Mar 31, 2015
M/S Purshottam Invest of in Limited ("The Company") was incorporated in India on 04TH day of November 1988 under the company's act 1956. The company is registered with Reserve Bank of India (RBI) as a Non-Banking Financial Company vide certificate No.B-14-01044 dated 14th May 2003. The company is primarily engaged in the business of NBFC (Non-Accepting Public Deposits).
a. Basis of preparation of financial statements
The financial statements have been prepared and presented under the historical cost convention method, on the accrual basis of accounting and in accordance with the Generally Accepted Accounting Principles ("GAAP") in India, and Accounting Standards Specified under Section 133 of the companies act 2013 (the 'act'), read with rule 7 of the companies (Accounts) Rules ,2014 (as amended). The accounting policies have been consistently applied by the company.
Previous year figures have been regrouped/ recast to make them comparable with figures of current year.
b. Use of estimates
The preparation of financial statements in conformity with the Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any change in the accounting estimates is recognized prospectively in the current and future periods.
c. Revenue Recognition
Revenue is recognized on accrual basis
d. Fixed assets
Fixed assets are stated at cost of acquisition less accumulated depreciation and impairment losses if any. The cost of fixed assets comprises purchase price and any attributable cost of bringing the asset to its working condition for its intended use.
Internally generated intangible asset arising from development activity are recognized only on demonstration of its feasibility, the intention and ability of the company to complete, use or sell it. The intangible assets (if any) are eroded at cost and are carried at cost less accumulated amortization.
Depreciation on fixed assets ought to be in accordance with the enactment of the Companies Act 2013 (the 'Act'), the Company, effective 1st April 2014, had to review the estimated useful lives of its fixed assets, generally in accordance with the provisions of Schedule II to the Act, as follows:
However, depreciation has been charged for the first 9 months of the year according to Schedule XIV of the Companies Act, 1956 in the absence of clarity on the application of Schedule II of Companies Act, 2013 and the fixed assets has been disposed off at scrap value on 01.01.2015 resulting in NIL fixed assets as on 31.03.2015 and NIL depreciation for the 4th quarter of the FY 2014-15.
Moreover, the amount of depreciation charged during the year is not material which could affect the true and fair view of the state of affairs of the company for the current financial year
Investments held for maturity (Long term) are stated at cost & any decline other than temporary, in the value of such investments is charged to the statements of Profit & Loss. The carrying amount for Investment held for trade is the lower of cost and fair value.
Inventories are valued at the lower of cost and net realizable value. Cost of inventories comprises all cost of purchase, and other costs incurred in acquiring the inventories. Further the inventories are valued on FIFO basis.
h. Income Tax Expense
Provision for Income tax expense is determined as the amount of tax payable in respect of estimated taxable income for the year and in accordance with the Income-tax Act, 1961. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognized using the tax rates 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.
i. Employee Benefits:
Company has not made any Provision for liability of future payment of gratuity as the company does not fulfill the criteria of its provisions.
No provision has been made for leave encashment benefits, as the company does not have a policy of encasing leaves of employees.
Lease rentals (if any) in respect of operating lease arrangements are recognized as an expense in the profit & loss account on accrual basis.
k. Earnings per share
The earnings considered in ascertaining the Company's earnings per equity share comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of equity shares outstanding during the year.
l. Provisions & Contingencies
A provision is recognized when the company has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation. Contingent liabilities and contingent assets are neither recognized nor disclosed in the financial statements.
m. Foreign exchange transactions
Foreign currency transactions (if any) are recorded using the exchange rates prevailing on the dates of the respective transactions. Exchange differences arising on foreign currency transactions settled during the year are recognised in the Profit and Loss Account. Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at year end rates. The resultant exchange differences are recognised in the profit and loss account. Non monetary assets are recorded at the rates prevailing on the date of transaction.
Mar 31, 2014
1.1. Basis of preparation of Accounts
The financial statements have been prepared under the historical cost convention in accordance with generally accepted accounting policies in India. The accounting standards notified by the Companies Act 1956 and the provisions of the Companies Act 1956, as adopted consistently by the Company.
The company follows the mercantile system of accounting and recognizes items of incomes and expenditure on accrual basis.
1.2. Presentation and disclosure of financial statements
The financials have been prepared and presented as per the revised Schedule VI notified under the companies Act 1956.The adoption of revised Schedule VI 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.
1.3 Use of Estimates
The preparation of financial statements is in conformity with general accepted accounting principles which require 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 expenses during the year. Actual results could differ from those estimates.
Provision for current tax is determined as the amount of tax payable in respect of estimated taxable income for the year and in accordance with the provisions of Income Tax Act, 1961. Deferred tax is recognized using the enacted tax rates and laws as on the Balance Sheet date, subject to the consideration of prudence in respect of deferred tax assets on all timing differences, between taxable income and accounting income that originate in one period and are capable of reversal in one of more subsequent periods.
1.5. Earnings per share
The earnings considered in ascertaining the Company''s EPS comprises the net profit after tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period.
Investments are stated at cost.
1.7. Revenue Recognition
Revenue is recognized to the extent that it can be reliably measured and is probable that the economic benefits will flow to the company
1.8. Provisions & Contingencies
A provision is recognized when the company has a present obligation as a result of a past event, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and reliable estimate can be made of the amount of the obligation. Contingent Liabilities and Contingent Assets are neither recognized nor disclosed in the financial statements.