Mar 31, 2014
I) BASIS OF PREPARATION:
The Financial statements are prepared under the historical cost convention and on the basis of going concern and in accordance with the Generally Accepted Accounting Principles (GAAP) in India and applicable provisions of the Companies Act,1956 as amended including the disclosure requirements under Companies(Accounting Standards) Rules,2006. All expenses and income to the extent considered payable and receivable respectively, except stated otherwise have been accounted for on accrual basis.
II) USE OF ESTIMATES:
The preparation of financial statements require 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 recognized in the period in which the results are known / materialized.
III) REVENUE RECOGNITION:
All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.
Interest and Other incomes are recognized on accrual basis, on time proportional basis, taking into account the amount outstanding and applicable rate.
All major items of expenses are accounted for on accrual basis and necessary provisions for the same are made on a prudent basis.
V) FIXED ASSETS & DEPRECIATION:
There are no fixed assets hence, Depreciation has not been provided.
Investments are generally valued as their acquisition cost. Provision for diminution in value is made whenever necessary.
i) The Physical verification of the shares, records and contract for purchase of shares could not be verified at the time our Audit.
ii) As per the information and explanations given to us, the value of quoted/unquoted shares could not be determined as the said procedure is in progress. As and when, the same is made available to us; we will be incorporating the same in forthcoming Annual Accounts.
VII) TAXES ON INCOME:
Current income tax expense comprises taxes on income from operations in India only. Income tax payable in India is determined in accordance with the provisions of the Income Tax Act, 1961.
Minimum alternative tax (MAT) provisions are applicable to the company however MAT is not payable by the Company for the reporting period.
Deferred tax expense or benefit is recognised on timing differences being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
Deferred tax assets and liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date.
In the event of unabsorbed depreciation and carry forward of losses, deferred tax assets are recognised only to the extent that there is virtual certainty that sufficient future taxable income will be available to realize such assets. In other situations, deferred tax assets are recognised only to the extent that there is reasonable certainty that sufficient future taxable income will be available to realize these assets.
The Company offsets deferred tax assets and deferred tax liabilities if it has a legally enforceable right and these relate to taxes on income levied by the same governing taxation laws.
IX) IMPAIRMENT OF ASSETS:
An asset is treated as impaired when the carrying cost of that asset exceeds its recoverable value.
The company assesses at each reporting date whether there is any indication that the asset may be treated as impaired. If such indication exists, then the company provides for the impairment losses in the Statement of Profit and Loss in accordance with Accounting Standard-28: "Impairment of Assets".
There are no assets that are impaired as on the reporting date as per company's assessment.
X) EARNINGS PER SHARE:
The Earnings Per Share (EPS) is calculated by dividing the net profit or loss attributable to the equity shareholders by weighted average number of equity shares outstanding at the end of the year. The weighted average number of Equity Shares is arrived at after taking into consideration the bonus issue, rights issue, buy back etc. if any, during the year.
XI) PROVISIONS AND CONTINGENT LIABILITIES:
A provision is recognized when the company has a present obligation as a result of past events and it is probable that the outflow of resources embodying economic benefits will occur to settle that obligation. The company recognizes the provision on the basis of best available estimates. These estimates are reviewed at each reporting date to reflect the current situation.
Contingent Liabilities and Contingent Assets are neither recognised nor disclosed in the financial statements but are shown by way of a note to the Financial Statements.
XII) CASH AND CASH EQUIVALENTS:
The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents.
Mar 31, 2013
A. Depreciation: There is no fixed assets hence, Depreciation has not been provided.
b. Valuation of Stock :
Since there is no stock, the question of valuation does not arise.
c. Recognition of Income and Expenditure : Income and expenditure are generally recognized on accrual basis.
d. Gratuity : Company do not provide for gratuity as there are no employees who are eligible for payment of gratuity.
e. Amortization of preliminary and Share Issue Expenses :
The expenditure incurred by the company on preliminary and share issue expenses are for the purpose of making the company a public limited company and to make a public issue of it's shares and shall be amortized in ten equal installments over a period of ten years for the year in which the company makes the public issue.
f. Contingent Liabilities : Contingent Liabilities are not provided for in the accounts and are shown separately in the notes to account.
g. Investment : Investments are generally valued as their acquisition cost provision for diminution in value is made whenever necessary.