Mar 31, 2016
1. Basis of Preparation of Financial Statements
These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.
2. Use of Estimates
The preparation of Financial Statements in conformity with Indian GAAP requires estimates and assumptions to be made, that affects the reported amounts of assets and liabilities on the date of the Financial Statements and the reported amounts of revenue 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.
3. Fixed Assets
Fixed Assets are capitalized at cost less accumulated depreciation inclusive of purchase price, duties and other non refundable taxes, direct attributable cost of bringing asset to its working condition and financing cost till commercial production. Projects, if any, under which assets are not ready for their intended use are shown as Capital Work-in-Progress.
4. Depreciation / Amortization
Depreciation on fixed assets is provided at the rates and in the manner prescribed under Part C of Schedule II of the Companies Act 2013.
5. Inventories
The inventories are stated at lower of cost and net realizable value, after providing for obsolescence, if any. Cost of Inventories comprises of all cost of purchase, cost of conversion and other cost incurred in bringing inventory to the present location and condition and valuation is inclusive of taxes and duties incurred on same.
6. Revenue Recognition
Revenue from sales transactions is recognized on transfer of significant risk and rewards of ownership, which generally is on the dispatch of goods. Revenue from services is recognized upon rendering of services. Dividend is recognized when the right to receive the payment is established and Interest Income is recognized on accrual basis, if any.
7. Investment
Investments are classified as Current & Non Current Investments. Current Investments are carried at lower of cost or Market / Fair Value determined on an individual investment basis. Non-Current investments are valued at cost.
However no investments were made during the Period under review.
8. Borrowing Costs
Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All other borrowing costs are charged to Profit and Loss A/c.
9. Taxation
Tax expenses for the Period comprise of current tax and deferred tax. Current tax is measured as amount of tax payable in respect of taxable income for current Period as per Income Tax Act 1961 after considering tax allowances and exemptions, if any. Deferred Tax assets or liabilities are recognized for further tax consequence attributable to timing difference between taxable income and accounting income that originate in one Period and are capable of reversal in one or more subsequent Period.
10. Leases Operating Lease
Lease where the lesser effectively retains substantially all risks and benefits of the asset are classified as Operating lease. Operating lease payments are recognized as an expense in the Profit & Loss account on a Straight Line Basis over the Lease term.
11. Impairment of Assets
An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Profit & Loss in the Period in which an asset is identified as Impaired. As on Balance Sheet date, the Company reviews the carrying amount of Fixed Assets to determine whether there are any indications that those assets have suffered "Impairment Loss".
12. Earnings per Share
In determining the Earnings Per share, the company considers the net profit after tax/(loss) which includes any post tax effect of any extraordinary / exceptional item. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period.
The number of shares used in computing Diluted earnings per share comprises the weighted average number of shares considered for computing Basic Earnings per share and also the weighted number of equity shares that would have been issued on conversion of all potentially dilutive shares.
13. Related Party Transactions
As per accounting standard 18 (AS-18) Related party disclosures, notified in the companies (Accounting Standards) Rules 2006, the disclosure of transactions with the related parties defined in AS-18 are given below;
1. Key Managerial Personnel (KMP''s) -
a) Shripal Kantilal Bafna - Managing Director
b) Renuka Bafna - C.F.O. / Whole Time Director
c) Hardik Hemendra Sanghvi - Director
2. Relatives of Key Management Personnel -
Name of the Party Nature of Relation
Mrs. Renuka S. Bafna Wife of MD Mr. Shripal Bafna
3. Parties where control exists
Name of the Party Nature of Control
Vmukti Solutions Pvt. Ltd. Mr. Hardik Sanghvi is Common Director
15. Contingent Liabilities & Provisions
Provisions are recognized only when there is a present obligation as a result of past events and when a reliable estimate of the amount of obligation can be made. Contingent Liability is disclosed for, by way of note for -
a) Possible obligation which will be confirmed only by future events not wholly within the control of the Company or
b) Present obligations arising from the past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.
c) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized
Mar 31, 2015
1. Basis of Preparation of Financial Statements
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. Accounting policies have
been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use.
2. Use of Estimates
The preparation of Financial Statements in conformity with Indian GAAP
requires estimates and assumptions to be made, that affects the
reported amounts of assets and liabilities on the date of the Financial
Statements and the reported amounts of revenue 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.
3. Fixed Assets
Fixed Assets are capitalized at cost less accumulated depreciation
inclusive of purchase price, duties and other non refundable taxes,
direct attributable cost of bringing asset to its working condition and
financing cost till commercial production. Projects, if any, under
which assets are not ready for their intended use are shown as Capital
Work-in-Progress.
4. Depreciation / Amortization
Depreciation on fixed assets is provided on Written Down Value (WDV) at
the rates and in the manner prescribed under Part C of Schedule II of
the Companies Act 2013.
5. Inventories
The inventories are stated at lower of cost and net realizable value,
after providing for obsolescence, if any. Cost of Inventories comprises
of all cost of purchase, cost of conversion and other cost incurred in
bringing inventory to the present location and condition and valuation
is inclusive of taxes and duties incurred on same.
6. Revenue Recognition
Revenue from sales transactions is recognized on transfer of
significant risk and rewards of ownership, which generally is on the
dispatch of goods. Revenue from services is recognized upon rendering
of services. Dividend is recognized when the right to receive the
payment is established and Interest Income is recognized on accrual
basis, if any.
7. Investment
Investments are classified as Current & Non Current Investments.
Current Investments are carried at lower of cost or Market / Fair Value
determined on an individual investment basis. Non-Current investments
are valued at cost.
However no investments were made during the Period under review.
8. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss A/c.
9. Taxation
Tax expenses for the Period comprise of current tax and deferred tax.
Current tax is measured as amount of tax payable in respect of taxable
income for current Period as per Income Tax Act 1961 after considering
tax allowances and exemptions, if any. Deferred Tax assets or
liabilities are recognized for further tax consequence attributable to
timing difference between taxable income and accounting income that
originate in one Period and are capable of reversal in one or more
subsequent Period.
10. Leases
Operating Lease
Lease where the lesser effectively retains substantially all risks and
benefits of the asset are classified as Operating lease. Operating
lease payments are recognized as an expense in the Profit & Loss
account on a Straight Line Basis over the Lease term.
11. Impairment of Assets
An asset is impaired when the carrying cost of assets exceeds its
recoverable value. An impairment loss is charged to Profit & Loss in
the Period in which an asset is identified as Impaired. As on Balance
Sheet date, the Company reviews the carrying amount of Fixed Assets to
determine whether there are any indications that those assets have
suffered "Impairment Loss".
12. Earnings per Share
In determining the Earnings Per share, the company considers the net
profit after tax/(loss) which includes any post tax effect of any
extraordinary / exceptional item. The number of shares used in
computing basic earnings per share is the weighted average number of
shares outstanding during the period.
The number of shares used in computing Diluted earnings per share
comprises the weighted average number of shares considered for
computing Basic Earnings per share and also the weighted number of
equity shares that would have been issued on conversion of all
potentially dilutive shares.
Mar 31, 2014
1.Basis of Preparation of Financial Statements
The Financial Statements have been prepared under Historical Cost
conventions and on accrual basis in accordance with the Generally
Accepted Accounting Principles (''GAAP'') applicable in India, Companies
(Accounting Standard) Rules, 2006 notified by Ministry of Company
Affairs and Accounting Standards issued by the Institute of Chartered
Accountants of India as applicable and relevant provisions of the
Companies Act, 1956, as adopted consistently by the Company.
2.Use of Estimates
The preparation of Financial Statements in conformity with Indian GAAP
requires estimates and assumptions to be made, that affects the
reported amounts of assets and liabilities on the date of the Financial
Statements and the reported amounts of revenue 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.
3. Fixed Assets
Fixed Assets are capitalized at cost less accumulated depreciation
inclusive of purchase price, duties and other non refundable taxes,
direct attributable cost of bringing asset to its working condition and
financing cost till commercial production, if any.
Projects, if any, under which assets are not ready for their intended
use are shown as Capital Work-in-Progress. However no project was
undertaken during the year under review.
4. Depreciation / Amortization
Depreciation on fixed assets is provided on Written Down Value (WDV) at
the rates and in the manner prescribed in Schedule XIV to the Companies
Act, 1956.
5.Inventories
The inventories are stated at lower of cost and net realizable value,
after providing for obsolescence, if any. Cost of Inventories comprises
of all cost of purchase, cost of conversion and other cost incurred in
bringing inventory to the present location and condition and valuation
is inclusive of taxes and duties incurred on same.
6. Revenue Recognition
Revenue from sales transactions is recognized on transfer of
significant risk and rewards of ownership, which generally is on the
dispatch of goods. Revenue from services are recognized upon rendering
of services. Dividend is recognized when the right to receive the
payment is established and Interest Income is recognized on accrual
basis.
7. Investment
Investments are classified as Current & Non Current Investments.
Current Investments are carried at lower of cost or Market / Fair Value
determined on an individual investment basis. Non-Current investments
are valued at cost. However no Investment was made by the Company
during the year.
8. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily sub-
stantial period of time to get ready for its intended use. All other
borrowing costs are charged to Profit and Loss A/c..
9. Taxation
Tax expenses for the year comprise of current tax and deferred tax.
Current tax is measured as amount of tax payable in respect of taxable
income for current year as per Income Tax Act 1961 after considering
tax allowances and exemptions, if any. Deferred Tax assets or
liabilities are recognized for further tax consequence attributable to
timing difference between taxable income and accounting income that
originate in one year and are capable of reversal in one or more
subsequent year.
In view of loss incurred no provision is made for Income Tax. Deffered
Tax liability is created on account of timing difference on
Depreciation as per Companies Act and Income Tax Act.
10.Leases Operating Lease
Lease where the lesser effectively retains substantially all risks and
benefits of the asset are classified as Operating lease. Operating
lease payments are recognized as an expense in the Profit & Loss
account.
11. Impairment of Assets
An asset is impaired when the carrying cost of assets exceeds its
recoverable value. An impairment loss is charged to Profit & Loss in
the year in which an asset is identified as Impaired. As on Balance
Sheet date, the Company reviews the carrying amount of Fixed Assets to
determine whether there are any indications that those assets have
suffered "Impairment Loss".
12. Foreign Exchange Transactions
i) Transactions in Foreign currency are recorded at the rate of
exchange prevailing on the date of the respective transactions or that
approximates the actual rate at the date of the transaction.
ii) Monetary items denominated in foreign currencies at the year end
are restated at year end rates. In case of items which are covered by
forward exchange contracts, the difference between the year end rate
and rate on the date of the contract is recognized as exchange
difference and the premium paid on forward contracts is recognized over
the life of the contract.
iii) Non-monetary foreign currency items are carried at cost.
iv)Any income or expense on account of ex-change difference either on
settlement or on translation is recognized in the Statement of Profit
and Loss, except in case of long term liabilities, where they relate to
acquisition of fixed assets, in which case they are adjusted to the
carrying cost of such assets.
13. Earnings per Share
In determining the Earnings Per share, the company considers the net
profit after tax which includes any post tax effect of any
extraordinary / exceptional item. The number of shares used in
computing basic earnings per share is the weighted average number of
shares outstanding during the period.
The number of shares used in computing Diluted earnings per share
comprises the weighted average number of shares considered for
computing Basic Earnings per share and also the weighted number of
equity shares that would have been issued on conversion of all
potentially dilutive shares.
14. Retirement Benefits
Short term employee benefits - The undiscounted amount of short-term
employee benefits expected to be paid in exchange for the services
rendered by employees are recognised as an expense during the period
when the employees render the services. These benefits include
performance incentive and compensated absences.
According to management, since the number of employees are less than
mandatory limit, Company has not yet applied for registration under
Provident Fund Act or ESIC Act.
15. Contingent Liabilities & Provisions
Provisions are recognized only when there is a present obligation as a
result of past events and when a reliable estimate of the amount of
obligation can be made.
Contingent Liability is disclosed for by way of note for -
a) Possible obligation which will be confirmed only by future events
not wholly within the control of the Company or
b) Present obligations arising from the past events where it is not
probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation
cannot be made.
c) Contingent Assets are not recognized in the financial statements
since this may result in the recognition of income that may never be
realized.
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