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Accounting Policies of Rajath Finance Ltd. Company

Mar 31, 2015

1. Basis of Accounting

The financial statements have prepared under historical cost convention on an accrual basis and comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act 1956.

2. Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

3. Fixed Assets and Depreciation

Fixed Assets are stated at historical cost less accumulated depreciation thereon..Depreciation has been provided as per straight line method and as per its useful life prescribed under Schedule II of the Companies Act, 2013.

4. Inventories

Inventories are stated at cost or net realizable value, whichever is lower.

5. Investments

All investments are for long term holding and are valued at cost.

6. 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 reliable measured.

7. Taxes on Income

Provision for taxation comprises of Current Tax, and Deferred Tax. Current Tax provision has been made on the basis of reliefs and deductions available under the Income Tax Act, 1961. Deferred Tax is recognized for all the timing differences, subject to consideration of prudence, applying the tax rates that have been substantially enacted at the Balance Sheet date.

8. Provisions

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

9. Loan/sundry debtor/sundry creditor

Balance of Loan/sundry debtor/sundry creditor is subject to confirmation of parties.

10. Bank Balance

Bank balances are subject to reconciliation.


Mar 31, 2014

1. Basis of Accounting

The financial statements have prepared under historical cost convention on an accrual basis and comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act 1956.

2. Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known/materialized.

3. Fixed Assets and Depreciation

Fixed Assets are stated at historical cost less accumulated depreciation thereon..Depreciation has been provided as per straight line method and as per its useful life.

4. Inventories:

Inventories are stated at cost or net realizable value, whichever is lower.

5. Investments

All investments are for long term holding and are valued at cost.

6. Taxes on Income

Provision for taxation comprises of Current Tax, and Deferred Tax. Current Tax provision has been made on the basis of reliefs and deductions available under the Income Tax Act, 1961. Deferred Tax is recognized for all the timing differences, subject to consideration of prudence, applying the tax rates that have been substantially enacted at the Balance Sheet date.

7. Bank Balance

Bank balances are subject to reconciliation.

8. Loan/sundry debtor/sundry creditor

Balance of Loan/sundry debtor/sundry creditor is subject to confirmation of parties.

9. Provisions

Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of the obligation can be made.

10. Classification of Assets & Liabilities

The Revised Schedule VI to the Companies Act, 1956 requires assets and liabilities to be classified as either Current or Non-current.

(a) An asset shall be classified as current when it satisfies any of the following criteria:

(i) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;

(ii) It is held primarily for the purpose of being traded;

(iii) It is expected to be realized within twelve months after the reporting date; or

(iv) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

(b) All assets other than current assets shall be classified as non-current.

(c) A liability shall be classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the company''s normal operating cycle;

(ii) It is held primarily for the purpose of being traded;

(iii) It is due to be settled within twelve months after the reporting date; or

(iv) The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

(e) All liabilities other than current liabilities shall be classified as non-current

Right, Preferences and Restriction attached to shares

Equity shares

The company has only one class of Equity having a par value Rs. 10.00 per share. Each shareholder is eligible for one vote per share held. In the event of liquidation, the Equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts, in proportion to their shareholding.

The Company had purchased 23,300 Nos. of UTI Master Gain. The same was misappropriated in transit. The Company had filed suit before the Hon''ble Civil Court, Rajkot. The same was disposed in favor of the Company and an execution application has also been filed, which is pending for disposal before the Hon''ble Civil Court, Rajkot.


Mar 31, 2012

1. Basis of Accounting

The financial statements have prepared under historical cost convention on an accrual basis and comply with the Accounting Standards referred to in Section 211(3C) of the Companies Act 1956.

2. Income & Expenditure

The Company follows the accrual method of accounting as per the Companies Act, 1956 and complies with the Reserve Bank of India guidelines for Non Banking Financial Companies. The Accounts have been prepared on going concern basis.

3. Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

4. Fixed Assets and Depreciation

Fixed Assets are stated at historical cost less accumulated depreciation thereon. Depreciation on assets is provided on straight line method at the rates prescribed under Schedule XVI of the Companies Act, 1956.

5. Investments:

All investments are for long term holding and are valued at cost.

6. Inventories

Inventories are stated at cost or market price which ever is lower.

7. Taxes on Income

Deferred tax asset is recognized, subject to the consideration of prudence, on timing difference, 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.

8. Misc. Expenditure

Misc. expenditures shall be amortized equally over a period of 5 years.

9. Previous year's figures

The figures have been rounded off to the nearest rupee. Previous year figures have been regrouped wherever found necessary to make it comparable.

10. Provisions

The company has provided adequate provision on Standard Asset and Non Performing Assets in accordance with the guidelines issued by the Reserve Bank of India.

11. Classification of Assets & Liabilities

The Revised Schedule VI to the Companies Act, 1956 requires assets and liabilities to be classified as cither Current or Non-current.

(a) An asset shall be classified as current when it satisfies any of the following criteria:

(i) it is expected lo be realized in, or is intended for sale or consumption in. the Company's normal operating cycle;

(ii) It is held primarily for the purpose of being traded:

(iii) It is expected to be realized within twelve months after the reporting date; or

(iv) It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

(b) All assets other than current assets shall be classified as non-current.

(c) A liability shall be classified as current when it satisfies any of the following criteria:

(i) It is expected to be settled in the company's normal operating cycle;

(ii) It is held primarily for the purpose of being traded;

(iii) It is due to be settled within twelve months after the reporting date; or

fiv) The company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

(d) All liabilities other than current liabilities shall be classified as non-current.


Mar 31, 2010

The Account are prepared in accordance with accounting policies and principles generally accepted in India. The Company follows the accrual method of accounting as per the Companies Act, 1956 and complies with the Reserve Bank of India guidelines for Non Banking Financial Companies. The accounts have been prepared on going concern basis.

(a) Incomes:

Income is recognised on accrual basis.

(b) Expenditure:

The Expenses incurred by the Company are accounted for on accrual basis. Provision has been made for long for the expenses which can be determined with reasonable certainty.

(c) Investments:

All investments are for long term holding and are valued at cost.

(d) Fixed Assets:

Fixed Assets are accounted for in the books at cost including incidental charges, if any, less accumulated depreciation.

(e) Depreciation on Fixed Assets:

The Company provides depreciation on straight line method at the rates prescribed under Schedule XVI to the Companies Act, 1956 with reference to completed months of installation.

(f) Taxes On Income:

(i) Current Tax is determined as the amount of tax payable in respect of taxable income for the period. (II) Deferred tax is recognised .subject to the consideration of prudence, on timing difference , being the difference between taxable income & accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

 
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