Mar 31, 2015
1. SYSTEM OF ACCOUNTING
A) The Company follows mercantile system of accounting and recognizes
Income and Expenditure on accrual basis
B) Financial statements are based on historical cost. These costs are
not adjusted to reflect the impact of the changing value of purchase
power of money.
C) Accounting policies, not specifically referred to otherwise, are
consistent and in consonance with generally accepted accounting
principles followed by the company.
2. USE OF ESTIMATE
The presentation of the financial statements in conformity with the
generally accepted accounting principles requires the Management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, revenues and expenses and disclosure of
contingent liabilities. Such estimates and assumptions are based on the
Management's evaluation of relevant facts and circumstances as on the
date of the financial statements. The actual outcome may diverge from
these estimates.
3. FIXED ASSETS
Fixed assets are stated at cost less depreciation. Depreciation has
been provided on the written down value method and at the rates and in
the manner specified in Schedule II of the Companies Act, 2013.
4. INVESTMENT
Long term unquoted investment in companies have been valued at cost
5. INVENTORIES
Inventories are valued at cost (on FIFO basis) or at realizable value
whichever is less.
6. DEPRECIATION
Depreciation has been provided on the written down value method and at
the rates and in the manner specified in Schedule II of the Companies
Act, 2013.
7. INCOME FROM INVESTMENT
Income from investments, where appropriate are taken into revenue in
full on declaration or receipt and tax deducted at source thereon is
treated as advance tax.
8. TREATMENT OF CONTINGENT LIABILITES
Contingent liabilities are disclosed by way of note to the accounts, if
any.
9. ACCOUNTING FOR TAXES ON INCOME
Income tax expenses comprises current tax (i.e. amount of tax for the
year determined in accordance with the income tax law) and deferred tax
charge or credit (reflecting the tax effects of timing differences
between accounting income and taxable income for the year)
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realized in future; however, where
there is unabsorbed depreciation or carried forward business loss under
taxation laws, deferred tax assets are recognized only if there is a
virtual certainty of realization of such assets. Deferred tax assets /
liabilities are reviewed as at each balance sheet date and written down
or written up to reflect the amount that is reasonably / virtually
certain (as the case may be ) to be realized.
The company offsets assets and liabilities representing current tax and
deferred tax where it has a legally enforceable right to set off the
recognized amounts and it intends to settle those assets and
liabilities on a net basis.
10. BORROWING COSTS
The company has charged the entire borrowing costs to the Profit & Loss
Account there being no qualifying asset with the company.
11. The company does not have any intangible assets
12. IMPAIRMENT OF ASSETS
Impairment is ascertained at each balance sheet date in respect of Cash
Generating Units. An impairment loss is recognized whenever the
carrying amount of an asset exceeds its recoverable value. The
recoverable amount is the greater of the net selling price and value in
use. In assessing the value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor.
13. EMPLOYEE BENEFITS:
1. Short Term Employee benefits have been accounted for either as an
expenses as a charge to Profit & Loss Account or as a liability if
unpaid.
2. Post Employment Benefits:
a. Defined Contributions Plans: The Company has no liability towards
any defined contributions plans.
b. Defined Benefit Plans: The Company accounts for expenditure on
defined benefits plans on actual payment basis. It is the view of the
management that, due to a small number of workers the liability of the
company under defined benefit plans (i.e. gratuity) is not material
considering the present composition of the work force and its volume of
business. The company has no liability towards retirement benefits as
on 31.03.2015.
Mar 31, 2014
1. SYSTEM OF ACCOUNTING
a) The Company follows mercantile system of accounting and recognizes
Income and Expenditure on accrual basis except in respect of interest
income on Non Performing Assets which is reckoned on realization basis
as per the norms set by the Reserve Bank of India.
b) Financial statements are based on historical cost. These costs are
not adjusted to reflect the impact of the changing value of purchase
power of money.
c) Accounting policies, not specifically referred to otherwise, are
consistent and in consonance with generally accepted accounting
principles followed by the company.
2. USE OF ESTIMATE
The presentation of the financial statements in conformity with the
generally accepted accounting principles requires the Management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, revenues and expenses and disclosure of
contingent liabilities. Such estimates and assumptions are based on the
Management''s evaluation of relevant facts and circumstances as on the
date of the financial statements. The actual outcome may diverge from
these estimates.
3. FIXED ASSETS
Fixed assets are stated at cost less depreciation. Depreciation has
been provided on the written down value method and at the rates and in
the manner specified in Schedule XIV of the Companies Act, 1956.
4. INVESTMENT
The Investments in quoted equity shares have been treated as long term
investment. Accordingly, these investment have been valued at cost.
5. INVENTORIES
Inventories are valued at cost (on FIFO basis) or at realisable value
which ever is less.
6. DEPRECIATION
Depreciation has been provided on the written down value method and at
the rates and in the manner specified in Schedule XIV of the Companies
Act, 1956.
7. PRIOR PERIOD EXPENSES / INCOME
The Company follows the practice of making adjustments through
"Expenses / Income under / over provided in previous year in respect of
all material transactions pertaining to the period prior to current
accounting year, if any.
8. INCOME FROM INVESTMENT
Income from investments, where appropriate are taken into revenue in
full on declaration or receipt and tax deducted at source thereon is
treated as advance tax.
9. TREATMENT OF CONTINGENT LIABILITES
Contingent liabilities are disclosed by way of note to the accounts, if
any.
10. ACCOUNTING FOR TAXES ON INCOME
Income tax expenses comprises current tax (i.e. amount of tax for the
year determined in accordance with the income tax law) and deferred tax
charge or credit (reflecting the tax effects of timing differences
between accounting income and taxable income for the year)
The deferred tax charge or credit and the corresponding deferred tax
liabilities or assets are recognized using the tax rates that have been
enacted or substantively enacted by the balance sheet date. Deferred
tax assets are recognized only to the extent there is reasonable
certainty that the assets can be realised in future; however, where
there is unabsorbed depreciation or carried forward business loss under
taxation laws, deferred tax assets are recognised only if there is a
virtual certainty of realisation of such assets. Deferred tax assets /
liabilities are reviewed as at each balance sheet date and written down
or written up to reflect the amount that is reasonably / virtually
certain (as the case may be ) to be realised.
The company offsets assets and liabilities representing current tax and
deferred tax where it has a legally enforceable right to set off the
recognised amounts and it intends to settle those assets and
liabilities on a net basis.
11. BORROWING COSTS
The company has charged the entire borrowing costs to the Profit & Loss
Account there being no qualifying asset with the company.
12. The company does not have any intangible assets
13. IMPAIRMENT OF ASSETS
Impairment is ascertained at each balance sheet date in respect of Cash
Generating Units. An impairment loss is recognized whenever the
arrying amount of an asset exceeds its recoverable value. The
recoverable amount is the greater of the net selling price and value in
use. In assessing the value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor.
14. EMPLOYEE BENEFITS:
1. Short Term Employee benefits have been accounted for either as an
expenses as a charge to Profit & Loss Account or as a liability if
unpaid.
2. Post Employment Benefits:
a. Defined Contributions Plans: The company has no liability towards
any defined contributions plans.
b. Defined Benefit Plans: The Company accounts for expenditure on
defined benefits plans on actual payment basis. It is the view of the
management that, due to a small number of workers the liability of the
company under defined benefit plans (i.e. gratuity) is not material
considering the present composition of the work force and its volume of
business. The company has no liability towards retirement benefits as
on 31.03.2014.
Mar 31, 2012
I SYSTEM OF ACCOUNTING
A) The Company follows mercantile system of accounting and recognizes
Income and Expenditure on accrual basis.
B) Financial statements are based on historical cost. Theses costs are
not adjusted to reflect the impact of the changing value of purchase
power of money.
C) Accounting policies, not specifically referred to otherwise, are
consistent and in consonance with generally accepted accounting
principles followed by the company.
II REVENUE RECOGNITION
Sale of goods are recognized when risk and rewards of ownership of the
products are passed on to the customers which is generally on dispatch
of goods.
III FIXED ASSETS
a) Fixed assets are carried at cost of acquisition inclusive of other
incidental expenses directly related to respective fixed assets.
b) Depreciation on fixed assets have been provided on written down
value method at the rates prescribed under schedule XIV to the
Companies Act, 1956.
c) In case of additions to the fixed assets made during the year,
depreciation has been provided on pro-rata basis from the date of
addition.
d) Assets below 5000/- charged 100% depreciation.
IV INVESTMENTS : Investments are valued at Costs.
V CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
Events accruing after the date of the Balance Sheet, which provide
further evidence of conditions that existed at the Balance Sheet date
or that arose subsequently are considered upto the date of approval of
accounts by the Board of Directors, where material.
VI DEFERRED TAXATION
Deferred Tax resulting from timing differences between book and tax
profits is accounted for under the liability method at the current rate
of tax, to the extent that the timing differences are expected to
crystallized as deferred tax charge/ benefits in the profit and loss
account and as deferred tax asset / liabilities in the Balance Sheet.
VII TAXATION:
Current tax is determined as the amount of tax payable to the taxation
authorities in respect of taxable income for the period. Deferred tax
is recognised, subject to the consideration of prudence, on timing
difference being differences between taxable incomes and accounting
income, that originate in one period and are capable of reversal in one
or more subsequent periods.
VIII USE OF ESTIMATE
The presentation of the financial statements in conformity with the
generally accepted accounting principles requires the Management to
make estimates and assumptions that affect the reported amounts of
assets and liabilities, revenues and expenses and disclosure of
contingent liabilities. Such estimates and assumptions are based on the
Management's evaluation of relevant facts and circumstances as on the
date of the financial statements. The actual outcome may diverge from
these estimates.
IX The company does not have any intangible assets
X INVENTORIES
a) Raw materials are valued at cost or realizable value whichever is
lower. The cost includes purchase price as well as incidental expenses
like freight and octroi.
b) Finished goods are valued at estimated cost or realizable value
whichever is lower.
c) Cost is arrived at on first in first out basis.
XI RETIREMENT BENEFITS
Retirement benefits are dealt with in the following manner:
a) Provision for gratuity is made as and when an employee put in the
qualifying period of service for entitlement of this benefit.
b) Liability on account of encashable leave salary is determined and
such liability is provided in the accounts.
XII PROVISIONS, CONTINGENT LIABILITIES & CONTINGENT ASSETS
Contingent Liabilities, if material are disclosed by way of notes,
contingent assets are not recognized or disclosed in the financial
statements. A provision is recognized when an enterprise has a present
obligation as a result of pass event(s) and it is probable that an
outflow of resources embodying economic benefits will be required to
settle the obligations in respect of which a reliable estimate can be
made for the amount of obligation.
Mar 31, 2009
Basis of Preparation of the Financial Statement:
The financial Statements are prepared under the Historical Cost
Convention on a Going Concern basis.
Revenue Recognition:
The Company generally follows the mercantile system of accounting and
recognizes the income and expenditure on an accrual basis except those
with significant uncertainties & complies with accounting standards
issued by the Institute of Chartered Accountants of India and the
relevant provisions of the Companies Act, 1956.
Fixed Assets / Intangible Assets:
Fixed Assets are stated at cost of acquisition. For this purpose, cost
includes cost of acquisition and all costs directly attributable to
bringing the asset for its present use and condition, including
borrowing cost of qualifying assets.
Depreciation:
Depreciation on Fixed Assets is not provided because of the depreciable
assets not found in the company.
Taxation:
Provision for taxation provided in accordance with the income tax laws
prevailing for the relevant assessment years.
Investments:
Investments are valued at costs unless there is a permanent fall in
their value as at the date of Balance Sheet.
Contingent Liabilities
The liabilities of contingent in nature are not found, hence not
provided in the Accounts.
Mar 31, 2008
1. The Accounts are prepared under the historical cost convention and
on the basis of going concern. Expenses and Income are accounted on
accrual basis.
2. Fixed assets: Fixed Assets are accounted for at the cost incurred
at the time of acquisition.
3. Depreciation: There is no depreciable assets in the company hence
depreciation not provided.
4. Amortization: preliminary expenses have been written off over
period of 10 years.
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