Mar 31, 2016
NOTE 1: Accounting Polices
a) Corporate Information.
Square Four Projects India Limited (Formerly Essen Supplements India Ltd)
(the ''Company'') is a public limited company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Company''s main objects, vide amendment to the Memorandum of Association by a special resolution dated 3rd August, 2012, are inter-alia, development of infrastructure and real estate.
Significant Accounting Policies
b) Basis of Accounting.
The financial statements are prepared in accordance with generally accepted accounting principles in India under the historical cost convention on an accrual basis pursuant to section 133 of the Companies Act, 2013 (''The Act'') read with Rule 7 of the Companies (Accounts) Rules, 2014. Till the standards of accounting or any addendum thereto are prescribed by the Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply. Consequently, these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 [Companies (Accounting Standards) Rules, 2006, as amended] and other relevant provisions of the Companies Act, 2013.
The accounts for the relevant year have been prepared on a going concern
basis though the operations have been suspended and almost all the fixed
assets of the Company have been disposed of. The promoters of the Company
have brought in fresh equity capital in an earlier year and the Company has
initiated steps for obtaining relevant permissions from the concerned statutory
bodies for embarking on new projects.
The preparation of the financial statements in conformity with the generally
accepted accounting principles requires estimates and assumptions to be made
that affect the reported amount of assets and liabilities and the disclosures
relating to contingent assets and liabilities as on the date of financial statements
and the reported amount of revenues and expenses during the reporting period.
Management believes that the estimates used in the preparation of the financial
statements are prudent and reasonable. Actual results could differ from these
Based on the nature of business the time between the acquisition of assets for the purpose of the business and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and noncurrent.
e) Investments
a) CLASSIFICATION : Investments are classified into the following category :
Long Term Investments: All Investments in Securities, where such investments are intended (at the time of purchase or acquisition thereof) to be held for a period exceeding one year, are classified as Long Term Investments. Investments which are intended to be held for a period of less than one year are classified as short term investments. Amounts paid towards shares purchased pending completion of transfer formalities and receipt of share certificates are shown as advance against purchase of shares.
b) VALUATION:
Long Term Investments are valued at cost. No provision is made for drop in the value of investments unless such reduction in value is permanent in nature.
f) Fixed Assets and Depreciation
Fixed Assets are stated at their historical cost less depreciation. Depreciation is provided on original cost of Fixed Assets on the straight Line method at the rates prescribed in Schedule II to the Companies Act, 2013.
g) Inventories
Inventories are valued as follows:
Raw Materials, Stores and Spares and : Valued at cost or net realizable
Packing Materials : value whichever is lower.
Finished Goods and other Products : Valued at net realizable value or
cost whichever is lower
Provision is made for obsolete, slow moving and defective stocks, wherever necessary.
However, the Company did not have any stocks of finished goods, raw materials, stores and spares and packing materials as at 31st March, 2016.
h) Cash and Cash Equivalents (for purposes of cash flow statement)
Cash comprises cash on hand and demand deposits with Bank. Cash equivalents are short term balances (with an original maturity of 3 months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant
Cash flows are reported using indirect method whereby profit less before
extraordinary items and tax is adjusted for the effects of transactions of non
cash nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing activities of
the Company are segregated based on the available information.
j) Revenue Recognition:
Revenue in respect of sale of products is recognized at the point of dispatch to the customers. In respect of other income, including income from commodity transactions, interest income and brokerage and commission the same is accounted for on an accrual basis using the time proportion method. All expenses are accounted for on an accrual basis, except statutory raimentâs which are accounted for as and when paid.
k) Income Taxes:
Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act, 1961.
1) Deferred Tax
Deferred tax is recognized on timing differences being the difference between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and tax laws enacted or subsequently enacted as on the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets are recognized for timing differences as well as for unabsorbed carry forward losses and depreciation, if any only if there is virtual certainty that there will be sufficient future taxable income available to realize the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets would be reviewed at each Balance Sheet date for their reliability.
m) Retirement Benefit:
Currently, there is no employee in the company who has been working since the last 5 years in continuous service. Hence, no provision is required for gratuity.
n) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be outflow of resources. Contingent Liabilities are not recognized, but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statements.
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. Diluted earnings per share is computed by dividing the profit / (loss) after tax (including the t post tax effect of extraordinary items, if any) as adjusted for dividend, interest _ and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares. Potential equity shares are deemed to be dilutive only if their conversion to equity shares would decrease the net profit per share from continuing ordinary operations. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The dilutive potential equity shares are adjusted for the proceeds receivable had the shares been actually issued at fair value (i.e. average market value of the outstanding shares). Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for share splits / reverse share splits and bonus shares, as appropriate.
Mar 31, 2015
A) Basis of Accounting.
The Financial Statements of the Company have been prepared in
accordance with generally accepted accounting principles in India,
mandatory accounting standards notified under the Companies (Accounting
Standards) Rules, 2006, (as amended) and the relevant provisions of the
Companies Act, 1956 read with General Circular 8/2014 dated April 4,
2014, issued by the Ministry of Corporate Affairs. The Financial
Statements have been prepared under the historical cost convention on
an accrual basis, The accounting policies applied by the Company are
consistent with those used in the previous year. All the assets and
liabilities have been classified as current or non-current as per the
Company's normal operating cycle and other criteria set out in
Revised Schedule III to the Companies Act, 2013 read with General
Circular 8/2014 dated April 4, 2014, issued by the Ministry of
Corporate Affairs. Mercantile system of accounting is generally
followed except for income on account of insurance and other such
claims receivable which are accounted for only on receipt basis on
account of uncertainties
The accounts for the relevant year have been prepared on a going
concern basis though the operations have been suspended and almost all
the fixed assets of the Company have been disposed of. The promoters of
the Company have brought in fresh equity capital in an earlier year and
the Company has initiated steps for obtaining relevant permissions from
the concerned statutory bodies for embarking on new projects.
c) Use of Estimates
The preparation of the financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities and the disclosures relating to contingent assets and
liabilities as on the date of financial statements and the reported
amount of revenues and expenses during the reporting period. Management
believes that the estimates used in the preparation of the financial
statements are prudent and reasonable. Actual results could differ from
these estimates.
d) Operating Cycle
Based on the nature of business the time between the acquisition of
assets for the purpose of the business and their realization in cash
and cash equivalents, the Company has ascertained its operating cycle
as 12 months for the purpose of classification of its assets and
liabilities as current and non current.
e) Investments
a) CLASSIFICATION : Investments are classified into the following
category :
Long Term Investments: All Investments in Securities, where such
investments are intended (at the time of purchase or acquisition
thereof) to be held for a period exceeding one year, are classified as
Long Term Investments. Investments which are intended to be held for a
period of less than one year are classified as short term investments.
Amounts paid towards shares purchased pending completion of transfer
formalities and receipt of share certificates are shown as advance
against purchase of shares.
b) VALUATION:
Long Term Investments are valued at cost. No provision is made for drop
in the value of investments unless such reduction in value is permanent
in nature.
f) Fixed Assets and Depreciation
Fixed Assets are stated at their historical cost less depreciation.
Depreciation is provided on original cost of Fixed Assets on the
straight Line method at the rates prescribed in Schedule II to the
Companies Act, 2013.
g) Inventories
Inventories are valued as follows:
Raw Materials, Stores and
Spares and : Valued at cost or net realisable
Packing Materials : value whichever is lower.
Finished Goods and other
Products : Valued at net realisable value or
cost whichever is lower
Provision is made for obsolete, slow moving and defective stocks,
wherever necessary.
However, the Company did not have any stocks of finished goods, raw
materials, stores and spares and packing materials as at 31st March,
2015.
h) Cash and Cash Equivalents (for purposes of cash flow statement)
Cash comprises cash on hand and demand deposits with Bank. Cash
equivalents are short term balances (with an original maturity of 3
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
i) Cash Flow Statement
Cash flows are reported using indirect method whereby profit/loss
before extraordinary items and tax is adjusted for the effects of
transactions of non cash nature and any deferrals or accruals of past
or future cash receipts or payments. The cash flows from operating,
investing and financing activities of the Company are segregated based
on the available information.
j) Revenue Recognition:
Revenue in respect of sale of products is recognized at the point of
despatch to the customers. In respect of other income, including
income from commodity transactions, interest income
and brokerage and commission, the same is accounted for on an accrual
basis using the time proportion method All expenses are accounted for
on an accrual basis, except statutory payments which are accounted for
as and when paid
k) Income Taxes:
Tax expense comprises of current and deferred tax. Current income tax
is measured at the amount expected to be paid to the tax authorities in
accordance with the Indian Income Tax Act, 1961.
l) Deferred Tax
Deferred tax is recognized on timing differences being the difference
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and tax laws
enacted or subsequently enacted as on the reporting date. Deferred tax
liabilities are recognized for all timing differences. Deferred tax
assets are recognized for timing differences as well as for unabsorbed
carry forward losses and depreciation, if any, only if there is virtual
certainty that there will be sufficient future taxable income available
to realize the assets. Deferred tax assets and liabilities are offset
if such items relate to taxes on income levied by the same governing
tax laws and the Company has a legally enforceable right for such set
off. Deferred tax assets would be reviewed at each Balance Sheet date
for their realisability.
m) Retirement Benefit:
Currently, there is no employee in the company, who has been working
since the last 5 years in continuous service. Hence, no provision is
required for gratuity.
n) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent Liabilities are not recognised, but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
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. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the weighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
Mar 31, 2014
A) Basis of Accounting.
The Financial Statements of the Company have been prepared under the
historical cost convention and in accordance with applicable Accounting
Standards except where otherwise stated. The Financial Statements have
also been prepared in accordance with relevant presentational
requirements of the C ompanies Act. 1956 (which continue to be
applicable in respect of Section 133 of the Companies Act 2013 in terms
of General Circular 15/2013 dated I3n September. 2013 of the Ministry
of Corporate Affairs) and the relevant provisions of the 1956 Aet/2013
Act. Mercantile svstem of accounting is uenerallv followed except for
income
on account of insurance and other such claims receivable which are
accounted for only on receipt basis on account of uncertainties
Accounting policies not specifically referred to herein below are
consistent and in consonance with generally accepted accounting
principles prevalent in India and comply with the accounting standards
notified by the Central Government under the Companies (Accounting
Standards) Rules 2006
The accounts for the relevant year have been prepared on a going
concern basis though the operations have been suspended and almost all
the fixed assets of the Company have been disposed of. The promoters of
the C ompany have brought in fresh equity capital in an earlier year
and the C ompany has initiated steps tor obtaining relevant permissions
from the concerned statutory bodies tor embarking on new projects.
b) Use of Estimates
Ihe preparation of the financial statements in conformity with the
generally accepted accounting principles requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities and the disclosures relating to continuent assets and
liabilities as on the date of financial statements and the reported
amount of revenues and expenses during the reporting period. Management
believes that the estimates used in the preparation of the financial
statements are prudent and reasonable. Actual results could differ from
these estimates.
c) Operating Cycle
Based on the nature of business the time between the acquisition of
assets for the purpose of the business and their realization in cash
and cash equivalents, the Company has ascertained its operating cycle
as 12 months for the purpose of classification of its assets and
liabilities as current and non current.
d) Fixed Assets and Depreciation
Fixed Assets are stated at their historical cost less depreciation.
Depreciation is provided on original cost of fixed Assets on the straight
Line method at the rates prescribed in Schedule XIV to the Companies
Act. 1956.
e) Inventories
Inventories are valued as follows:
Raw Materials. Stores and Spares and : Valued at cost or net
realisable
Packing Materials : value whichever is lower,
finished Goods and other Products : Valued at net realisable value
cost whichever is lower
Provision is made for obsolete, slow moving and defective stocks,
wherever neeessary.
However, the Company did not have any stocks of finished goods, raw
materials, stores and spares and packing materials as at 31st March,
2014.
F) Cash and Cash Equivalents (for purposes of cash flow statement)
Cash comprises cash on hand and demand deposits with Bank. Cash
equivalents are short term balances (with an original maturity of 3
months or less from the date of acquisition), high liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
g) Cash Flow Statement
Cash flows are reported using indirect method whereby profit/loss
before extraordinary items and tax is adjusted lor the elfeets of
transactions of non cash nature and anv deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the ( ompany are
segregated based on the available information.
h) Revenue Recognition:
Revenue in respect of sale of products is recognized at the point of
despatch to the customers. In respect of other income, including
income from commodity transactions and brokerage and commission, the
same is accounted for on an accrual basis using the time proportion
method.
i) Income-tax:
Deferred Income tax is not being accounted for on account of the
sickness of the company and heavy unabsorbed depreciation as well as
brought forward losses under Income fax Act. Also, reasonable certainty
of future adjustment of such losses does not appear to exist presently.
j) Retirement Benefit:
Currently, there is no employee in the company, who has been working
since the last 5 years in continuous service. Hence, no provision is
required for gratuity.
k) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognized when there is a present obligation as a result of past
events and it is probable that there will be outflow of resources.
Contingent Liabilities are not recognised, but are disclosed in the
notes. Contingent assets are neither recognised nor disclosed in the
financial statements.
l) 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. Diluted earnings per share is computed by dividing the profit
/ (loss) after tax (including the post tax effect of extraordinary
items, if any) as adjusted for dividend, interest and other charges to
expense or income relating to the dilutive potential equity shares, by
the w eighted average number of equity shares considered for deriving
basic earnings per share and the weighted average number of equity
shares which could have been issued on the conversion of all dilutive
potential equity shares. Potential equity shares are deemed to be
dilutive only if their conversion to equity shares would decrease the
net profit per share from continuing ordinary operations. Potential
dilutive equity shares are deemed to be converted as at the beginning
of the period, unless they have been issued at a later date. The
dilutive potential equity shares are adjusted for the proceeds
receivable had the shares been actually issued at fair value (i.e.
average market value of the outstanding shares). Dilutive potential
equity shares are determined independently for each period presented.
The number of equity shares and potentially dilutive equity shares are
adjusted for share splits / reverse share splits and bonus shares, as
appropriate.
The Company had made a preferential allotment of shares aggregating Rs
4,00,00,000/- in the financial year 2010-11 Tor their proposed venture
into the hospitality business Pending receipt of certain approvals and
completion of certain formalities, an aggregate amount of Rs
3,89,00.000/- of the proceeds of the said issue have been advanced
against purchase of properties which would be utilized by the Company
for its proposed venture in the hospitality business
Disclosure of Rights
I The Company has issued only one class of equity shares having a par
value of Rs 10/- Each holder of equity shares is I entitled to one vote
per share Dividends declared in Indian Rupees, and when proposed by the
Board of Directors is I subject to the approval of the shareholders at
the Annual General Meeting except in the case of interim dividend if
any In I the event of liquidation of the Company, the holders of equity
shares will be entitled to receive remaining assets of the I Company
The distribution will be in proportion to the number of equity shares
held by the share holders
Mar 31, 2010
A) Basis of Accounting.
The Accounts of the Company are prepared under the historical cost of
convention and in accordance with applicable accounting standards
except where otherwise stated. Mercantile system of accounting is
followed except for income on account of insurance and other claims
receivable and also expenditure which are accounted for on receipt /
payment basis on account of uncertainties.
Accounting policies not specifically referred to here in below are
consistent and in consonance with generally accepted accounting
principles prevalent in India.
b) Fixed Assets and Depreciation
Fixed Assets are stated at historical cost less depreciation.
Depreciation is provided on Fixed Assets on the straight Line method at
the rates prescribed in Schedule XTV of the Companies Act, 1956.
c) Inventories
Inventories are regularly valued on the following basis:
Raw Materials, Stores and Spares and : Valued at cost or Net
realisable
Packing Material : Value whichever is lower.
Finished Goods and other Products : Valued at Net realisable
value or cost whichever is
lower.
However, the year end inventory of raw material and finished goods is
nil.
d) Revenue Recognition:
Revenue in respect of sale of products is recognized at the point of
despatch to the customers.
a) Income-tax:
Deferred Income tax is not being accounted for on account of the
sickness of the company and heavy unabsorbed depreciation and brought
forward losses under Income Tax Act.
b) Retirement Benefit:
There is no employee in the company, who is working since past 5 years
in continuous service. Hence, no provision is required for gratuity.
c) Treatment of Contingent Liabilities:
Liabilities, which may or may not arise and not crystalised as at the,
end of accounting period have been shown, as contingent liabilities.
Mar 31, 2009
A) Basis of Accounting.
The Accounts of the Company are prepared under the historical cost of
convention and in accordance with applicable accounting standards
except where otherwise stated. Mercantile system of accounting is
followed except for income on account of insurance and other claims
receivable and also expenditure which are accounted for on receipt /
payment basis on account of uncertainties. Accounting policies not
specifically referred to here in below are consistent and in consonance
with generally accepted accounting principles prevalent in India.
b) Fixed Assets and Depreciation
Fixed Assets are stated at historical cost less depreciation.
Depreciation is provided on Fixed Assets on the straight Line method at
the rates prescribed in Schedule XIV of the Companies Act, 1956.
c) Inventories
Inventories are valued as Follows:
Raw Materials, Stores and Spares and : Valued at cost or Net realisable
Packing Material : Value whichever is lower.
Finished Goods and other Products : Valued at Net realisable value or
cost whichever is lower
d) Revenue Recognition:
Revenue in respect of sale of products is recognized at the point of
despatch to the customers. -
e) Income-tax:
Deferred Income tax is not being accounted for on account of the
sickness of the company and heavy unabsorbed depreciation and brought
forward losses under Income Tax Act.
i) Retirement Benefit:
There is no employee in the company, who is working since past 5 years
in continuous service. Hence, no provision is required for gratuity.
g) Treatment of Contingent Liabilities:
Liabilities, which may or may not arise and not crystalised as at the
end of the accounting period have been shown, as contingent
liabilities.