Mar 31, 2015
A. ACCOUNTING CONCEPTS :
The accounts have been prepared on historical cost convention. The company follows the accrual basis of accounting. The financial statements are prepared in accordance with accounting standards specified under sectionl33 of the companies act 2013,read with rule 7 of the companies ( Accounts) Rules ,2014 and the relevant provision of companies act,2013.
b. USE OF ESTIMATES ;
The preparation of financial statements requires the management of the company to make estimates and assumption 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. Differences between the actual results and estimates are recognized in the period in which the results are known/materialized. Though the management believes that the estimates used are prudent and reasonable, actual results could differ from these estimates.
c. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation thereon. The cost of fixed assets comprises purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use. Borrowing cost directly attributable to acquisition or construction of those fixed assets which takes substantial period of time to get ready for their intended use are capitalized.
In respect of fixed Assets, depreciation is charged on WDV basis to write of the cost of the fixed asset. Useful life of fixed Asset is taken on the basis of its use
Investments are classified into current investments and non current investments. Investments that are intended to be held for one year or more as on the date of Balance sheet are classified as non current investments and investments that are held for less than one year as on the date of Balance Sheet are classified as current investments. Non current investment are valued at cost. Income from investment is recognized in the year in which it is accrued and states at gross.
The stock in trade during the year is valued at cost or net realizable value whichever is less.
g. Employee Benefits :
No provision is made in respect of retirement benefits.
h. Revenue Recognition :
i) Revenue has been recognized as and when there is a reasonable certainty of its ultimate realization
i. Contingent Liability :
i) Provisions are recognized for present obligation of uncertain timing or amount as a result of a past event where a reliable estimate can be made and it is probable that an outflow or resources embodying economic benefits will be required to settle the obligation. Where it is not possible that an outflow or resources embodying economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as contingent liability, unless the probability of outflow or resources embodying economic benefits is remote.
ii) Possible obligations whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain events are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefit is remote.
j. Previous year's figures have been regrouped wherever necessary to confirm to current year's groupings.
k. Cash and Cash equivalents
Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less