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Accounting Policies of Goenka Business & Finance Ltd. Company

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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