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.
VII. Investments:
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.
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