Mar 31, 2015
2.1 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS :
i) These Financial Statements have been prepared in accordance with generally accepted accounting principles in India under the historical cost convention on an accrual basis. Pursuant to Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules 2014, till the standards of accounting or any addendum thereto are prescribed by Central Government in consultation and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act, 1956 shall continue to apply.
ii) Consequently these financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) of the Companies Act, 1956 (Companies (Accounting Standards) Rules, 2006, (as amended) and other relevant provisions of the Companies Act, 2013.
2.2 USE OF ESTIMATES :
The preparation of financial statements in conformity with Indian GAAP requires estimates and assumptions to be made that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known / materialized.
2.3 FIXED ASSETS :
Tangible assets are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any.
Subsequent expenditure related to an item of fixed asset are added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance.
Items of fixed assets that have been retired from active use and held for disposal are stated at the lower of their net book value and net realizable value. Any expected loss, is recognised immediately in the Statement of Profit and Loss.
Losses arising from the retirement of and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the Statement of Profit and Loss.
Intangible assets are stated at acquisition cost, net of accumulated amortization and accumulated impairment losses, if any. Intangibles assets are amortized on a straight line basis over the estimated useful lives.
Gains or losses, if any arising from the retirement or disposal proceeds and the carrying amount of the asset are recognised as income or expense in the Statement of Profit and loss.
2.4 METHOD OF DEPRECIATION AND AMORTIZATION :
i) Depreciation, on tangible assets is calculated on written-down value basis over the estimated useful lives of the assets.
ii) Effective 1st April 2014, the Company depreciates its fixed assets over the useful life in the manner prescribed in Schedule II of the Act, as against the earlier practice of depreciating at the rates prescribed in Schedule XIV of the Companies Act, 1956.
iii) Cost of Goodwill and trademarks are amortized over the estimated useful lives of 25 and 10 years
iv) Depreciation on additions to assets or on sale/discardment of assets is calculated pro rata from the month of such addition or upto the month of such sale/discardment, as the case may be.
2.5 LEASE :
Where the lessors effectively retain substantially all the risks and benefits of ownership of the leased item the lease is classified as operating leases. Operating lease payments are recognized as an expense in the statement of profit and loss on a straight-line basis over the lease term. Initial direct costs such as legal costs, brokerage costs, etc. are recognized immediately in the statement of profit and loss.
2.6 BORROWING COSTS :
Interest and other borrowing costs attributable to qualifying assets are capitalized. Other interest and borrowing costs are charged to revenue.
2.7 GOVERNMENT GRANTS :
During the year, no grants and subsidies has been received from the Government. Grants and subsidies from the government if any, received against specific fixed assets are adjusted to the cost of the assets and those in the nature of promoter's contribution are credited to Capital Reserve. Revenue Grants are recognized in the Profit and Loss account in accordance with the related scheme and in the period in which these are accrued.
2.8 INVESTMENTS :
Investments that are readily realizable and are intended to be held for not more than one year from the date, on which such investments are made, are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost or fair value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments, such reduction being determined and made for each investment individually.
2.9 VALUATION OF INVENTORIES :
Inventories consist of Raw materials, components, stores and spares, Finished Goods. Raw materials, components, spares are stated at cost, while finished goods are 'at cost or net realizable value, whichever is lower'. Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost of raw materials, components and stores and spares is determined on a weighted average basis. Cost of finished goods includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity. Due allowance is estimated and made for defective and obsolete items, wherever necessary, based on the past experience of the Company.
2.10 REVENUE RECOGNITION :
i) Revenues/incomes and Costs/Expenditures are generally accounted on accrual, as they are earned or incurred.
ii) Sale of Goods is recognised on transfer of significant risks and rewards of ownership which is generally on the dispatch of the goods and there is no uncertainty regarding the collectability of the amount.
2.11 STATUTORY AND OTHER TAXES :
Excise duty/Service tax is not applicable to the company. Sales tax/Value Added tax paid is set-off against the collection and in case of payment of earlier years; the same is debited to Profit and Loss account.
2.12 FOREIGN cuRRENcY TRANSIATIONS :
i) All transactions in foreign currency, are recorded at the rates of exchange prevailing on the dates when the relevant transactions take place
ii) Monetary items in form of current assets and current liabilities in foreign currency, outstanding at the close of the year are converted in Indian Currency at the appropriate rates of exchange prevailing on the date of the Balance Sheet.
2.13 employee BENEFITS :
The company at present does not have any retirement benefit for the employees concerned and the staff costs are accounted as period costs.
2.14 TAXATION :
Income-tax expense comprises current 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. The deferred tax asset and deferred tax liability is calculated by applying the tax rate and the tax laws that have been enacted or substantively enacted at the reporting date. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. At each balance sheet date, the carrying amounts of deferred tax assets are reviewed to reassure realization. Minimum alternate tax credit (MAT credit) is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal tax during the specified period. Such asset is reviewed at each Balance Sheet date and the Carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.
2.15 IMPAIRMENT OF ASSETS :
The carrying amounts of assets are reviewed at each Balance Sheet date if there is any indication of impairment based on internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.
2.16 Segment REPoRTING :
At present the company deals only in single segment of household cleaning items, hence the company's operating businesses are organized and managed accordingly and no further segment identification is done and no such accounting policies in respect to disclosures of the same. The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.
2.17 Earnings Per Share :
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events if any such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources. 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.
2.18 PRoVISioNS, coNTINGENT LIABILITIES AND coNTIGENT ASSETS :
Provisions: Provisions are recognized when there is a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at best estimate of the expenditure required to settle the obligation at the balance sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liability are disclosed when there is a possible obligation arising from past events, the existence which will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not within the control of the company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimated of the amount cannot be made.
Contingent Assets: Contingent Assets are neither recognised nor disclosed in the financial statements.
2.19 cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short- term investments with an original maturity of three months or less, if any.
Mar 31, 2010
A) Basis of Accounting
The accounts of the Company are prepared under the historical cost convention and in accordance with the applicable accounting standards except where otherwise stated.
b) Revenue Recognition
Revenue from the sale of goods is recognized upon passage of title to the customer, which generally coincides with the delivery.
c) Fixed Assets
Fixed Assets are stated at historical cost of acquisition or construction less accumulated depreciation, inclusive of invoice price, freight, taxes, duties and other directly and indirectly attributable cost for bringing the asset to its present location and working condition for its intended use.
Depreciation has been charged on fixed assets on straight-line method as per the rates specified in schedule xiv of the Companies Act, 1956.
e) Impairment of Assets:
An Asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged for when the asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
Inventories are valued as follows:
i) Raw Materials At cost
ii) Work-in-process At cost
g) Employee retirement benefits:
The contribution to the provident fund is charged against revenue.
i) Deferred Taxation:
In accordance with the accounting standards AS-22 issued by the Institute of Chartered Accountants of India, the deferred tax resulting from timing differences f-etween book and tax profits is recognized under the liability method.