Mar 31, 2015
A) Basis Of Preparation
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with the
Generally Accepted" Accounting Principles ('GAAP'). These financial
statements comply with the Accounting Standards notified by the Central
Government under the Companies (Accounting Standards) Rules, 2006,
pronouncements of Institute of Chartered Accountants of India and
presentation requirements of relevant provisions of the Companies Act,
2013 as adopted consistently by the company.
B) Preparation and disclosure of financial statements
During the previous year ended 31 march 2014, the Company had adopted
Schedule III to the Companies Act, 2013 for the preparation of the
financial statements of the Company. The Schedule III introduced some
conceptual changes as well as new disclosures. These included
classification of all assets and liabilities into current and non-
current.
C) Use of estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities as at the date of the financial statements and
reported amounts of income and expenses during the reporting period.
Actual results could differ from these estimates. Any changes in the
accounting estimate is adjusted prospectively in the current and future
periods.
D) Revenue Recognition
Revenue from sale of services is recognized on transfer of all the
significant risk and rewards of ownership to the recipient of service.
E) Tangible fixed assets and intangible fixed assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises original cost of acquisition
and any directly attributable cost of bringing the asset to its working
condition for the intended use. Intangible assets are stated at cost of
acquisition including costs related to acquisition and installation,
less accumulated amortization and impairment losses, if any.
F) Depreciation and amortization
Depreciation is provided on written down value basis at the rates
specified in Schedule II to the Companies Act, 2013. Depreciation is
charged on pro-rata basis for assets purchased/sold during the year.
Assets costing less than Rs 5,000/- are fully depreciated in the year
of purchase. The rates adopted reflect the estimate of useful lives of
the fixed assets as provided in schedule II of the Companies Act, 2013.
Further the company had not amortized its intangible asset namely
Technical Know How.
G) Impairment
The carrying values of assets are reviewed at each reporting date to
determine if there is indication of any impairment. If any indication
exists, the assets recoverable amount is estimated. For assets that are
not yet available for use, the recoverable amount is estimated at each
reporting date. An impairment loss is recognized whenever the carrying
amount of an asset or its cash generating unit exceeds its recoverable
amount. Impairment losses are recognized in the Statement of Profit
and Loss. An impairment loss is reversed if there has been a change in
the estimates used to determine the recoverable amount. An impairment
loss is reversed only to the extent that the asset's carrying amount
does not exceed the carrying amount that would have been determined net
of depreciation or amortization, if no impairment loss had been
recognized.
The company has not provided for such impairment losses, if any,
relating to Intangible asset (Technology Know How), the resultant
impact, if any, is not recognized in the Statement of Profit & Loss
account.
H) Foreign Currency Transactions
Monetary assets and liabilities denominated in foreign currency are not
translated at the yearend rates and the resultant gain/losses on
foreign exchange translations are not recognized in the Statement of
Profit and Loss.
I) Retirements benefits
Gratuity and leave encashment are defined benefit schemes. The charge
in the profit & loss account for gratuity and leave encashment is not
based on the actuarial valuation by an independent actuary. The
calculation of the same has been done by the management at their own.
J) Taxation
Income tax expense 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 period).
The deferred tax charge or credit and the corresponding deferred tax
assets and liabilities are recognized using the tax rates that have
been enacted or substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent there is a
reasonable certainty that the assets can be realized in future; however
where there are unabsorbed depreciation or carry forward losses under
taxation laws, deferred tax assets are recognised only to the extent
there is virtual certainty of realization of such assets. Deferred tax
assets are reviewed as at the 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.
In view of the continued losses of the company, deferred tax
assest/liability has not been recognized in the books of accounts.
K) Earning Per Share
Basic earning/(loss) per share is computed using the weighted average
number of equity shares outstanding during the year. Diluted earnings
per share is computed using the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year end,
except where the results would be anti-dilutive.
L) Provisions. Contingent liabilities and contingent assets
A provision arising from claims, litigation, assessment, fines,
penalties,'etc is recognized when the company has a present obligation
as a result of a past event and is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and reliable estimate can be made of the amount of the
obligation. A contingent liability is disclosed, unless the possibility
of an outflow of resources embodying economic benefits is remote.
M) Operating Lease
Lease payments under operating lease arrangements are recognized as an
expense in the Statement of Profit & Loss account on a straight line
basis over the lease term.
Mar 31, 2014
A) Basis Of Preparation
The financial statements are prepared under the historical cost
convention on accrual basis of accounting in accordance with the
Generally Accepted Accounting Principles ("GAAP"). These financial
statements comply with the Accounting Standards notified by the Central
Government under the Companies (Accounting Standards) Rules, 2006,
pronouncements of Institute of Chartered Accountants of India and
presentation requirements of relevant provisions of the Companies Act,
1956, to the extent applicable, as adopted consistently by the company.
B) Preparation and disclosure of financial statements
During the previous year ended 31 march ''2014, the Company had adopted
revised Schedule VI to the Companies Act, 1956 for the preparation of
the financial statements of the Company. The revised Schedule VI
introduced some conceptual changes as well as new disclosures. These
included classification of all assets and liabilities into current and
non-current.
C) Use of estimates
The preparation of financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities as at the date of the financial statements and
reported amounts of income and expenses during the reporting period.
Actual results could differ from these estimates. Any changes in the
accounting estimate is adjusted prospectively in the current and future
periods.
D) Revenue Recognition
Revenue from sale of services is recognized on transfer of
all the significant risk and
rewards of ownership to the recipient of service.
E) Tangible fixed assets and intangible fixed assets
Fixed assets are stated at cost less accumulated depreciation and
impairment losses, if any. Cost comprises original cost of acquisition
and any directly attributable cost of bringing the asset to its working
condition for the intended use. Intangible assets are stated at cost of
acquisition including costs related to acquisition and installation,
less accumulated amortization and impairment losses, if any.
F) Depreciation and amortization
Depreciation is provided on written down value basis at the rates
specified in Schedule XIV to the Companies Act, 1956. Depreciation is
charged on pro-rata basis for assets purchased/sold during the year.
Assets costing less than Rs 5,000/- are fully depreciated in the year
of purchase. The rates adopted reflect the estimate of useful lives of
the fixed assets.
Further the company had not amortized its intangible asset namely
Technical Know How.
G) Impairment
The carrying values of assets are reviewed at each reporting date to
determine if there is indication of any impairment. If any indication
exists, the assets recoverable amount is estimated. For assets that are
not yet available for use, the recoverable amount is estimated at each
reporting date. An impairment loss is recognized whenever the carrying
amount of an asset or its cash generating unit exceeds its recoverable
amount. Impairment losses are recognized in the Statement of Profit and
Loss. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss
is reversed only to the extent that the asset''s carrying amount does
not exceed the carrying amount that would have been determined net of
depreciation or amortization, if no impairment loss had been
recognized.
The company has not provided for such impairment losses, if any,
relating to Intangible asset (Technology Know How), the resultant
impact, if any, is not recognized in the Statement of Profit & Loss
account.
H) Foreign Currency Transactions
Monetary assets and liabilities denominated in foreign currency are not
translated at the yearend rates and the resultant gain/losses on
foreign exchange translations are not recognized in the Statement of
Profit and Loss.
I) Retirements benefits
Gratuity and leave encashment are defined benefit schemes. The charge
in the profit & loss account for gratuity and leave encashment is not
based on the actuarial valuation by an independent actuary. The
calculation of the same has been done by the management at their own.
J) Taxation
Income tax expense 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 period).
The deferred tax charge or credit and the corresponding deferred tax
assets and liabilities are recognized using the tax rates that have
been enacted or substantively enacted at the balance sheet date.
Deferred tax assets are recognized only to the extent there is a
reasonable certainty that the assets can be realized in future; however
where there are unabsorbed depreciation or carry forward losses under
taxation laws, deferred tax assets are recognised only to the extent
there is virtual certainty of realization of such assets. Deferred tax
assets are reviewed as at the 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.
K) Earning Per Share
Basic earning/(loss) per share is computed using the weighted average
number of equity shares outstanding during the year. Diluted earnings
per share is computed using the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year end,
except where the results would be anti-dilutive.
L) Provisions. Contingent liabilities and contingent assets
A provision arising from claims, litigation, assessment, fines,
penalties, etc is recognized when the company has a present obligation
as a result of a past event and is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and reliable estimate can be made of the amount of the
obligation. A contingent liability is disclosed, unless the possibility
of an outflow of resources embodying economic benefits is remote.
M) Operating Lease
Lease payments under operating lease arrangements are recognized as an
expense in the Statement of Profit & Loss account on a straight line
basis over the lease term.
Mar 31, 2013
1 System of Accounting:
The accounts and financial statements have been prepared on historical
cost basis of accounting and on the basis of going concern.
2 Fixed Assets and Depreciation
a) AH fixed assets are carried at cost of construction or acquisition
less depreciation. All expenses including financing costs on borrowed
funds up to the date the assets is ready for use and attributable to
the construction or acquisition of fixed assets are capitalized.
When an assets is scrapped, or otherwise disposed off, the cost and
related depreciation are removed from the books of account and
resultant profit (Including capital profit) or loss, if any, is
reflected in Profit and Loss Account.
b) Depreciation on all the fixed assets is provided on Straight Line
Method, pro - rata monthly rest, at the rates prescribed in Schedule
XIV of the Companies Act, 1956
c) Assets individually costing up to Rs.5000/- are depreciated at 100%
in the year of purchase.
3. Investment
All long - term investments are valued at cost less provisions as
considered necessary Current investments are valued at the lower of
cost and fair value, determined by category of investment, Investment
have been reconciled during the year.
4 Stock In Trade
Stock in trade is valued at the cost or realizable value whichever_is
less. The cost is computed on FIFO Basis.
5 Retirement Benefits
Contributions are made under the relevant rules for Provident Fund
etc., which are charged to Profit & Loss Account on accrual basis.
Liability on account of gratuity is as per actuarial valuation.
6 Income
(a) In respect of heads of income, the company follows the practice of
accounting for such income on accrual basis.
7 Expenses
(a) Fine/penalty on late deposit of statutory dues have been accounted
for on levied/paid basis.
(b) Interest expenses on unsecured loan have been accounted for on
payment basis.
(c) All other expenses are accounted for on accrual basis.
8 Preliminary Expenses/Deferred Jlevenue Expenditure
Preliminary Expenses/Deferred Revenue Expenditure are amortized over a
period of ten years or over the period of contract / agreement.
9 Taxes on Income
Deferred tax is recognized subject to the consideration of prudence, on
timing difference, being the difference between the taxable income and
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods. In view of the continuing
losses deferred assets has not been recognized during the year.
Mar 31, 2010
1 System of Accounting:
The accounts and financial statements have been prepared on historical
cost basis of accounting and on the basis of going concern.
2 Fixed Assets and Depreciation
a) All fixed assets are carried at cost of construction or acquisition
less depreciation. All expenses including financing costs on borrowed
funds up to the date the assets is ready for use and attributable to
the construction or acquisition of fixed assets are capitalized.
When an assets is scrapped, or otherwise disposed off, the cost and
related depreciation are removed from the books of account and
resultant profit (Including capital profit) or loss, if any, is
reflected in Profit and Loss Account.
b) Depreciation on all the fixed assets is provided on Straight Line
Method, pro à rata monthly rest, at the rates prescribed in Schedule
XIV of the Companies Act, 1956
c) Assets individually costing up to Rs.5000/- are depreciated at 100%
in the year of purchase.
3. Investment
All long - term investments are valued at cost. Current investments are
valued at the lower of cost and fair value, determined by category of
investment, Investment have reconciled during the year.
4 Stock In Trade
Stock in trade is valued at the cost or realizable value whichever is
less. The cost is computed on FIFO Basis.
5 Foreign currency transactions
Foreign currency transactions are recorded at rates of exchange
prevailing on the date of transaction. All exchange differences during
the year are accounted for in the Profit and Loss account
6 Retirement Benefits
Contributions are made under the relevant rules for Provident Fund
etc., which are charged to Profit & Loss Account on accrual basis.
Liability on account of gratuity is as per actuarial valuation.
7 Income
(a) Sales are net of Sales Tax. Material returned / rejected are
accounted for in the year of return / rejection. Sales are recognized
at the time of dispatches to customers.
(b) Dividends on investments are accounted for on receipt basis.
(c) In respect of other heads of income, the company follows the
practice of accounting for such income on accrual basis.
8 Expenses
(a) Fine/penalty on late deposit of statutory dues have been accounted
for on levied/paid basis.
(b) Interest expenses on unsecured loan have been accounted for on
payment basis.
(c) All other expenses are accounted for on accrual basis.
9 Preliminary Expenses/Deferred Revenue Expenditure
Preliminary Expenses/Deferred Revenue Expenditure are amortized over a
period of ten years or over the period of contract / agreement.
10. Taxes on Income
Deferred tax is recognized subject to the consideration of prudence, on
timing difference, being the the difference between the taxable income
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
Mar 31, 2009
1 System of Accounting:
The accounts and financial statements have been prepared on historical
cost basis of accounting and on the basis of going concern.
2 Fixed Assets and Depreciation
a) All fixed assets are carried at cost of construction or acquisition
less depreciation. All expenses including financing costs on borrowed
funds up to the date the assets is ready for use and attributable to
the construction or acquisition of fixed assets are capitalized.
When an assets is scrapped, or otherwise disposed off, the cost and
related depreciation are removed from the books of account and
resultant profit (Including capital profit) or loss, if any, is
reflected in Profit and Loss Account.
b) Depreciation on all the fixed assets is provided on Straight Line
Method, pro - rata monthly rest, at the rates prescribed in Schedule
XIV of the Companies Act, 1956
c) Assets individually costing up to Rs.5000/- are depreciated at 100%
in the year of purchase.
3. Investment
All long - term investments are valued at cost. Current investments are
valued at the lower of cost and fair value, determined by category of
investment
4 Stock In Trade
Stock in trade is valued at the cost or realizable value whichever is
less. The cost is computed on FIFO Basis.
5 Foreign currency transactions
Foreign currency transactions are recorded at rates of exchange
prevailing on the date of transaction. All exchange differences during
the year are accounted for in the Profit and Loss account
6 Retirement Benefits
Contributions are made under the relevant rules for Provident Fund
etc., which are charged to Profit & Loss Account on accrual basis.
Liability on account of gratuity is provided for the person who is
covered under the payment of Gratuity Act. Leave encashment is provided
on accrual basis. Retirement benefit cost for the period has been
determined by the management on the basis of mere estimation and is not
as per Actuarial valuation.
7 Income
(a) Sales are net of Sales Tax. Material relumed / rejected are
accounted for in the year of return i rejection. Sales are recognized
at the time of dispatches to customers.
(b) Dividends on investments are accounted for on receipt basis.
(c) In respect of other heads of income, the company follows the
practice of accounting for such income on accrual basis.
8 Expenses
(a) Fine/penalty on late deposit of statutory dues have been accounted
for on levied/paid basis.
(b) Interest expenses on unsecured loan have been accounted for on
payment basis.
(c) All other expenses are accounted for on accrual basis.
9 Preliminary Expenses/Deferred Revenue Expenditure
Preliminary Expenses/Deferred Revenue Expenditure are amortized over a
period of ten years or over the period of contract / agreement.
10. Taxes on Income
Deferred tax is recognized subject to the consideration of prudence, on
timing difference, being the the difference between the taxable income
and accounting income that originate in one period and are capable of
reversal in one or more subsequent periods.
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