Mar 31, 2016
a) BASIS OF PREPARATION OF FINANCIAL STATEMENT The financial statement of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (India GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules,2006(as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.
b) USE OF ESTIMATES The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the period in which the results are known/materialize.
c) INVENTORIES
i. Inventories are valued at lower of cost (FIFO Basis) or Net Realizable value.
ii. Cost of inventories have been computed to include all costs of purchases, cost of conversion and other costs incurred in bringing the inventories to their present location and condition.
d) CASH ANS CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances(with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible in to known amounts of cash and which are subject to insignificant risk of changes in value.
e) CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby profit/(loss) before extraordinary items and tax adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. It also includes fixed deposits with schedules banks.
f) PRIOR PERIOD ITEMS
All identifiable items of income and expenditure pertaining to prior period are accounted through "Prior Period Expenses Account"
g) DEPECIATION/Amortization
Depreciation on Fixed Assets is provided on life assigned to each asset in accordance with the Schedule -II of the Companies Act, 2013. Consequently based on the technical evaluation the Company has reassessed the useful life of its Fixed Assets. During the year an Intangible Fixed Asset i.e. Rights for advertisement on webpage "guj.ooo" site are acquired from Prudent Technoserve Private Limited through an agreement of three years which is under process during the year, hence Intangible fixed asset is not amortized during the year.
h) FIXED ASSETS
i. Fixed assets are stated at cost of acquisition or construction. They are stated at historical cost less accumulated depreciation.
ii. Expenditure on accounts of modification/alteration in plant and machinery, which increases the future benefit from the existing assets beyond its previous assessed standard of performance, is capitalized.
iii. Any capital expenditure in respect of assets, the ownership of which would not vest with Company, is charged off to revenue in the year of incurrence.
iv. The Company has acquired an Intangible Fixed Asset i.e. Rights for advertisement on webpage "guj.ooo" site are acquired from Prudent Technoserve Private Limited through an agreement of three years which is under process during the year.
i) REVENUE RECOGNITION
i. Sales are recognized, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales exclude sales tax/value added tax.
ii. Income from services rendered is accounted for when the work is performed.
iii. Interest revenues are recognized on time proportion basis taking into account the amount the outstanding and the rate applicable.
j) FOREIGN CURRENCY TRANSACTION (NOT APPLICABLE)
i. Initial Recognition
Transaction denominated in foreign currencies is recorded at the exchange rates prevailing on the date of the transaction.
ii. Conversion
At the year-end, monetary items denomination in foreign currencies, other than those covered by forward contracts, are converted into rupee equivalents at the yearend exchange rates.
iii. Exchange Differences
All exchange differences arising on settlement and conversion of foreign currency transaction are included in the Profit and Loss Account.
iv. Forward Exchange Contracts
In respect of transactions covered by forward exchange contracts, the difference between the forward rate and exchange rate at the date of contract is recognized as income or expense over the life of the contact.
k) EMPLOYEE BENEFITS
i. Provident Fund and Pension Fund:(Not Applicable)
ii. Gratuity: Gratuity liability as on 31st March 2016 has not been determined by the actuarial valuation and so that such liability has not been provided for in these accounts.
iii. Leave Encashment: The Company does not have any policy to carry forward unutilized leaves. Accordingly no provision for same is made in these accounts.
iv. Other Employee Benefits: Other Employee Benefits are accounted for actual basis.
l) BORROWINGS COSTS (NOT APPLICABLE)
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 assets is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.
m) SEGMENT ACCOUNTING (NOT APPLICABLE)
Accounting Standard Interpretation (ASI) 20 Dated 14th February, 2004 issued Accounting Standards Board of the institute Chartered Accountants of India, on AS 17, Segment Reporting clarifies that in case, by applying the definitions of "business segment" and "geographical segment" given in AS 17, it is concluded that there is neither more than one business segment nor more than one geographical segment. Segment information as per AS 17 is not required to be disclosed.
n) RELATED PARTY TRANSATIONS
Disclosure of transaction with Related Parties, as required by Accounting Standards 18 "Related Party disclosures" has been set out in a separate note forming part of this schedule. Related Parties as defined under clause 3 of the Accounting Standard 18 have been identified on the basis of representation made by key managerial personnel and information available with the Company.
o) LEASES (NOT APPLICABLE)
The Company''s significant leasing arrangements are in respect of operating leases for office premises, stores & go down. The leasing arrangements ranging between 11 months and five years are generally, and are usually renewable by mutual consent on agreed terms. The aggregate lease rentals payable are charged as rent including lease rentals.
p) EARNING PER SHARE
The Company reports basic and diluted earnings per share (EPS) in accordance with Accounting Standard 20 prescribed under The Companies Accounting Standards Rules, 2006. The Basic EPS has been computed by dividing the income available to equity shareholders by the number of equity share outstanding during the accounting year. The Diluted EPS has been computed using the weighted average number of equity shares and dilutive potential equity shares outstanding at the end of the year.
q) TAXES ON INCOME
Provision for taxation comprises of Current Tax and Deferred Tax. Current Tax provision has been made on the basis of reliefs and deductions available under the Income Tax Act, 1961. Deferred Tax resulting from "timing differences" between taxable and accounting income is accounted in accordance with Accounting Standard 22 (AS-22) "Accounting for taxes on income" notified under the Companies (Accounts) Rules, 2014, using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. The Deferred Tax Asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets can be realized in future. However, where there is unabsorbed depreciation or carry forward losses under taxation laws, Deferred Tax Assets are recognized only if there is virtual certainty of realization of such assets. Deferred Tax Assets are recognized only if there is virtual certainty of realization of such assets. Deferred Tax Assets are reviewed as at each Balance sheet date to reassess its realization.
r) IMPAIRMENT OF FIXED ASSETS
The carrying amount of assets, other than inventories, is reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the assts recordable amount is estimated.
The impairment loss is recognized whenever the carrying amount of an asset or its cash generation unit exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in the uses, which is determined, based on the estimated future cash flow discounted to their present values. All impairment losses are recognized in the profit and loss account.
An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount and is recognized in the profit and loss account.
s) PROVISION, CONTINGENT LIABILITIES AND CONTIGENT ASSETS
Provisions involving substantial degree of estimation in measurements are recognized 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 recognized but are disclosed in notes. Contingent assets are neither recognized nor disclosed in the financial statements.
t) ACCOUNTING OF CLAIMS (NOT APPLICABLE)
i. Claims received are accounted at the time of lodgment depending on the certainty of receipt and claims payable are accounted at the time of acceptance.
ii. Claims raised by Government authorities regarding taxes and duties, which are disputed by the Company, are accounted based on legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.
u) EXPORT INCENTIVES (NOT APPLICABLE)
Export benefits under various scheme announced by the Central Government under Exim policies are accounted for in the year of receipt as against accrual basis to the extent considered receivable, depending on the certainty of receipt up to previous year. However there is no impact of the same on the profitability for the current year.
v) Though other Accounting Standards also apply to the Company by virtue of the Companies Accounting Rules, 2006, no disclosure for the same is being made as the Company has not done any transaction to which the said accounting standards apply.
Mar 31, 2015
Note 1 : CORPORATE INFORMATION
The company is based in Ahmedabad and is primarily involved in trading
of Mobile Tracking Devices/ computer hardweres/I.T. Services/Investing.
a) BASIS OF PREPARATION OF FINANCIAL STATEMENT
The financial statements of the Company have been prepared in
accordance with the Generally Accepted Accounting Principles in
India (Indian GAAP) to comply with the Accounting Standards notified
under the Companies (Accounting Standards) Rules, 2006 (as amended)
and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the
financial statements are consistent with those followed in the
previous year.
b) USE OF ESTIMATES
The preparation of the financial statements in conformity
with Indian GAAP requires the Management to make estimates
and assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) and the reported income
and expenses during the year. The Management believes that the
estimates used in preparation of the financial statements are prudent
and reasonable. Future results could differ due to these estimates and
the differences between the actual results and the estimates are
recognised in the periods in which the results are known/ materialise.
c) INVENTORIES
i) Inventories are valued at lower of cost (FIFO Basis) or Net
Realisable value.
ii) Cost of inventories have been computed to include all costs of
purchases, cost of conversion and other costs incurred in bringing the
inventories to their present location and condition.
d) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
e) CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information. It also includes fixed
diposits with schedule banks.
f) PRIOR PERIOD ITEMS
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Prior Period Expenses Account"
g) DEPRECIATION
i) Depreciation on Fixed Assets is provided on writtendown value method
at rates and in the manner specified in Schedule XIV to the Companies
Act, 1956 read with the relevant circulars issued by the Department of
Company Affairs.
ii) Depreciation on Assets acquired / disposed off during the year is
provided on pro-rata basis with reference to the date of
addition/disposal.
iii) Individual assets costing less than Rs.5000 are fully depreciated
in the year of purchase.
h) REVENUE RECOGNITION
i) Sales are recognised, net of returns and trade discounts, on
transfer of significant risks and rewards of ownership to the buyer,
which generally coincides with the delivery of goods to customers.
Sales exclude sales tax/ value added tax.
ii) Income from services rendered is accounted for when the work is
performed.
iii) Interest revenues are recognized on time proportion basis taking
into account the amount outstanding and the rate applicable.
i) FIXED ASSETS
i) Fixed assets are stated at cost of acquisition or construction. They
are stated at historical cost less accumulated depreciation.
ii) Expenditure on accounts of modification/alteration in plant and
machinery, which increases the future benefit from the existing asset
beyond its previous assessed standard of performance, is capitalized.
iii) Any capital expenditure in respect of assets, the ownership of
which would not vest with the Company, are charged off to revenue in
the year of incurrence.
j) FOREIGN CURRENCY TRANSACTIONS (NOT APPLICABLE)
i) Initial Recognition
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of the transaction.
ii) Conversion
At the year-end, monetary items denominated in foreign currencies,
other than those covered by forward contracts, are converted into rupee
equivalents at the year end exchange rates.
iii) Exchange Differences
All exchange differences arising on settlement and conversion of
foreign currency transaction are included in the Profit and Loss
Account.
iv) Forward Exchange Contracts
In respect of transactions covered by forward exchange contracts, the
difference between the forward rate and the exchange rate at the date
of contract is recognised as income or expense over the life of the
contract.
k) EMPLOYEE BENEFITS
i) Provident Fund and Pension Fund: (NOT APPLICABLE)
ii) Gratuity:
Gratuity liability as on 31st March, 2014 has not been determined by
the actuarial valuation and so that such liability has not been
provided for in these accounts.
iii) Leave Encashment:
The company does not have any policy to carry forward unutilised
leaves. Accordingly no provision for same is made in these accounts.
iv) Other Employee Benefits:
Other Employee Benefits are accounted for on accrual basis.
l) BORROWING COSTS (NOT APPLICABLE)
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 necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
m) SEGMENT ACCOUNTING (NOT APPLICABLE)
Accounting Standard Interpretation (ASI) 20 Dated 14th February, 2004
issued by the Accounting Standards Board of the Institute Chartered
Accountants of India, on AS 17, Segment Reporting clarifies that in
case, by applying the definitions of "business segment" and
"geographical segment" given in AS 17, it is concluded that there is
neither more than one business segment nor more than one geographical
segment. Segment information as per AS 17 is not required to be
disclosed.
n) RELATED PARTY TRANSACTIONS
Disclosure of transactions with Related Parties, as required by
Accounting Standard 18 "Related Party disclosures" has been set out in
a separate note forming part of this schedule. Related Parties as
defined under clause 3 of the Accounting Standard 18 have been
identified on the basis of representation made by key managerial
personnel and information available with the Company.
o) LEASES (NOT APPLICABLE)
The Company's significant leasing arrangements are in respect of
operating leases for office premises, stores & godown. The leasing
arrangements ranging between 11 months and five years are generally,
and are usually renewable by mutual consent on agreed terms. The
aggregate lease rentals payable are charged as rent including lease
rentals.
p) EARNING PER SHARE
The Company reports basic and diluted earnings per share (EPS) in
accordance with the Accounting Standard 20 prescribed under The
Companies Accounting Standards Rules, 2006. The Basic EPS has been
computed by dividing the income available to equity shareholders by the
weighted average number of equity shares outstanding during the
accounting year. The Diluted EPS has been computed using the weighted
average number of equity shares and dilutive potential equity shares
outstanding at the end of the year.
q) TAXES ON INCOME
i) Deferred Taxation
In accordance with the Accounting Standard 22 Â Accounting for Taxes on
Income, prescribed under The Companies Accounting Standards Rules,
2006, the deferred tax for timing differences between the book and tax
profits for the year is accounted for by using the tax rates and laws
that have been enacted or substantively enacted as of the Balance Sheet
Date.Deferred tax assets arising from timing differences are recognised
to the extent there is virtual certainty that the assets can be
realised in future.Net outstanding balance in Deferred Tax account is
recognized as deferred tax liability/asset. The deferred tax account is
used solely for reversing timing difference as and when crystallized.
ii) Current Taxation
Provision for taxation has been made in accordance with the income tax
laws prevailing for the relevant assessment years.
r) IMPAIRMENT OF FIXED ASSETS
The carrying amount of assets, other than inventories, is reviewed at
each balance sheet date to determine whether there is any indication of
impairment. If any such indication exists, the assets recoverable
amount is estimated.The impairment loss is recognized whenever the
carrying amount of an asset or its cash generation unit exceeds its
recoverable amount. The recoverable amount is the greater of the
asset's net selling price and value in the uses, which is determined,
based on the estimated future cash flow discounted to their present
values. All impairment losses are recognized in the profit and loss
account.An impairment loss is reversed if there has been a change in
the estimates used to determine the recoverable amount and is
recognized in the profit and loss account.
s) PROVISION, CONTINGENT LIABILITIES AND CONTIGENT 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 are disclosed in notes.
Contingent assets are neither recognised nor disclosed in the financial
statements.
t) ACCOUNTING OF CLAIMS (NOT APPLICABLE)
i) Claims received are accounted at the time of lodgment depending on
the certainty of receipt and claims payable are accounted at the time
of acceptance.
ii) Claims raised by Government authorities regarding taxes and duties,
which are disputed by the Company, are accounted based on legality of
each claim. Adjustments, if any, are made in the year in which disputes
are finally settled.
u) EXPORT INCENTIVES (NOT APPLICABLE)
Export benefits under various scheme announced by the Central
Government under Exim policies are accounted for in the year of receipt
as against accrual basis to the extent considered receivable, depending
on the certainty of receipt upto previous year. However there is no
impact of the same on the profitability for the current year.
v) Though other Accounting Standards also apply to the Company by
virtue of the Companies Accounting Standards Rules, 2006, no disclosure
for the same is being made as the Company has not done any transaction
to which the said accounting standards apply.
Mar 31, 2014
A) BASIS OF PREPARATION OF FINANCIAL STATEMENT
b) USE OF ESTIMATES
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known/ materialise.
c) INVENTORIES
i) Inventories are valued at lower of cost (FIFO Basis) or Net
Realisable value.
d) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)
e) CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information. It also includes fixed
diposits with schedule banks.
f) PRIOR PERIOD ITEMS
All identifiable items of Income and Expenditure pertaining to prior
period are accounted through "Prior Period Expenses Account"
g) DEPRECIATION
i) Depreciation on Fixed Assets is provided on writtendown value method
at rates and in the manner specified in Schedule XIV to the Companies
Act, 1956 read with the relevant circulars issued by the Department of
Company Affairs.
ii) Depreciation on Assets acquired / disposed off during the year is
provided on pro-rata basis with reference to the date of
addition/disposal.
iii) Individual assets costing less than Rs.5000 are fully depreciated
in the year of purchase.
h) REVENUE RECOGNITION
i) Sales are recognised, net of returns and trade discounts, on
transfer of significant risks and rewards of ownership to the buyer,
which generally coincides with the delivery of goods to customers.
Sales exclude sales tax/ value added tax.
ii) Income from services rendered is accounted for when the work is
performed.
iii) Interest revenues are recognized on time proportion basis taking
into account the amount outstanding and the rate applicable.
i) FIXED ASSETS
i) Fixed assets are stated at cost of acquisition or construction. They
are stated at historical cost less accumulated depreciation.
ii) Expenditure on accounts of modification/alteration in plant and
machinery, which increases the future benefit from the existing asset
beyond its previous assessed standard of performance, is capitalized.
iii) Any capital expenditure in respect of assets, the ownership of
which would not vest with the Company, are charged off to revenue in
the year of incurrence.
j) FOREIGN CURRENCY TRANSACTIONS (NOT APPLICABLE)
i) Initial Recognition
Transactions denominated in foreign currencies are recorded at the
exchange rates prevailing on the date of the transaction.
ii) Conversion
At the year-end, monetary items denominated in foreign currencies,
other than those covered by forward contracts, are converted into rupee
equivalents at the year end exchange rates.
iii) Exchange Differences
All exchange differences arising on settlement and conversion of
foreign currency transaction are included in the Profit and Loss
Account.
iv) Forward Exchange Contracts
In respect of transactions covered by forward exchange contracts, the
difference between the forward rate and the exchange rate at the date
of contract is recognised as income or expense over the life of the
contract.
k) EMPLOYEE BENEFITS
i) Provident Fund and Pension Fund: (NOT APPLICABLE)
ii) Gratuity: Gratuity liability as on 31st March, 2014 has not been
determined by the actuarial valuation and so that such liability has
not been provided for in these accounts.
iii) Leave Encashment: The company does not have any policy to carry
forward unutilised leaves. Accordingly no provision for same is made in
these accounts.
iv) Other Employee Benefits: Other Employee Benefits are accounted for
on accrual basis.
l) BORROWING COSTS (NOT APPLICABLE)
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 necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
m) SEGMENT ACCOUNTING (NOT APPLICABLE)
Accounting Standard Interpretation (ASI) 20 Dated 14th February, 2004
issued by the Accounting Standards Board of the Institute Chartered
Accountants of India, on AS 17, Segment Reporting clarifies that in
case, by applying the definitions of "business segment" and
"geographical segment" given in AS 17, it is concluded that there is
neither more than one business segment nor more than one geographical
segment. Segment information as per AS 17 is not required to be
disclosed.
n) RELATED PARTY TRANSACTIONS
Disclosure of transactions with Related Parties, as required by
Accounting Standard 18 "Related Party disclosures" has been set out in
a separate note forming part of this schedule. Related Parties as
defined under clause 3 of the Accounting Standard 18 have been
identified on the basis of representation made by key managerial
personnel and information available with the Company.
o) LEASES (NOT APPLICABLE)
The Company''s significant leasing arrangements are in respect of
operating leases for office premises, stores & godown. The leasing
arrangements ranging between 11 months and five years are generally,
and are usually renewable by mutual consent on agreed terms. The
aggregate lease rentals payable are charged as rent including lease
rentals.
p) EARNING PER SHARE
The Company reports basic and diluted earnings per share (EPS) in
accordance with the Accounting Standard 20 prescribed under The
Companies Accounting Standards Rules, 2006. The Basic EPS has been
computed by dividing the income available to equity shareholders by the
weighted average number of equity shares outstanding during the
accounting year. The Diluted EPS has been computed using the weighted
average number of equity shares and dilutive potential equity shares
outstanding at the end of the year.
q) TAXES ON INCOME
i) Deferred Taxation
In accordance with the Accounting Standard 22 - Accounting for Taxes on
Income, prescribed under The Companies Accounting Standards Rules,
2006, the deferred tax for timing differences between the book and tax
profits for the year is accounted for by using the tax rates and laws
that have been enacted or substantively enacted as of the Balance Sheet
Date.
Deferred tax assets arising from timing differences are recognised to
the extent there is virtual certainty that the assets can be realised
in future.
Net outstanding balance in Deferred Tax account is recognized as
deferred tax liability/asset. The deferred tax account is used solely
for reversing timing difference as and when crystallized.
ii) Current Taxation
Provision for taxation has been made in accordance with the income tax
laws prevailing for the relevant assessment years.
r) IMPAIRMENT OF FIXED ASSETS
The carrying amount of assets, other than inventories, is reviewed at
each balance sheet date to determine whether there is any indication of
impairment. If any such indication exists, the assets recoverable
amount is estimated.
The impairment loss is recognized whenever the carrying amount of an
asset or its cash generation unit exceeds its recoverable amount. The
recoverable amount is the greater of the asset''s net selling price and
value in the uses, which is determined, based on the estimated future
cash flow discounted to their present values. All impairment losses are
recognized in the profit and loss account.
An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount and is recognized in
the profit and loss account.
s) PROVISION, CONTINGENT LIABILITIES AND CONTIGENT 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 are disclosed in notes.
Contingent assets are neither recognised nor disclosed in the financial
statements.
t) ACCOUNTING OF CLAIMS (NOT APPLICABLE)
i) Claims received are accounted at the time of lodgment depending on
the certainty of receipt and claims payable are accounted at the time
of acceptance.
ii) Claims raised by Government authorities regarding taxes and duties,
which are disputed by the Company, are accounted based on legality of
each claim. Adjustments, if any, are made in the year in which disputes
are finally settled.
u) EXPORT INCENTIVES (NOT APPLICABLE)
Export benefits under various scheme announced by the Central
Government under Exim policies are accounted for in the year of receipt
as against accrual basis to the extent considered receivable, depending
on the certainty of receipt upto previous year. However there is no
impact of the same on the profitability for the current year.
v) Though other Accounting Standards also apply to the Company by
virtue of the Companies Accounting Standards Rules, 2006, no disclosure
for the same is being made as the Company has not done any transaction
to which the said accounting standards apply.
Mar 31, 2013
A) BASIS OF PREPARATION OF FINANCIAL STATEMENT The financial statements
of the Company have been prepared in accordance with the Generally
Accepted Accounting Principles in India (Indian GAAP) to comply with
the Accounting Standards notified under the Companies (Accounting
Standards) Rules, 2006 (as amended) and the relevant provisions of the
Companies Act, 1956. The financial statements have been prepared on
accrual basis under the historical cost convention. The accounting
policies adopted in the preparation of the financial statements are
consistent with those followed in the previous year.
b) USE OF ESTIMATES The preparation of the financial statements in
conformity with Indian GAAP requires the Management to make estimates
and assumptions considered in the reported amounts of assets and
liabilities (including contingent liabilities) and the reported income
and expenses during the year. The Management believes that the
estimates used in preparation of the financial statements are prudent
and reasonable. Future results could differ due to these estimates and
the differences between the actual results and the estimates are
recognized in the periods in which the results are known/ materialize.
c) INVENTORIES I) Inventories are valued at lower of cost (FIFO Basis)
or Net Realizable value.ii) Cost of inventories have been computed to
include all costs of purchases, cost of conversion and other costs
incurred in bringing the inventories to their present location and
condition.
d) CASH AND CASH EQUIVALENTS (FOR PURPOSES OF CASH FLOW STATEMENT)Cash
comprises cash on hand and demand deposits with banks. Cash equivalents
are short-term balances (with an original maturity of three months or
less from the date of acquisition), highly liquid investments that are
readily convertible into known amounts of cash and which are subject to
insignificant risk of changes in value.
e) CASH FLOW STATEMENT Cash flows are reported using the indirect
method, whereby profit / (loss) before extraordinary items and tax is
adjusted for the effects of transactions of non-cash nature and any
deferrals or accruals of past or future cash receipts or payments. The
cash flows from operating, investing and financing activities of the
Company are segregated based on the available information. It also
includes fixed deposits with schedule banks.
f) PRIOR PERIOD ITEMS All identifiable items of Income and Expenditure
pertaining to prior period are accounted through "Prior Period
Expenses Account"
g) DEPRECIATION) Depreciation on Fixed Assets is provided on written
down value method at rates and in the manner specified in Schedule XIV
to the Companies Act, 1956 read with the relevant circulars issued by
the Department of Company Affairs, ii) Depreciation on Assets acquired
/ disposed off during the year is provided on pro-rata basis with
reference to the date of addition/disposal, iii) Individual assets
costing less than Rs.5000 are fully depreciated in the year of
purchase.
h) REVENUE RECOGNITION) i) Sales are recognised, net of returns and
trade discounts, on transfer of significant risks and rewards of
ownership to the buyer, which generally coincides with the delivery of
goods to customers. Sales exclude sales tax/ value added tax. ii)
Income from services rendered is accounted for when the work is
performed, iii) Interest revenues are recognized on time proportion
basis taking into account the amount outstanding and the rate
applicable.
i) FIXED ASSETS I) Fixed assets are stated at cost of acquisition or
construction. They are stated at historical cost less accumulated
depreciation, ii) Expenditure on accounts of modification/alteration in
plant and machinery, which increases the future benefit from the
existing asset beyond its previous assessed standard of performance, is
capitalized, iii) Any capital expenditure in respect of assets, the
ownership of which would not vest with the Company, are charged off to
revenue in the year of incurrence.
j) FOREIGN CURRENCY TRANSACTIONS (NOT APPLICABLE) i) Initial
Recognition Transactions denominated in foreign currencies are recorded
at the exchange rates prevailing on the date of the transaction, ii)
Conversion At the year-end, monetary items denominated in foreign
currencies, other than those covered by forward contracts, are
converted into rupee equivalents at the yearend exchange rates, iii)
Exchange Differences All exchange differences arising on settlement and
conversion of foreign currency transaction are included in the Profit
and Loss Account, iv) Forward Exchange Contracts In respect of
transactions covered by forward exchange contracts, the difference
between the forward rate and the exchange rate at the date of contract
is recognized as income or expense over the life of the contract.
k) EMPLOYEE BENEFITS i) Provident Fund and Pension Fund: (NOT
APPLICABLE) ii) Gratuity: Gratuity liability as on 31st March, 2013 has
not been determined by the actuarial valuation and so that such
liability has not been provided for in these accounts,
iii) Leave Encashment: The company does not have any policy to carry
forward unutilized leaves. Accordingly no provision for same is made in
these accounts, iv) Other Employee Benefits: Other Employee Benefits
are accounted for on accrual basis.
I) BORROWING COSTS (NOT APPLICABLE) 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 necessarily takes substantial period of time to get ready
for intended use. All other borrowing costs are charged to revenue.
m) SEGMENT ACCOUNTING (NOT APPLICABLE) Accounting Standard
Interpretation (ASI) 20 Dated 14th February, 2004 issued by the
Accounting Standards Board of the Institute Chartered Accountants of
India, on AS 17, Segment Reporting clarifies that in case, by applying
the definitions of "business segment" and "geographical segment"
given in AS 17, it is concluded that there is neither more than one
business segment nor more than one geographical segment. Segment
information as per AS 17 is not required to be disclosed.
n) RELATED PARTY TRANSACTIONS Disclosure of transactions with Related
Parties, as required by Accounting Standard 18 "Related Party
disclosures" has been set out in a separate note forming part of this
schedule. Related Parties as defined under clause 3 of the Accounting
Standard 18 have been identified on the basis of representation made by
key managerial personnel and information available with the Company.
o) LEASES (NOT APPLICABLE) The Company''s significant leasing
arrangements are in respect of operating leases for office premises,
stores & go down. The leasing arrangements ranging between 11 months and
five years are generally, and are usually renewable by mutual consent
on agreed terms. The aggregate lease rentals payable are charged as
rent including lease rentals.
p) EARNING PER SHARE The Company reports basic and diluted earnings per
share (EPS) in accordance with the Accounting Standard 20 prescribed
under The Companies Accounting Standards Rules, 2006. The Basic EPS has
been computed by dividing the income available to equity shareholders
by the weighted average number of equity shares outstanding during the
accounting year. The Diluted EPS has been computed using the weighted
average number of equity shares and dilutive potential equity shares
outstanding at the end of the year.
q) TAXES ON INCOME i) Deferred Taxation In accordance with the
Accounting Standard 22 - Accounting for Taxes on Income, prescribed
under The Companies Accounting Standards Rules, 2006, the deferred tax
for timing differences between the book and tax profits for the year is
accounted for by using the tax rates and laws that have been enacted or
substantively enacted as of the Balance Sheet Date. Deferred tax assets
arising from timing differences are recognized to the extent there is
virtual certainty that the assets can be realized in future. Net
outstanding balance in Deferred Tax account is recognized as deferred
tax liability/asset. The deferred tax account is used solely for
reversing timing difference as and when crystallized, ii) Current
Taxation Provision for taxation has been made in accordance with the
income tax laws prevailing for the relevant assessment years.
r) IMPAIRMENT OF FIXED ASSETS The carrying amount of assets, other than
inventories, is reviewed at each balance sheet date to determine
whether there is any indication of impairment. If any such indication
exists, the assets recoverable amount is estimated. The impairment
loss is recognized whenever the carrying amount of an asset or its cash
generation unit exceeds its recoverable amount. The recoverable amount
is the greater of the asset''s net selling price and value in the
uses, which is determined, based on the estimated future cash flow
discounted to their present values. All impairment losses are
recognized in the profit and loss account. An impairment loss is
reversed if there has been a change in the estimates used to determine
the recoverable amount and is recognized in the profit and loss
account.
s) PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS Provisions
involving substantial degree of estimation in are management
recognized 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 recognized but are disclosed in notes.
Contingent assets are neither recognized for disclosed in the
financial statements.
t) ACCOUNTING OF CLAIMS (NOT APPLICABLE) i) Claims received are
accounted at the time of lodgment depending on the k:iiainty of receipt
and claims payable are accounted at the time of acceptance. ii) Claims
raised by Government authorities regarding taxes and duties, which are
disputed by the Company, are accounted based on legality of each claim.
Adjustments, if any, are made in the year in which disputes are finally
settled.
u) EXPORT INCENTIVES (NOT APPLICABLE) Export benefits under various
scheme announced by the Central Government under Exam policies are
accounted for in the year of receipt as against accrual basis to the
extent considered receivable, depending on the certainty of receipt up
to previous year. However there is no impart of the same on the
profitability for the current year.
v) Though other Accounting Standards also apply to the Company by
virtue of the Companies Accounting Standards Rules, 2006, no disclosure
for the same is being made as the Company has not done any trail
option to which they said accounting standards apply.
Mar 31, 2010
I) SYSTEMS OF ACCOUNTING (AS-1)
a) The Financial statements have been prepared under the historical
cost convention in accordance with the generaiiy accepted accounting
Principles and the provisions of the Companies Act, 1956.
b) Accounting policies not specifically referred to otherwise are
consistent with the generaiiy accepted accounting principles. The
Company follows the mercantile systems of accounting and recognizes
income and expenditure on accruals basis.
c) During the year As per scheme of arrangement of restructuring as per
order of Honorable Gujarat High Court, the business of Softcom division
of Anar Softcom Pvt. Ltd. has been merged with effect from 31.01.2009.
II) INVENTORIES (AS-2)
Inventories are valued at lower of cost or net realizable value.
III) CASH FLOW (AS-3)
The cash flow statement is prepared as per method prescribed in
accounting Standard.
IV) EVENTS OCCURING AFTER THE BALANCE SHEET DATE (AS-4)
Material adjusting events occurring after the balance sheet date are
recognized in the financial statement. Non adjusting events occurring
after balance sheet date that represent material changes and commitment
effecting the financial position are disclosed in the report of the
board of directors.
V) NET PROFIT OR LOSS FOR THE PERIOD, PRIOR PERIOD ITEMS AND CHANGES IN
ACCOUNTING POLICIES (AS-5)
Any income/ profit from extra ordinary nature of business as well as
prior period income or loss will be shown separately after determining
current year profit or loss of the company.
VI) DEPRECIATION (AS-6) ;
a) Depreciation on Fixed Assets is provided on written down value
method at rates and in the manner specified under Schedule XIV to the
Companies Act, 1956 read with the relevant circulars issued by the
Department of Company Affairs.
b) Depreciation on Assets acquired during the period is provided on
pro-rata basis with reference to the date of addition/disposal.
VII)REVENUE RECOGNITION (AS-9)
a) Revenue from sales of Goods/shares and services rendered is
recognised upon passage of title and rendering of services to the
customers.
b) Insurance and other claims, to the extent considered recoverable,
are accounted for in the year of claim.
c) Interest on loans & advances accounts are provided at the rate
mutually decided orally between the parties. if there is no certainty
of recovery of loans & advances the interest thereon is not provided.
d) the amount of Bad & Doubt full written off from loans & advances
accounts is on the basis of capacity of parties for repayment or
tentative decision of court cases. During the year, the company has
written of bad and doubtful accounts of debtors, loans and advances and
other current assets by reduction of equity share capital
VIII) FIXED ASSETS (AS-10)
Fixed Assets are stated as cost less accumulated depreciation. Ail cost
relating to acquisition and installation of Fixed Assets including
financial cost up to the date the assets are put to use and adjustment
arising from exchange rate variation relating to specific borrowing
towards to the fixed assets. There are no fixed assets of the company
but fixed assets of the softcom division of Anar Softcom Pvt. Ltd. are
included in revised audited accounts.
IX) FOREIGN CURRENCIES (AS-11)
Transactions in foreign currencies are recorded at the exchange rates
prevailing at the date of transactions. The resulting gain/loss is
recognised in the profit and loss account. There are no such
transactions in the current year.
X) INVESTMENTS (AS-13)
Long term investments are carried at cost. Provision for diminution in
the value of investments is made only if such a decline is other than
temporary in the opinion of the management. Any short fail in market
value considered as temporary nature hence loss is not provided.
XI) ACCOUNTING FOR AMALGAMATIONS (AS-14)
In case of merger/ demerger/ amalgamation, any difference between the
amounts recorded as share capital issued to the transferee company and
assets value, adjusted to "Goodwill" or "Capital Reserve".
XII) SEGMENT REPORTING (AS-17)
The Company is Carrying out only Trading Business and Misc. income
includes interest on Loans and Advances accounts.
Accordingly it has been disclosed separately in the Profit & Loss
accounts as business activities as prescribed under Accounting
Standard.
XIII) LEASE FINANCE BUSINESS (AS-19)
Accounting of Leasing Business Lease Terminal Adjusted A/c. arising on
account of corresponding entries passed for lease equalization is
adjusted in the net book Value of the leased assets and the residual
value of leased asset is recovered from lessee by sale of Assets at
book value.
XIV) EARNING PER SHARE (AS-20)
The Company reports Basic and Diluted Earnings per Share (EPS) in
accordance with Accounting Standard issued by the Institute of
Chartered Accountants of India. The Basic EPS has been computed by
dividing the income available to equity shareholders and Diluted EPS by
the weighted average number of equity shares outstanding during the
accounting period.
XV) TAXES ON INCOME (AS-22)
a) Provision is made for Taxation on a yearly basis, under the tax
payable method, based on tax liability, as computed after taking credit
for allowances and exceptions.
a) Deferred Tax is recognized, on timing differences, being the
difference between taxable incomes and accounting income that originate
in one period and are capable of reversal in one or more subsequent
periods. Where there is an unabsorbed depreciation or carry forward
loss, deferred tax assets are recognized only if there is virtual
certainty of realisation of such asset. Other deferred tax assets are
recognized only to the extent there is reasonable certainty of
realisation in future. Such assets are reviewed at each Balance Sheet
date to reassess realisation.
XVI) MISCELLANEOUS EPXENDITURE (AS-26)
Preliminary Expenses are amortised over a period of Ten years.
XVII) OTHER ACCOUNTING STANDARDS
In the finalising the accounts of the Company for the year ended 31st
March,2009 Accounting Standards issued by the I.C.A.I., out of which
AS-7,12,15,16,17,21 & 23 to 29 are not applicable to the Company &
hence not considered