Mar 31, 2015
1. Basis of preparation of financial statements
The financial statements are prepared in accordance with applicable
accounting standards and relevant provisions of the Companies Act, 2013
and are based on the historical cost conventions. Accounting policies
unless specifically stated to be otherwise, are consistent and are in
consonance with generally accepted accounting principles.
2 Presentation and disclosure of financial statements
Since the year ended 31 March 2015, the revised Schedule III notified
under the Companies Act 2013, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule III does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements.
3. Use of Estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting period. Although these estimates are based on the
management's best knowledge of current events and actions, uncertainty
about these assumptions and estimates could result in the outcomes
requiring a material adjustment to the carrying amounts of assets or
liabilities in future periods.
4. Tangible and Intangible Fixed Assets
Tangible fixed assets are stated at cost of acquisition and subsequent
improvements thereto; net of CENVAT / Value Added Tax, rebates, less
accumulated depreciation, and impairment loss, if any.
Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortizations and impairment loss,
if any.
5. Depreciation/Amortization
Depreciation on tangible assets is provided on straight line method
basis in the manner prescribed in Schedule II to the Companies
Act,2013.
Assets Estimated Useful Life
Office Equipment's 5 years
6. Inventories
Inventories are valued at cost or market price whichever is less.
7. Provision for Current and Deferred Tax
Provision for Current Income Tax is made after taking into
consideration benefits admissible under the provisions of the Income
Tax Act, 1961.
8. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events, it is probable that there will be an outflow of resources and a
reliable estimate can be made of the amount of the obligation. These
are reviewed at each balance sheet date and adjusted to reflect the
current best estimate. Contingent Assets are neither recognized nor
disclosed in the financial statement. Contingent Liabilities are not
provided for and are disclosed by way of notes.
9. Revenue Recognition
All income to the extent considered receivable, unless otherwise
stated, are accounted for on accrual basis. Revenue is recognized to
the extent that it is probable that the economic benefits will flow to
the Company and the revenue can be reliably measured.
Segment Reporting
The Company has identified that its operating segments are the primary
segments. The Company prepares its segment information in conformity
with the accounting policies adopted for preparing and presenting the
financial statements of the Company as a whole.
1. Cash and Cash Equivalents
Cash and cash equivalents in the cash flow statement comprise of cash
at bank and in hand and short -term investments with an original
maturity of three months or less.
2. Measurement of EBITDA
As permitted by the Guidance Note on the Revised Schedule VI to the
Companies Act, 1956, the company has elected to present earnings before
interest, tax, depreciation and amortization (EBITDA) as a separate
line item on the face of the statement of profit and loss. The company
measures EBITDA on the basis of profit/ (loss) from continuing
operations. In its measurement, the company does not include
depreciation and amortization expense, finance costs and tax expense.