Mar 31, 2015
A) BASIS OF PREPARATION OF ACCOUNTS :
The financial statements have been prepared and presented under
historical cost convention on the accrual basis of accounting and
comply with other pronouncements of the Institute of Chartered
Accountants of India (ICAI), Accounting Standard prescribed under
section 133 of The Companies Act, 2013 read with Rule 7 of the
Companies (Accounts) Rules 2014 to the extent applicable. The
Financial Statements have been prepared under historical cost
convention on an accrual basis except in case of assets for which
provision for impairment is made. Accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
B) USE OF ESTIMATES :
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
financial statements and reported amounts of revenue and expenses for
the year. Although these estimates are based upon management's best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between the actual results and
estimates are recognized in the period in which the results are known /
materialized.
C) FIXED ASSETS:
Fixed Assets are stated at cost (Net of VAT wherever applicable) less
accumulated depreciation and impairments, if any. Cost comprises the
purchase price and any attributable costs of brining the asset to its
working condition for intended use. They are stated at historical cost.
D) IMPAIRMENT OF ASSETS :
i) At each Balance Sheet date, the Company determines whether a
provision should be made for impairment loss on fixed assets by
considering the indications that an impairment loss may have occurred
in accordance with Accounting Standard (AS)-28 "Impairment of Assets".
ii) After Impairment, depreciation is provided on the revised carrying
amount of the assets.
iii) A previously recognized impairment loss is increased or reversed
depending on changes in circumstances. However, the carrying value
after reversal is not increased beyond the carrying value that would
have prevailed by charging usual depreciation if no impairment loss had
been recognized.
E) DEPRECIATION:
Depreciation on Fixed Assets is provided on "Written Down Value" method
and at the rates prescribed in Schedule II of the Companies Act, 2013.
Depreciation on addition to fixed assets is provided on prorate basis
from the date of acquisition or installation. Depreciation on assets
sold, discarded, demolished or scrapped, is provided up to the date on
which the said asset is sold, discarded, demolished or scrapped.
F) INVESTMENTS:
i) Investments that are intended to be held for more than a year from
the date of acquisition and those having fixed maturity period of more
than a year are classified as long-term Investments and are stated at
cost. Provision for diminution in value of long-term investments are
made, if the diminution in value is other than temporary.
ii) Current investments are valued at cost or market value, whichever
is lower, on scrip wise basis.
iii) Reclassification of investments are made at the lower of cost and
fair value at the date of transfer wherever available.
G) RECOGNITION OF INCOME AND EXPENDITURE :
Revenues/Incomes and Costs/Expenditures are generally accounted on
accrual basis as they are earned or incurred.
DIVIDEND :
Revenue is recognized when the right to receive is established.
INTEREST:
Interest income is recognized on a time proportion basis taking into
account the amount outstanding and the rate applicable.
H) EARNING 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. For the
purpose of calculating diluted earnings per share, the net profit or
loss attributable to equity shareholders and the weighted average
number of shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.
I) PROVISION FOR CURRENT AND DEFERRED TAX :
Tax expense comprises of Current and Deferred tax.
Deferred Income tax reflects the impact of current year timing
differences between taxable income/ losses and accounting income for
the year and reversal of timing differences of earlier years. Deferred
tax is measured on the tax rates and tax laws enacted or substantively
enacted as at the Balance Sheet date. Deferred tax assets are
recognized only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. In respect of carry forward losses
deferred tax assets are recognized only to the extent there is virtual
certainty that sufficient future taxable income will be available
against which such losses can be set off.
J) PROVISIONS/ CONTINGENCIES :
A Provision is created when an enterprise has a present obligation as a
result of past event that probably requires an outflow of resources and
a reliable estimate can be made of the amount and it is probable that
an outflow of resources will be required to settle the obligation. A
disclosure for 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.
The Company does not recognize assets which are of contingent nature
until there is virtual certainty of reliability of such assets.
However, if it has become virtual certain that an inflow of economic
benefits will arise, assets and related income are recognized in the
financial statements of the period in which the change occurs.
K) Retirement benefits :
In absence of the employee , the Company has no obligation to make
provision for economic/ termination benefit.
L) Segment Reporting:
The company is engaged primarily in the business of investment and
accordingly there are no serrate reportable segment as per Accounting
standard As-17 'Segment Reporting's' issued by ICAI.
Mar 31, 2014
A) BASIS OF PREPARATION OF ACCOUNTS :
The financial statements have been prepared and presented under
historical cost convention on the accrual basis of accounting and
comply with other pronouncements of the Institute of Chartered
Accountants of India (ICAI), the relevant provisions of the Companies
Act, 1956 and the Companies Act, 2013 (to the extent applicable) and
also accounting standards prescribed by the Companies (Accounting
Standards) Rules, 2006, which continue to be applicable in respect of
Section 133 of the Companies Act, 2013 in terms of General Circular
15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs.
The Financial Statements have been prepared under historical cost
convention on an accrual basis except in case of assets for which
provision for impairment is made. Accounting policies have been
consistently applied by the Company and are consistent with those used
in the previous year.
B) USE OF ESTIMATES :
The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
financial statements and reported amounts of revenue and expenses for
the year. Although these estimates are based upon management''s best
knowledge of current events and actions, actual results could differ
from these estimates. Difference between the actual results and
estimates are recognised in the period in which the results are known /
materialised.
C) FIXED ASSETS:
Fixed Assets are stated at cost (Net of VAT wherever applicable) less
accumulated depreciation and impairments, if any. Cost comprises the
purchase price and any attributable costs of brining the asset to its
working condition for intended use. They are stated at historical cost.
D) IMPAIRMENT OF ASSETS :
i) At each Balance Sheet date, the Company determines whether a
provision should be made for impairment loss on fixed assets by
considering the indications that an impairment loss may have occurred
in accordance with Accounting Standard (AS)-28 "Impairment of Assets".
ii) After Impairment, depreciation is provided on the revised carrying
amount of the assets.
iii) A previously recognized impairment loss is increased or reversed
depending on changes in circumstances. However, the carrying value
after reversal is not increased beyond the carrying value that would
have prevailed by charging usual depreciation if no impairment loss had
been recognized.
E) DEPRECIATION:
Depreciation on Fixed Assets is provided on "Written Down Value" method
and at the rates prescribed in Schedule XIV of the Companies Act, 1956.
Depreciation on addition to fixed assets is provided on prorata basis
from the date of acquisition or installation. Depreciation on assets
sold, discarded, demolished or scrapped, is provided up to the date on
which the said asset is sold, discarded, demolished or scrapped.
F) INVESTMENTS:
i) Investments that are intended to be held for more than a year from
the date of acquisition and those having fixed maturity period of more
than a year are classified as long-term Investments and are stated at
cost. Provision for diminution in value of long-term investments are
made, if the diminution in value is other than temporary.
ii) Current investments are valued at cost or market value, whichever
is lower, on scrip wise basis.
iii) Reclassification of investments are made at the lower of cost and
fair value at the date of transfer wherever available.
G) RECOGNITION OF INCOME AND EXPENDITURE :
Revenues/Incomes and Costs/Expenditures are generally accounted on
accrual basis as they are earned or incurred.
DIVIDEND :
Revenue is recognised when the right to receive is established.
H) INTEREST:
Interest income is recognised on a time proportion basis taking into
account the amount outstanding and the rate applicable.
I) BORROWING COST :
Financial Income and borrowing costs include interest income on bank
deposits and interest expense on loans recognised when the right to
receive the payment is established.
J) EARNING 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. For the
purpose of calculating diluted earnings per share, the net profit or
loss attributable to equity shareholders and the weighted average
number of shares outstanding during the year are adjusted for the
effects of all dilutive potential equity shares.
K) PROVISION FOR CURRENT AND DEFERRED TAX :
Tax expense comprises of Current and Deferred tax.
Provision for current tax including wealth tax has been made in
accordance with the direct tax laws prevailing for the relevant
assessment years. The current tax charge for the Company includes
Minimum Alternate Tax ( MAT) determined under section 115JB of the
Income Tax Act, 1961.
Deferred Income tax reflects the impact of current year timing
differences between taxable income/losses and accounting income for the
year and reversal of timing differences of earlier years. Deferred tax
is measured on the tax rates and tax laws enacted or substantively
enacted as at the Balance Sheet date. Deferred tax assets are
recognized only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. In respect of carry forward losses
deferred tax assets are recognised only to the extent there is virtual
certainty that sufficient future taxable income will be available
against which such losses can be setoff.
L) PROVISIONS/ CONTINGENCIES :
A Provision is created when an enterprise has a present obligation as a
result of past event that probably requires an outflow of resources and
a reliable estimate can be made of the amount and it is probable that
an outflow of resources will be required to settle the obligation. A
disclosure for 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.
The Company does not recognise assets which are of contingent nature
until there is virtual certainty of reliability of such assets.
However, if it has become virtual certain that an inflow of economic
benefits will arise, assets and related income are recognised in the
financial statements of the period in which the change occurs.
M) Retirement benefits :
In absence of the employee , the Company has no obligation to make
provision for economic/termination benefit.
N) Segment Reporting:
The company is engaged primrily in the business of investment and
accodingly there are no seprate reportable segment as per Accounting
standard As-17 ''Segment Reportings'' issued by ICAI.
Mar 31, 2012
Basis of Accounting
i The financial statements have been prepared under the historical cost
convention in accordance with the accounting standards issued by the
Institute of Chartered Accountants of India and the provisions of the
Companies Act 1956, as adopted consistently by the Company. All income
& expenditure having the material bearing on the financial statements
are recognized on accrual basis.
ii Use of Estimates
The preparation of financial statements in confirmity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect the reported amount of assets and libilities on the
date of financial statements and a reported amount of revenues and
expenses during the reporting period. Difference between the actual
expenses and estimates is recognised in the period in which the results
are known/ materialised.
iii Own Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation. Cost
comprises the purchase price, including duties, legal fees, other
non-refundable taxes or levies directly attributable cost of bringing
the assets to its working condition.
iv Depreciation and Amortisation
Depreciation has been provided on ''Written down value method'' as per
rates specified in schedule XIV to the Companies Act, 1956. On revalued
assets, depreciation has been provided as per rates specified in
schedule XIV to the Companies Act, 1956 from the date of revaluation
and depreciation to the extent of revaluation debited to revaluation
reserve.
v Impairment of Assets
An assets is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an assets is idetified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
vi Revenue Recognition
a) Revenue/Incomes and Cost/Expenditure are generally accounted on
accrual, as they are earned or incurred.
b) Dividend income is recognised on receipt basis.
vii Borrowing costs
Interest and other borrowing costs attributable to qualifying assets
are capitalised. Other interest and borrowing costs are charged to
revenue in the year they are incurred.
viii Taxes on Income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deferred tax is recognised, on the timing differences, being the
difference between taxable income and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods.Deferred tax assets in respect of unabsorbed depreciation and
carry forward of losses are recognised if there is virtual certainty
that there will be sufficient future taxable income available to
realize such losses.
The company has not recognised keeping prudence in mind net deferred
tax assets in respect of accumulated business losses in view of non
availability of benefit in near future.
ix Earnings per Share
Basic earnings per share is computed by dividing the net profit after
tax by the average number of equity shares outstanding during the
period.
x Investments
Investments are classified into Current and Long-term Investments.
Current Investments are stated at lower of cost and fair value.
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.
xi Provisions, Contingent Liabilities and Contingent Assets
Provisions and Contingent Liability: The Company recognises a provision
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. 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 outflow of
resources. Where there is a possible obligation or a present obligation
and the likelihood of outflow of resources is remote, no provision or
disclosure is made. Continegent Assets are neither recognized nor
disclosed in the financial statements.
xii The company has delivered the shares of M/s. State Bank of India,
IFCI Ltd., B.S.E.S. Ltd., Pashupati Fabrics Ltd. and Samta Sahakari
Bank Ltd., to the Office Of Custodian, Special Court (Trial of offences
relating to transactions in securities) Act, 1992. The company has
however received dividend from State Bank of India.
xiii Retirement benefits:
In absence of the employees, the company has no obligation to make
provisions for economic/ termination benefit.
xiv Segment reporting:
The Company is engaged primarily in the business of investments and
accordingly there are no separate reportable segments as per Accounting
Standard - AS -17 ''Segment Reporting'' issued by ICAI.
xviii Contingent liabilities
The liability for workman compensation of Rs. 45,174/- is disputed by
the company and the matter is lying in Labour Court.
xix The Company has not received any intimation from the suppliers
regarding their status under the Micro, Small and Medium Enterprises
Development Act, 2006 and hence the disclosures relating to amount
unpaid as at end of the year together with interest payable as required
under the said act has not been furnished and provision for interest,
if any, on delayed payment is not ascertainable at this stage. No
interest payment is made during the year.
The Company had approached the Special Court for the waiver of interest
in respect of loan of late Shri J.P Gandhi.However, Honourable Court
has directed the company to settle the issue with Custodian to arrive
mutually agreed amount.The negotiation in the matter is in progress
with the Custodian.
2.1 The Company has two classes of Shares referred to as equity shares
having a par value of Rs. 10/-.and Preference /shares havine per value
of Rs.100/- Each holder ofequity shares is entitled to one vote per
share.
Mar 31, 2010
I) BASIS OF ACCOUNTING: The financial statements have been prepared
under the historical cost convention in accordance with the accounting
standards issued be the Institute of Chartered Accountants of India and
the provisions of the Companies Act, 1956, as adopted consistently by
the Company. All income & expenditure having the material bearing on
the financial statements are recognized on accrual basis.
ii) USE OF ESTIMATES:
The preparation of financial statements in conformity with generally
accepted accounting principles requires estimates and assumptions to be
made that affect, the reported amount of assets and liabilities on the
date of financial statements and a reported amount of revenues and
expenses during the reporting period. Difference between the actual
expenses and estimates is recognised in the period in which the
iii) CONTINGENCY & EVENT OCCURRING AFTER THE BALANCE SHEET DATE:
There has been no material events occurring after the balance sheet
date that require adjustments to as disclosure in the financial
statements.
iv) REVENUE RECOGNITION:
Dividend income is accounted for as and when declared. Sale / purchase
of shares / securities are considered on contract basis inclusive of
stamp & transfer fees. Interest income is considered on accrual basis
over the full financial year.
v) FIXED ASSETS:
Fixed assets are capitalised at cost inclusive of legal and / or
installation expenses.
vi) DEPRECIATION:
Depreciation has been provided on written down value method as per
rates specified in Schedule XIV to the Companies Act, 1956.
vii) INVESTMENTS:
Investments are capitalised at cost plus brokerage and stamp charges.
The profit/ (loss) on the sale of investments is dealt with at the time
of actual sale/redemption. Provision is made for depletion in market
value of Long Term Investments, if the same is considered permanent in
nature by the management Current Investments are valued at lower of
Cost or fair value.
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