NOTES FORMING PART OF THE FINANCIAL STATEMENTS

Corporate Information

Betex India Limited is a Public Limited Listed Company domiciled in India and Incorporated under the provisions of the Companies Act, 1956. The Company is engaged in the business of Processing of Art Silk Cloth on job work basis. The Company has three processing units named BETEX, SUMEET SILK MILLS 1 and SUMEET SILK MILLS - 2. The Company is also engenged in Power generation through its Wind Mill Unit.

1 Significant accounting policies

1.1 GENERAL

I) The Financial statements have generally, been brpared in accordance with applicable Accounting Standards on the historical cost Convention on accrual basis.

II) Accounting Policies, not specifically referred to otherwise, are in consonance with generally accepted accounting policies.

1.2 BASIS OF brPARATION OF FINANCIAL STATEMENTS (AS -1):

The Company generally follows mercantile system of accounting except otherwise herein stated.

1.3 FIXED ASSETS (AS-10)

Fixed Assets are stated at cost of acquisition or construction less accumulated debrciation. Cost comprises of Purchase price and all other cost attributable to bringing the assets to its working condition for its intended use. As per the requirement of Sch.ll of Companies Act 2013, Residual value of 5% of Gross Amount of the assets is must to be kept. To adher the provision, the Company has reinstated the Residual value of certain fixed assets. Due this reinstatement, Profit & Loss account is increased by Rs. 14,83,928/- and Assets has been increased with the same amount.

1.4 DEbrCIATION (AS-6)

Debrciation has been provided in accordance with the provision of schedule II of the Companies Act 2013, on Straight Line method, except Wind Mill Unit, on which Debrciation has been provided as per Written Down Value Method. Remaining useful life of the assets is as confirmed by the management. Debrciation on assets exist as on 31.03.2014 is computed based on remaining useful life of asset confirmed by the management.

1.5 INVESTMENTS (AS-13)

Investments are stated at Cost. Investment in Share & Securities are considered as long term and valued at cost. No provision for shortfall in value at the end of the year is provided for

1.6 INVENTORIES (AS-2)

a). Raw Materials At Cost.

b). Stores & Spares At Cost

c). WIP At average cost (including all overheads)

c). Power Unit At Cost

Cost of Inventories is ascertained under FIFO Basis.

1.7 REVENUE AND EXPENDITURE RECOGNITION (AS-9)

Expenses and incomes, not specifically referred to otherwise consider payable and receivable respectively accounted for on accrual basis except claims, Claims in respect of materials purchased and sold and Rebate & Discount etc. which are accounted on cash basis.

1.8 IMPAIRMENT OF ASSETS (AS-28)

An assets is treated as impairment when the carrying cost of the assets exceeds its recoverable amount. An impairment loss is charged to the Profit & Loss Account in the year in which an assets is identified as impaired.

1.9 RETIREMENT BENEFIT (AS-15)

All the Retirement Benefits to the employees are being made on the payment basis.

1.10 INCOME TAX (AS-22)

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Tax expenses for the year, comprising Current Tax and Deferred Tax is included in determining the Net Profit for the year. Deferred Tax Assets and Liabilities are recognised for the Future Tax consequences of temporary difference between the carrying value of assets and liabilities in their respective tax base, and operating loss carry forward. The Deferred Tax Assets are recognised subject to managements judgements that realisation is more likely than not. Deferred Tax Assets and Liabilities are measured using the enacted tax rates expected to apply to taxable income in the year in which the temporary difference are expected to be reviewed or settled.

1.11 BORROWING COSTS

Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

NOTES to Accounts

 1 SEGMENT REPORTING (AS-17)

The requirnment of Segment reporting is not applicable to the Company both in respect of Geographical Segment and Product wise Segment.

2  in the absence of necessary information with the company relaing to the status of the supplier under Micro, Small, and Medium Enterprises Act, 2006, the information could not be compiled.

3  Estimated amount of contracts remained to be executed not provided for NIL, Advance paid NIL

4  In the opinion of the Board of directors of the Company, the current assets, Loans, advance and deposits are approximately of the value stated in the accounts if realized, in the ordinary course of Business, unless otherwise stated.

5  The provision of all known liabilities are adequate and not in excess of the amount reasonably necessary.

6  The Amount of Loans & Advances includes Rs. 446.85 Lacs (P.Y Rs.899.56 Lacs)due from Firm/Companies/lndividuals in which directors of the company are interested.

7  No Balance confirmation letters have been sent to Sunday debtors, creditors Loans & Advances unsecured Loan etc. Hence the said balance remains unconfirmed.

8  No employees was in receipt of remuneration aggregating to Rs. 24,00,000/- p.a. or Rs. 2,00,000/- or more per month for the part of the year. Previous year also there was no such employees.

9  We have verified the vouchers and documentary evidences wherever made available. Where no documentary evidences were available, We have relied on the authentication given by the management.

10 The Quantity of closing stock of Raw Materials, Finished Goods etc. as shown in the Balance Sheet has been physically verified by the management and has been certified as true and correct. We have totally relied upon the quantitative statements of stock as provided by the management's. The value of closing stock is also taken as certified by the management.

11  The figures are rounded off to nearest rupee wherever necessary.

As per our report of even date attached

FOR B. CHORDIA & CO. 

For and on behalf of the Board of Directors

Chartered Accountants 

BETEX INDIA LIMITED

F.R.N. 121083W

CA. B.C. CHORDIA

Partner

M. N.048557

For and on behalf of the Board of Directors BETEX INDIA LIMITED

Maheshkumar Somani Director

Rajkumar Somani Director

Place: Surat

Date : May 30, 2015