Mar 31, 2014
A) Basis of preparation of financial statement:
b) Use of Estimates:
The Preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amounts of assets and liabilities on the
date of the financial statements and reported amounts of revenues and
expenses during the reporting period. Differences between actual
results and estimates are recognised in the period in which. the
results are known or materialized.
c) Fixed Assets:
Tangible Asstes : Fixed Assets are stated at cost of acquisition less
accumulated depreciation. The cost includes taxes, duties, freight,
installation, startup and commissioning expenses and other preoperative
expenses and other direct and allocated expenses up to the date of
commercial production.
Intangible Assets : There are no Intangible assets in the company.
d) Depreciation:
Depreciation on Fixed Assets is provided on "Straight Line Method" in
the manner prescribed in Schedule-XIV to the Companies Act, 1956 on pro
rata basis.
f) Investments:
Long term investments are stated at cost. A provision for diminution is
made to recognize a decline, other than temporary, in the value of long
term investment. Market value of quoted investments held Is reflected
in the schedule below.
g) Revenue Recognition :
Revenue from sale of goods is recognized when significant risks and
rewards of ownership are transferred to the customers. Sales are net of
trade discounts and sales tax. Other Income is booked on accrual basis.
h) Inventories:
There are no inventories held by the company.
i) Cash and cash equivalents (for purpose of cash flow)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalent are short term,highly liquid investment that are readily
converible into known amounts of cash and which are subject to
Insignificant risk of change In value
j) Cash flow statement:
Cash flow are reported using the Indirect method. The cash flow from
operating, Investing and finacial activites are segregated based on the
available information
k) Foreign Currency Transactions:
All transactions in foreign currency are recorded at the rates of
exchange prevailing on the dates when the relevant transactions take
place Monetary assets and liabilities in foreign currency, outstanding
at the close of the year, are converted in Indian Currency at the
appropriate rates of exchange prevailing on the date of the Balance
Sheet. Resultant gain or loss, except the extent it relates to long
term monetary items, is charged to the Profit and Loss Account for the
year. Such gain or loss relating to long term monetary items for
financing acquisition of depreciable capital assets, is adjusted to the
acquisition cost of such asset and depreciated over its remaining
useful life. However, there are no foreign currency transactions
during the year.
l) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of the qualifying assets are capitalized as part of the
cost of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for the intended use. All other
borrowing costs are charged to revenue.
Segment reporting:
There is no requirement of segment reporting.
m) Taxation:
(i) Provision for current Tax is made with reference to taxable income
computed for the accounting period, for which the financial statements
are prepared by the tax rates as applicable.
(ii) Deferred tax provided in the previous years is reversed in the
current year as the company is not anticipating any reasonable income
against which deffered tax asset may be reversed. Also the company has
not earned any Profits in the current year or anticipating any profits
in the comming years, hence no Deferred Tax Provisions are made.
n) Impairment of Assets:
The carrying amounts of assets are reviewed at each Balance Sheet date.
If there is any indication of impairment based on internal or external
factors, i.e. when the carrying amount of the asset exceeds the
recoverable amount, an impairment loss is charged to the Profit and
Loss Account in the year in which an asset is identified as impaired.
An impairment loss recognized in prior accounting periods is reversed
or reduced if there has been a favorable change in the estimate or the
recoverable amount. Recoverable amount is the higher of an asset''s net
selling price and value in use. However, there are no such transactions
during the year.
o) Provisions , contingent liabilities and contingent assets :
Estimation of the probability of any loss that might be incurred on
outcome of contingencies on basis of information available upto the
date on which the financial statements are prepared. A provision is
recognised when an enterprise has a present obligation as a result of a
past event and it is probable that an outflow of resources will be
required to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are determined based on management
estimates required to settle the obligation at the balance sheet date,
supplemented by experience of similar transactions. These are reviewed
at each balance sheet date and adjusted to reflect the current
management estimates. In cases where the available information
indicates that the loss on the contingency is reasonable possible but
the amount of loss cannot be reasonably estimated, a disclosure to this
effect is made in the financial statements. In case of remote
possibility neither provision nor disclosure is made in the financial
statement. The company does not account for or disdose contingent
asset, if any.
p) Share Issue expenses :
Expenses pertaining and related to issue of shares are adjusted against
balance lying in Securities Premium Account.
q) Earnings Per Share :
The company records basic and diluted Earnings Per Share (EPS) in
accordance with Accounting Standard 20 Earnings per share. Basic EPS is
computed by dividing the net profit or loss for the year available for
the year for equity share holders by the weighted average no of equity
shares outstanding during the year. Diluted EPS is computed by dividing
the net profit or loss for the year by the weighted average number of
equity shares outstanding during the year as adjusted for the effect of
all dilutive potential equity shares, except where the results are
anti-dilutive.
Mar 31, 2013
A)Basis of preparation of financial statement: The financial statements
have been prepared under historical cost convention on accrual basis in
accordance with generally accepted accounting principles and applicable
accounting standards as notified under Companies (Accounting Standard)
Rules, 2006 and the provisions of Companies Act, 1956.
b)Use of Estimates: The Preparation of financial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amounts
of assets and liabilities on the date of the financial statements and
reported amounts of revenues and expenses during the reporting period.
Differences between actual results and estimates are recognized in the
period in which the results are known or materialized.
c) Fixed Assets: Tangible Assets : Fixed Assets are stated at cost of
acquisition less accumulated depreciation. The cost includes taxes,
duties, freight, installation, startup and commissioning expenses and
other preoperative expenses and other direct and allocated expenses up
to the date of commercial production. Intangible Assets : Intangible
assets are amortized over their respective individual estimated useful
lives on a straight line basis.
d)Depreciation: Depreciation on Fixed Assets is provided on "Straight
Line Method" in the manner prescribed in Schedule-XIV to the Companies
Act, 1956 on pro rata basis.
e)intangible Assets & Amortization :intangible assets are stated at
cost less accumulated amortization. Amortization of Intangible assets
is provided on basis of management estimates.
f)lnvestments: Long term investments are stated at cost. A provision for
diminution is made to recognize a decline, other than temporary, in the
value of long term investment.
g)Revenue Recognition :Revenue from sale of goods is recognized when
significant risks and rewards of ownership are transferred to the
customers. Sales are net of trade discounts and sales tax.
h)inventories: inventories are valued at lower of cost or Net
Realizable Value. Cost is determined on moving weighted average basis.
i)Cash and cash equivalents(for purpose of cash flow)cash comprises
cash on hand and demand deposits with banks. Cash equivalent are short
term, highly liquid investment that are readily convertible into known
amounts of cash and which are subject to insignificant risk of change
in value
j)Cash flow statement: cash flow are reported using the indirect
method. The cash flow from operating, investing and financial
activities are segregated based on the available information k)Foreign
Currency Transactions: All transactions in foreign currency are
recorded at the rates of exchange prevailing on the dates when the
relevant transactions take place .Monetary assets and liabilities in
foreign currency, outstanding at the close of the year, are converted
in Indian Currency at the appropriate rates of exchange prevailing on
the date of the Balance Sheet. Resultant gain or loss, except the
extent it relates to long term monetary items, is charged to the Profit
and Loss Account for the year. Such gain or loss relating to long term
monetary items for financing acquisition of depreciable capital assets,
is adjusted to the acquisition cost of such asset and depreciated over
its remaining useful life;
l)Borrowing Cost: Borrowing costs that are attributable to the
acquisition or construction of the qualifying assets are capitalized as
part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for the
intended use. All other borrowing costs are charged to revenue.
Segment reporting: The accounting policies adopted for segment
reporting are in line with accounting policies of the company. Inter
-segment Revenue is accounted on basis of transaction which are
primarily based on fair market value
m)Taxation:(i) Provision for current Tax is made with reference to
taxable income computed for the accounting period, for which the
financial statements are prepared by the tax rates as applicable.(ii)
Deferred tax is recognized subject to the consideration of prudence, on
timing differences 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. Such deferred tax is
quantified using the tax rates and laws enacted/substantively enacted
as on the Balance Sheet date. Deferred tax Assets are recognized and
carried forward to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax asset can be realized.
n)impairment of Assets: The carrying amounts of assets are reviewed at
each Balance Sheet date. If there is any indication of impairment based
on internal or external factors, i.e. when the carrying amount of the
asset exceeds the recoverable amount, an impairment loss is charged to
the Profit and Loss Account in the year in which an asset is identified
as impaired. An impairment loss recognized in prior accounting periods
is reversed or reduced if there has been a favorable change in the
estimate or the recoverable amount. Recoverable amount is the higher of
an asset''s net selling price and value in use.
Provisions, contingent liabilities and contingent assets :Estimation
of the probability of any loss that might be incurred on outcome of
contingencies on basis of information available up to the date on which
the financial statements are prepared. A provision is recognized when
an enterprise has a present obligation as a result of a past event and
it is probable that an outflow of resources will be required to settle
the obligation, in respect of which a reliable estimate can be made.
Provisions are determined based on management estimates required to
settle the obligation at the balance sheet date, supplemented by
experience of similar transactions. These are reviewed at each balance
sheet date and adjusted to reflect the current management estimates. In
cases where the available information indicates that the loss on the
contingency is reasonable possible but the amount of loss cannot be
reasonably estimated, a disclosure to this effect is made in the
financial statements. In case of remote possibility neither provision
nor disclosure is made in the financial statement. The company does not
account for or disclose contingent asset, if any. p)Share Issue
expenses Expenses pertaining and related to issue of shares are
adjusted against balance lying in Securities Premium Account.
q)Earnings Per Share :The company records basic and diluted Earnings
Per Share (EPS) in accordance with Accounting Standard 20 Earnings per
share. Basic EPS is computed by dividing the net profit or loss for the
year available for the year for equity share holders by the weighted
average no of equity shares outstanding during the year. Diluted EPS is
computed by dividing the net profit or loss for the year by the
weighted average number of equity shares outstanding during the year as
adjusted for the effect of all dilutive potential equity shares, except
where the results are anti dilutive.
Mar 31, 2012
A) Basis of preparation of financial statement: The financial
statements have been prepared under historical cost convention on
accrual basis in accordance with generally accepted accounting
principles and applicable accounting standards as notified under
Companies (Accounting Standard) Rules, 2006 and the provisions of
Companies Act, 1956.
b) Use of Estimates:The Preparation of financial statements in
conformity with generally accepted accounting principles requires
estimates and assumptions to be made that affect the reported amounts
of assets and liabilities on the date ofthe financial statements and
reported amounts of revenues and expenses during the reporting period.
Differences between actual results and estimates are recognised in the
period in which the results are known or materialized.
c) Fixed Assets: Tangible Asstes: Fixed Assets are stated at cost of
acquisition less accumulated depreciation. The cost includes taxes,
duties, freight, installation, startup and commissioning expenses and
other preoperative expenses and other direct and allocated expenses up
to the date of commercial production. Intangible Assets: Intangible
assets are amortized over their respective individual estimated useful
lives on a straight line basis.
d) Depreciation: Depreciation on Fixed Assets is provided on "Straight
Line Method" in the manner prescribed in Schedule-XIVto the Companies
Act, 1956 on pro rata basis.
e) Intangible Assets & Amortisation: intangible assets are stated at
cost less accumulated amortisation. Amortisation of Intangible assets
is provided on basis of management estimates, f) Investments :Long term
investments are stated at cost. A provision for diminution is made to
recognize a decline, other than temporary, in the value of longterm
investment.
g) Revenue Recognition : Revenue from sale of goods is recognized when
significant risks and rewards of ownership are transferred to the
customers. Sales are net of trade discounts and sales tax.
h) Inventories: Inventories are valued at lower of cost or Net
Realisiable Value. Cost is determined on moving weighted average basis.
i) Cash and cash equivalents(fbr purpose of cash flow) cash comprises
cash on hand and demand deposits with banks. Cash equivalent are short
term, highly liquid investment that are readily converible into known
amountsof cash and which are subjectto insignificant risk of change in
value
Cash flow statement:
cash flow are reported using the indirect method. The cash flow from
operating, investing and finacial activites are segregated based on the
available information
j)Foreign Currency Transactions: All transactions in foreign currency
are recorded at the rates of exchange prevailing on the dates when the
relevant transactions take place .Monetary assets and liabilities in
foreign currency, outstanding at the close of the year, are converted
in Indian Currency at the appropriate rates of exchange prevailing on
the date ofthe Balance Sheet. Resultant gain or loss, except the extent
it relates to long term monetary items, is charged to the Profit and
Loss Account for the year. Such gain or loss relating to long term
monetary items for financing acquisition of depreciable capital assets,
is adjusted to the acquisition cost of such asset and depreciated over
its remaininguseful life;
k) Borrowing Cost: Borrowing costs that are attributable to the
acquisition or construction of the qualifying assets are capitalized as
part of the cost of such assets. A qualifying asset is one that
necessarily takes substantial period of time to get ready for the
intended use. All other borrowing costs are charged to revenue.
Segment reporting: The acconting policies adopted for segment reporting
are in line with accounting policies ofthe company. Inter-segment
Revenue is accounted on basis of transaction which are primarily based
on fair market value
I) Taxational) Provision for current Tax is made with reference to
taxable income computed for the accounting period, for which the
financial statements are prepared by the tax rates as applicable.(ii)
Deferred tax Is recognized subject to the consideration of prudence, on
timing differences 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. Such deferred tax is
quantified using the tax rates and laws enacted/substantively enacted
as on the Balance Sheet date. Deferred tax Assets are recognized and
carried forward to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferredtaxassetcanberealized.
m) Impairment of Assets:The carrying amounts of assets are reviewed at
each Balance Sheet date. If there is any indication of impairment based
on internal or external factors, i.e. when the carrying amount ofthe
asset exceeds the recoverable amount, an impairment loss is charged to
the Profit and Loss Account in the year in which an asset is identified
as impaired. An impairment loss recognized in prior accounting periods
is reversed or reduced if there has been a favorable change in the
estimate or the recoverable amount. Recoverable amount is the higher of
an asset's net selling price and value in use.
n) Provisions, contingent liabilities and contingent assets :
Estimation of the probability of any loss that might be incurred on
outcome of contingencies on basis of information available upto the
date on which the financial statements are prepared. A provision is
recognised when an enterprise has a present obligation as a result of a
past event and it is probable that an outflow of resources will be
required to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are determined based on management
estimates required to settle the obligation at the balance sheet date,
supplemented by experience of similar transactions. These are reviewed
at each balance sheet date and adjusted to reflect the current
management estimates. In cases where the available information
indicates that the loss on the contingency is reasonable possible but
the amount of loss cannot be reasonably estimated, a disclosure to this
effect is made in the financial statements. In case of remote
possibility neither provision nor disclosure is made in the financial
statement. The company does not account for or disclose contingent
asset, if any.
o) Share Issue expenses Expenses pertaining and related to issue of
shares are adjusted against balance lying in Securities Premium
Account.
p) Earnings Per Share: The company records basic and diluted Earnings
Per Share (EPS) in accordance with Accounting Standard 20 Earnings per
share. Basic EPS is computed by dividing the net profit or loss forthe
year available for the year for equity share (tplders by the weighted
average no of equity shares outstanding during the year. Diluted EPS is
computed by dividing the net profit or loss for the year by the
weighted average number of equity shares outstanding during the year as
adjusted for the effect of all dilutive potential equity shares, except
where the results are anti-dilutive.
Mar 31, 2010
A) METHOD OF ACCOUNTING;
All the expenses and incomes having material effect on the profit of
the company are accounted on accrual basis. There has been no change in
method of accounting employed during the year as compared to preceding
previous year.
b) FIXED ASSETS;
All the fixed assets are stated at cost less depreciation.
c) DEPRECIATION-
The company provides depreciation on fixed Assets on Straight Line
Method at the rates specified in Schedule XIV vide GSR No.756 dated
16.12.1993 of the Companies Act, 1956.
Depreciation in respect of additions to and deletion from the fixed
assets is being provided on pro-rata basis with reference to number of
completed months.
d) INVENTORIES:
The method followed by the company for the valuation of inventories is
as follows:
à There are no stock of Trading Goods at the year end.
e) SALES
No sales have been made during the year.
f) INVESTMENTS;
Investments in share being unquoted are long-term investment and valued
at cost.
à Investments in shares which are quoted are Long- term investments and
are valued at cost.
g) ACCOUNTING FOR FOREIGN CURRENCY
TRANSACTIONS
i) Initial Recognition -
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of transaction.
ii) Conversion -
At the year end, monetary items denominated in foreign currencies,
other than those covered by forward contracts, are converted into rupee
equivalents at the year end exchange rates.
iii) Exchange Differences -
All exchange differences arising on settlement and/ or conversion on
foreign currency transaction are included in the Profit and Loss
Account. Exchange Differences in forward contract is recognized as
required by AS-11.
h) RETIREMENT BENEFITS;
No retirement benefits have been provided by the company during the
year.
i) CONTINGENT LIABILITIES;
As certified by the management, there are no contingent liabilities as
on date except as under.
j) INCOME TAX:
- Provision is made for income tax annually based on the tax liability
computed after considering tax allowances and exemption.
- The company provides for deferred income tax using the liability
method, based on the tax effect of timing differences resulting from
recognition of items in the financial statements and in estimating its
current income tax provisions.