Mar 31, 2014
1.1 Basis of accounting:
The financial statements are prepared under historical cost convention,
on an accrual basis and are in accordance with the requirements of the
Companies Act, 1956 and comply with the Accounting Standards referred
to in sub-section (3C) of section 211 of the said Act. The preparation
of financial statements requires the Management to make estimates and
assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Future results could differ from these estimates.
1.2 Lease Accounting
(a) In respect of assets given on lease, the company accounts for lease
income as per the recommendations of the Guidance Note on Accounting
for Leases issued by the Institute of Chartered Accountants of India.
(b) Finance charges on hire purchase agreements are accounted for by
applying the implicit rate of return in the transaction on the
declining balance of the amount financed for the period of agreement.
1.3 Fixed Assets:
All fixed assets are stated at cost of acquisition less accumulated
depreciation.
1.4 Depreciation:
(a) Fixed assets given on lease: In respect of assets acquired upto 31
st March, 1994 depreciation is provided on straight line method so as
to write-off ninety-five percent of the original cost of the asset over
the lease period which ranges from 3 to 5 years.
In respect of assets acquired after 31st March, 1994 depreciation is
provided on the written down value method on the basis of rates
specified in Schedule XIV to the Companies Act, 1956.
(b) Fixed assets acquired for own use : Depreciation has been computed
on the straight line method at the rates applicable at the time of
acquisition of the fixed assets as specified in Schedule XIV to the
Companies Act, 1956.
(c) Depreciation on investment in immovable property is provided for on
the basis of straight line method.
1.5 Investments:
Long term investments are stated at cost, less any diminution in value
other than temporary. Current investments are stated at lower of cost
and fair value.
There are no foreign currency transactions during the year under
review.
1.6 Retirement benefits:
Retirement benefits in respect of gratuity and leave Encashment has
been provided for during the year under consideration up to the time
there were such employees in the company. Actuarial valuation as at the
end of the financial year is not made as there are no employees in the
company as at the year end.
1.7 Taxation:
a) Provision for taxation has been made in accordance with the Income
Tax laws and rules prevailing at the time of the relevant assessment
years. The company has unabsorbed depreciation and earned forward
losses available for set-off under the Income- tax Act, 1961. However,
in view of present uncertainty regarding generation of sufficient
future taxable income, net deferred tax assets at the year end
including related credit for the year have not been recognised in these
accounts on prudent basis.
b) Necessary provisions are made for present obligations that arise out
of events prior to the balance sheet date entailing future outflow of
economic resources. Such provision reflects best estimates based on
available information.
c) Tax is deducted at source on payment of relevant expenditures.
1.8. The management believes that the company is a going concern and
will continue to be so in the foreseeable future, notwithstanding the
fact that the company has eroded its net worth. Considering the steps
initiated by the company for its revival and recovery of its dues from
its clients, including legal recourse, the company is confident that
the outstandings will be reduced in due course of time.
1.9. The company does not have a full time company secretary though the
same is requiring by the Companies Act 1956.
1.10. The Company''s bankers have initiated recovery proceedings in
respect of dues against Bank Overdraft/Working Capital Demand Loans
amounting to Rs. 78,920.893 in respect of Central Bank of India as at
20.03.2001 and amounting to Rs. 78,744,765 in respect of The Federal Bank
Ltd. as at 02.01.2003. Together with interest thereon. The company has
been consistently providing for interest on above loans @16.50% &
@18.50% in respect of Central Bank of India and The Federal Bank Ltd.
respectively. Accordingly as at the balance sheet date the total
outstanding in respect of Central Bank of India is Rs.177,269,573 and in
respect of The Federal Bank Ltd. is Rs.207,360,015. These matters are
pending before The Debt Recovery Tribunal for hearing and final
disposal. However, the Company is in dialogue for compromise
settlement.
1.11. During the year under consideration the company has not
recognised any income in respect of lease and hire purchase as in the
opinion of the management no such income as accrued.
Mar 31, 2012
A Basis of accounting:
The financial statements are prepared under historical cost convention,
on an accrual basis and are in accordance with the requirements of the
Companies Act, 1956 and comply with the Accounting Standards referred
to in sub section (3C) of section 211 of the said Act. The preparation
of financial statements requires the Management to make estimates and
assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) as of the date of the
financial statements and the reported income and expenses during the
reporting period. Management believes that the estimates used in
preparation of the financial statements are prudent and reasonable.
Future results could differ from these estimates.
B Lease Accounting
(a) In respect of assets given on lease, the company accounts for lease
income as per the recommendations of the Guidance Note on Accounting
for Leases issued by the Institute of Chartered Accountants of India.
(b) Finance charges on hire purchase agreements are accounted for by
applying the implicit rate of return in the transaction on the
declining balance of the amount financed for the period of agreement.
C Fixed Assets:
All fixed assets are stated at cost of acquisition less accumulated
depreciation.
D Depreciation:
(a) Fixed assets given on lease: In respect of assets acquired upto
31st March, 1994 depreciation is provided on straight line method so as
to write-off ninety-five percent of the original cost of the asset over
the lease period which ranges from 3 to 5 years.
In respect of assets acquired after 31st March, 1994 depreciation is
provided on the written down value method on the basis of rates
specified in Schedule XIV to the Companies Act, 1956.
(b) Fixed assets acquired for own use : Depreciation has been computed
on the straight line method at the rates applicable at the time of
acquisition of the fixed assets as specified in Schedule XIV to the
Companies Act, 1956.
(c) Depreciation on investment in immovable property is provided for on
the basis of straight line method.
E Investments:
Long term investments are stated at cost, less any diminution in value
other than temporary. Current investments are stated at lower of cost
and fair value.
There are no foreign currency transactions during the year under
review.
F Retirement benefits:
Retirement benefits in respect of gratuity and leave Encashment has
been provided for during the year under consideration up to the time
there were such employees in the company. Actuarial valuation as at the
end of the financial year is not made as there are no employees in the
company as at the year end.
G Taxation:
a) Provision for taxation has been made in accordance with the Income
Tax laws and rules prevailing at the time of the relevant assessment
years. The company has unabsorbed depreciation and carried forward
losses available for set-off under the Income-tax Act, 1961. However,
in view of present uncertainty regarding generation of sufficient
future taxable income, net deferred tax assets at the year end
including related credit for the year have not been recognised in these
accounts on prudent basis.
b) Necessary provisions are made for present obligations that arise out
of events prior to the balance sheet date entailing future outflow of
economic resources. Such provision reflects best estimates based on
available information.
c) Tax is deducted at source on payment of relevant expenditures.
H The management believes that the company is a going concern and will
continue to be so in the foreseeable future, notwithstanding the fact
that the company has eroded its net worth. Considering the steps
initiated by the company for its revival and recovery of its dues from
its clients, including legal recourse, the company is confident that
the outstandings will be reduced in due course of time.
I The company does not have a full time company secretary though the
same is requiring by the Companies Act 1956.
J The Company''s bankers have initiated recovery proceedings in
respect of dues against Bank Overdraft/Working Capital Demand Loans
amounting to Rs. 78,920,893 in respect of Central Bank of India as at
20.03.2001 and amounting to Rs. 78,744,765 in respect of The Federal
Bank Ltd. as at 02.01.2003. Together with interest thereon. The
company has been consistently providing for interest on above loans
@16.50% & @18.50% in respect of Central Bank of India and The Federal
Bank Ltd. respectively. Accordingly as at the balance sheet date the
total outstanding in respect of Central Bank of India is Rs.187,599,029
and in respect of The Federal Bank Ltd. is Rs.223,101,805. These
matters are pending before The Debt Recovery Tribunal for hearing and
final disposal. However, the Company is in dialogue for compromise
settlement.
K During the year under consideration the company has not recognised
any income in respect of lease and hire purchase as in the opinion of
the management no such income as accrued.
Mar 31, 2010
(i) Basis of Accounting Preparation
The financial statements are prepared under historical cost convention
on an accrual basis in accordance with the accounting principle, and
are in accordance with the requirements of the Companies Act, 1956
referred to in sub-section (3C) of Section 211 of the said Act. And
comply with notified accounting standards by Companies Accounting
Standards Rules, 2006.
(ii) Lease Accounting
a) In respect of assets given on lease, the company accounts for lease
income as per the recommendations of the Guidance Note on Accounting
for Leases issued by the Institute of Chartered Accountants of India.
b) Finance charges on hire purchase agreements are accounted for by
applying the implicit rate of return in the transaction on the
declining balance of the amount financed for the period of agreement.
(iii) Fixed Assets
All fixed assets are stated at cost of acquisition less accumulated
depreciation.
(iv) Depreciation/Amortisation
a) Fixed assets given on lease
In respect of assets acquired upto 31st March, 1994 depreciation is
provided on straight line method so as to write-off ninety- five
percent of the original cost of the asset over the lease period which
ranges from 3 to 5 years.
In respect of assets acquired after 31st March, 1994 depreciation is
provided on the written down value method on the basis of rates
specified in Schedule XIV to the Companies Act, 1956.
b) Fixed assets acquired for own use
Depreciation has been computed on the straight line method at the rates
applicable at the time of acquisition of the fixed assets as specified
in Schedule XIV to the Companies Act, 1956.
c) Depreciation on investment in immovable property is provided for on
the basis of straight line method.
(v) Investments
Long term investments are stated at cost, less any diminution in value
other than temporary. Current investments are stated at lower of cost
and fair value.
(vi) There are no foreign currency transactions during the year under
review.
(vii) Retirement benefits
Retirement benefits in respect of gratuity and leave Encashment has
been provided for during the year under consideration up to the time
there were such employees in the company. Actuarial valuation as at the
end of the financial year is not made as there are no employees in the
company as at the year end.
(viii) Taxation
a) Provision for taxation has been made in accordance with the Income
Tax laws and rules prevailing at the time of the relevant assessment
years. The company has unabsorbed depreciation and carried forward
losses available for set-off under the Income-tax Act, 1961. However,
in view of present uncertainty regarding generation of sufficient
future taxable income, net deferred tax assets at the year end
including related credit for the year have not been recognised in these
accounts on prudent basis.
b) Necessary provisions are made for present obligations that arise out
of events prior to the balance sheet date entailing future outflow of
economic resources. Such provision reflects best estimates based on
available information.
c) Tax is deducted at source on payment of relevant expenditures.