Mar 31, 2014
(A) Basis of Preparation of financial statement
The financial statements have been prepared under the historical cost
convention on an accrual basis and comply in all material respects with
the mandatory accounting standards and the relevant provisions of the
Companies Act, 1956.
(B) Foreign Currency Transactions
During the year, the company has not entered into any foreign exchange
transactions.
(C) Revenue Recognition
Sales are recognized when the significant risks and rewards of
ownership of the goods are passed to the customer and with respect to
services are rendered. Sales and purchases, both are exclusive of VAT.
(D) Accounting Policy for Current Tax
Provision for income tax is made on the basis of the estimated taxable
income for the current accounting period in accordance with the Income
tax Act, 1961.
(E) Provision & Contingent Liability
Provisions are recognized in the accounts in respect of present
probable obligations, the amount of which can be reliably estimated.
Contingent Liabilities are disclosed in respect of possible obligations
that arised from past events but their existence is confirmed by the
occurrence or non occurrence of one or more uncertain future events not
wholly within the control of the company.
(F) Use of Estimates
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires making estimates and
assumptions that affect the reported balances of assets and liabilities
as of the date of the financial statements and reported amounts of
income and expenses during the period. Management believes that the
estimates used in the preparation of financial statements are prudent
and reasonable. Actual results could differ from estimates.
(G) Impairment of Assets
An assets is treated as impaired when the carrying cost to assets
exceeds its recoverable value. An impairment loss is charges to profit
and loss account in the year in which assets is identified as impaired.
(H) Segment Reporting
The company is mainly engaged only in one segment i.e. trading of high
pressure industrial cleaners and the Revenue derived from primary
segment is Rs 10,14,498/-.
Mar 31, 2010
A. Accounting Convention:
The financial statements are prepared under the historical cost
convention in accordance with the generally accepted accounting
principles in India, the Accounting Standards issued by the Institute
of Chartered Accountants of India and the Provisions of Companies Act,
1956.
The Company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis.
B. Use of Estimates:
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles requires to make estimates and
assumptions that affect the reported balances of assets and liabilities
as of the date of the financial statements and reported amounts of
income and expenses during the period. Management believes that the
estimates used in the preparation of financial statements are prudent
and reasonable. Actual results could differ from estimates.
C. Fixed Assets
Fixed Assets are stated at cost less depreciation.
D. Depreciation:
The Company is providing depreciation on fixed assets on written down
value method at the rated and in the manner prescribed in Schedule XIV
to the Companies Act, 1956 except in respect of plant and machinery on
which depreciation is not provided, since the same is not used during
the year.
E. Inventory:
Inventory is valued at cost or market value whichever is lower.
F. Sales and Purchases:
Sales and purchases, both are exclusive of Value Added Tax (VAT).
G. Foreign Exchange Transactions:
During the year, the Company has not entered into foreign exchange
transactions.
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