Mar 31, 2015
A) Basis of preparation of Financial statements
The financial statement of the company have been prepared in accordance
with generally accepted accounting principle of India The company has
prepared these financial statements to comply in all material respects
with the accounting standard under section 133 of the companies
Act,2013 read with rule 7 (1) & (2) of companies (Account) Rules 2014
the relevant provisions of the company's Act,1956 (the Act) The
financial statement have been prepared on an accrual basis and under
the historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
The financial statements are presented in Indian rupees and rounded off
to retest Rupee unless otherwise stated.
b) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires managements to make estimates and assumptions that affect the
reported amount of assets liabilities revenues and expense and
disclosure of contingent liabilities on the date of the financial
statements the estimates and assumptions used and circumstances as of
the date of financial statements which in managements opinion are
prudent and reasonable Actual results may differ the estimates used in
preparing the accompanying financial statement Any revision to
accounting estimates is recognition prospectively in current and future
periods.
c) Fixed Assets/Intangible Assets.
Fixed Assets are stated on cost less accumulated depreciation
depreciation the total cost of assets companies its purchase price
freight duties taxes and any other incident expenses directly
attributable to bringing the assets to the working condition for its
intended.
- Assets costing less than or equal to Rs, 5,000 are depreciated fully
in the year of purchase.
- Additionally assets whose useful life as per schedule II is lapsed
are fully depreciated during the current financial year.
Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that on exists group of assets cash genera rig unit may be
impaired. It any .such indication exists, the Company estimates the
recoverable amount of the asset or a group of assets The recoverable
amount of the asset or where applicable, that of the cash generating
unit to which the asset belong) is estimated as the higher of its net
selling pace and its net selling price and its value in use. If such
recoverable amount of the asset one the recoverable amount of the cash
generating to which the belong is less than its carrying amount the
earning amount is reduced to its recoverable amount. The reduction is
treated an impairment Loss and is recognized in the Statement of Profit
and Loss. Alter impairment, diffraction is provided on the revised
carrying amount of the assert over its remaining useful life.
Value in use is the present value of estimated, future cash flow
expected to arise from the continuing use of the assets and from its
disposal at the end of its useful. Life.
If At the Balance Sheet date there is an indication that a previously
Unsaved Impairment loss- no longer execs, the recoverable amount is
reassessed and the asset is reflected at the recoverable amount subject
to a maximum of depreciable historical cost.
e) Revenue Recognition
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.
- Service Income
Service income is recognized as per the terms of the contract when the
related services are rendered. It is stated net of service tax.
- Interest Income
Interest income is recognized on time proportion basis.
- Other Income
Income from investment and other service income are accounted on
accrual basis,
f) Taxation
Income-tax expense comprises current tax, deferred tax charge or
credit, minimum alternative tax (MAT).
Current tax
Provision for current tax is made for the tax liability payable on
taxable income after considering tax allowances. deductions and
exemptions determined in accordance with the prevailing tax laws.
Deferred tax
Deferred tax liability or asset is recognized for timing differences
between the profits/ losses offered for income tax and profits/losses
as per date finance statements Deferred are assets and Liabilities are
measured using the tax rates and tax laws that have been enacted at the
Balance Sheet date
Deferred tax asset is recognized only to the extent there is reasonable
certainty that. the assets can be realized in future; however, where
there Is unabsortect depreciation or carried forward loss under
taxation Laws, deferred tax assets is recognized only if there is a
vital certainty of realization of such asset Deferred tax asset is
reviewed is at each Balance Sheet date and written down or written up
to reflect the amount that is reasonably/virtually certain to be
realized,
Minimum alternative tax.
Minimum alternative tax (MAT) obligation in accordance with the tax
laws, which give rise to future economic benefits in the form of
adjustment of future income tax liability, is considered as an asset if
if there is convincing evidence that the Company will pay normal tax
during the specified period, Accordingly it is recognized as on asset
in the Balance Sheet when it is probable that The future economic
benefit associated Will it will flow to the Company and the asset can
be measured reliably.
g) Bottoming cost
Borrowing Costs to the extent related/attributable to The
acquisition/construction of assets that takes substantial period of
time to get ready for their intended use are capitalized along with the
respective fixed asset up to the date such asset is ready for use.
Other borrowing costs are charged to the Statement of Profit and loss.
h) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss For the period attributable to equity shareholders by the weighted
average number no enquiry shares outstanding during the period,
Diluted earrings per share are calculated after adjusting effects of
potential equity shares (PES) PES are those shares which will convert in
to equity shares at a later stage. Profit / loss if adjusted by the
expenses incurred on such PES. Adjusted profit/loss is divided by the
weighted average number of ordinary plus potential equity shires.
i) Provisions and Contingencies
A provision is recognized when an enterprise has a present obligation
as a result of past event and it is probable that in outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be Trade, Provisions are cost discounted
to their present values and are determined based on management estimate
required to settle the obligation at the Balance sheet date These are
reviewed at each Balance Sheet date and adjusted or reflect the current
management estimates.
Contingent liabilities are disclosed in respect of possible obligations
that have arisen from past event. and the existence of which will tax'
confirmed only by the occurrence or non-occurrence of future events not
wholly within the control of the Company.
Mar 31, 2014
A) Basis of Preparation of Financial Statements
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles of India
(Indian GAAP). The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956 (''the Act").
The financial statements have been prepared on an accrual basis and
under the historical cost convention.
The accounting polices adopted in the preparation of financial
statements are consistent with those of previous year.
The financial statements are presented in Indian rupees and rounded off
to nearest Rupee unless otherwise stated.
b) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires management to make estimates and assumptions that affect the
reported amount of assets, liabilities, revenues and expenses and
disclosure of contingent liabilities on the date of the financial
statements. The estimates and assumptions used in the accompanying
financial statements are based upon management''s evaluation of the
relevant facts and circumstances as of the date of financial statements
which in management''s Opinion are prudent and reasonable. Actual
results may differ from the estimates used in preparing the
accompanying financial statements. Any revision to accounting estimates
is recognised prospectively in current and future periods.
c) Fixed Assets / Intangible Assets
Fixed Assets are stated on cost less accumulated depredation. The total
cost of assets comprises its purchase price, freight, duties, taxes and
any other incidental expenses directly attributable to bringing the
asset to the working condition for its intended use.
d) Depreciation
* Depreciation on other fixed assets is provided on Straight Line
Method on a pro rata basis over its economic useful lives, estimated by
the management or at the rates prescribed under Schedule XIV of the Act
whichever is higher.
Fixed Assets Rates adoptcd(SLM) Schedule XIV Rates (SLM)
Office Building 1.63% 1.63%
Factory Building 3.34% 3.34%
.Air Condirioner 4.75% 4.75%
Electric Installation 4.75% 4.759/o
Furniture & Fixture 6.33% 6.33%
* Assets costing less than or equal to Rs. 5,000 are depreciated fully
in the year of purchase.
Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset or a group of assets (cash generating unit)
may be impaired. If any such indication exists, the Company estimates
the recoverable amount of the asset or a group of assets. The
recoverable amount of the asset (or where applicable, that of the cash
generating unit to which the asset belongs) is estimated as the higher
of its net selling price and its value in use. If such recoverable
amount of the asset or the recoverable amount of the cash-generating
unit to which the asset belongs is less than its earning amount, the
earning 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. After impairment, depreciation is provided on the
revised carrying amount of the asset over its remaining useful life.
Value in use is the present value of estimated future cash flow
expected to arise from the continuing use of the assets and from is
disposal at the end of its useful life.
If at the Balance Sheet date there is an indicanon 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.
e) Revenue Recognition
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.
* Sanicr Intome
Service income is recognised as per the terms of the contract when the
related services are rendered. It is slated net of service tax.
* Interest income
Interest income is recognized on time proportion basis.
* Other Income
Income from investment and other service income arc accounted on
accrual basis.
f) Taxation
Income-tax expense comprises current tax, deferred tax charge or
credit, minimum alternative tax (MAT).
Current tax
Provision for current tax is made for the tax liability payable on
taxable income after considering tax allowances, deductions and
exemptions determined in accordance with the prevailing tax laws.
Deferred tax
Deferred tax liability or asset is recognized for timing differences
between the profits/losses offered for income tax and profits/losses as
per the financial statements. Deferred tax assets and liabilities arc
measured using the tax rates and tax laws that have been enacted or
substantively enacted at the Balance Sheet date.
Deferred tax asset is 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 asset is recognized only if there is a virtual
certainty of realization of such asset. Deferred tax asset is reviewed
as at each Balance Sheet date and written down or written up to reflect
the amount that is reasonably/virtuallv certain to be realized.
Minimam alternation tax
Minimum alternative tax (MAT) obligation in accordance with the tax
law''s, which give rise to future economic benefits in the form of
adjustment of future income tax liability, is considered as an asset if
there is convincing evidence that the Company will pay normal tax
during the specified period. Accordingly, it is recognized as an asset
in the Balance Sheet when it is probable that the future economic
benefit associated with it will flow to the Company and the asset can
be measured reliably.
g) Borrowing Cost
Borrowing costs to the extent related/attributable to the
acquisition/construction of assets that takes substantial period of
from to get ready for their intended use are capitalized along with the
respective fixed asset up to the date such asset is ready for use.
Other borrowing costs are charged to the Statement of Profit and Loss.
h) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
Diluted earnings per share are calculated after adjusting effects of
potential equity shares (PES).PES are those shares which will convert
into equity shares at a later stage. Profit / loss is adjusted by the
expenses incurred on such PES. Adjusted profit/loss is divided by the
weighted average number of ordinary plus potential equity shares.
i) Provisions and Contingencies
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
their present values and arc determined based on management estimate
required to settle the obligation at the Balance Sheet date. These arc
reviewed at each Balance Sheet date and adjusted to reflect the current
management estimates.
Contingent liabilities are disclosed in respect of possible obligations
that have arisen from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence of future events not
wholly within the control of the Company.
When there is an obligation in respect of which the likelihood of
outflow- of resources is remote, no provision or disclosure is made.
Mar 31, 2013
A) Basis of Preparation of Financial Statements
The financial statements of the Company have been prepared in
accordance with generally accepted accounting principles of India
(Indian GAAP), The Company has prepared these financial statements to
comply in all material respects with the accounting standards notified
under the Companies (Accounting Standards) Rules, 2006, (as amended)
and the relevant provisions of the Companies Act, 1956 (''the. Act'').
The financial statements have been prepared on an accrual basis and
under the historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
The financial statements are presented in Indian rupees and rounded off
to nearest Rupee unless otherwise stated.
b) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires management to make estimates and assumptions that affect the
reported amount of assets, liabilities, revenues and expenses and
disclosure of contingent liabilities on the date of the financial
statements. The estimates: and assumptions vised in the accompanying
financial statements are based upon management''s evaluation of the
relevant facts and circumstances as of the date of financial statements
which in management''s opinion are prudent and reasonable. Actual
results may differ from the estimates used in preparing the
accompanying financial statements. Any revision to accounting estimates
is recognised prospectively in current and future periods.
c) Fixed Assets / Intangible Assets
Fixed Assets are stated on cost less accumulated depreciation. The
total cost of assets comprises its purchase price, freight, duties,
taxes and any other incidental expenses directly attributable to
bringing the asset to the working condition for its intended use.
d) Depreciation
- Depreciation on other fixed assets is provided on Straight Line
Method on a pro rata basis over its economic useful lives, estimated by
the management or at the rates prescribed under Schedule XIV of the Act
whichever is higher.
- Assets costing less than or equal to Rs. 5,000 are depreciated fully
in the year of purchase.
e) Impairment of Assets
The Company assesses at each Balance Sheet date whether there is any
indication that an asset or a group of assets (cash generating unit)
may be impaired. If any such indication exists, the Company estimates
the recoverable amount of the asset or a group of assets. The
recoverable amount of the asset (or where applicable, that of the cash
generating unit to which the asset belongs) is estimated asj the higher
of its net selling price and its value in use. If such recoverable
amount of the asset or the recoverable amount of the cash-generating
unit to which the asset belongs is less than its carrying amount, the
carrying amount is reduced to its recoverable amount. The reduction is
treated as an impairment Joss and is recognized in the Statement of
Profit and Loss. After impairment, depreciation is'' provided on the
revised carrying amount of the asset over its remaining useful life.
Value in use is the present value of estimated future cash flow
expected to arise from the continuing use of the assets and from its
disposal at the end of its uselul life.
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.
f) Revenue Recognition
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.
- Smke Income
Service income is recognised as per the terms of the contract when the
related services are rendered-. It is stated net of service tax.
- Interest income
Interest income is recognized on time proportion basis.
- Other Income
Income from investment and other service income are accounted on
accrual basis.
g) Taxation
Income-tax expense comprises current tax, deferred tax charge or
credit, minimum alternative tax
(MAI).
«
Current tax
Provision for current tax is made for the tax liability payable on
taxable income after considering tax allowances, deductions and
exemptions determined in accordance with the prevailing tax laws.
Deferred tax
Deferred tax liability or asset is recognized for timing differences
between the profits/losses offered for income tax and profits/losses as
per the financial statements. Deferred tax assets and liabilities ave
measured using the tax rates and tax laws that have been enacted or
substantively enacted at the Balance Sheet date.
Deferred tax asset is 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 asset is recognized only if there is a virtual
certainty of realization of such asset. Deferred tax asset is reviewed
as at each Balance Sheet date and written down or written up to
''reflect the amount that is reasonably/virtually certain to be
realized.
Mimrntmaltemxtke tax
Minimum alternative tax (MAT) obligation in accordance with the tax
laws, which give rise to future economic benefits in the form of
adjustment of future income tax liability, is considered as an asset if
there is convincing evidence that the Company will pay normal tax
during the specified period. Accordingly, it is recognized as an asset
in the Balance Sheet when it is probable that the future economic
benefit associated with it will flow to the Company and the asset can
be measured reliably.
h) Borrowing Cost
Borrowing costs to the extent related/attributable to the
acquisition/construction of assets that takes substantial period of
time to get ready for their intended use are capitalized along with the
respective fixed asset up to the date such asset is ready for use.
Other borrowing costs are charged to the Statement of Profit and Loss.
i) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
Diluted earnings per share are calculated after adjusting effects of
potential equity shares (PES).PES are those shares which will convert
into equity shares at a later stage. Profit / loss is adjusted by the
expenses incurred on such PES. Adjusted profit/loss is divided by the
weighted average number of ordinary plus potential equity shares.
j) Provisions and Contingencies
A provision is recognised when an enterprise has a present obligation
as a result of past event and it is probable that an outflow of
resources will be required to settle the obligation, in respect of
which a reliable estimate can be made. Provisions are not discounted to
their present values and are determined based on management estimate
required to settle the obligation at the Balance Sheet date. These are
reviewed at each Balance Sheet date and adjusted to reflect the current
management estimates.
Contingent liabilities are disclosed in respect of possible obligations
that have arisen from past events and the existence of which will be
confirmed only by the occurrence or non-occurrence of future events not
wholly within the control of .the Company.
When there is an obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made.
Mar 31, 2009
A. ACCOUNTING CONVENTION :
The financial statements are prepared on accrual basis, under the
historical cost convention, in accordance with the generally accepted
accounting principles in India, the Accounting Standards issued by the
Institute of Chartered Accountants of India and the requirements of the
Companies Act, 1956.
B. FIXED ASSETS :
Fixed Assets are stated at cost less depreciation.
C. DEPRECIATION :
Depreciation is provided on Straight Line. Method at the rate and in
the manner prescribed in Schedule XIV to the Companies Act, 1956.
Depreciation on assets added/disposed off during the year is provided
on pro rata basis with reference to the date of addition / disposal.
D. FOREIGN CURRENCY :
There are no transactions involving foreign currency.
E. TAXATION :
Income tax comprises the current tax provisions and the net change in
the deferred tax asset or liability in the year. The deferred, tax
assets and liabilities are calculated on the accumulated timing
difference at the end of an accounting period based on prevailing
enacted tax rates. Deferred tax assets are riot recognised on
unabsorbed depreciation and carry forward of losses unless there is
virtual certainly that sufficient future taxable income will be
available against which such deferred tax assets can be realised.
F. The company has to pay an outstanding due of over Rs. 2.34 crores
to Charotar nagarik sahakari bank ltd. However, the company has stopped
providing for the interest on the outstanding loan amount. Despite this
fact, and accumulated losses, the company is carrying its activities
and expects to recoup these losses during subsequent years.
Accordingly, the accounts of the company have beenprepared on a going
concern basis.