Mar 31, 2014
1 Corporate Information
IO System limited had entered into a joint venture(JV) agreement with
the General Binding Corporation (GBC), USA on 19th june, 1988 for
manufacturing and selling office Automation products. The JV was
terminated with mutual consent between the parties on 31st March, 2002
and now more than 96% capital of the company is held by Smart
Entertainment Ltd. (formerly known as Spice Enfotainment Ltd. & prior
to that Spice Corp. Ltd.) except little shareholding with the public.
The manufacturing activities had been discontinued since Feb., 2006 due
to continued losses in the company. The company has also not done very
well in its trading business as result of which, there have been no
business activities in the company during the past five years.
2 Basis of Accounting
The financial statements are prepared under the historical cost
convention on the concept of a going concern, in accordance with the
Generally Accepted Accounting Principles and mandatory Accounting
Standards as notified under the Companies (Accounting Standards) Rules,
2006 and as per the provisions and presentational requirements of the
Companies Act, 1956 read with General Circular 15/2013 dated 13.09.2013
of the Ministry of Corporate Affairs in respect of section 133 of the
Companies Act, 2013.
3 Changes in Accounting policies
The accounting policies adopted are consistent with those of previous
financial year. The management assures that there has been no change in
accounting policies as compared to that of previous year which would
have any significant effect on these financials.
4 Recognition of Income
Income is recognised and accounted for on accrual basis unless
otherwise stated.
5 Tangible Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets which take substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
Depreciation on tangible fixed assets
Each assets costing Rs. 5,000 or less each is 100% depreciated in the
year of purchase. Depreciation is provided using the SLM Method, at the
rates prescribed under Schedule XIV of the Companies Act, 1956.
Particulars Rates (SLM)
Computers 16.21%
Plant & machinery 4.75%
6 Taxes on Income
Current tax is determined and provided for on the amount of taxable
income at the applicable rates for the relevant financial year.
Deferred Tax Assets and Liabilities (DTA/ DTL) are recognised, subject
to consideration of prudence, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and is capable of reversal in one or more subsequent
periods. The DTA is recognised only to the extent that there is
reasonable certainty of sufficient future profits against which such
DTA can be realised.
7 Contingent Liability
The contingent liabilities, if any, are disclosed in the Notes to
Accounts. Provision is made in the accounts, if it becomes probable
that there will be outflow of resources for settling the obligation.
8 Events occurring after the balance sheet date
Adjustments to assets and liabilities are made for events occurring
after the balance sheet date to provide additional information
materially affecting the determination of the amounts of assets or
liabilities relating to conditions existing at the balance sheet date.
9 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year.
10 Use of estimates
The preparation of financial statements, in conformity with generally
accepted accounting principles, requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities on
the date of the financial statements and the results of operations
during the reporting year. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods.
Mar 31, 2013
I Corporate Information
IO System limited had entered into a joint venture(JV) agreement with
the General Binding Corporation (GBC), USA on 19th june, 1988 for
manufacturing and selling office Automation products. The JV was
terminated with mutual consent between the parties on 31st March, 2002
and now more than 96% capital of the company is held by Spice
Infotainment Ltd. (formerly known as Spice Corp. Ltd.) except little
shareholding with the public. The manufacturing activities had been
discontinued since Feb., 2006 due to continued losses in the company.
The company has also not done very well in its trading business as
result of which, there have been no business activities in the company
during the past five years.
ii Basis of Accounting
The financial statements are prepared under the historical cost
convention on the concept of a going concern, in accordance with the
Generally Accepted Accounting Principles and mandatory Accounting
Standards as notified under the Companies (Accounting Standards) Rules,
2006 and as per the provisions and presentational requirements of the
Companies Act, 1956.
iii Changes in Accounting policies
The accounting policies adopted are consistent with those of previous
financial year. The management assures that there has been no change in
accounting policies as compared to that of previous year which would
have any significant effect on these financials.
iv Recognition of Income
Income is recognized and accounted for on accrual basis unless
otherwise stated.
v Tangible Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets which take substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
vi Depreciation on tangible fixed assets
Each assets costing Rs. 5,000 or less each is 100% depreciated in the
year of purchase. Depreciation is provided using the SLM Method, at the
rates prescribed under Schedule XIV of the Companies Act, 1956.
Particulars Rates (SLM)
Computers 16.21%
Plant & machinery 4.75%
vii Taxes on Income
Current tax is determined and provided for on the amount of taxable
income at the applicable rates for the relevant financial year.
Deferred Tax Assets and Liabilities (DTA/ DTL) are recognized, subject
to consideration of prudence, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and is capable of reversal in one or more subsequent
periods. The DTA is recognized only to the extent that there is
reasonable certainty of sufficient future profits against which such
DTA can be realized.
viii Contingent Liability
The contingent liabilities, if any, are disclosed in the Notes to
Accounts. Provision is made in the accounts, if it becomes probable
that there will be outflow of resources for settling the obligation.
ix Events occurring after the balance sheet date
Adjustments to assets and liabilities are made for events occurring
after the balance sheet date to provide additional information
materially affecting the determination of the amounts of assets or
liabilities relating to conditions existing at the balance sheet date.
x Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year/ period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year/
period.
xi Use of estimates
The preparation of financial statements, in conformity with generally
accepted accounting principles, requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities on
the date of the financial statements and the results of operations
during the reporting year. Actual results could differ from those
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
Mar 31, 2012
1. Corporate Information
IO System limited had entered into a joint venture(JV) agreement with
the General Binding Corporation (GBC), USA on 19th june, 1988 for
manufacturing and selling office Automation products. The JV was
terminated with mutual consent between the parties on 31st March, 2002
and now more than 96% capital of the company is held by Spice
Infotainment Ltd. (formerly known as Spice Corp. Ltd.) except little
shareholding with the public. The manufacturing activities had been
discontinued since Feb., 2006 due to continued losses in the company.
The company has also not done very well in its trading business as
result of which, there have been no business activities in the company
during the past five years.
2. Basis of Accounting
The financial statements are prepared under the historical cost
convention on the concept of a going concern, in accordance with the
Generally Accepted Accounting Principles and mandatory Accounting
Standards as notified under the Companies (Accounting Standards) Rules,
2006 and as per the provisions and presentational requirements of the
Companies Act, 1956.
All assets and liabilities have been classified as current or
non-current as per the criteria set out in the à General Instructions
for Preparation of Balance Sheet' of the Revised Schedule VI of the
Companies Act, 1956.
3 Use of estimates
The preparation of financial statements, in conformity with generally
accepted accounting principles, requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities and the disclosure of contingent assets and liabilities on
the date of the financial statements and the results of operations
during the reporting year. Actual results could differ from those
estimates. Any revision to accounting estimates is recognized
prospectively in current and future periods.
4 Changes in Accounting policies
The accounting policies adopted are consistent with those of previous
financial year. The management assures that there has been no change in
accounting policies as compared to that of previous year which would
have any significant effect on these financials.
5 Recognition of Income
Income is recognized and accounted for on accrual basis unless
otherwise stated.
6 Tangible Fixed Assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises the purchase price and any
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing costs relating to acquisition of fixed
assets which take substantial period of time to get ready for its
intended use are also included to the extent they relate to the period
till such assets are ready to be put to use.
Depreciation on tangible fixed assets
Each assets costing Rs. 5,000 or less each is 100% depreciated in the
year of purchase. Depreciation is provided using the SLM Method, at the
rates prescribed under Schedule XIV of the Companies Act, 1956.
7 Taxes on Income
Current tax is determined and provided for on the amount of taxable
income at the applicable rates for the relevant financial year.
Deferred Tax Assets and Liabilities (DTA/ DTL) are recognized, subject
to consideration of prudence, on timing differences, being the
difference between taxable income and accounting income that originate
in one period and is capable of reversal in one or more subsequent
periods. The DTA is recognized only to the extent that there is
reasonable certainty of sufficient future profits against which such
DTA can be realized.
8 Contingent Liability
The contingent liabilities, if any, are disclosed in the Notes to
Accounts. Provision is made in the accounts, if it becomes probable
that there will be outflow of resources for settling the obligation.
9 Events occurring after the balance sheet date
Adjustments to assets and liabilities are made for events occurring
after the balance sheet date to provide additional information
materially affecting the determination of the amounts of assets or
liabilities relating to conditions existing at the balance sheet date.
10 Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year/ period attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year/
period.
Mar 31, 2010
1. BASIS OF PREPARATION OF FINANCIAL STATEMENT
The financial statements are prepared in accordance with the historical
cost convention on the accrual system of accounting, on the concept of
a going concern and in accordance with generally accepted accounting
practices and mandatory Accounting Standards as notified under the
Companies (Accounting Standards) Rules, 2006 and in accordance with the
presentational requirements of the Companies Act, 1956.
However, the concept of a going concern has been severely affected
adversely due to i) disposal of substantial part of the fixed assets of
the company to outside party/ subsidiary company, ii) continued losses
in past several years; and iii) erosion of entire paid up capital by
acumulated losses.In view of nil operational activites in the company,
the management is in the process of liquidating the current assets such
as inventories, loans and advances and settling the current
liabilities. The total fixed assets have since been sold and now only
one computer is left in the company.
2. USE OF ESTIMATES
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as on the date of the financial statements and
reported amounts of income and expenses during the year. Example of
such estimates include provisions for doubtful debts, employee
retirement benefit plans, provision for income taxes and the useful
lives of fixed assets.
3. FIXED ASSETS AND DEPRECIATION
Fixed assets are stated at cost less accumulated depreciation. The
Company capitalises all costs relating to the acquisition and
installation of fixed assets. Depreciation on fixed assets, other than
demonstration machines and machines for rental and lease, is provided
pro-rata to the period of use on the straight-line method using rates
determined based on the managements assessment of useful economic
lives of the assets or the annual depreciation rates specified in
Schedule XIV to the Companies Act,1956, whichever is higher, as
follows:
%
Plant and machinery 4.75
Moulds 11.31
Furniture and fixtures 6.33
Office equipment 4.75
Computers 16.21
Vehicles 9.50
Demonstration machines and machines for rentals and lease are
depreciated over an estimated economic useful life of six years.
Individual Fixed assets having value of Rs. 5000/- or less are fully
depreciated in year of purchase.
4. INVENTORIES
Inventories of Trading Goods, Finished Goods, Service Components &
Spares are taken by the management and valued at the lower of cost or
net realizable value. The Cost is determined on first in first out
basis. Inventories are stated net of write-downs or allowances on
account of obsolescence, damaged or non-moving items. Excise and
customs duty payable on finished goods is included in the value of the
finished goods.
5. FOREIGN CURRENCY TRANSACTIONS
Foreign currency transactions are recorded by applying exchange rate at
the dates of transactions. The foreign currency monetary assets and
liabilities and outstanding foreign currency liabilities relating to
non- monetary items are re-instated at exchange rates prevailing at the
balance sheet date. Exchange gains or losses, arising out of
fluctuations in the exchange rates, on settlement during the year/
reinstatement at the year end, are recognized in the Profit & Loss A/c.
6. REVENUE RECOGNITION
Product sales (net of sales tax, trade discounts, returns and
allowances) are recognized upon dispatch of goods to customers.
7. INSURANCE CLAIMS
Insurance (Income) claims are accounted for on the basis of insurance
surveyers report.
8. IMPAIRMENT OF ASSETS
The carrying amounts 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 an asset exceeds its recoverable amount.
The liability for leave encashment is provided for in accordance with
the rules of the Company.
9. RETIREMENT BENEFITS
Retirement benefits to employees comprise of gratuity and provident
fund. The Company has established a self- administered provident fund
trust to which contributions are made on a monthly basis. The
provisions of Payment of Gratuity Act are not applicable as the company
does not employ the requisite number of employees required under the
said Act.
10. LEAVE ENCASHMENT
The liability for leave encashment is provided for in accordance with
the rules of the Company.
11. Taxes on Income
Provision for Taxation comprises of Income Tax liability on the profits
for the year chargeable to tax and deferred tax resulting from timing
difference between Book & Tax profits. The Deferred Tax
Assets/Liabilites are provided for as per the Guidance Note issued by
the Institute of Chartered Accountants of India on Accounting Standard
(AS) 22 "Accounting for Taxes on Income". Deferred tax assets are
recognized and carried forward only to the extent that there is a
reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
12. EARNING PER SHARE
Basic earnings/(loss) is calculated by dividing the net profit/(loss)
for the year attributable to equity shareholders by the weighted
average number of equity shares outstanding during the year. The
Company has not issued any potential equity shares, and accordingly,
the basic earnings/(loss) per share and diluted earnings/(loss) per
share is the same.
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