Mar 31, 2015
I. Basic of preparation of financial statements:
These financial statements have been prepared in accordance with the
Generally Accepted Accounting Principles in India ('Indian GAAP') 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
financial statements have been prepared under the historical cost
convention on accrual basis, except for certain financial instruments
which are measured at fair value.
The company complies in all material respects, with the prudential
norms relating to income recognition asset classification and
provisioning for bad and doubtful debts and other matters.
II. Use of estimates:
The preparation of financial statements requires the management of the
Company to make estimates and assumptions that affect the reported
balances of assets and liabilities and disclosures relating to the
contingent liabilities as at the date of the financial statements and
reported amounts of income and expense during the year. Difference
between the actual results and estimates are recognized in the period
in which the results are known /materialized.
III. Revenue Recognition:
i) Interest Income:
Interest income is recognized as it accrues on a time proportion basis
taking into account the amount outstanding and the rate applicable
except in the case of non-performing assets (NPAs') where is
recognized, upon realization.
ii) Dividend Income:
Dividend income is recognized when the right to received payment is
established.
iii) Income from investments:
Profit earned from sale of securities is recognized on trade date
basis. The cost of securities is computed based on weighted average
basis.
iv) Discount on investments:
The Difference between the acquisition cost and face value of debt
instruments are recognized as interest income over the tenor of the
instrument on straight line basis.
v) Loan processing fee income:
Loan processing fee income is recognized as and when it becomes due
vi) Management fee income:
Management fee income towards support services is accounted as and when
it becomes due on contractual terms with the parties.
IV. Provision for Standard Assets:
The company previous provision for standard assets based on the
prudential norms issued by RBI relating to provisioning.
V. Fixed Assets:
Fixed assets are stated at cost, less accumulated depreciation/
amortization. Costs include all expenses incurred to bring the asset to
its present location and condition.
VI. Depreciation:
Depreciation on fixed assets has been provided on straight line method
over the useful life prescribed in schedule II to the companies Act,
2013 after considering salvage value of five percent of original cost.
The company has considered useful life of assets same as prescribed
under the Companies Act, 2013.
Depreciation upto 31.03.2014 was provided on Straight line method at
the rates prescribed in schedule XIV to the Companies Act, 1956.
Due to transition from schedule XIV to schedule II, depreciation on
assets existing as on 31.03.2014, has been provided in such a way so
that assets should be depreciated after considering salvage value over
a useful life of assets as prescribed under schedule II of the
Companies Act, 2013.
Assets of which useful life has already been expired but depreciation
charged till previous financial year was less than 95% of original cost
of the assets, difference of 95% of original cost and depreciation
charged till last year, has been charged to profit and loss account as
depreciation.
VII. Impairment of Assets:
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired if any such indication exists.
The company estimates the recoverable amount of the asset. If such
recoverable amount of the asset is less than that the carrying amount.
The carrying amount is reduced to its recoverable amount.
The reduction is treated as an impairment loss and is recognized in the
statement of profit and loss if at the balance sheet date there is an
indication that a previously assessed impairment loss no longer exists
the recoverable amount is reassessed and the asset is reflected at the
recoverable amount subject to a maximum of depreciable historical cost.
VIII. Investments:
Investments are classified as long term or current based on intention
of the management at the time of purchase.
Current investments are valued scrip wise at cost or fair value
whichever is lower.
IX. Repossessed Assets:
Assets repossessed against the settlement of loans are carried in the
balance sheet at outstanding loans amount or market value whichever is
lower. The difference between the outstanding loan amount and the
market value is charged to statement of profit and loss in the year of
repossession of assets.
X. Loan Origination/ Acquisition Cost:
All direct cost incurred for the origination is amortized over the
average tenure of the loan.
XI. Borrowing Cost:
Borrowing cost which are directly attributable to the acquisition/
construction of fixed assets, till the time assets are ready for
intended use, are capitalized as part of the cost of the assets. Other
borrowing costs are recognized as expenses in the year in which they
are incurred. Borrowing cost directly attributable to borrowing are
expense over the tenure of the borrowing.
XII. Earning Per Share:
The basic earning per shares is computed by dividing the net
profit/loss attributable to the equity shareholders for the period by
the weighted average number of equity shares outstanding during the
reported year. Diluted earning per share reflects the potential
dilution that could occur if securities or other contract to issue
equity shares were exercised or converted during the year. Diluted
earning per share is computed by dividing the net profit after tax by
weighted average number of equity shares and dilutive potential equity
shares outstanding during the year. In computing dilutive earning per
share, only potential equity shares that are dilutive and that reduce
profit/increase loss per share are included.
XIII. Cash and cash equivalents:
Cash and cash equivalents in the financial statements comprise cash in
hand and balance in bank in current accounts, deposit accounts and in
margin money deposits.
XIV. Cash Flow Statement
Cash flow is reported using indirect method. The Cash Flow from
operating, investing and financing activities of the company are
segregated based on the available information.
XV. Taxation:
i) Current Tax:
Provision for current tax made after taking into consideration benefit
admissible under the provision of the income tax act, 1961. Minimum
alternate tax (MAT) credit entitlement is recognized where there is
convincing evidence that the same can be realized in future.
ii) Deferred Tax:
The deferred tax charge or credit and the corresponding deferred tax
liability or assets are recognized using the tax rate 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 future however where there
is unabsorbed depreciation or carried forward loss under taxation laws.
Deferred tax liabilities are recognized only if there is virtual
certainty or realization of such assets. Deferred tax liabilities are
reviewed as at each balance sheet date and written down or written up
to reflect the amount that is reasonably/virtual certain (as the case
may be) to be realized.
Mar 31, 2014
1. ACCOUNTING CONVENTION
The Company prepares its accounts on historical cost basis as a going
concern.
2. 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 revenues
and expenses, assets and liabilities and the disclosure of contingent
liabilities on the date of financial statements. Actual results could
differ from those estimates. Any revision to accounting estimates is
recognized prospectively in current and future periods.
3. FIXED ASSETS
Fixed Assets are stated at cost, net of excise/ custom duty where
modvat credit on capital goods is availed and depreciated on Straight
Line basis at rates specified in Schedule XIV of the Companies Act,
1956.
4. IMPAIRMENT OF ASSETS
The carrying amounts of the assets are reviewed at each balance sheet
date to determine whether there is any indication of impairment. If any
such indication exists, the recoverable amount of the asset is
estimated. For assets that are not yet available for use, the
recoverable amount is estimated at each balance sheet date. An
impairment loss is recognized whenever the carrying amount of an asset
or its cash generating unit exceeds its recoverable amount. Impairment
losses are recognized in the profit and loss account. An impairment
loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only
to the extent that the assets carrying amount does not exceed the
carrying amount that would have been determined net of depreciation or
amortization, if no impairment loss had been recognized.
5. INVENTORIES
i) Stores & raw material are valued at cost. Cost includes the element
of custom/excise duty paid (to the extent Modvat is not availed),
forwarding & transportation charges incurred in bringing the goods to
company''s premises.
ii) Goods in process are valued at material cost plus conversion cost
upto the stage of process completed.
iii) Finished goods are valued at lower of cost and net realizable
value. Cost for this purpose includes direct material, direct labour
and appropriate production overheads.
iv) The value of unrectifiable/ scrapped/damaged goods is incorporated
in books on basis of actual realization.
PAWANSUT HOLDINGS LIMITED
v) Excise Duty on finished product lying in the factory is accounted
for, on removal of goods, since such liability arises only when they
are sold. This however, had no impact on the profit and loss account of
the Company.
6. RETIREMENT BENEFITS
No scheme with regard to retirement benefits in the form of super
annuation/ pension/gratuity is in operation.
7. RESEARCH & DEVELOPMENT
Revenue expenditure on research and development is charged to Profit &
Loss Account in the year in which it is incurred.
8. REVENUE RECOGNITION
Sale and expenses are recognized on accrual basis except gratuity which
is accounted for on payment basis.
9. FOREIGN CURRENCY TRANSACTIONS
Foreign exchange transactions are recorded using the exchange rate
prevailing on the date of the transaction. Exchange differences arising
on foreign exchange transactions settled during the year are recognized
in the Profit and Loss Account of the year.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at the exchange rates on that
date, the resultant exchange differences are recognized in the Profit
and Loss Account.
10. INSURANCE CLAIMS
Insurance claims and expenses are accounted for when settled/ admitted
by the Insurer.
11. TAXATION
Income tax liability is ascertained on the basis of assessable profits
computed in accordance with the provisions of the Income-tax Act, 1961.
Deferred tax charge or credit is recognized using current tax rates on
timing differences between taxable income and accounting income, which
originate in one period and are capable of reversal in one or more
subsequent periods.
Where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognized only if there is virtual certainty
of realization of such assets. Such assets are reviewed at each
balance sheet date to reassess realization.
12. EARNING PER SHARE
Earning per share is calculated by dividing the net profit or loss for
the year after prior period adjustments by the closing number of equity
shares at the end of the year.
Mar 31, 2011
1. ACCOUNTING CONVENTION
The Company prepares its accounts on historical cost basis as a going
concern.
2. 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 revenues
and expenses, assets and liabilities and the disclosure of contingent
liabilities on the date of financial statements. Actual results could
differ from those estimates. Any revision to accounting estimates is
recognized prospectively in current and future periods.
3. FIXED ASSETS
Fixed Assets are stated at cost, net of excise/ custom duty where
modvat credit on capital goods is availed and depreciated on Straight
Line basis at rates specified in Schedule XIV of the Companies Act,
1956.
4. IMPAIRMENT OF ASSETS
The carrying amounts of the assets are reviewed at each balance sheet
date to determine whether there is any indication of impairment. If any
such indication exists, the recoverable amount of the asset is
estimated. For assets that are not yet available for use, the
recoverable amount is estimated at each balance sheet date. An
impairment loss is recognized whenever the carrying amount of an asset
or its cash generating unit exceeds its recoverable amount. Impairment
losses are recognized in the profit and loss account. An impairment
loss is reversed if there has been a change in the estimates used to
determine the recoverable amount. An impairment loss is reversed only
to the extent that the assets carrying amount does not exceed the
carrying amount that would have been determined net of depreciation or
amortization, if no impairment loss had been recognized.
5. INVENTORIES
i) Stores & raw material are valued at cost. Cost includes the element
of custom/excise duty paid (to the extent Modvat is not availed),
forwarding & transportation charges incurred in bringing the goods to
company''s premises.
ii) Goods in process are valued at material cost plus conversion cost
upto the stage of process completed.
iii) Finished goods are valued at lower of cost and net realizable
value. Cost for this purpose includes direct material, direct labour
and appropriate production overheads.
iv) The value of unrectifiable/ scrapped/damaged goods is incorporated
in books on basis of actual realization.
v) Excise Duty on finished product lying in the factory is accounted
for, on removal of goods, since such liability arises only when they
are sold. This however, had no impact on the profit and loss account of
the Company.
6. RETIREMENT BENEFITS
No scheme with regard to retirement benefits in the form of super
annuation/ pension/gratuity is in operation.
7. RESEARCH & DEVELOPMENT
Revenue expenditure on research and development is charged to Profit &
Loss Account in the year in which it is incurred.
8. REVENUE RECOGNITION
Sale and expenses are recognized on accrual basis except gratuity which
is accounted for on payment basis.
9. FOREIGN CURRENCY TRANSACTIONS
Foreign exchange transactions are recorded using the exchange rate
prevailing on the date of the transaction. Exchange differences arising
on foreign exchange transactions settled during the year are recognized
in the Profit and Loss Account of the year.
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at the exchange rates on that
date, the resultant exchange differences are recognized in the Profit
and Loss Account.
10. INSURANCE CLAIMS
Insurance claims and expenses are accounted for when settled/ admitted
by the Insurer.
11. TAXATION
Income tax liability is ascertained on the basis of assessable profits
computed in accordance with the provisions of the Income-tax Act, 1961.
Deferred tax charge or credit is recognized using current tax rates on
timing differences between taxable income and accounting income, which
originate in one period and are capable of reversal in one or more
subsequent periods.
Where there is unabsorbed depreciation or carry forward losses,
deferred tax assets are recognized only if there is virtual certainty
of realization of such assets. Such assets are reviewed at each balance
sheet date to reassess realization.
Mar 31, 2010
1 ACCOUNTING CONVENTION
The Company prepares Its -wunts on historical cost basis as a going
concern.
2 USE OF ESTIMATES
The preparation of financial statements m conformity with Generally
Accepted Accounting Principles [GAAP) requires management to make
estimates and assumptions that affect the reported amounts of revenues
and expenses, assets and Unities and the disclosure of contingent
liabilities on the date of financial statements. Actual results could
differ from those estimates. Any revision to accounting estimates is
recognized prospectively in current and future periods.
3, FIXED ASSETS
Fixed Assets are stated at cost, net of excise/ custom duty where
modvat cred.t on capital goods Is availed and depreciated on Straight
Line basis at rates specified In Schedule XIV of the Companies Act,
1956.
4 IMPAIRMENT OF ASSETS
The carrying amounts of the assets are reviewed at each balance sheet
date to determine whether there is any Indication of impairment. If any
such indicate exists, the recoverable amount of the asset is estimated.
For assets that are not yet available for use, the recoverable amount
is estimated at each balance sheet date. An Impa-rment loss is
recognized 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 has been a change In the estimates used to determine
the recoverable amount. Ah impairment loss is reversed only to the
extent that the assets carrying amount does not exceed the carrying
amount that would have been determined net of depreciation or
amortization, if no impairment loss had been recognized,
S- INVENTORIES
I) Stores & raw material are valued at cost. Cost includes the element
of custom/excise duty pa.d {to the extent Modvat is not allied),
forwarding & transportation charges Incurred in bringing the goods to
companyJs premises. Goods in process are valued at material cost plus
conversion cost upto the stage of process completed.
Mi) Finished goods are valued at lower of cost and net realizable
value. Cost for this purpose includes direct material, direct labour
and appropri -.production overheads <-K%
Iv) The value or unrectifiable/ scrapped/damaged goods is incorporated
in books on basis of actual realization.
v) Excise Duly on finished product lying In the factory is accounted
for, on removal of goods, since such liability arises only when they
are sold. This however, had no Impact on the profit and loss account of
the Company h
6. RETIREMENT BENEFITS
No scheme with regard to retirement benefits in the form of super
annuabon/ pension/gratuity 3s In operation*
7- RESEARCH a DEVELOPMENT
Revenue expenditure on research and development Is charged to Profit &
Loss
p Account In Hie year In which it is incurred.
8. REVENUE RECOGNfTION
Sale and expenses are recognized on accrual basis except gratuity which
is accounted for on payment basis.
9. FOREIGN CURRENCY TRANSACTIONS
Foreign exchange transactions are recorded using the exchange rate
prevailing on the date of the transaction. Exchange differences arising
on foreign exchange transactions settled during the year are recognized
In the Profit and Loss Account of the yean
Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at the exchange rates on that
date, the resultant exchange differences are recognized in the Profit
and Loss Account.
10. INSURANCE CLAIMS
Insurance claims and expenses are accounted for when settled/ admitted
by the Insurer.
11. TAXATION
Income tax liability is ascertained on the basis of assessable profits
computed in accordance with the provisions of the Income-tax Act, 19$1.
Deferred tax charge or credit is recognized using current tax rates on
timing differences between taxable Income and accounting income, which
originate In one period and are capable of reversal In one or more
subsequent periods.
Where there is unabsorbed depreciation or carry forward lossesr
deferred tan assets are recognized only If there is virtual certainty
of realization of such asse-£*5W-te assets are reviewed at each
balance sheet date to reassess realization.
Mar 31, 2009
I) BASIS OF ACCOUNTING
The financial statements have been prepared on the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies act, 1956 and the
applicable accounting standards issued by the Institute of Chartered
Accountants of India.
ii) INCOME & EXPENSES
The company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
iii) DEPRECIATION
Depreciation is provided on fixed assets on straight-line method at the
rates specified in schedule XIV of the Companies Act, 1956.
iv) FIXED ASSETS
Fixed assets are stated at cost less depreciation.
v) TAXES ON INCOME
Current tax is the amount of tax on the taxable income for the year as
determined in accordance with the provisions of the Income tax Act,
1961. Deferred tax liability/assets is recognised subject to the
consideration of prudence on timing deference, being the difference
between taxable income and accounting income that originates in one
period and are capable of reversal in one or more subsequent periods.
vi) CONTINGENT LIABILITIES
Disputed liabilities and claims are treated, as contingent liabilities.
Claims against the company not acknowledged as debts Rs. Nil (P.Y. Nil)
vii) RETIREMENT BENEFITS
The provision of provident fund and gratuity are not applicable to the
company leave encashment is provided on the basis of leave entitlement
of employees remaining unutilized at the end of the year.
Mar 31, 2008
I) BASIS OF ACCOUNTING
The financial statements have been prepared on the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies act, 1956 and the
applicable accounting standards issued by the Institute of Chartered
Accountants of India.
ii) INCOME & EXPENSES
The company generally follows mercantile system of accounting and
recognises significant items of income and expenditure on accrual
basis.
iii) DEPRECIATION
Depreciation is provided on fixed assets on straight-line method at the
rates specified in schedule XIV of the Companies Act, 1956.
iv) FIXED ASSETS
Fixed assets are stated at cost less depreciation.
v) INVESTMENTS
The investments are stated at cost. Provision for diminution in value
of investments is made by the company to recognises permanent decline
if any in the value of each investment.
vi) TAXES ON INCOME
Current tax is the amount of tax on the taxable income for the year as
determined in accordance with the provisions of the Income tax Act,
1961. Deferred tax liability/assets is recognised subject to the
consideration of prudence on timing deference, being the difference
between taxable income and accounting income that originates in one
period and are capable of reversal in one or more subsequent periods.
vii) CONTINGENT LIABILITIES
Disputed liabilities and claims are treated, as contingent liabilities.
Claims against the company not acknowledged as debts Rs. Nil (P.Y. Nil)
viii) RETIREMENT BENEFITS
The provision of provident fund and gratuity are not applicable to the
company leave encashment is provided on the basis of leave entitlement
of employees remaining unutilized at the end of the year.
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