Mar 31, 2016
A. Basis of preparation of financial statements
The financial statements of the Company have been prepared under the historical cost convention, on the accrual basis of accounting in accordance with the Generally Accepted Accounting Principles (''GAAP'') in India, to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956 Act"), as applicable and other accounting requirements pronouncements of the Institute of Chartered Accountant of India. 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 the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the year. Example of such estimates includes future obligations under employee retirement benefit plans, estimated useful life of fixed assets, warranty on sales, provision for obsolete and slow moving inventory, etc. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.
C. Current-Non-current classification
All assets and liabilities are classified into current and non-current.
Assets: An asset is classified as current when it satisfies any of the following criteria:
a. It is expected to be realized in, or is intended for sale or consumption in ,the company''s normal operating cycle;
b. It is held primarily for the purpose of being traded;
c. It is expected to be realized within 12 months after the reporting date; or
d. It is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date.
Current assets include the current portion of non-current financial assets.
All other assets are classified as non-current.
Liabilities: liability is classified as current when it satisfies any of the following criteria:
a. It is expected to be settled in the company''s normal operating cycle;
b. It is held primarily for the purpose of being traded;
c. It is due to be settled within 12 months after the reporting date; or
d. The company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of liability that could, at option of the counterparty, result in its settlement by the issue of equity instruments do not affects its classification.
Current liabilities include current portion of non-current financial liabilities.
All other liabilities are classified as non-current.
D. Revenue recognition
Revenue from sale of goods is recognized on the basis of terms and conditions with respective customers which coincide with the transfer of significant risks and rewards to the customer. Sales are stated at invoice value net of sales tax, turnover/trade discount, returns and claims, if any.
Interest income is recognized on time proportion basis considering the amount outstanding and the rate applicable.
E. Inventories
The stock in trade is valued at the lower of cost and net realizable value. Cost includes purchase price including duties and taxes (other than those subsequently recoverable by the enterprise from tax authorities) freight inward and other expenditure directly attributable to bring the inventory to the present location and condition. Cost is determined on first in first out basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs necessary to make the sale.
F. Fixed assets
There are no fixed assets in the company.
G. Foreign currency transactions
Foreign currency transactions are recorded at the rate of exchange prevailing on the date of the respective transactions. Monetary foreign currency assets and liabilities remaining unsettled at the balance sheet date are translated at the rates of exchange prevailing on that date. Gains/ (losses) arising on account of realisation/ settlement of foreign exchange transactions and on translation of foreign currency assets and liabilities are recognized in the statement of Profit and Loss.
During the year no foreign currency transactions had taken place.
H. Employee benefits Short term employee benefits
All employee benefits payable/available within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries, wages and bonus etc., are recognized in the Profit and Loss Account in the period in which the employee renders the related service.
Defined benefit plan
Gratuity is a defined benefit plan. The present value of obligations under such defined benefit plans is determined based on actuarial valuation carried out by an independent actuary at the end of the year using the projected unit credit method. The obligation is measured at the present value of estimated future cash flows. The discount rates used for determining the present value of obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date, having maturity periods approximating to the terms of related obligations. Actuarial gains and losses are recognized immediately in the Profit and Loss Account.
I. Taxation
Income tax expenses comprise current tax (i.e. the amount of tax for the period determined in accordance with the income tax laws) and deferred tax charge or credit (reflecting the tax effects of timing differences between the accounting income and the taxable income for the period). The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using tax rates that have been enacted, or substantively enacted, by the Balance Sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in the future, however, where there is unabsorbed depreciation or carry forward loss under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain (as the case may be) to be realized.
J. Provisions and contingent liabilities
A provision is created when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.
K. Earnings per share
Basic earnings per share are calculated by dividing the net profit/ (loss) attributable to equity shareholders for the year by the weighted average number of equity shares outstanding during the year.
L. Cash and cash equivalents
Cash and cash equivalents include cash in hand, demand deposit with banks, other short term highly liquid investments with original maturities of three months or less.
Mar 31, 2015
A. Basis of preparation of financial statements
The financial statements of the Company have been prepared under the
historical cost convention, on the accrual basis of accounting in
accordance with the Generally Accepted Accounting Principles ('GAAP')
in India, to comply with the Accounting Standards specified under
Section 133 of the Companies Act, 2013, read with Rule 7 of the
Companies (Accounts) Rules, 2014 and the relevant provisions of the
Companies Act, 2013 ("the 2013 Act") / Companies Act, 1956 ("the 1956
Act"), as applicable and other accounting requirements pronouncements
of the Institute of Chartered Accountant of India. 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 the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosures of
contingent liabilities on the date of the financial statements and the
reported amounts of revenues and expenses during the year. Example of
such estimates includes future obligations under employee retirement
benefit plans, estimated useful life of fixed assets, warranty on
sales, provision for obsolete and slow moving inventory, etc. Actual
results could differ from those estimates. Any revision to accounting
estimates is recognised prospectively in current and future periods.
C. Current-Non-current classification
All assets and liabilities are classified into current and non-current.
Assets
An asset is classified as current when it satisfies any of the
following criteria:
a. It is expected to be realized in, or is intended for sale or
consumption in ,the company's normal operating cycle;
b. It is held primarily for the purpose of being traded;
c. It is expected to be realized within 12 months after the reporting
date; or
d. It is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after
the reporting date.
Current assets include the current portion of non-current financial
assets. All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the
following criteria:
a. It is expected to be settled in the company's normal operating
cycle;
b. It is held primarily for the purpose of being traded;
c. It is due to be settled within 12 months after the reporting date;
or
d. The company does not have an unconditional right to defer
settlement of the liability for at least 12 months after the reporting
date. Terms of liability that could, at option of the counterparty,
result in its settlement by the issue of equity instruments do not
affects its classification.
Current liabilities include current portion of non-current financial
liabilities. All other liabilities are classified as non-current.
D. Revenue recognition
Revenue from sale of goods is recognized on the basis of terms and
conditions with respective customers which coincides with the transfer
of significant risks and rewards to the customer. Sales are stated at
invoice value net of sales tax, turnover/trade discount, returns and
claims, if any.
Interest income is recognized on time proportion basis considering the
amount outstanding and the rate applicable.
E. Inventories
The stock in trade is valued at the lower of cost and net realizable
value. Cost includes purchase price including duties and taxes (other
than those subsequently recoverable by the enterprise from tax
authorities) freight inward and other expenditure directly attributable
to bring the inventory to the present location and condition. Cost is
determined on first in first out basis.
Net realizable value is the estimated selling price in the ordinary
course of business, less estimated costs necessary to make the sale.
F. Fixed assets
Tangible fixed assets
Tangible fixed assets are recorded at cost of acquisition less
accumulated depreciation and less accumulated impairment loss, if any.
Cost is inclusive of inward freight, duties, taxes and incidental
expenses related to acquisition and installation expenses incurred to
bring the assets to their working condition for intended use. Tangible
fixed assets under construction and cost of assets not put to use
before the year end are disclosed as capital work in progress.
Subsequent expenditures related to an item of tangible fixed asset are
added to its book value only if they increase the future benefits from
the existing asset beyond its previously assessed standard of
performance.
During the year, pursuant to the notification of Schedule II to the
Companies Act, 2013 with effect from April 1, 2014,the Company has
revised the estimated useful life of some of its assets to align the
useful life with those specified in Schedule II. Further, assets
individually costing Rs. 5,000/- or less that were depreciated fully in
the year of purchase are now depreciated based on the useful life
considered by the Company for the respective category of assets.
Assets individually costing Rs. 5,000 or less are fully depreciated in
the year of the purchase.
Depreciation on additions is being provided on pro rata basis from the
date of such additions. Similarly, depreciation on assets sold/disposed
off during the year is being provided up to the dates on which such
assets are sold/disposed off. Modification or extension to an existing
asset, which is of capital nature and which becomes an integral part
thereof is depreciated prospectively over the remaining useful life of
that asset.
Intangible fixed assets
Intangible assets which are acquired by the Company are measured
initially at cost. After initial recognition, an intangible asset is
carried at its cost less any accumulated amortization and/or less
accumulated impairment loss, if any. Subsequent expenditure is
capitalized only when it increases the future economic benefits from
the specific asset to which it relates.
G. Impairment
The carrying value of assets is reviewed at each Balance Sheet date to
determine whether there is any indication of impairment. If any such
indication exists, the amount recoverable towards such assets is
estimated. An impairment loss is recognised whenever the carrying
amount of an asset, or its cash generating unit exceeds its recoverable
amount. Impairment losses are recognised in the Profit and Loss
Account. An impairment loss is reversed if there is a change in the
estimate used to determine the recoverable amount. An impairment loss
is reversed only to the extent the carrying amount of the asset that
does not exceed the carrying amount that would have been determined net
off depreciation or amortisation, if no impairment loss had been
recognised.
H. Foreign currency transactions
Foreign currency transactions are recorded at the rate of exchange
prevailing on the date of the respective transactions. Monetary foreign
currency assets and liabilities remaining unsettled at the balance
sheet date are translated at the rates of exchange prevailing on that
date. Gains/ (losses) arising on account of realisation/ settlement of
foreign exchange transactions and on translation of foreign currency
assets and liabilities are recognised in the statement of Profit and
Loss. During the year no foreign currency transactions had taken
place.
I. Leases
Where the lesser effectively retains substantially all the risks and
benefits of ownership of the leased assets are classified as operating
leases. Operating lease charges are recognised as an expense in the
statement of Profit and Loss.
J. Employee benefits
Short term employee benefits
All employee benefits payable/available within twelve months of
rendering the service are classified as short- term employee benefits.
Benefits such as salaries, wages and bonus etc., are recognised in the
Profit and Loss Account in the period in which the employee renders the
related service, if any.
Defined benefit plan
Gratuity is a defined benefit plan. The present value of obligations
under such defined benefit plans is determined based on actuarial
valuation carried out by an independent actuary at the end of the year
using the projected unit credit method. The obligation is measured at
the present value of estimated future cash flows. The discount rates
used for determining the present value of obligation under defined
benefit plans, is based on the market yields on Government securities
as at the balance sheet date, having maturity periods approximating to
the terms of related obligations. Actuarial gains and losses are
recognised immediately in the Profit and Loss Account.
K. Taxation
Income tax expenses comprise current tax (i.e. the amount of tax for
the period determined in accordance with the income tax laws) and
deferred tax charge or credit (reflecting the tax effects of timing
differences between the accounting income and the taxable income for
the period). The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognised using tax rates that
have been enacted, or substantively enacted, by the Balance Sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realised in the future,
however, where there is unabsorbed depreciation or carry forward loss
under taxation laws, deferred tax assets are recognised only if there
is virtual certainty of realisation of such assets. Deferred tax assets
are reviewed as at each Balance Sheet date and written down or written
up to reflect the amount that is reasonably/ virtually certain (as the
case may be) to be realised.
L. Provisions and contingent liabilities
A provision is created when there is a present obligation as a result
of a past event that probably requires an outflow of resources and a
reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on best estimate required to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current best estimates. A disclosure for a contingent
liability is made when there is a possible obligation or a present
obligation that may, but probably will not, require an outflow of
resources. When there is a possible obligation or a present obligation
in respect of which the likelihood of outflow of resources is remote,
no provision or disclosure is made.
M. Earnings per share
Basic earnings per share are calculated by dividing the net profit/
(loss) attributable to equity shareholders for the year by the weighted
average number of equity shares outstanding during the year.
N. Cash and cash equivalents
Cash and cash equivalents include cash in hand, demand deposit with
banks, other short term highly liquid investments with original
maturities of three months or less.
Mar 31, 2013
1. The above Cash Flow Statement has been prepared under theindirect
method as set out in Accounting Standard-3 on "Cash Flow Statement"
notified under Section 211(3C) of the Companies Act, 1956.
2. Figures in brackets represents Cash Outflow.
1.1 Accounting Convention
The financial statements of the Company have been prepared and
presented under the historical cost convention on the accrual basis of
accounting principles generally accepted in India ("GAAP") and comply
with the mandatory Accounting Standards ("AS") issued by the Institute
of Chartered Accountants of India ("The ICAI") to the extent applicable
and relevant provisions of the Companies Act, 1956. The financial
statements are presented in Indian Rupees rounded off to the nearest
rupees.
The Company follows the mercantile system of accounting and recognize
items of income and expenditure on accrual basis.
1.2 Revenue Recognition
Revenue is recognized at the time of delivery of goods or services.
1.3 Depreciation
Depreciation on all fixed assets is provided on written down value
method at the rates specified in Schedule XIV to the CompaniesAct,1956.
1.4 Investments
Long Term investments are stated at cost, less provision for diminution
in value of investments, which is considered to be Current investments
are stated at lower of cost or fair market value. Cost Includes
original cost of acquisition, including brokerage Unquoted investments
are valued at cost.
1.5 Taxation
Provision for taxation is ascertained on the basis of assessable
profits computed in accordance with provisions of Income TaxAct, 1961.
1.6 Provisions and Contingent liabilities
Provisions are recognized for present obligations, of uncertain timing
or amount, arising as a result of past event where a reliable estimate
can be made and it is probable that an outflow of resource embodying
economic benefit will be required to settle the obligation. Where it is
not probable that an outflow of resources embodying economic benefit
will be required or the amount can not be estimated reliably, the
obligation is disclosed as a contingent liability unless the
probability of outflow of resources embodying economic benefit is
remote.
Contingent Liability is disclosed in case of
a) a present obligation arising from the past events, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b) a present obligation when no reliable estimate is possible, and
c) a possible obligation arising from past events where the probability
of outflow of resources is not remote.
Provision, Contingent Liabilities and ContingentAssets are reviewed at
each Balance Sheet date.
1.7 Inventories
Inventories are valued at the lower of cost or net realisable value
after providing for obsolescence, if any. Cost of inventory comprises
of cost of purchase and other cost incurred to bring them to their
respective present location and condition.
The scheme of amalgamation , as approved by the Hon''ble High Court of
Delhi, has become effective on 1st April 2011 on completion of all the
required formalities. Consequently, 10,000,000 equity shares of Rs.10
each, issued in pursuant to the scheme of amalgamation of Freesia
Construction Private Limited with the Company have been given effect
under''Shares outstanding at the beginning of the financial year ended
31st March, 2012. However, theAuthorised Share Capital of the Company
has been increased to Rs. 150,000,000 by the members ofthe Company in
theirmeeting held on 08.06.2013. (For Scheme ofAmalgamation- Refer Note
20).
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