Mar 31, 2015
(i) Basis of Accounting:
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on 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. Consequently, these financial statements have been prepared to
comply in all material aspects with the accounting standards notified
under Section 211(3C) [Companies (Accounting Standards) Rules,2006, as
amended] and other relevant provisions of the Companies Act, 2013.
All assets and liabilities have been classified as current or
non-current as per the Company's operating cycle and other criteria set
out in the Schedule III to the Companies Act, 2013. Based on the nature
of products and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as 12 months for the
purpose of current / non current classification of assets and
liabilities.
(ii) Tangible and Intangible Assets and Depreciation/ Amortisation:
(a) Tangible and Intangible Assets are stated at cost of acquisition or
construction less accumulated depreciation/ amortisation and
accumulated impairment losses, if any. The Company capitalises all
costs relating to the acquisition, installation and construction of
Tangible and Intangible Assets up to the date when the assets are ready
for commercial use. Subsequent expenditures related to an item of fixed
asset are added to its book value only if they increase 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 are held for disposal are stated at the lower of
their net book value and net realisable value and are shown separately
in the financial statements. 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 recognised in the Statement of
Profit and Loss.
(b) Depreciation on additions/ deletions to Tangible and Intangible
Assets is calculated on pro-rata basis from the month of such
additions/ deletions. The Company provides depreciation on
straight-line method at the rates specified under Schedule II Schedule
II to the Companies Act, 2013
(c) Assets individually costing less than Rs. 5,000 are fully
depreciated in the year of acquisition/ construction.
(d) Assessment is done at each Balance Sheet date as to whether there
is any indication that an asset (tangible and intangible) may be
impaired. For the purpose of assessing impairment, the smallest
identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from
other assets or groups of assets, is considered as a cash generating
unit. If any such indication exists, an estimate of the recoverable
amount of the asset/ cash generating unit is made. Assets whose
carrying value exceeds their recoverable amount are written down to the
recoverable amount. Recoverable amount is higher of an asset's or cash
generating unit's net selling price and its value in use. Value in use
is the presen' value of estimated future cash flows expected to arise
from the continuing use of an asset and from its disposal at the end of
its useful life. Assessment is also done at each Balance Sheet date as
to whether there is any indication that an impairment loss recognised
for an asset in prior accounting periods may no longer exist or may
have decreased.
(iii) Borrowing Cost:
Borrowing costs directly attributable to the acquisition/ construction
of an asset are apportioned to the cost of the Tangible and Intangible
Assets up to the date on which the asset is put to use/ commissioned.
(iv) Investments:
Investments that are readily realisable 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
cost or fair value, whichever is lower. Long-term investments are
carried at cost. However, provision for diminution is made to recognise
a decline, other than temporary, in the value of the investments, such
reduction being determined and made for each investment individually.
(v) Inventories :
Inventory is valued at weighted average cost or net realizable value
whichever is lower. Cost includes all non refundable taxes and expenses
incurred to bring the inventory to the present location.
(vi) Employment Benefits:
No provision made for Employees Benefit Plan. As there is not any
permanent Employee as such, the question of provisions such as
employees PF,ESIC, or Gratuity does not arise.
(vii) Revenue Recognition:
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Sales is recognised when the significant risk and rewards of ownership
of the goods are passed to the customer.
Sales are disclosed net of Sales Tax, Discount and returns as
applicable
(viii) Current and Deferred Tax:
Tax expense for the period, comprising current tax and deferred tax,
are included in the determination of the net profit or loss for the
period. Current tax is measured at the amount expected to be paid to
the tax authorities in accordance with the taxation laws prevailing in
the respective jurisdictions.
Deferred tax is recognised for all the timing differences, subject to
the consideration of prudence in respect of deferred tax assets.
Deferred tax assets are recognised and carried forward only to the
extent that there is a reasonable certainty that sufficient future
taxable income will be available against which such deferred tax assets
can be realised. Deferred tax assets and liabilities are measured using
the tax rates and tax laws that have been enacted or substantively
enacted by the Balance Sheet date. At each Balance Sheet date, the
Company reassesses unrecognised deferred tax assets, if any.
Current tax assets and current tax liabilities are offset when there is
a legally enforceable right to set off the recognised amounts and there
is an intention to settle the asset and the liability on a net basis.
Deferred tax assets and deferred tax liabilities are offset when there
is a legally enforceable right to set off assets against liabilities
representing current tax and where the deferred tax assets and the
deferred tax liabilities relate to taxes on income levied by the same
governing taxation laws.
Minimum Alternative Tax credit is recognised as an asset only when and
to the extent there is convincing evidence that the Company will pay
normal income 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.
(ix) Segment Reporting
The company has taken into consideration Accounting Standard
17-"Segment Reporting" issued by Institute of Chartered Accountants of
India.
The company has only one segment, thus there is no separate segment
prepared.
(x) Provisions and Contingent Liabilities
Provisions: Provisions are recognised when there is a present
obligation as a result of a 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 the best estimate of the
expenditure required to settle the present obligation at the Balance
Sheet date and are not discounted to its present value.
Contingent Liabilities: Contingent liabilities are disclosed when there
is a possible obligation arising from past events, the existence of
which will be confirmed only by the occurrence or non-occurrence of one
or more uncertain future events not wholly 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 estimate of the amount cannot be made.
(xi) Earnings per Share
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the period after deducting preference dividends and any
attributable tax thereto for the period. The weighted average number of
equity shares outstanding during the period and for all periods
presented is adjusted for events, such as bonus shares, other than the
conversion of potential equity 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 is
adjusted for the effects of all dilutive potential equity shares.
(xii) Cash and Cash Equivalents
Cash and cash equivalents comprise cash and Balance with Bank
Mar 31, 2013
1. BASIS FOR PREPARATION OF ACCOUNTS
These financial statements have been prepared to comply in all material
respects with all the applicable accounting principles in India, the
applicable accounting standard notified under section 211(3C) of the
Companies Act, 1956 and the relevant provisions of the Companies Act,
1956.
2. SYSTEM OF ACCOUNTING
The company generally, follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties. Financial Statements are based on historical
cost. Those cost are not adjusted to reflect the impact of the changing
value in the purchasing power of money
3. REVENUE RECOGNITION
a) Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
b) Sales are disclosed net of Sales Tax, Discount and Returns as
applicable.
4. FIXED ASSETS
Fixed assets are carried at cost of acquisition or construction or at
manufacturing cost in the year of capitalization less accumulated
depreciation. The Capital WIP would be capitalized once the asset is
completed.
5. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of that
asset.
6. DEPRECIATION
a) Fixed assets except leasehold land are depreciated on straight line
method on a pro-rata basis from the month in which each assets is put
to use. Depreciation has been provided at the rates prescribed in
Schedule XIV to the Companies Act, 1956.
b) Plant and machinery, the written down value of which at the
beginning of the year is Rs. 5,000 or less, and other assets, the
written down value of which at the beginning of the year is Rs. 1,000
or less, are depreciated at the rate of 100%. Assets purchased during
the year costing Rs 5000 or less are depreciated at the rate of 100%.
c) No Depreciation has been charged in the books except for Furniture &
Fixtures, Vehicles, Office Equipments and Computer/Software purchased
during the current financial year.
7. INVENTORIES
a) Inventories are valued at the lower of cost, determined on the
weighted average basis, and net realizable value
b) Obsolete and Non-Moving Inventory of Raw Material, Stores and Spares
is provided for on identification by the Management
8. INVESTMENTS
Current investments are valued at the lower of cost and fair value.
Long-term investments are valued at cost except in the case of a
permanent diminution in their value, in which case the necessary
provision is made.
9. DEFERRED TAXES
Tax expense for the period, comprising current tax and deferred tax, is
included in determining the net profit/(loss) for the year. Current tax
is recognized based on assessable profit computed in accordance with
the Income Tax Act and at the prevailing tax rate.
Deferred tax is recognized for all timing differences. Deferred tax
assets are carried forward to the extent it is reasonably / virtually
certain that future taxable profit will be available against which such
deferred tax assets can be realized. Deferred tax assets are reviewed
at each balance sheet date and written down/ written up to reflect the
amount that is reasonably/ virtually certain (as the case may be) to be
realized.
Deferred tax assets and liabilities are measured at the tax rates that
have been enacted or substantively enacted at the balance sheet date.
10. SEGMENT ACCOUNTING AND REPORTING
The reporting requirements of Segmental Reporting (AS-17) are not
applicable on the company.
11.Contingent Liabilities
- Claims against the Company disputed and not acknowledged as debts -
NIL
- The contingent liability which might arise from pending assessments
under various statutes. In view of the management the effect of same
is not ascertainable.
Mar 31, 2010
1. BASIS FOR PREPARATION OF ACCOUNTS
These financial statements have been prepared to comply in all material
respects with all the applicable accounting principles in India, the
applicable accounting standard notified under section 211(3C) of the
Companies Act, 1956 and the relevant provisions of the Companies Act,
1956.
2. SYSTEM OF ACCOUNTING
The company generally, follows the mercantile system of accounting and
recognizes income and expenditure on accrual basis except those with
significant uncertainties. Financial Statements are based on historical
cost. Those cost are not adjusted to reflect the impact of the changing
value in the purchasing power of money
3. REVENUE RECOGNITION
a) Domestic sales are recognized on transfer of significant risks and
rewards to the customer which takes place on dispatch of goods from the
stockyard / storage area.
b) Sales are disclosed net of Sales Tax, Discount and Returns as
applicable.
4. FIXED ASSETS
Fixed assets are carried at cost of acquisition or construction or at
manufacturing cost in the year of capitalization less accumulated
depreciation. The Capital WIP would be capitalized once the asset is
completed.
5. BORROWING COSTS
Borrowing costs that are directly attributable to the acquisition,
construction or production of qualifying assets are capitalized till
the month in which each asset is put to use as part of the cost of that
asset.
6. DEPRECIATION
a) Fixed assets except leasehold land and vehicles are depreciated on
straight line method on a prorata basis from the month in which each
assets is put to use. Depreciation has been provided at the rates
prescribed in Schedule XIV to the Companies Act, 1956.
b) Plant and machinery, the written down value of which at the
beginning of the year is Rs. 5,000 or less, and other assets, the
written down value of which at the beginning of the year is Rs. 1,000
or less, are depreciated at the rate of 100%. Assets purchased during
the year costing Rs 5000 or less are depreciated at the rate of 100%.
c) No Depreciation has been charged in the books except for Furniture &
Fixtures, Vehicles, Office Equipments and Computer/Software purchased
during the current financial year.
7. INVENTORIES
a) Inventories are valued at the lower of cost, determined on the
weighted average basis, and net realizable value
b) Obsolete and NonMoving Inventory of Raw Material, Stores and Spares
is provided for on identification by the Management
8. INVESTMENTS
Current investments are valued at the lower of cost and fair value.
Longterm investments are valued at cost except in the case of a
permanent diminution in their value, in which case the necessary
provision is made.
9. DEFERRED TAXES
Tax expense for the period, comprising current tax and deferred tax, is
included in determining the net profit/(loss) for the year. Current tax
is recognized based on assessable profit computed in accordance with
the Income Tax Act and at the prevailing tax rate.
Deferred tax is recognized for all timing differences. Deferred tax
assets are carried forward to the extent it is reasonably / virtually
certain that future taxable profit will be available against which such
deferred tax assets can be realized. Deferred tax assets are reviewed
at each balance sheet date and written down/ written up to reflect the
amount that is reasonably/ virtually certain (as the case may be) to be
realized.
Deferred tax assets and liabilities are measured at the tax rates that
have been enacted or substantively enacted at the balance sheet date.
10. SEGMENT ACCOUNTING AND REPORTING
In addition to the significant accounting policies applicable to the
business segment as set out in Point No 9 to Notes to Accounts, the
accounting policies relating to segment accounting are as under:
a. Segment Revenue and Expenses
Segment Revenue and Expenses those are directly attributable to the
segment are considered for respective segments. For rest allocation has
been done between segments & where there it is not possible to
allocate, the same has been considered as unallocable revenue and
expenses.
b. Segment Assets and Liabilities
All segment assets and liabilities are directly attributable to the
segment. Segment assets include all operating assets used by the
segment and consist principally of fixed assets, inventories, sundry
debtors, loans and advances.