Mar 31, 2014
I. Basis of Accounting:
These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. Pursuant to circular 15/2013 dated 13.09.2013 read with circular 08/2014 dated 04.04.2014, 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 Companies Act, 1956 shall continue to apply.
Consequently, these financial statements have been prepared on the basis of going concern, under the historical cost convention on the accrual basis, to comply in all material aspects with applicable Accounting Standards issued by the Institute of Chartered Accountants of India (ICAI) and notified under Section 211(3c) (Companies (Accounting Standards) Rules, 2006, as amended) and other relevant provisions ofthe Companies Act, 1956.
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 Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalent, the Company has ascertained its operating cycle to be in 12 months for the purpose of current - noncurrent classification of assets and liabilities.
II. Use of Estimates:
The preparation and presentation of financial statements requires estimates and assumptions and/or revised estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of financial statements and 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.
III. Cash Flow Statement:
Cash flows are reported using the indirect method, whereby profit/ (loss) before tax is adjusted with Cash and cash equivalents (with an original maturity of three months or less) held for the purpose of meeting short-term cash commitments.
IV. Revenue Recognition:
Company generally follows the mercantile system of accounting and recognizes income and expenses on accrual basis, including provisions or adjustments for committed obligations and amounts demined as payable or receivable during the year.
V. Fixed Assets:
Fixed Assets are stated at cost, less accumulated depreciation. Cost comprises the purchase price, including duties and other non- refundable taxes or levies any directly attributable cost of bringing the asset to its working condition and indirect costs specifically attributable to a fixed asset.
Assets retired from active use are carried at lower of book value and estimated net realizable value.
VI. Method of Depreciation:
As per the accounting standard - 6, Depreciation on Fixed Assets, is provided on the "Written down Value Method" (W.D.V) at the rates specified in the Schedule XIV to the companies Act, 1956 from time to time.
Investments are classified into Current and Long-term Investments. Current Investments are stated at lower of cost and fair value. Long-term Investments are stated at cost. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long-term Investments. However, fixed income long term securities are stated at cost, less amortization of premium/ discount and provision for diminution to recognize a decline, other than temporary.
VIII. Foreign Currency transactions:
As per the Accounting standard - 11, there are no foreign currency transactions undertaken by the Company during the year under review.
IX. Employee Benefits:
Expenses and Liabilities in respect of employee benefits are recorded in accordance with Revised Accounting Standard 15 - Employee Benefits (Revised 2005) issued by the Institute of Chartered Accountants of India (the "ICAI").
X. 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. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings 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 effects of all dilutive potential equity shares.
XI. Related Party Transactions:
During the Financial Year 2013-2014, there is no transaction made with related party, therefore the Accounting standard-18 "Related Party disclosure" is not required.
XII. Taxes on Income:
Income-tax expense comprises current tax and deferred tax charge or credit. Provision for current tax is made on the basis of the assessable income at the tax rate applicable to the relevant assessment year.
Minimum Alternative Tax credit is recognized as an asset only when and to the extant there is convincing evidence that the company will pay normal tax during the specified period.