Mar 31, 2014
A) Basis of Preparation
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in India
(Indian GAAP) to comply with the Accounting Standards notified under
the Companies (Accounting Standards) Rules, 2006 (as amended) and the
relevant provisions of the Companies Act, 1956 read with General
Circular 15/2013 dated 13-Sep-2013, issued by the Ministry of Corporate
Affairs, in respect of Section 133 of the Companies Act, 2013. The
financial statements have been prepared on accrual basis under the
historical cost convention. The accounting policies adopted in the
preparation of the financial statements are consistent with those
followed in the previous year.
b) Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities (including contingent
liabilities) and the reported income and expenses during the year. The
management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could
differ due to these estimates and differences between the actual
results and the estimates are recognised in the periods in which the
results are known / materialised.
c) Current & Non-Current Classification
All the assets and liabilities have been classified as current or
non-current as per the company''s normal operating cycle and other
criteria set out in Revised Schedule VI to the Companies Act, 1956.
Based on the nature of activities and time between the activities
performed and their subsequent realisation in cash or cash equivalents,
the company has ascertained its operating cycle as 12 months for the
purpose of current / non-current classification of assets and
liabilities.
d) Cash And Cash Equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
e) Cash Flow Statement
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.
f) Inventories
Traded goods are valued at Lower of cost and Net realisable value. Cost
includes the purchase price and other associated cost directly incurred
in bringing the inventory to its present location.
Net realisable value is the estimated selling price in the ordinary
course of business, less estimated cost of completion and estimated
costs necessary to make the sale.
g) Prior Period Items
AH identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Prior Period items".
h) Fixed Assets
Fixed assets are stated at cost less accumulated depreciation. The cost
of an asset comprises its purchase price and any attributable cost of
bringing the asset to working condition for its intended use i.e. cost
of acquisition of assets and incidental expenditure incurred upto the
date of installation / use. However, since the asset was not in active
use by the company and was held for sale, depreciation for the year has
not been provided.
i) Revenue Recognition
Revenue is recognized to the extent that probable economic benefits
will flow to the company and the revenue can be reliably measured.
i) Sale of Products:
Revenue from sale of products is recognised when the significant risks
and rewards of ownership of the goods have passed to the buyer . The
company collects sales taxes and value added tax (VAT) on behalf of the
government and, therefore, these are not economic benefits flowing to
the company. Hence, they are excluded from revenue. Excise duty
deducted from revenue (gross) is the amount that is included from
revenue (gross) and not the entire amount of liability arising during
the year.
ii) Other income is recognised when the Company''s right to receive
payment is established.
j) Employee Benefits
Employee benefits includes gratuity, compensated absences and
contribution to provident fund, employees'' state insurance,
superannuation fund.
No provision for employee''s benefits viz. Gratuity, Leave encashment,
retrenchment etc for the employees has been made as the same are
presently not applicable to the company.
k) Segment Accounting
In accordance with Accounting Standard 17 "Segment Reporting" as
prescribed under Companies (Accounting Standards) Rules, 2006 (as
amended), the company has determined its business segment as Sale of
Moulds. Since, there are no other business segments in which the
company operates, there are no other primary reportable segments.
Further since the company''s operations are limited within India, it
operates in a single geographical segment. Therefore, the segment
revenue, results, segment assets, segment liabilities, total cost
incurred to acquire segment assets, depreciation charge are all as
reflected in the financial statements.
l) Related Party Transactions
Disclosure of transactions with Related Parties, as required by
Accounting Standard 18 "Related Party disclosures" prescribed under The
Companies (Accounting Standards) Rules, 2006 (as amended) has been set
out in a separate note forming part of this schedule. Related Parties
as defined under clause 3 of the Accounting Standard 18 have been
identified on the basis of representation made by key managerial
personnel and information available with the Company.
m) Earnings Per Share
The Company reports basic and diluted earnings per share (EPS) in
accordance with the Accounting Standard 20 prescribed under The
Companies (Accounting Standards) Rules, 2006 (as amended). The Basic
EPS has been computed by dividing the income available to equity
shareholders by the weighted average number of
equity shares outstanding during the accounting year. The Diluted EPS
has been computed using the weighted average number of equity shares
and dilutive potential equity shares outstanding at the end of the
year.
n) Taxes on Income
I) Deferred Taxation
In accordance with the Accounting Standard 22 - Accounting for Taxes on
Income, prescribed under The Companies (Accounting Standards) Rules,
2006 (as amended), the deferred tax for timing differences between the
book and tax profits for the year is accounted for by using the tax
rates and laws that have been enacted or substantively enacted as of
the Balance Sheet Date.
Deferred tax assets arising from timing differences are recognised to
the extent there is virtual certainty that the assets can be realised
in future.
Net outstanding balance in Deferred Tax account is recognized as
deferred tax liability/asset. The deferred tax account is used solely
for reversing timing difference as and when crystallized.
II) Current Taxation
In the absense of any taxable income, provision for taxation has not
been made in accordance with the income tax laws prevailing for the
relevant assessment year.
o) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is possible that there will be an outflow of resources.
Contingent liabilities are not recognised but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
p) Applicability of other Accounting Standards
Though other Accounting Standards also apply to the company by virtue
of the Companies (Accounting Standards) Rules 2006 (as amended), no
disclosure for the same is being made as the company has not done any
transaction to which the said Accounting Standard apply.
Mar 31, 2012
I) System of Accounting:
The Financial statements are prepared on historical cost convention and
on the accounting principles of going concern in accordance with
generally accepted accounting principles comprising of the mandatory
accounting standards referred to in sub section (3c) of section 211 of
the companies Act., 1956 and guidance notes, etc. issued by Institute
of chartered Accountants of India and the other provisions of the
companies Act.
ii) 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.
(a) Revenue from Operation :
Sales revenue is recognized when property in the goods with all risk
rewards and effective control of goods usually associated with
ownership are transferred to buyer at price and excludes sales tax.
The presentation of financial statements require estimates and
assumptions to be made that effect 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 result and estimates are recognized in the period in
which the results are known/materialized.
iii) Fixed Asset:
(i) Tangible Asset:
Fixed assets are stated at cost less accumulated depreciation Cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
(ii) Intangible Assets :
Intangible assets are stated at cost of purchase/acquired less
amortised during period.
iv) Depreciation:
Depreciation has been provided on written down value method accordance
with the provision of section 205(2) (b) of Companies Act, 1956 at the
rates prescribed in Schedule XIV of the companies Act, 1956 on prorate
basis with reference to the day of acquisition/installation. However
During the year Depreciation has not provided on Plant & Machinery the
loss is under state to the extent of depreciation amount of Rs. 38310/-
v) Impairment of Tangible and intangible assets
The carrying amount of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of any assets exceeds its recoverable amount.
During the year it has been reviewed there is no any impairment of
fixed assets.
vi) Investments:
During the year there is no Long term Investments.
vii) Valuation of Inventories:
Stock-in-trade - at cost or net realizable value whichever is less.
Net realizable value is the estimated current procurement price in the
ordinary course of eh business. The cost of inventory is determined net
of taxes on FIFO or Weighted Average cost formula method on relevant
categories of inventories on a consistent basis after providing for
obsolete, slow moving and defective inventories wherever necessary.
viii) Cenvat:
VAT Credits: VAT Credit available on purchases input are reduced from
purchases and balance at end of the stocks at end of the stocks is
carried forward under current asset to avail the credit in the
succeeding year.
ix) Provisions and Contingent liabilities:
Provisions are recognized when the present obligation of the past event
gives rise to a probable outflow embodying economic benefits on
settlement, and the amount of obligation can be reliably estimated.
Contingent liabilities are disclosed after careful evaluation of facts
and legal aspects of the matter involved.
Provisions and contingent liability are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
x) Retirement Benefits:
No provision for retirement's benefits viz. Gratuity, leave encashment,
retrenchment etc for the employee has been made as there are no
eligible employees on the muster roll entitle of these benefits.
xi) Research & Development:
No research and development expenditure has been incurred during the
year.
xii) Miscellaneous Expenditure:
In accordance with the provisions of section 35D of Income Tax Act
1961, the company has written off one- tenth of expenses.
xiii) Provision for current and Deferred Tax:
Taxes on Income are computed using tax deferral Assets or Liability
method where taxes accrue in the same period, the respective revenue
and expenses arises. The differences that result between the profit
offered for income tax and the profit as per financial statements are
identified and Deferred Tax Liability is recognized for timing
difference, that originate in one accounting period and reverse in
another based on the tax effect of the prevailing enacted regulation in
force.
Deferred Tax Assets are recognized subject to prudence, only, if there
is reasonable certainty that they will be realized and are subject to
appropriate reviews at each balance sheet date for the purpose of
measurement of Deferred Tax Liability or Assets, the applicable tax
rates and enacted regulations expected to apply in the year in which
the temporary differences are expected to be recovered or settled are
applied.
Minimum Alternative Tax Credit is recognized as an asset only when and
to the extent there is convincing evidence that the company will pay
normal income tax furnishing the specified period. In the year in which
the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in guidance note issued
by the Institute of Chartered Accountants of India the said asset is
created by way of credit to the profit and loss statement and shown as
MAT Credit entitlement.
xiv) Borrowing Cost:
Borrowing cost directly attributable and/or funds borrowed generally
and used for the purpose of acquisition of an asset that necessarily
takes a substantial period of time to get ready for its intended use
are capitalized, at its capitalization rate to expenditure on that
assets, for the period, until all activities necessary to prepare
qualifying assets for its intended use are complete.
xv) Sundry Debtors:
No provision has been made for the bad and doubtful debts. The Bad
debts are charged to revenue in the year of, as and when they arise.
xvi) Earning per Share
Basic Earning Per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders by the number
of equity shares outstanding during the period.
For the purpose of calculation diluted earning per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effect of all dilutive potential shares.
xvii)Cash and cash equivalents for the propose of cash flow statement
comprise of cash at bank, cash in hand and short term tern deposit in
bank with in original maturity of 12 months or less
Mar 31, 2010
(i) System of Accounting
The Financial statements are prepared on historical cost basis and on
the accounting principles of going concern in accordance with generally
accepted accounting principles comprising of the mandatory accounting
standards referred to in sub section (3c) of section 211 of the
companies Act., 1956 and guidance notes, etc. issued by Institute of
chartered Accountants of India and the other provisions of the
companies Act.
(ii) 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.
The presentation of financial statements require estimates and
assumptions to be made that effect 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 result and estimates are recognized in the period in
which the results are known / materialized.
(iii) Fixed Asset: Cost of Fixed assets comprises of its purchase price
including duties and other non refundable taxes or levies, expenditure
incurred in the course of construction or acquisition and any directly
attributable costs of bringing the asset to its working condition for
the purpose of use for the business.
(iv) Depreciation:
Depreciation has been provided on written down value method accordance
with the provision of section 205(2)
(b) of Companies Act, 1956 at the rates prescribed in Schedule XIV of
the companies Act, 1956 on prorate basis
with reference to the day of acquisition/ installation. (v)
Investments:
During the year there is no Long term Investments. (vi) Valuation of
Inventories:
Stock-in-trade - at cost or net realizable value whichever ig less
The cost of inventory is determined net of taxes on FIFO or Weighted
Average cost formula method on relevant categories of inventories on a
consistent basis after providing for obsolete, slow moving and
defective inventories wherever necessary.
(vii) Cenvat:
VAT Credits: VAT Credit available on purchases input are reduced from
purchases and balance at end of the stocks at end of the stocks is
carried farword under current asset to avail the credit in the
succeeding year.
(viii) Provisions and Contingent liabilities:
Provisions are recognized when the present obligation of the past event
gives rise to a probable outflow embodying economic benefits on
settlement, and the amount of obligation can be reliably estimated.
Contingent liabilities are disclosed after careful evaluation of facts
and legal aspects of the matter involved.
Provisions and contingent liability are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
(ix) Retirement Benefits.
As there are no permanent employees during the year hence no specific
comment on the retirement benefits to the employees.
(x) Research & Development
No research and development expenditure has been incurred during the
year.
(xii) Provision for current and Deferred Tax:
Deferred Tax Assets are recognized subject to prudence, only, if there
is reasonable certainty that they will be realized and are subject to
appropriate reviews at each balance sheet date for the purpose of
measurement of Deferred Tax Liability or Assets, the applicable tax
rates and enacted regulations expected to apply in the year in which
the temporary differences are expected to be recovered or settled are
applied. (xiii) Impairment of Assets:
Impairment loss is recognized wherever the carrying amount of an asset
is in excess of its recoverable amount and the same is recognized as an
expense.
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