Mar 31, 2015
(a) Basis for preparation of Accounts:
The Financial Statements of the Company are prepared and presented
under the historical cost convention, on the accrual basis of
accounting in accordance with Generally Accepted Accounting Principles
("GAAP") in India, mandatory accounting standards, as specified in the
Companies (Accounting Standards) Rules, 2014 and the provisions of the
Companies Act, 2013, to the extent applicable, and as adopted
consistently by the Company.
The Company is a Small and Medium Sized Company ("SMC") as defined in
the General Instructions in respect of Accounting Standards notified
under the Companies Act, 2013. Accordingly, the Company has complied
with the Accounting Standards as applicable to a Small and Medium Sized
Company.
All assets and liabilities have been classified as current or
non-current as per the criteria set out in the Revised Schedule VI to
the Companies Act, 2013. Based on the nature business the Company has
ascertained its operating cycle as 12 months for the purpose of current
- noncurrent classification of assets and liabilities.
(b) Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the
financial statements and the result of operations during the reposting
year end. Although these estimates are based upon management's best
knowledge of current events and actions, actual result could differ
from these estimates. Any revisions to the accounting estimates are
recognized prospectively in the current and future years.
(c) Investment
Long-term investments are stated at cost. Provision of diminution in
the value of long-term investments is made only if; such a decline is
other than temporary in the opinion of the management. As in case of
our company such decline is presumed to be temporary hence no provision
has been created.
(d) Accounting of Inventories:
(i) Finished goods, goods for trade and stores, spares, etc. are valued
at cost or net realizable value, whichever is lower. Materials and
supplies held for use in production of finished goods are not written
down below cost if the finished products in which they will be
incorporated are expected to be sold at or above cost.
(ii) Goods in transit are valued at cost to date.
(iii) 'Cost' comprises all costs of purchase. The cost formulae used is
either 'first in first out', or 'specific identification', or the
'average cost', as applicable.
(e) Revenue Recognition
(i) Revenue/Income and Cost/Expenditure are generally accounted for on
accrual as they are earned or incurred, except in case of significant
uncertainties. However, where the ultimate collection of the same lacks
reasonable certainty revenue recognition is postponed to extent of
uncertainty.
(ii) Sale of goods is recognized on transfer of significant risks and
rewards of ownership which is generally on the dispatch of goods and
are recognized net of discounts, rebates.
(iii) Dividend income on investments is accounted for as and when the
right to receive the same is established.
(f) Employee Benefits
Company do not follow the provision of the accounting Standard-15
"Employee benefits" as the company do not have employee more than 10
personnel's. So it is the policy of the company that any kind of
provision mentioned in the AS -15 will not be entertained. And the
company does not make provision for gratuity also.
In case the company's employee limits goes beyond the prescribed limits
then AS-15 for Employee benefits will be taken into consideration.
(g) Provisions, contingents Liabilities and contingent Assets:
(i) A Provision is recognized when the company has present obligation
as a result of past event and it is probable that outflow of resources
will be required to settle the obligation and in respect of which a
reliable estimate can be made. Provisions are not discounted to their
present value and are determined based on best estimate required to
settle the obligation at the balance sheet date. These are reviewed at
each balance sheet date and adjusted to reflect the current best
estimates.
(ii) Contingent Liabilities are disclosed separately by way of note to
financial statements after careful evaluation by the managements of the
facts and legal aspects of the matter involved in case of:
(a) a present obligation arising from the past event, when it is not
probable that an outflow of resources will be required to settle the
obligation.
(b) A possible obligation, unless the probability of outflow of
resources is remote.
(iii) Contingent Assets are neither recognized, nor disclosed in the
financial statements.
(h) Taxation
Provisions for current tax is made in accordance with and at the rates
specified under the Income Tax Act, 1961, in accordance with Accounting
Standard 22- 'Accounting for taxes on Income', issued by the Institute
of Chartered Accountant of India.
(i) Earning per share
Basic earning per share is calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
attributable taxes) by the weighted averages number of equity shares
outstanding during the year.
For the purpose of calculating diluted earning 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 diluted potential equity shares.
(j) Cash and Cash Equivalents
Cash and cash equivalents in the cash flow statements comprise cash at
bank and in hand and highly liquid investments that are readily
convertible into known amount of cash.
Mar 31, 2013
A) GENERAL
(a) The Financial Statements are drawn up in accordance with Historical
Cost Convention and on the Going Concern Concept. Income and Expenses
are accounted for on Accrual Basis except where otherwise indicated.
(b) Accounting Policies not specifically referred to otherwise are
consistent with generally accepted Accounting Principles followed by
the company.
B) INCOME FROM INVESTMENTS & LOANS ADVANCES
Income from Investments in Interest Bearing Securities, Loans and
Advances Is Accounted for on Accrual Basis. Dividend Income from
Investments in Shares Is Recognized accruing as Income of that year in
which Dividend is received by the Company.
C) INVESTMENTS
(a) During the year the company has treated all fresh purchase of
shares as Investment.
(b) Investments (Long Term are valued at Acquisition Cost (including
brokerage &Transfer expenses; No provision is made for diminution in
the value of Long Term Investments, As in the opinion of the management
the diminution is temporary and Not permanent.
D) DEFERRED TAXATION
Tax Liability of the company is estimated considering the Provisions of
the Income Tax Act 1961, Deferred Tax 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.
E) In the opinion of the management, The value on realization of
Current Assets, Loans and Advances in the ordinary course of business
will not be less than the Amount at which these are stated in the
Balance Sheet.
F) Adequate Disclosure has been made in terms of Related Party
Disclosure as required in terms of Related Party Disclosure (As
identified by the Management) In terms of Accounting Standard -18
Related Party Disclosure issued by the Institute Of Chartered
Accountants of India.
G) In the opinion of the management the company has only single
Business Segment of Investment & Finance Activities; therefore no
Segment Reporting has been Presented In Terms Of Accounting Standard-17
of "Segment Reporting" Issued by the Institute of Chartered Accountant
of India.
H) Payment to Auditor 2012 - 2013 2011 - 2012
Audit Fee 4,494/- 4,408/-
l) Expenditure & Earning in Foreign Currency - Nil
J) Payment to Director Remuneration - Nil