Mar 31, 2010
Mar 31, 2009
To prepare financial statements in accordance with applicable accounting Standards in India, a summary of important accounting policies which have been applied consistently in set out below. The financial statements have also been prepared in accordance with relevant presentational requirements of the Companies Act, 1956.
B. BASIS OF ACCOUNTING:
Financial Statements are prepared under historical cost convention on accrual basis and are in accordance with requirements of Companies Act, 1956.
To state turnover, which represents invoiced value of goods sold and services rendered inclusive of Excise duties, Value added Tax, and Central Sales Tax. However, the Company has not been able to start any Manufacturing activities and as such there is no turnover of goods or services rendered.
D. FIXED ASSETS:
Fixed Assets are stated at cost less depreciation, which has been provided on the written down value method. Depreciation on additions is provided on pro-rata basis according to the period each asset has been put to use. No depreciation is provided on assets sold or scrapped.
Finished goods are valued at lower of Cost or market value whichever is lower. Raw Materials have been valued at net of Modvat, in accordance with Accounting Standard 2 (AS2) issued by the Institute of Chartered Accountants of India, Semi Finished Goods are valued at estimated cost or realisable value whichever is lower. However, the Company has not been able to start any Manufacturing activities and as such there are no inventories.
F. FINANCIAL & MANAGEMENT INFORMATION SYSTEM:
The Companys policy is to practice an integrated Accounting system, the Books of Accounts and other records have been designed to facilitate compliance of the relevant provisions of the Companies Act on one hand and meet the internal requirements of information and system for planning review and internal control on the other.
G. RETIREMENT BENEFITS:
The Company has no such employees who are entitled to any such benefits as Provident Fund, Pension Fund and Gratuity Fund at present.
H. FOREIGN CURRENCY TRANSACTION:
The earning in foreign currency is accounted for at the exchange rate prevailing at the time of sale or the rate realized or rate realizable on sales. Gains/Losses arising out of fluctuation in the exchange rates, is taken credit for or charged to Profit and Loss Account. However, there are no earnings in Foreign Exchange during the year.
I. RECOGNITION OF INCOME & EXPENDITURE:
All items of Expenditure and Income are recorded on Accrual basis.
The provision for Current Taxation is made after considering various reliefs admissible under the provision of Income tax Act. Deferred Tax is recognized on timing difference, being the difference between taxable Income and Accounting Income that originate in one period and are capable of reversal in one or more subsequent periods.
Investment is stated at Cost. Temporary diminution if any, in the value of such investments is not recognised. However, the Company has not made any investment during the year.
L. BORROWING COSTS:
Borrowing Costs are attributable to acquisition of Assets are Capitalised, as part of the cost of such assets. The other costs are charged to revenue. No amount of borrowing cost has been capitalized during the year.
M. PROVISION. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
Provisions involving Substantial degree of estimation in measurements are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statements.