Mar 31, 2016
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) in compliance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. Further in view of the revised schedule III of the Companies Act, the company has also reclassified the previous year figures in accordance with the requirements applicable for the current year
b. GENERAL:
The company follows the accrual method of accounting. The financial statements have been prepared in accordance with the historical cost convention and in accordance with. Expenses are accounted on their accrual with necessary provision for all known liabilities and losses.
c. USE OF ESTIMATES:
The preparation of financial statements requires estimates and assumptions to be made that affect the required amount of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Difference between the actual amounts and the estimates are recognized in the period in which the results are known/materialized.
d. FIXED ASSETS:
Fixed assets are stated at cost including taxes, duties, freight, insurance etc. related to acquisition and installation.
e. DEPRECIATION:
Depreciation is provided to the extent of depreciable amount on written Down Value (WDV) at the rates and method prescribed in the Schedule II of the Companies Act, 2013 and on pro rata basis for the additions / deletions during the year.
f. INVENTORIES:
Inventories are valued at Cost or NRV whichever is lower.
g. REVENUE RECOGNITION:
Revenue is recognized and expenditure is accounted on their accrual.
h. PROVISIONS, CONTINGENT ASSETS AND CONTINGENT LIABILITIES:
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are disclosed when the company has possible obligation or a present obligation and it is probable that a cash flow will not be required to settle the obligation. Contingent Assets are neither recognized nor disclosed in the financial statements.
i. INVESTMENTS:
Investments that are readily realizable and intended to be held for not more than one year are classified as current investments. All other investments are classified as long-term investments.
Current Investments are stated at lower of cost or market rate on individual investment basis. Long Term Investments are considered "at cost", unless there is other than temporary decline in value thereof, in which case, adequate provision is made against such diminution in the value of investments.
j. EMPLOYEE BENEFITS:
(i) Gratuity:
The liability for gratuity has not been provided as per the provisions of Payment of Gratuity Act, 1972 since no employee of the company is eligible for such benefits during the year.
(ii) Provident Fund:
The provisions of the Employees Provident Fund are not applicable to the company since the numbers of employees employed during the year were less than the minimum prescribed for the benefits.
(iii) Leave Salary:
In respect of Leave Salary, the same is accounted as and when the liability arises in accordance with the provision of law governing the establishment.
k. TAXATION:
Taxes on Income are accrued in the same period as the revenue and the expenses to which they relate. Deferred tax assets are recognized to the extent there is a virtual certainty of its realization.
l. IMPAIRMENT OF ASSETS:
As at Balance Sheet Date, the carrying amount of assets is tested for impairment so as to determine:
a. Provision for Impairment Loss, if any, required or
b. The reversal, if any, required of impairment loss recognized in previous periods.
Impairment Loss is recognized when the carrying amount of an asset exceeds its recoverable amount.
m. BORROWING COST:
Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized as a part of such assets. All other borrowing costs are charged off to revenue.
A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale.
n. DEFERRED REVENUE EXPENDITURE:
Miscellaneous Expenditure are written off uniformly over a period of 5 years.
o. INCOME TAX:
Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognized, subject to the prudence, of timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more periods.
The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share.
Mar 31, 2014
1. OVERVIEW:
MEENAKSHI ENTERPRISES LIMITED ("the Company") incorporated in Chennai
is a non-deposit taking Non-Banking Financial Company ('NBFC) as
defined under section 45-IA of the Reserve bank of India (RBI) Act,
1934 and is engaged in the business of financing and trading in
securities.
a. GENERAL:
The company follows the accrual method of accounting. The financial
statements have been prepared in accordance with the historical cost
convention and in accordance with. Expenses are accounted on their
accrual with necessary provision for all known liabilities and losses.
The Company is registered with the RBI as a non-deposit taking NBFC and
hence all the prudential norms applicable with respect to an NBFC
relating to recognition of income and classification of assets etc.
have been followed during the year.
b. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the required amount of assets and
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Difference between the actual amounts and the estimates are recognized
in the period in which the results are known / materialized.
c. ADVANCES:
Advances are classified as standard, sub-standard, doubtful and loss
assets as per the Company Policy approved by the Board which is more
conservative than the relevant RBI guidelines. Interest on
non-performing advances is transferred to an interest suspense account
and not recognized in the statement of profit and loss until received.
Loan assets recognized on disbursement of loan and in case of new asset
financing on the transfer of ownership.
d. FIXED ASSETS:
TANGIBLE FIXED ASSETS:
Fixed assets are stated at cost including taxes, duties, freight,
insurance etc. related to acquisition and installation less accumulated
depreciation and impairment, if any.
e. DEPRECIATION:
Depreciation is provided over the estimated useful life of the fixed
asset on written Down Value (WDV) at the rates and manner prescribed in
Schedule XIV of the Companies Act, 1956 ("the Act") at written down
value Method Rates on pro rata basis for the additions during the year.
The rates of depreciation for certain key fixed assets used in arriving
at the charge for the year are as under:
f. INVESTMENTS:
Investments expected to mature after twelve months are taken as
non-current/ long term investment and stated at cost. Provision for
diminution in the value of long term investments is made only if such a
decline is other than temporary. Current investments are stated at
lower of cost and quoted/ fair value.
g. INVENTORIES:
The securities held for the purpose of trading are valued at cost or
market value whichever is lower.
h. REVENUE RECOGNITION:
Interest income is recognized in the statement of profit and loss on an
accrual basis. In case of Non-Performing Assets (NPA) interest is
recognized upon realization as per the RBI Guidelines. Interest accrued
and not realized before the classification of the asset as an NPA is
reversed and credited to the interest suspense account.
Interest on consultancy services and contract services is recognized
when there is a right to receive the same as per the terms of
engagement. Dividend income is recognized when right to receive is
established.
i. EMPLOYEE BENEFITS:
a. GRATUITY:
The liability for gratuity has not been provided as per the provisions
of Payment of Gratuity Act, 1972 since no employee of the company is
eligible for such benefits during the year.
b. PROVIDENT FUND:
The provisions of the Employees Provident Fund are not applicable to
the company since the numbers of employees employed during the year
were less than the minimum prescribed for the benefits.
c. LEAVE SALARY:
In respect of Leave Salary, the same is accounted as and when the
liability arises in accordance with the provision of law governing the
establishment and at each balance sheet date the leave encashment
eligibility is determined and provided for.
j. DEFERRED TAX:
Taxes on Income are accrued in the same period as the revenue and the
expenses to which they relate. Deferred tax assets are recognized to
the extent there is a virtual certainty of its realization.
k. IMPAIRMENT OF ASSETS:
As at Balance Sheet Date, the carrying amount of assets is tested for
impairment so as to determine:
a. Provision for Impairment Loss, if any, required or
b. The reversal, if any, required of impairment loss recognized in
previous periods.
Impairment Loss is recognized when the carrying amount of an asset
exceeds its recoverable amount.
l. BORROWING COST:
Borrowing cost attributable to the acquisition or construction of
qualifying assets are capitalized as a part of such assets. All other
borrowing costs are charged off to revenue.
A qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use or sale.
m. DEFERRED REVENUE EXPENDITURE:
Share Issue Expenses are written off uniformly over a period of 5 years
from the year of incurring the expenditure.
n. INCOME TAX:
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the prudence, of timing differences, being the difference between
taxable incomes and accounting income that originate in one period and
are capable of reversal in one or more periods.
o. EARNINGS PER SHARE:
The Company reports basic and diluted earnings per equity share in
accordance with AS - 20 on earnings per share issued by the ICAI. Basic
earnings per equity share have been computed by dividing net profit
/loss attributable to the equity shareholders for the year by the
weighted average number of equity shares outstanding during the year.
Diluted earnings per equity share have been computed by dividing the
net profit attributable to the equity shareholders for the year by the
weighted average number of equity shares and dilutive potential equity
shares outstanding during the year, except where the results are anti
dilutive.
p. PROVSIONING ON RECEIVABLE FROM FINANCING ACTIVITY:
The Company assess all receivables for their recoverability and
accordingly recognizes provision for non-performing and doubtful assets
as per approved Company Policies and guidelines. The Company ensures
provisions made are not lower than as stipulated by RBI guidelines. The
Company provides 0.25% on standard assets as stipulated by RBI under
the head "Contingent Provision against Standard Assets.
(1) The shares allotted on 14th February, 2014 on preferential basis
are subject to lock-in period of 12 months from the date of trading at
Madras Stock Exchange i.e, 6th May, 2014. The Company is listed at only
Madras Stock Exchange.
The Company has only one class of equity shares having a par value of
Rs. 10 per share. Each holder of equity shares is entitled to one vote
per share. In the event of the liquidation of the Company, the holders
of equity shares will be entitled to receive remaining assets of the
Company, after distribution of all preferential amounts. The
distribution will be in proportion to the number of equity of shares
held by the shareholders. The holders of equity shares are entitled to
dividends, if any, proposed by the Board of Directors and approved by
shareholders at the annual general meeting.
Note:
Loans and advances due by directors or officers of the company or any
of them either severally or jointly with others or by firms or private
companies respectively in which any director is a partner or a director
or member Short term loans and advances are receivables under financing
activities and represents principal and accrued interest income
outstanding at the close of the year net of amounts written off.
Mar 31, 2013
A. GENERAL
The company follows the accrual method of accounting. The financial
statement have been prepared in accordance with the historical cost
convention and in accordance with. Expenses are accounted on their
accrual with necessary provision for all known liabilities and losses.
The company is registered with the RBI as a non-deposit taking NBFC and
hence all the prudential norms applicable with respect to an NBFC
relating to recognition of income and classification of assets etc.
have been followed during the year.
b. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the required amount of assets and
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Differences between the actual amounts and the estimates are recognized
in the period in which the results are known/ materialized.
c. FIXED ASSETS:
Depreciation is provided to the extent of depreciate amount on written
Down Value (WDV) at the rates and manner prescribed in schedule XIV of
the companies Act, 1956 ("the Act") at written down
e. INVESTMENTS:
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary. Current investments are stated at atlower of cost
and quoted/ fair value.
e. INVENTORIES:
The operations of the company is such that no inventories are
generated.
f. REVENUE RECOGNITION
Revenue is recognized and expenditure is accounted for on their
accrual. Dividend income i recognized when right to receive is
established.
g. EMPLOYEE BENIFITS:
a. Gratuity:
The liability for the gratuity has not been provided as per the
provisions of payment of gratuity Act, 1972 since no employee of the
company is eligible for such benefits during the year.
b. Provident Fund:
The provisions of the employees provident fund are not applicable to
the company since the number of employees employed during the year were
less than the minimum prescribed for the benefits.
c. Leave Salary:
In respect of leave salary, the same is accounted as and when the
liabilities arises in accordance with the provision of law governing
the establishment and at each balance sheet date the leave encashment
eligibility is determined and provided for.
h. DEFERRED TAX:
Taxes on income are accrued in the same period as the revenue and the
expenses to which they relate. Deferred tax assets are recognized to
the extent there is a virtual certainty of its realization.
i. IMPAIRMENT OF ASSETS:
As at Balance Sheet Date, the carrying amount of assets is tested for
impairment so as to determine:
a. Provision for Impairment Loss, if any, required or
b. the reversal, if any, required of impairment loss recognized in
previous period.
j. BORROWING COST:
Borrowing cost attributable to the acquisition or construction of
qualifying assets are capitalized as a part of such assets. All other
borrowing costs are charged off the revenue.
A qualifying assets is an assets that necessarily requires a
substantial period of time to get ready for its intended use or sale.
k. DEFERRED REVENUE EXPENDITURE:
Share Issue Expenses are written off uniformly over a period of 5
years.
j. INCOME TAX
Current tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the prudence, of timing differences, being the differences between
taxable income and accounting income that originate in one period and
are capable of reversal in one or more periods.
Note: (1) The shares allotted during the year on preferential basis are
subject to lock-in period of 12 months from the date of allotment
(31.03.2012) also subjected to approval from the stock exchanges in
which the shares are listed.
Note: Loans and advances due by directors of the company or any of them
either severally or jointly with others or by firms are private
companies respectively in which any director is a partner or a director
or member
Mar 31, 2012
A. GENERAL
The company follows the accrual method of accounting. The financial
statements have been prepared in accordance with the historical cost
convention and in accordance with. Expenses are accounted on their
accrual with necessary provision for all known liabilities and losses.
The Company is registered with the RBI as a non-deposit taking NBFC and
hence all the prudential norms applicable with respect to an NBFC
relating to recognition of income and classification of assets etc.
have been followed during the year.
b. USE OF ESTIMATES:
The preparation of financial statements requires estimates and
assumptions to be made that affect the required amount of assets and
liabilities on the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Difference between the actual amounts and the estimates are recognized
in the period in which the results are known/materialized.
c. FIXED ASSETS:
Fixed assets are stated at cost including taxes, duties, freight,
insurance etc. related to acquisition and installation.
d. DEPRECIATION:
Depreciation is provided to the extent of depreciable amount on written
Down Value (WDV) at the rates and manner prescribed in Schedule XIV of
the Companies Act, 1956 ("the Act") at written down value Method Rates
on pro rata basis for the additions during the year.
e. INVESTMENTS:
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if such a decline is
other than temporary. Current investments are stated at at lower of
cost and quoted/ fair value.
e. INVENTORIES:
The operations of the company is such that no Inventories are
generated.
f. REVENUE RECOGNITION
Revenue is recognized and expenditure is accounted for on their
accrual. Dividend income is recognized when right to receive is
established.
g. EMPLOYEE BENEFITS:
a. Gratuity:
The liability for gratuity has not been provided as per the provisions
of Payment of Gratuity Act, 1972 since no employee of the company is
eligible for such benefits during the year.
b. Provident Fund:
The provisions of the Employees Provident Fund are not applicable to
the company since the number of employees employed during the year were
less than the minimum prescribed for the benefits.
c. Leave Salary:
In respect of Leave Salary, the same is accounted as and when the
liability arises in accordance with the provision of law governing the
establishment and at each balance sheet date the leave encashment
eligibility is determined and provided for
h. DEFERRED TAX:
Taxes on Income are accrued in the same period as the revenue and the
expenses to which they relate. Deferred tax assets are recognized to
the extent there is a virtual certainty of its realization.
I. IMPAIRMENT OF ASSETS:
As at Balance Sheet Date, the carrying amount of assets is tested for
impairment so as to determine:
a. Provision for Impairment Loss, if any, required or
b. The reversal, if any, required of impairment loss recognized in
previous periods.
Impairment Loss is recognized when the carrying amount of an asset
exceeds its recoverable amount.
j. BORROWING COST:
Borrowing cost attributable to the acquisition or construction of
qualifying assets are capitalized as a part of such assets. All other
borrowing costs are charged off to revenue.
A qualifying asset is an asset that necessarily requires a substantial
period of time to get ready for its intended use or sale.
k. DEFERRED REVENUE EXPENDITURE: Share Issue Expenses are written off
uniformly over a period of 5 years.
I. INCOME TAX:
Current Tax is determined as the amount of tax payable in respect of
taxable income for the period. Deferred tax is recognized, subject to
the prudence, of timing differences, being the difference between
taxable incomes and accounting income that originate in one period and
are capable of reversal in one or more periods.
Mar 31, 2011
1. Accounting Convention:
The company follows the accrual method of accounting- The financial
statements have been prepared in accordance with the historical cost
convention and in accordance with Generally Accepted Accounting
Principles in India, applicable Accounting Standards issued by the
Institute of Chartered Accountants of India and the provisions of the
Companies Act, 1956. All amounts in the financial statement are
presented in Rupees except as otherwise stated.
2. Going Concern and liquidity:
The financial statements of the company have been prepared on a going
concern basis, which contemplates the realization of assets and the
discharge of the liabilities in the normal course of business for the
foreseeable future. The company has accumulated loss to the extent of
Rs. 56.21 lakhs as at 31-3-2011 (Previous year: 56.00 Lakhs) which was
financed through die shareholders funds & unsecured loan from
shareholders and directors, as a result the company's net worth
continues to be negative. The management is confident of successfully
completing initiatives and commence profitable operations in the
nearest foreseeable future.
3. a) Income Recognition: i) Finance charges in respect of Hire
Purchase transactions are recognized on the basis of Even Spread
Method. Even though no Income has been received during this year and
the operations have resulted in substantial loss to the company, the
accounts have been prepared on a going concern basis as the directors
are confident that some alternative stream of revenue would be found
and there would be recovery in due course of time from the Non
Performing Assets of the Company.
ii) Dividend income is accounted on receipt basis.
b) All Investments and fixed assets are reflected at cost.
c) Stock of Share is valued at cost or market value whichever is lower.
d) Depreciation is provided on W.D.V. method is respect of owned as
well as Leased Assets at the rates given in Schedule XTV of the
Companies Act, 1956. Depreciation on assets added/disposed of during
the year is being provided on pro-rata basis with reference to the
month of addition/ disposal.
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