Mar 31, 2015
A) Basis of preparation of financial statements
The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP] including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention.
Trading Goods are valued at cost or net realizable value whichever is lower.
c) Revenue Recognition
Revenues are recognized and accounted for on accrual basis except in cases where significant uncertainties as to its measurability or collectability exist.
d) Fixed Assets
i) Tangible Asset: - Tangible assets are stated at cost less depreciation and impairment losses, if any. The cost comprises the purchase price and any other attributable costs of bringing the assets at its working condition for the intended use.
ii) Intangible Assets/- Intangible assets are carried at cost less accumulated amortization and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities], and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates.
iii) Depreciation:- Depreciation has been provided on the written down value method based on the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.
e) Earning Per Shares
Basic earnings per share are computed by dividing the profit/(loss] attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the profit/(loss] for the period attributable to equity shareholders and the weighted average number of equity shares outstanding during the period are adjusted for the effects of all diluted potential equity shares.
i) Income Tax
Provision for Income Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with provisions as per Income Tax Act, 1961.
ii) Deferred Tax
Deferred tax resulting from "timing difference" book and taxable profit for the year is accounted for using the tax rates and laws that have enhanced or substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the asset will be adjusted in future. Permanent timing difference adjustments are not accounted for in provisions.
g) Impairment Of Assets
An asset is treated as impaired when the carrying cost of an asset exceeds its recoverable value and the impairment cost is charged to profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting year is reversed if there has been a change in the estimate of recoverable amount.
h) Investments Quoted investments
Short term investment are stated at cost or market price , whichever is lower. Long term investments are valued at cost.
Short term investments are stated at cost. Long term investments are valued at cost.
i) Provisions , Contingent Liabilities
Provision in respect of present obligation, arising out of past events is made in accounts When reliable estimates can be made of the amount of obligation. Contingent liabilities (if material) are disclosed by way of Notes on Accounts.