing fees and unascertained items which have been taken on cash basis.

c) Recognition of Income & Expenses:

Items of Income and Expenditure are recognized on accrual basis save as above.

d) Fixed Assets & Depreciation:

i) Fixed Assets are stated at historical cost less depreciation provided on WDV method.

ii) Depreciation on fixed assets have been provided in the accounts in the manner and at the rate prescribed in schedule XIV to the Companies Act, 1956.

e) Current Assets & Liabilities:

In the opinion of the Board, all the Assets except Fixed Assets (there is no Non-current Investment) are at least approximately of the value stated in the accounts, if realized in the ordinary course of business, unless otherwise stated. The provision of all the known liabilities are adequate and are not in excess of the amount considered reasonably necessary by the management.

f) Method of valuation:

Stock in Trade of shares are valued at cost without recognizing temporary diminution in their values. The other items are valued at cost or market value whichever is lower. However, there is no stock of other items at the year end.

g) Contingent Liabilities & Commitments:

Contingent Liabilities are provided in the Accounts on the best judgment basis depending upon the degree of certainty of the contingency. Commitments are provided on the basis of estimated amount and period of occurrence. The balance of both of them not provided for, are disclosed by way of note. However, there is no known or expected Contingent Liability or Commitment at the end of the year.

h) Provision for Gratuity:

Provision for Gratuity is made when there is a reasonable certainty of Staff continuing the service for minimum eligible period or has completed such period. However, it has not been made in the accounts as there is no such reasonable certainty or completion.

i) Provision for Taxation:

Provision for Taxation has been made in accordance with Income Tax Act & Rules there under.

j) NBFC Requirements regarding transfer of profit to reserve :

20% of profit after Tax (rounded off to next hundred) for the current year have been transferred to Statutory Reserve Fund appropriating the Profit & Loss Statement as per requirement of the R.B.I. Act.

k) Recognition of Deferred Tax

The Company recognizes deferred tax assets and liabilities in terms with Accounting Standard 22 issued by the Institute of Chartered Accountants of India on "Accounting for Taxes on Income". Deferred tax is recognized on timing differences (being the difference between taxable income under Income Tax Act and Accounting Income) which originate in one period and are capable of reversal in subsequent period. Deferred Tax Assets over & above Deferred Tax Liabilities are recognized only if there is reasonable certainly of recouping them against taxable Profit in foreseeable future. All such assets and liabilities are reviewed on each Balance Sheet date to reflect the changed position.


Mar 31, 2011

A. Principle & Practice

The Financial Statements have been prepared under the historical cost convention, in accordance with generally accepted accounting principles, following Accounting Standards and other provisions of the Companies Act, and ongoing concern concept.

b. System of Accounting

Generally Mercantile System of Accounting is followed except filing fees. Loss on speculation of shares and unascertained items which have been taken on cash basis.

c. Recognition of Income & Expenses

Items of Income and Expenditure are recognized on accrual basis save as above.

d. Fixed Assets & Depreciation

Fixed Assets are stated at historical cost less depreciation as provided on W.D.V. method Depreciation on Fixed Assets has been provided in the accounts in the manner and at the rates prescribed in schedule XIV to the Companies Act, 1956.

e. Stock in Trade

The Securities acquired with the intention of short term holding and trading positions are considered as stock in trade and shown as current assets. The Stock in trade of shares are valued at cost. The temporary diminution in value of stock is not recognized. The other items are valued at cost or market price whichever is lower. However, there was no stock of other item at the year end.

f. Retirement Benefit

Provision for Gratuity has. not been made in the accounts as there is no such liability for the year.

g. Taxation

Provision for Taxation has been made for the year in accordance with the Income Tax Act and Rules made there under.

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