Mar 31, 2015
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The accompanying financial statements have been prepared on going
concern basis under the historical cost convention in accordance with
Generally Accepted Accounting Principles in India, the provisions of
the Companies Act 2013 and the applicable Accounting Standards issued
by The Institute of Chartered Accountants of India Previous year's
figures have been regrouped / reclassified wherever necessary to
correspond with the current year's classification / disclosures
2. FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction less
accumulated depreciation including the shortfall of depreciation
consequent upon change in the useful life of assets provided for after
residual value of 5% and charged against the opening balance of
retained earnings
3. DEPRECIATION & AMORTISATION
(a) Depreciation: - Depreciation on Fixed Assets has been provided on
straight line method at the rates and in the manner as prescribed in
Schedule "II" to the Companies Act, 2013 and on pro rata basis in
respect of additions to all fixed assets
(b) Amortisation: - Not Applicable
4. INVENTORIES
Inventories are valued at cost or NRV whichever is lower however the
company is a NBFC so there is no stock
5. INVESTMENTS
Investments that are readily realizable and intended to be held for not
more than a year from the date on which such
(a) Current investments are carried at lower of cost and fair value
determined on an individual investment basis
(b) Long term investments are carried at cost. However, provision for
diminution in value is made to recognize a decline other than temporary
in the value of such investments
6. BORROWING COST
Borrowing costs that are directly attributable to the acquisition,
construction or production of a qualifying assets are capitalized as
part of the cost of that assets Other borrowing costs are recognized as
an expense in the period in which they are incurred.
7. IMPAIRMENT OF ASSETS
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. However there is no significant loss on
account of impairment of assets
8. EXCISE DUTY
Company is a non banking finance company so there is no liability of
excise duty.
9. EMPLOYEES RETIREMENT BENEFIT & GRATUITY: -
Provision has not been made for gratuity as no employee has put in the
qualifying period of services for entitlement of the benefits
10. REVENUE RECOGNITION
Mercantile method of accounting has been followed by the Company.
However, where the amount is immaterial / negligible and / or where the
establishment of accrual / determination of amount Is not possible, no
entries are made for the accruals
11. ACCOUNTING FOR TAXES ON INCOME: -
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax resulting from timing
difference between book and taxable profit is accounted for using the
tax rates and laws that have been enacted or substantially enacted as
on the Balance Sheet date The deferred tax assets are recognised and
carried forward only to the extent there is a reasonable certainty that
these will be realised in future,
12. CONTINGENT LIABILITIES
Contingent liabilities:- Contingent liabilities are generally not
provided for in the accounts and are shown separately in notes on
accounts However there is no contingent liability (Previous year NIL)
13. PRUDENTIAL NORMS
The company follows the prudential norms for income recognition,
classification of assets and provisioning requirement as prescribed by
non banking financial companies prudential norms (RBI) directions, 1998
14. SEGMENT REPORTING
The company is a NBFC and all its activities relates to one segment
i.e.non banking financial activities and its operations are confined
within India.
16. RELATED PARTY DISCLOSURE
As per accounting standard 18, disclosures of the transactions with the
related parties as defined in the Accounting Standard are given below,
(i) List of related parties with whom transactions have been taken
place and relationship
[NAME OF THE RELATED PARTY RELATIONSHIP
Shri Danmal Porwal Key Management Personnel
Smt. Aditi Porwal Relative of Key Management Personnel
Coal Chem Associates
Utkal Hydrocarbons Associates
Mar 31, 2014
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-
The accompanying financial statements have been prepared on going
concern basis under the historical cost convention in accordance with
Generally Accepted Accounting Principles in India, the provisions of
the Companies Act 1956 and the applicable Accounting Standards issued
by The Institute of Chartered Accountants of India. Previous year's
figures have been regrouped I reclassified wherever necessary to
correspond with the current year's classification I disclosures.
2, FIXED ASSETS
Fixed assets are stated at cost of acquisition or construction less
accumulated depreciation.
3. DEPRECIATION & AMORTISATION :-
(a) Depreciation: - Depreciation on Fixed Assets has been provided on
straight line method at the rates and in the manner as prescribed in
Schedule "XIV" to the Companies Act, 1956 and on pro rata basis in
respect of additions to all fixed assets.
(b) Amortisation: - Not Applicable
4. INVESTMENTS
Investments in shares and mutual funds are valued at cost.
5, INVENTORIES
Inventories are valued at cost however the company is a NBFC so there
is no stock.
6, REVENUE RECOGNITION
Mercantile method of accounting has been followed by the Company.
However, where the amount is immaterial I , negligible and / or where
the establishment of accrual / determination of amount is not possible,
no entries are made for: the accruals.
7. ACCOUNTING FOR TAXES ON INCOME: -
Current tax is determined as the amount of tax payable in respect of
taxable income for the year. Deferred tax resulting: from timing
difference between book and taxable profit is accounted for using the
tax rates and laws that have been enacted or substantially enacted as
on the Balance Sheet date. The deferred tax assets are recognised and
carried forward only to the extent there is a reasonable certainty that
these will be realised in future.
8, EMPLOYEES RETIREMENT BENEFIT & GRATUITY: -
Provision has not been made for gratuity as no employee has put in the
qualifying period of services for entitlement of the benefits.
9. CONTINGENT LIABILITIES
Contingent liabilities :- Contingent liabilities are generally not
provided for in the accounts and are shown separately in notes on
accounts. However there is no contingent liability.
10. PRUDENTIAL NORMS : -
The company follows the prudential norms for income recognition,
classification of assets and provisioning requirement as prescribed by
non banking financial companies prudential norms (RBI) directions,
1998.
11. IMPAIRMENT OF ASSETS
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. However there is no significant loss on
account of impairment of assets.
12. SEGMENT REPORTING
The company is a NBFC and all its activities relates to one segment
i.e.non banking financial activities and its operations are confined
within India.