Mar 31, 2015
2.1 Basis of Preparation of Financial Statements:
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India and to comply with the Accounting Standards
notified under the Companies (Accounting Standards) Rules, 2006 (as
amended) and the provisions of the Companies Act, 2013. The financial
statements have been prepared on accrual basis under the historical
cost convention.
All assets and liabilities have been classified as current and
non-current as per the operating cycle criteria set out in the Revised
Schedule III to the Companies Act, 2013.
2.2 Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection and upon the passage of titles
to the Customers.
Revenue from Supply and laying of carpets is recognized as and when the
laying work is fully complete. Supply and laying of Carpets consist of
the execution of Single act.
Interest income is recognized on time proportion basis taking into
account the amount outstanding and rate applicable.
2.3 Expenditure
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities.
2.4 Use of Estimates:
The preparation of financial statements in conformity with Indian GAAP
requires estimates and assumptions to be made that affect the reported
amount of assets and liabilities on the date of the financial
statements and the reported amount of revenues and expenses during the
reporting period. Difference between the actual results and estimates
are recognised in the period in which the results are known/
materialised.
2.5 Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss, if any. Cost is inclusive of the purchase price,
freight, duties, levies and any indirect attributable cost of bringing
the asset in the working condition for intended use.
2.6 Depreciation:
Depreciation on fixed assets is provided to the extent of depreciable
amount at the rates and in the manner prescribed in Schedule II to the
Companies Act, 2013 over their remaining useful life on Straight line
basis and the asset acquired on Lease, the Lease Cost is written off
over the Period of Lease on Straight Line basis.
2.7 Foreign Currency Transactions:
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction and the
Monetary items denominated in foreign currencies at the year end are
restated at year end rates and difference is Charged to Statment of
Profit and Loss as Exchange Difference.
2.8 Inventories:
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Inventory is valued as
per the Weighted Average Cost as suggested by Accounting Standard - 2.
Cost of inventories comprises of cost of purchase, cost of conversion
and other costs including manufacturing overheads incurred in bringing
them to their respective present location and condition. By-products
are valued at net realisable value.
2.9 Employee Benefits
Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
Post employment and other long term employee benefits are recognised as
an expense in the Statement of Profit and Loss for the year in which
the employee has rendered services. The expense is recognised at the
present value of the amounts payable determined using actuarial
valuation techniques. Actuarial gains and losses in respect of post
employment and other long term benefits are charged to the Statement of
Profit and Loss. Refer Note 6.
NOTES FORMING PART OF THE BALANCE SHEET, STATEMENT OF PROFIT & LOSS FOR
THE YEAR ENDED 31st MARCH, 2015
2.10 Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
future.
In the view of the Management there is no virtual certainty that the
Company will generate the Revenue and therefore the Provision for
Deferred Tax Assets has not made.
2.11 Segment Reporting
The company is engaged in manufacturing of machine made carpets
business which as per Accounting Standard-17 on "Segment Reporting"
issued by the Institute of Chartered Accountants of India, is
considered the only reportable segment of the company, hence no segment
wise reporting is given.
2.12 Cash and Cash Equivalents
Cash and Cash Equivalents include cash in hand, current bank accounts.
'Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
2.13 Earnings Per Share
Basic earnings per share is calculated by dividing the net loss for the
period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. For the purpose
of calculating diluted earnings per share, the net loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
2.14 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2014
1.1 Basis of Preparation of Financial Statements:
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India and to comply with the Accounting Standards
notified under the Companies (Accounting Standards) Rules, 2006 (as
amended) and the provisions of the Companies Act, 1956. The financial
statements have been prepared on accrual basis under the historical
cost convention.
All assets and liabilities have been classified as current and
non-current as per the operating cycle criteria set out in the Revised
Schedule VI to the Companies Act, 1956.
2.2 Revenue Recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection and upon the passage of titles
to the Customers.
Revenue from Supply and laying of carpets is recognized as and when the
laying work is fully -
complete. Supply and laying of Carpets consist of the execution of
Single act.
Interest income is recognized on time proportion basis taking into
account the amount outstanding and rate applicable.
2.3 Expenditure
Expenses are accounted for on accrual basis and provision is made for
all known losses and liabilities.
2.4 Use of Estimates:
The preparation 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 statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results are known/ materialised.
2.5 Fixed Assets:
Fixed Assets are stated at cost less accumulated depreciation and
impairment loss, if any. Cost is inclusive of the purchase price,
freight, duties, levies and any indirect attributable cost of bringing
the asset in the working condition for intended use.
2.6 Depreciation:
Depreciation on fixed assets is provided to the extent of depreciable
amount at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956 over their useful life on Straight line basis and
the asset acquired on Lease, the Lease Cost is written off over the
Period of Lease on Straight Line basis.
2.7 Foreign Currency Transactions:
Transactions denominated in foreign currencies are recorded at the
exchange rate prevailing on the date of the transaction or that
approximates the actual rate at the date of the transaction and the
Monetary items denominated in foreign currencies at the year end are
restated at year end rates and difference is Charged to Statment of
Profit and Loss as Exchange Difference.
2.8 Inventories:
Items of inventories are measured at lower of cost and net realisable
value after providing for obsolescence, if any. Inventory is valued as
per the Weighted Average Cost as suggested by Accounting Standard - 2.
Cost of inventories comprises of cost of purchase, cost of conversion
and other costs including manufacturing overheads incurred in bringing
them to their respective present location and condition. By-products
are valued at net realisable value.
2.9 Employee Benefits
i. Short-term employee benefits are recognised as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in
which the related service is rendered.
ii. Post employment and other long term employee benefits are
recognised as an expense in the Statement of Profit and Loss for the
year in which the employee has rendered services. The expense is
recognised at the present value of the amounts payable determined using
actuarial valuation techniques. Actuarial gains and losses in respect
of post employment and other long term benefits are charged to the
Statement of Profit and Loss. Refer Note 6.
2.10 Provision for Current and Deferred Tax
Provision for current tax is made after taking into consideration
benefits admissible under the provisions of the Income-tax Act, 1961.
Deferred tax resulting from "timing difference" between taxable and
accounting income is accounted for using the tax rates and laws that
are enacted or substantively enacted as on the balance sheet date.
Deferred tax asset is recognised and carried forward only to the extent
that there is a virtual certainty that the asset will be realised in
future.
In the view of the Management there is no virtual certainty that the
Company will generate the Revenue and therefore the Provision for
Deferred Tax Assets has not made.
2.11 Segment Reporting
The company is engaged in manufacturing of machine made carpets
business which as per Accounting Standard-17 on "Segment Reporting"
issued by the Institute of Chartered Accountants of India, is
considered the only reportable segment of the company, hence no segment
wise reporting is given.
2.12 Cash and Cash Equivalents
Cash and Cash Equivalents include cash in hand, current bank accounts.
''Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
2.13 Earnings Per Share
Basic earnings per share is calculated by dividing the net loss for the
period attributable to equity shareholders by the weighted average
number of equity shares outstanding during the period. For the purpose
of calculating diluted earnings per share, the net loss for the period
attributable to equity shareholders and the weighted average number of
shares outstanding during the period is adjusted for the effects of all
dilutive potential equity shares.
2.14 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed in the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2010
A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The Financial Statements of the Company have been prepared on the
accrual basis of accounting, under the historical cost convention,
except for revaluation of certain Fixed Assets, in accordance with the
generally accepted accounting principles in India and comply with the
applicable Accounting Standards prescribed under section 211 (3C) of
Companies Act 1956, issued by The Institute of Chartered Accountants of
India.
B. REVENUE RECOGNITION
Revenues from the sale of goods are recognized upon passage of titles
to the customers, which generally coincides with the delivery. Sales
are stated at contractual realizable values, net of excise, sales tax
,value added tax and trade discounts.
Revenue from supply and laying of carpets is recognized as and when the
laying work is fully complete. Supply and laying of carpets consists of
the execution of a single act.
Interest income is recognized on the time basis determined by the
amount outstanding and the rate applicable.
C. FIXED ASSETS
Fixed Assets are stated at cost of acquisition except for revaluation
of Plant & Machinery and Buildings, less accumulated depreciation. The
cost of fixed asset comprises its purchase price, directly attributable
costs and other apportioned indirect costs for bringing the asset to
working conditions for its intended use.
D. DEPRECIATION/AMORTISATION
Depreciation on fixed assets is provided as per Straight Line Method at
the rates prescribed in Schedule XIV to the Companies Act, 1956.
Depreciation is provided on pro-rata basis with reference to the date
of addition/deletion. Assets costing less than Rs.5000/- each are
depreciated fully in the year of purchase.
Leasehold Land is being amortized over the period of lease.
E. FOREIGN CURRENCY TRANSACTIONS
Transactions arising in foreign currencies during the year are
converted at the rates closely approximating those ruling on the
transaction date.
Foreign currencies denominated liabilities are translated at the
exchange rates prevailing on the Balance Sheet date. The resultant
exchange rate differences are recognized in the Profit & Loss Account
for the year.
F. INVENTORIES
Inventories are valued at lower of cost and net realizable value. Cost
is computed on weighted average basis. Cost for the purpose of
valuation of finished and semi-finished goods is computed by taking
into account the cost of material, labour and appropriate portion of
overheads. Excise duty is included in the value of finished goods
inventory.
G. RETIREMENT BENEFITS
Contributions to Provident and ESI Fund are made on the basis of actual
liability at pre-determined rate and charged to the Profit & Loss
Account.
Liability for Leave Encashment is calculated at the end of the
financial year and charged to the Profit & Loss Account and for
Gratuity company have taken the Gratuity Policy from Life Insurance
Corporation of India.
H. TAXES ON INCOME
Policy for accounting of taxes is Tax Effective Accounting Method in
accordance with the Accounting Standard-22 "Taxes On Income" issued by
the Institute of Chartered Accountants of India. Accordingly deferred
tax liability alone has been provided for and if net result of deferred
tax liability and deferred tax asset is negative (i.e. deferred tax
asset is more), recognition of deferred tax asset is ignored.
I. CONTINGENT LIABILITIES
Contingent Liabilities are not provided for and are disclosed by way of
notes.
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