NOTES FORMING PART OF THE FINANCIAL STATEMENTS For Year Ended March 31, 2015 1. Corporate Information :- Bhilwara Tex-Fin Limited ("the Company") was incorporated on November 16, 1994 and obtained the certificate for Commencement of Business on November 22, 1994 from Registrar of Companies under the provision of the Companies Act, 1956. The main objects of the company are to provide the fund based financial services etc. During the year under review, the Company continued in business of investment & financing. 2. Significant Accounting Policies and Notes to accounts 2.1 BASIS OF ACCOUNTING These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis. The financial statements are brpared 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 brvious year. 2.2 USE OF ESTIMATES The brparation 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. 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. NOTES: 2.10 Contingent Liability is Nil. (Previous Year Nil). 2.11 Company does not have any employee eligible for gratuity. 2.12 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. 2.13 Remuneration and perquisites to the directors is Rs. Nil. 2.14 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 their recovery is deferred to a later date. 2.15 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. 2.16 CIF Value of Import of Raw Materials Components, Spare parts & Capital goods: Nil a) Expenditure in Foreign Currency : Nil b) Remittance in Foreign Currency : Nil c) Earning in Foreign currency : Nil (CIF Value in Exports) 2.17 Prudential Norms of the Reserve bank of India (RBI) The Prudential Norms of the RBI require the company to derecognize certain income and make provisions for nonperforming assets. In compliance with Guidelines brscribed by Reserve Bank of India for NBFCs, the Company has a) Provided 0.25% of Standard Assets Amounting to Rs 13,97,150/- (Previous year Rs. Nil). b) Appropriated 20% of the Net Profit Rs.2,12,954/- (Previous year Rs.1,19,601/- ) to Special Reserve fund. 2.18 Short Term Loans and Advance include Rs NIL due from a Director. 2.19 The company has no amounts due to suppliers under The Micro Small and Medium Enterprises Development Act, 2006, [MSMED Act] as at 31st March, 2015. 2.20 There are no amounts due and outstanding to be credited to Investor Education & Protection Fund as at 31st March, 2015. 2.21 Balance Sheet of a non deposit taking non-banking financial company : 2.22 Previous year's figures have been regrouped and rearranged wherever necessary. As per our Audit Report of even date attached For NAGAR GOEL & CHAWLA Chartered Accountants Firm Regn. No. : 009933N Sd/- DHARMENDER SINGHAL Partner M. No. 515984 For and on behalf of Board BHILWARA TEX-FIN LIMITED sd/- SATISH KUMAR SHARMA Director DIN: 00536970 Sd/- RAHUL JOGI Company Secretary sd/- SANJAY HASIJA Director DIN: 00090672 sd/- SUKOMAL BHUNYA C.F.O. Place : New Delhi Dated : May 23, 2014 |
