Mar 31, 2014
1. GENERAL :
The Financial Statements have generally been prepared on the historical
cost convention. Accounting policies not specifically referred to
otherwise are in consonance with generally accepted accounting
principals.
2. BASIS OF ACCOUNTING :
The company follows the mercantile system of accounting generally
except otherwise stated herein below, if so.
3. FIXED ASSETS :
Fixed assets are stated at cost of less accumulated depreciation. No
Depreciation has been provided during the year under consideration.
4. INVESTMENTS : Investments are stated at cost.
5. INVENTORIES :
Inventory is valued at cost or net realizable value whichever is less.
6. REVENUE AND EXPENDITURE RECOGNITION :
Revenue is recognized and expenditure is accounted for on their accrual
except insurance claim, claims in respect of material purchased and
sold which are accounted for on cash basis.
7. MISCELLANEOUS EXPENDITURE :
Miscellaneous Expenditure such as preliminary expenditure are amortized
over a period of 5 years.
8. DEFER TAX :
The Deferred tax is recognized for all temporary differences subject to
the consideration of prudence and at currently available rates.
Deferred Tax assets are recognized only if there is virtual certainty
that they will be realized.
9. FOREIGN CURRENY TRANSACTION : There is no such transaction during
the year.
Mar 31, 2012
A. Method of Accounting : The financial statements are prepared under
historical cost conventions as going concern and are consistent with
generally accepted accounting principles on an accrual basis unless
otherwise stated.
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
the reported amounts of revenues and expenses during the reporting
period. Difference between actual results and estimates are recognised
in the period in which the results are known / materialized.
C. Fixed Assets : Fixed assets are stated at cost (net of VAT and
CENVAT of which credit is allowed) less accumulated depreciation and
impairment, if any. Cost includes all expenses incurred to bring the
asset to present location and condition. All direct expenses are
capitalized until fixed assets are put to use.
D. Depreciation/Amortization : The Company has not charged
depreciation on car during the year.
E. Investments : Investments are either classified as long term
investment or short term investment based on management intention. Long
Term investments are stated at cost. Management is of the view that
value of Long Term Investment is equal to cost hence Provision for
diminution in value of long term investment is not required.
F. Borrowing Cost : There is no fresh borrowing during the year.
G. Inventories : Inventory is valued at cost or net realizable value
whichever is less.
H. Revenue Recognition / Sales : Sales revenue is recognized on
transfer of the significant risk and
reward of ownership of the goods to the buyer and stated at net of
discount, rebate and returns.
I. Employees Benefits : Provisions for Gratuity and Long term employee
benefits are not made, because
there is no liabilities arise of this account.
J. Taxation : Since there is loss during the year hence Provision for
current tax is Nil in accordance with
the provisions of the Income Tax Act 1961. Deferred tax assets arising
on account of timing difference are recognized and carried forward to
the extent there is virtual certainty that these would be realized in
future. Because there is no virtual certainty that these would be
realized in future hence provision for deferred tax assets is not made.
K. Provisions, Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree
of estimation in measurement that can be reliably ascertained 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 recognized but are disclosed in the
notes, when no reliable estimate is made or when there is present or
past obligation that may, but probably will not, require an outflow of
resources. Contingent Assets are neither recognized nor disclosed in
the financial statements.
L. Impairment of Assets : An asset is treated as impaired when the
carrying cost of the asset exceeds
its recoverable value. Recoverable amount is higher of net selling
price or value in use. Management reviews the carrying cost of the
assets at the end of each balance sheet date and is of the view that
the recoverable value in the assets is more than the carrying amount
and hence no provision for impairment of assets has been made.
Mar 31, 2010
A. Method of Accounting :
The financial statements are prepared under historical cost conventions
as going concern and are consistent with generally accepted accounting
principles on an accrual basis unless otherwise stated.
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 the reported amounts of revenues
and expenses during the reporting period. Difference between actual
results and estimates are recognised in the period in which the results
are known / materialized.
C. Fixed Assets:
Fixed assets are stated at cost (net of VAT and CENVAT of which credit
is allowed) less accumulated depreciation and impairment, if any. Cost
includes all expenses incurred to bring the asset to present location
and condition. All direct expenses are capitalized until fixed assets
are put to use.
D. Depreciation/Amortisation :
The Company has not charged depreciation on car during the year.
E. investments:
Investments are either classified as long term investment or short term
investment based on management intention. Long Term investments are
stated at cost. Management is of the view that value of Long Term
Investment is equal to cost hence Provision for diminution in value of
long term investment is not required.
F. Borrowing Cost:
There is no fresh borrowing during the year.
G. inventories:
Inventory is valued at cost or net realizable value whichever is less.
H. Revenue Recognition / Sales :
Sales revenue is recognized on transfer of the significant risk and
reward of ownership of the goods to the buyer and stated at net of
discount, rebate and returns.
I. Employees Benefits :
Provisions for Gratuity and Long term employee benefits are not made,
because there is no liabilities arise of this account.
J. Taxation:
Since there is loss during the year hence Provision for current tax is
Nil in accordance with the provisions as per Income Tax Act 1961.
Deferred tax assets arising on account of timing difference are
recognized and carried forward to the extent there is virtual certainty
that these would be realized in future. Because there is no virtual
certainty that these would be realized in future hence provision for
deferred tax assets is not made.
K. Provisions. Contingent Liabilities and Contingent Assets :
Provisions involving substantial degree of estimation in measurement
that can be reliably ascertained 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
recognized but are disclosed in the notes, when no reliable estimate is
made or when there is present or past obligation that may, but probably
will not, require an outflow of resources. Contingent Assets are
neither recognized nor disclosed in the financial statements.
L. Impairment of Assets :
An asset is treated as impaired when the carrying cost of the asset
exceeds its recoverable value. Recoverable amount is. higher of net
selling price or value in use. Management reviews the carrying cost of
the assets at the end of each balance sheet date and is of the view
that the recoverable value in the assets is more than the carrying
amount and hence no provision for impairment of assets has been made.
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