Mar 31, 2015
The company has only one class of Equity shares having a per value of
Rs, 10 per share Each Shareholders is entitled to one per share in the
event of liquidation of the company the holders of equity shares will
be entitled to receive remaining assets of the company after
distributors of all preferential amounts the distribution will be in
proportion to the
Deferred tax is recognized only on timing between the accounting income
and taxable income which are capable of reversal in subsequent periods.
Deferred assets on carried forwards business loss and unabsorbed
depreciation is recognized only if management certifies with virtual
certainty & convincing evidence that there will be sufficient future
taxable income.
Value of deferred tax is assessed on each balance sheet date and any
change in value is recognized in the profit and loss appropriation
account. During the year the company has recognized the Deferred Tax
asset on the unabsorbed tax Depreciation and Unabsorbed losses at the
being and same set off from appropriation and tax saving on the sett
off unabsorbed depreciation and losses to the extant was reversed to
profit and loss statements of the year.
The amount payable to Micro and small medium Enterprise as on the
Balance Sheet date is not determined as such parties are not indentified
the information with the company is not available.
The creditors balance of those confirmation not received are subject
to conformation and reconciliation.
The provision for current taxes has been made in the account on the
income computed as per provisions of income Tax ACt,1961.
Long term investments are started at cost provisions for diminution in
the value long term investments is made only if such decline is other
than temporary in the opinion of the management.
The long term loan advance includes the loan to employees of the
company and other parties.
The quantities of inventory sales purchases are taken on the basis of
detailed work out from the bills and the stock records maintained by
the company and physically verified is on the date of balance sheet by
the
The Debtors balance of those confirmation not received are subject to
conformation and reconciliation.
Mar 31, 2014
1. System of Accounting:
The financial statements are prepared on historical cost convention and
on the accounting principles of going concern in accordance with
generally accepted accounting principles comprising of the mandatory
accounting standards referred to in sub section (3c) of section 211 of
the companies Act., 1956 and guidance notes, etc. issued by Institute
of Chartered Accountants of India and the other provisions of the
companies Act.
2. Revenue Recognition:
All known income and expenditure quantifiable till the date of
finalization of accounts are accounted on accrual basis when virtual
certainty is established.
(a) Revenue from Operation:
Sales revenue is recognized when property in the goods with all risk
rewards and effective control of goods usually associated with
ownership are transferred to buyer at price and excludes sales tax.
The presentation of financial statements require estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual result and estimates are recognized in the period in
which the results are known/materialized.
Commission Income is recognized as and when the terms of contract are
fulfilled.
(b) Other Operational Revenue:
Other operational revenue represent income earned from the activities
incidental to the business and is recognized when the right to receive
the income is established as per the terms of the contract.
(c) Other Income:
Interest income is accrued at applicable interest rate.
Dividend income is accounted in the period in which it is received.
Other items of income are accounted as and when the right to receive
arises.
3. Fixed Asset:
(a) Tangible Asset:
Fixed assets are stated at cost less accumulated depreciation cost
comprises the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
(b) Intangible Asset:
Intangible assets are stated at cost of purchase/acquired less
amortized during period.
4. Depreciation:
Depreciation on tangible assets provided on straight line method
accordance with the provisions of section 205(2)(b) of Companies Act,
1956 at the rates prescribed in Schedule XIV of the companies Act, 1956
on prorate basis with reference to the day of acquisition /
installation.
Intangible assets are amortized on straight line basis over the five
years from the year of procured and acquired.
5. impairment of Tangible and Intangible assets:
The carrying amount of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss is recognized wherever the carrying amount
of any assets exceeds its recoverable amount.
During the year it has been reviewed there is no any impairment of
fixed assets.
6. Investments:
Long term investments are stated at cost. Provision for diminution in
the value of long term investments is made only if such decline is
other than temporary in the opinion of the management.
7. Valuation of Inventories:
Stock-in-trade - at cost or net realizable value whichever is less.
Net realizable value is the estimated current procurement price in the
ordinary course of the business. The cost of inventory is determined
net of taxes on FIFO or Weighted Average cost formula method on
relevant categories of inventories on a consistent basis after
providing for obsolete, slow moving and defective inventories wherever
necessary.
8. Cenvat:
VAT credits: VAT Credit available on purchases input are reduced from
purchases and balance at end of the stocks is carried forward under
current asset to avail the credit in the succeeding year.
9. Provisions and Contingent liabilities:
Provisions are recognized when the present obligation of the past event
gives rise to a probable outflow embodying economic benefits on
settlement, and the amount of obligation can be reliably estimated.
Contingent liabilities are disclosed after careful evaluation of facts
and legal aspects of the matter involved.
Provisions and contingent liability are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
10. Retirement Benefits:
No provision for retirement's benefits viz. Gratuity, leave encashment,
retrenchment etc for the employee has been made as there are no
eligible employees on the muster roll entitle of these benefits.
11. Research & Development:
No research and development expenditure has been incurred during the
year.
12. Miscellaneous Expenditure:
In accordance with the provisions of section 35D of Income Tax Act
1961, the company has one-tenth of expenses.
13. Provision for current and Deferred Tax:
Taxes on income are computed using tax deferral Assets or Liability
method where taxes accrue in the time period the respective revenue and
expenses arises. The differences that result between the proof
offered income tax and the profit as per financial statements are
identified and Deferred Tax Liabilities recognized for timing
difference, that originate in one accounting period and reverse ,n
another based on the tax effect of the prevailing enacted regulation in
force.
Deferred Tax Assets are recognized subject to prudence, only, if there
is reasonable certainty that they Separated and are subject to
appropriate reviews at each balance sheet date for the purpose of
measurement of Deferred Tax Liability or Assets, the applicable tax
rates and enacted regulations expected apply in the year in which the
temporary differences are expected to be recovered or settled are
applied.
Minimum Alternative Tax credit is recognized as an asset only when and
to the extent there is convincing e dinette the company will pay
normal income tax furnishing the specified pending the year ,n which
the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in guidance note issued
by the Institute of Chartered Accountants of the said asset is created
by way of credit to the profit and loss statement and shown as MAT
Credit entitlement.
14. Borrowing Cost:
Borrowing cost directly attributable and/or funds borrowed generally
and used for the purpose of action of an asset that necessarily takes
a substantial period of time to get ready for its intended use as
capitalized at Is capitalization rate to expenditure on that assets, for
the period, until all activities necessary to prepare qualifying assets
for its intended use are complete.
15. Sundry Debtors:
No provision has been made for the bad and doubtful debts. The Bad
debts are charged to revenue in the year of, as and when they arise.
16. Earning Per Share:
Basic Earning Per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders by the weighted
average number of equity shares outstanding during the period.
For the purpose of calculation diluted earning per share, the net
profit or loss for the period attributable to shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effect of all dilutive potential shares.
Cash and cash equivalents for the purpose of cash flow statement
comprise of cash at bank, cash in hand and short term deposit in bank
with in original maturity of 12 months or less.
Mar 31, 2013
(i) System of Accounting:
The Financial statements are prepared on historical cost convention and
on the accounting principles of going concern in accordance with
generally accepted accounting principles comprising of the mandatory
accounting standards referred to in sub section (3c) of section 211 of
the companies Act., 1956 and guidance notes, etc. issued by Institute
of chartered Accountants of India and the other provisions of the
companies Act.
(ii) Revenue Recognition:
All known income and expenditure quantifiable till the date of
finalization of accounts are accounted on accrual basis when virtual
certainty is established.
(a) Revenue from Operation :
Sales revenue is recognized when property in the goods with all risk
rewards and effective control of goods usually associated with
ownership are transferred to buyer at price and excludes sales tax.
The presentation of financial statements require estimates and
assumptions to be made that effect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual result and estimates are recognized in the period in
which the results are known / materialized.
Commission Income is recognized as and when the terms of contract are
fulfilled.
(b) Other operational revenue
Other operational revenue represent income earned from the activities
incidental to the business and is recognized when the right to receive
the income is established as per the terms of the contract.
(c) Other Income:
Interest income is accrued at applicable interest rate. Dividend
income is accounted in the period in which it is received. Other items
of income are accounted as and when the right to receive arises. (iii)
Fixed Asset:
(i) Tangible Asset:
Fixed assets are stated at cost less accumulated depreciation Cost
coiRs.uses the purchase price and any attributable cost of bringing the
asset to its working condition for its intended use.
(ii) Intangible Assets:
Intangible assets are stated at cost of purchase/acquired less
amortised during period. (iv) Depreciation:
Depreciation on tangible assets provided on straight line method
accordance with the provision of section 205(2) (b) of Companies Act,
1956 at the rates prescribed in Schedule XIV of the companies Act, 1956
on prorate basis with reference to the day of acquisition/
installation. Intangible assets are amortized on straight line basis
over the five years from the year of procured and acquired.
(v) Impairment of Tangible and intangible assets
The carrying amount of assets are reviewed at each balance sheet date,
if there is any indication of impairment based on internal/external
factors. An impairment loss is ecognized wherever the carrying amount
of any assets exceeds its recoverable amount. During the year it has
been reviewed there is no any impairment of ixed assets. (v)
Investments: Long term Investments are stated at cost. Provision for
diminution in the value of long term
investments is made only if such decline is other than temporary in the
opinion of the management. (vi) Valuation of Inventories:
Stock-in-trade - at cost or net realizable value whichever is less.
Net realizable value is the estimated current procurement price in the
ordinary course of eh
business. The cost of inventory is determined net of taxes on FIFO or
Weighted Average cost formula method on relevant categories of
inventories on a consistent basis after providing for obsolete, slow
moving and defective inventories wherever necessary.
(vii)Cenvat:
VAT Credits: VAT Credit available on purchases input are reduced from
purchases and balance at end of the stocks at end of the stocks is
carried forward under current asset to avail the credit in the
succeeding year.
(viii) Provisions and Contingent liabilities:
Provisions are recognized when the present obligation of the past event
gives rise to a probable outflow embodying economic benefits on
settlement, and the amount of obligation can be reliably estimated.
Contingent liabilities are disclosed after careful evaluation of facts
and legal aspects of the matter involved.
Provisions and contingent liability are reviewed at each balance sheet
date and adjusted to reflect the current best estimates.
(ix) Retirement Benefits:
No provision for retirement''s benefits viz. Gratuity, leave encashment,
retrenchment etc for the employee has been made as there are no
eligible employees on the muster roll entitle of these benefits.
(x) Research & Development:
No research and development expenditure has been incurred during the
year.
(xi) Miscellaneous Expenditure:
In accordance with the provisions of section 35D of Income Tax Act
1961, the company has written off one- tenth of expenses.
(xii) Provision for current and Deferred Tax:
Taxes on Income are computed using tax deferral Assets or Liability
method where taxes accrue in the same period, the respective revenue
and expenses arises. The differences that result between the profit
offered for income tax and the profit as per financial statements are
identified and Deferred Tax Liability is recognized for timing
difference, that originate in one accounting period and reverse in
another based on the tax effect of the prevailing enacted regulation in
force.
Deferred Tax Assets are recognized subject to prudence, only, if there
is reasonable certainty that they will be realized and are subject to
appropriate reviews at each balance sheet date for the purpose of
measurement of Deferred Tax Liability or Assets, the applicable tax
rates and enacted regulations expected to apply in the year in which
the temporary differences are expected to be recovered orsettled are
applied.
Minimum Alternative Tax Credit is recognized as an asset only when and
to the extent there is convincing evidence that the company will pay
normal income tax furnishing the specified period. In the year in which
the MAT credit becomes eligible to be recognized as an asset in
accordance with the recommendations contained in guidance note issued
by the Institute of Chartered Accountants of India the said asset is
created by way of credit to the profit and loss statement and shown as
MAT Credit entitlement.
Ixiii) Borrowing Cost:
Borrowing cost directly attributable and/or funds borrowed generally
and used for the purpose of acquisition of an asset that necessarily
takes a substantial period of time to get ready for its intended use
are capitalized, at its capitalization rate to expenditure on that
assets, for the period, until all activities necessary to prepare
qualifying assets for its intended use are complete.
(xiv) Sundry Debtors:
No provision has been made for the bad and doubtful debts. The Bad
debts are charged to revenue in the year of, as and when they arise.
(xv) Earning Per Share
Basic Earning Per share are calculated by dividing the net profit or
loss for the period attributable to equity share holders by the
weighted average number of equity shares outstanding during the period.
For the purpose of calculation diluted earning per share, the net
profit or loss for the period attributable to equity shareholders and
the weighted average number of shares outstanding during the period are
adjusted for the effect of all dilutive potential shares.
(iv) Cash and cash equivalents for the propose of cash flow statement
comprise of cash at bank, cash in hand and short term tern deposit in
bank with in original maturity of 12 months or less