Mar 31, 2015
A. Basis of Accounting:
The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act 2013, as adopted consistently by the company. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.
The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.
b. Fixed Assets:
Fixed assets are recorded at cost. The Company has provided depreciation on Straight Line method as per the Companies Act, 2013.
c. Capital Work In Progress:
All Expenditure, incurred relating to Development of Ship Yard is accumulated and shown as Capital Work in Progress.
The company has not made any investment during the year.
e. Depreciation and Amortization:
The company has provided depreciation on Straight Line Method as per companies Act, 2013 and calculation of remaining useful life is based on no of days for which assets were put to use.
f. Impairment of Assets:
An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The company assesses at each Balance Sheet date whether there is any indication that any assets may be impaired and if such indication exists, the carrying value of such assets is reduced to its recoverable amount and a provision is made for such impairment loss in the statement of Profit & Loss A/c. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
g. Employee''s Benefit:
Provident Fund, ESIC & LWF: Provident fund, ESIC and LWF contributions are made as per defined scheme and the contribution is charged to statement of Profit & Loss A/c of the year when it becomes due. The company has no other obligation other than to contribute and deposit to respective authorities.
Short term employee benefits are recognized as an expense in the statement of Profit & Loss A/c for the year in which the related service is rendered.
Long term employee benefits are recognized as an expense in the statement of Profit & Loss A/c for the year in which the employee has rendered service.
The company has not been incorporated for more than 5 years so the provision regarding employee benefit which applicable after completion of services of 5 years are not applicable during the year.
h. Deferred Revenue Expenditure:
Preliminary expenses incurred by the company in past year were related to incorporation of company. So during the year they have started to write off, so 1/5 of Preliminary Expenses are written off during the year.
Inventories are valued at the lower of cost on FIFO basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale Work-in-progress and finished goods include appropriate proportion of overhead. Other stock is valued at estimated realizable Value.
j. Foreign Currency Transactions:
The company has not incurred any foreign currency transaction during the year.
k. Lease Transactions:
The Company has been given the possession of G.I.D.C. land on 14-08-2013, to hold the same as Licensee to make necessary construction etc. Lease Deed for 99 years will be executed by G.I.D.C. after completion of construction & subject to compliance of prescribed conditions.
l. Revenue & Recognition:
Income and expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from Job Work transaction is recognized as and when job work or part of it is completed.
m. Income Tax:
Income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of Income-tax. Act, 1961.Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of being reversal in one or more subsequent periods.
Minimum Alternative Tax (MAT) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.
n. Contingent Liability:
No provision is made for a liability which is contingent in nature but if material, the same is disclosed by way of notes to the accounts.
o. Earnings per Share:
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.
p. Cash & cash Equivalents:
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposit balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
Mar 31, 2014