SIGNIFICANT ACCOUNTING POLICIES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2015 Background Beryl Securities Limited (The Company) is a Publice Limited Company Domiciled in India and its Shares are listed on Stock Exchange. The Company is principally Engaged in providing Loans & Advances and is registered as an NBFC under section 45 IA of RBI Act, 1934. NOTE No. : "02" BASIS OF brPATION The financial statements of the company have been brpared in accordance with generally accepted accounting principle in India (India GAAP). The company has brpared these financial statement to comply with all material respect with the accounting standard notified under section 133 of the companies act 2013,Read with rule 7 of Companies (Accounts) Rules,2014. The Financial Statement has been brpared under the Historical cost convention on the Accrual Basis Except in case of the Asset which has been recorded on fair value and Assets for Which Provision for Impairment is Made. The accounting policy have been consistently applied by the company and are consistent with those used in the Previous Year. NOTE No. : "03" SUMMARY OF SIGNIFICANT ACCOUNTING POLICY (a) USE OF ESTIMATES The brparation of financial statement in conformity with generally accepted accounting principles require estimate and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of financial statement and the reported amounts of revenues and expenses during the reporting period, actual results could differ from these estimates and difference between actual results and estimate are recognized in the periods in which the results are known/materialize. (b) REVENUE RECOGNITION The company follows the accrual basis of accounting except in the following case where the same are recorded on cash basis on ascertainment of risk and obligation a. Interest and other dues are recognized on accrual basis except in the case of income on Non-performing Assets (NPAs) which is recognized, as and when received, as per the prudential norms brscribed by the RBI. b. Dividend declared by the respective companies' up to the close of the accounting period are accounted for as income, once the right to receive is established. (c) CASH FLOW STATEMENT The cash flow statement is brpared using the "Indirect method set out in Accounting Standard 3" Cash Flow statement, which brsents cash flow from operating, investing and financing activities of the company. Cash and cash equivalent brsented in the cash flow statement consists of cash in hand and unencumbered lightly liquid Bank Balance. (d) FIXED ASSETS Fixed assets are carried at cost of acquisition or construction (net of CENVAT where applicable). They are carried at historical cost less accumulated debrciation. (e) DEbrCIATION Debrciation is charged over the estimated useful life of fixed assets on written down value basis. Debrciation is provided based on useful life of the assets as brscribed in schedule II to the Companies Act ,2013. (f) INVESTMENT All Investments which are held for more than one year from date of acquisition are classified as long term investment and are carried at cost. (g) RETIREMENT BENEFIT No provision has been made in accounts against liability in respect of future payment of Gratuity, Leave Encashment, ESI, Provident Fund and Bonus to employee as in the opinion of the management neither the Gratuity, ESI, Provident Fund and Bonus Act apply to the company nor any employee qualifies for entitlement of such benefits. (h) BORROWING COST Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. Borrowing costs relating to working capital are charged to statement profit and loss as expenses, if any, incurred. (i) EARNINGS PER SHARE The company reports basic and diluted earning per shares computed in accordance with Accounting Standard-20 -Earning per share. Basic EPS is calculated by dividing the Net Profit after tax for the year attributable to equity share holders by the weighted Average number of Equity Shares outstanding during the year. (j) PRIOR PERIOD ITEM Income and expenditure pertaining to prior period which were omitted to be recorded in last year due to error or omission in books are duly reflected under head of prior period items in the statement of Profit & loss of current year. (k) TAXATION 1) The Provision for wealth tax and current tax has been provided in accordance with provision of wealth tax Act 1956 and the Income Tax Act, 1961 respectively. 2) Deferred tax assets and liabilities are recognized on a prudent basis for future tax consequences of timing differences arising between the carrying value of assets and liabilities and their respective tax basis, and carried forward losses. It is measured using tax rates and tax laws that have been enacted or substantially enacted at the balance sheet date. The impact of changes in deferred tax assets and liabilities is recognized in the profit and loss account. 3) Minimum Alternative Tax ('MAT') under the provisions of the Income-tax Act, 1961 is recognised as current tax in the Statement of Profit and Loss as per recommendations contained in the guidance notes issued by ICAI, the credit available under the Act in respect of MAT paid is recognised as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the period for which the MAT credit can be carried forward for set-off against the normal tax liability. MAT credit recognised as an asset is reviewed at each balance sheet date and written down to the extent the aforesaid convincing evidence no longer exists. (l) PROVISION AND CONTINGENCIES Provisions involving substantial degree of estimation in measurement are recognized where there is a Present obligation as a result of past events and it is probable that there will be out flow of resources. Contingent liabilities are not recognized, but are disclosed in the notes of accounts, contingent assets are neither recognized nor disclosed in the financial statement. (m) CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only on the basis of mutual acceptances. Events occurring after the date of the Balance Sheet are considered up to the date of approval of the accounts by the Board, where material. (n) IMPAIRMENT OF ASSETS Fixed asset are reviewed for impairment whenever events or changes in circumstances indicates that the carrying amount of assets may not be recoverable. If such assets are considered to be impaired, the impairment is recognized by debiting the Profit & Loss Account and is measured as the amount by which the carrying cost of assets exceeds the fair value of assets. The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount. By virtue of this, Company has carried out combrhensive exercise, to assess the impairment loss of assets based on such exercise. (o) Provision/ Write Off against Loans and Other Credit Facilities (a) All credit exposures are classified into performing and non-performing assets as per the RBI guidelines. Further, NPAs are classified into Sub-Standard, Doubtful & Loss Assets based on the criteria stipulated by RBI. Provisions are made on Standard, Sub-Standard and Doubtful Assets at the rates brscribed by RBI. Loss Assets & Unsecured portion of Doubtful Assets are provided/ written off as per the RBI guidelines. Additional provisions are made against specific non-performing assets over and above what is stated above, if in the opinion of the management, increased provisions are necessary. (b) NPA Provision has been written back of those accounts whose recovery is affected during the year. (p) STATUTORY RESERVES Company has made an appropriation of Rs.899218.49 (P.Y. Rs.601938.79) out of the Profit for the year ended 31st March,2015 to the statutory reserve pursuant to the requirement of RBI guidelines. NOTES TO ACCOUNTS FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2015 1. Previous year figures have been regrouped, rearranged, reclassified and recasted wherever considered necessary to confirm with current year figure. 2. Investment are classified as non current investment and same are carried at carrying Cost Company has made the investment amounting to Rs.6.61 lakhs (P.Y. Rs.6.61 lakhs) (aggregating 13.99% of their equity shares) in Beryl Drugs Ltd., a Company under the same management. 3. Loans and advances other than doubtful have been considered as good and fully recoverable. However in terms of Reserve Bank of India Guidelines applicable to Non-Banking Finance Companies, a provision for standard assets Rs. 10827.48 and for Sub-standard & doubtful finance aggregating to Rs. 113037.50 has been made by charging them to Profit & Loss Account. Moreover, the receipts, if any, from such old NPA borrowers have been appropriated in order of (a) Principle (b) Interest. 4. The Current Assets, Loan & Advances have a value of realization in the ordinary course of business at least equal to the amount at which they are stated in the books of accounts. 5. The Company has been classified as loan and investment Company by the Reserve Bank of India pursuant to registration as a Non-Banking Finance Company and as per information of the management said registration as Non Banking Finance Company with RBI is also continued for the year. 6. Balances under sundry debtors, sundry creditors and loans and advances are subject to confirmation. 7. Particulars of employees who are in receipt of remuneration aggregating to more than Rs.60,00,000.00 per annum or Rs.5,00,000.00 p.m. are not given since there is no such employees. 8. The Company has filed its return of Income Tax up to F.Y. 2014-2015 but assessment up to 2013-14 has been completed. 9. There is no impairment of assets, accordingly no adjustment in respect of loss or impairment of assets is required to be made in the accounts. 10. The Company has paid advance against purchase of one residential flat at JAYPEE GREENS, Noida for Rs.3319966.97/- and one flat at Gurgaon at (Delhi) for Rs. 1779776/-. But the possession and registry of said Flat was pending till 31st march 2015. Thus the amount has been shown as Capital advance. Further Provisional Allotment letter of said flat is subject to verification. 11. Company has created special reserve by Rs. 899228.04/- (P.Y. Rs. 601938.79/-) as stipulated by RBI. 12. Term loan of HDFC Bank is without filing of Charges Document with ROC, M.P., hence classified as unsecured loan. 13. Since the Company's entire business is conducted within India. Hence there is no reportable geographical segment. Moreover the Company's is mainly engaged in the business of "Finance & Investment". All the activity of the Company revolves around the main business and there are no separate reportable segments. 14.The company has given advances of Rs. 3600460.00/- to Yogendra Jain but same Advance is subject to Confirmation & Verification of relevant agreement. 15. Contingent Liabilities and Capital Commitments a) Estimated amount of Rs. 1172098.03 contract remaining to be executed on capital advance not provided. b) As per 1stAppeal order of CIT (A), Company have written back the provision of income tax for assessment year (2008-09) in the brvious year financial statement of the company. But income tax department has filed the 2nd Appeal before ITAT Indore against 1st Appeal Order. Cash outflow for the said tax effect is determinable after in respect of judgment pending before ITAT Indore. c). Company has given capital advance of Rs. 3319966.97 for purchase of plot however as per agreement amount payable is Rs. 4492064.00 hence remaining amount of Rs. 1172098.03 as capital commitment require to be executed. 16. Company has classified various loans & Advances & Liabilities as Current asset & Current Liabilities even no realization has been affected from loan & Advance and not repaid to the current liability by the company upto audit period. 17. Provision for current income tax has been made as per provision of the income tax act but liability has been shown net of MAT credit availed amount of entitlement. 18. Company has created MAT credit entitlement assets in accordance with the recommendation contained in the guidance notes issued by ICAI. In pursuance of this Company has recorded the MAT credit entitlement of earlier years as prior period item and net off availed amount i.e. remaining MAT credit is shown under loans and advances in the current year. 19. The Company did not have any long term contract including derivatives contract for which there were any material foreseeable losses. AS PER OUR REPORT OF EVEN DATE FOR AND ON BEHALF OF THE BOARD OF DIRECTORS FOR SUBHASH CHAND JAIN ANURAG & ASSOCIATES OF BERYL SECURITIES LTD. CHARTERED ACCOUNTANTS (FR. NO. 04733C) Sd/- (AKANKSHA SHRIVASTAVA) PARTNERM.NO.: 425205 M.No.: A32408 Sd/- SUDHIR SETHI Managing Director(DIN : 00090172) Sd/- SANJAY SETHI Director(DIN : 00090277) Sd/- KAMLESH GUPTA Company Secretary Date : 24.07.2015 Place : Indore (M.P.) |