Mar 31, 2014
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
i. The financial statements have been prepared in compliance with all
material aspects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended and the relevant
provisions of the Companies Act, 1956.
ii. Financial Statements are based on historical cost and are prepared
on accrual basis except for certain financial instruments which are
measured at fair value.
iii. The preparation of financial statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
financial statements and the results of operations during the reporting
period end.
iv. Accounting Policies have been consistently applied by the company
and are consistent with those used in the previous year and except
where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.
2. FIXED ASSETS:
i. Fixed assets are stated at cost of acquisition or construction (net
of MODVAT/ CENVAT credit availed), net of accumulated depreciation,
amortization and impairment losses if any, except freehold land which
is carried at cost less impairment losses.
ii. Advances paid towards the acquisition of fixed assets outstanding
at each Balance Sheet date and the cost of fixed assets not ready for
their intended use before such date are disclosed under Capital Work in
Progress.
iii. Machinery spares which can be used only in connection with a
particular item of fixed asset and the use of which is irregular are
capitalized at cost net of MODVAT/ CENVAT.
3. DEPRECIATION:
i. Depreciation is provided on Straight Line Method ("S.L.M"). The
depreciation rates prescribed in Schedule XVI to the Companies Act,
1956 are considered as the minimum rates. If the management''s estimate
of the useful life of a fixed asset at the time of acquisition of the
asset or of the remaining useful life on a subsequent review is shorter
than that envisaged in the aforesaid schedule, depreciation at a higher
rate based on the management''s estimate of useful life/ remaining life.
ii. Depreciation on additions to fixed assets is provided on a
pro-rata basis from the date of acquisition or installation and in the
case of new project, from the date of commencement of commercial
production. Depreciation on assets sold, discarded, demolished or
scrapped is provided upto the date on which the said asset is sold,
discarded, demolished or scrapped.
iii. In respect of an asset for which impairment loss is recognised,
depreciation is provided on the revised carrying amount of the assets
over its remaining useful life.
iv. Where depreciable assets are revalued, depreciation is provided on
the revalued amount and the additional depreciation on accretion to
assets on revaluation is transferred from revaluation reserve to the
Statement of Profit and Loss Account.
v. Asset costing less than Rs. 5,000/- are fully charged to the
Statement of Profit and Loss account in the year of acquisition.
4. CASH AND BANK BALANCES :
i. Cash and Bank balances in the Balance Sheet comprise cash at bank
including fixed deposits, cheques in hand and cash in hand.
ii. 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.
5. REVENUE RECOGNITION:
i. Profit or loss from sale of investments in shares and securities,
whether held as current investment or long term investment, are
recognized on transaction dates.
ii. Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable.
iii. In respect of other heads of income, the Company follows the
practice of accounting of such income on accrual basis subject to the
prudential norms as may be applicable.
6. EMPLOYEE BENEFITS:
i. Short term Employee benefits:
All employee benefits payable wholly within twelve months rendering the
services are classified as short term employee benefits. Benefits such
as salaries, wages and short term compensated absences, etc. and the
expected cost of ex-gratia is recognized in the period in which
employee renders the related services.
ii Post Employee Benefits :
Gratuity shall be provided on the basis of payment and no provision has
been made for the same on accrual basis.
7. TAXATION:
i. Income Tax:
The Current charge for income taxes is calculated in accordance with
the relevant tax regulations. Tax liability for taxes has been computed
after considering Minimum Alternative Tax (MAT). The excess tax paid
under MAT provisions being over and above regular tax liability can be
carried forward and set off against future tax liabilities computed
under regular tax provisions. Accordingly, MAT credit has been
recognized, wherever applicable on the balance sheet which can be
carried forward for the period of ten year form the year of
recognition.
ii. Deferred Tax:
Deferred tax assets and liabilities are recognized for the future tax
consequences attributed to timing differences that result between
profit offered for income taxes and the profit as per the financial
statements.
Deferred tax assets and liabilities are measured using the tax rate and
tax laws that have been enacted or substantively enacted by the balance
sheet date. The effect on deferred tax assets and liabilities of a
changes in tax rates is recognized in the period that includes the
enactment / substantive enactment date.
Deferred tax assets on timing differences are recognized only if there
is a reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized
however, deferred tax assets on the timing difference when unabsorbed
depreciation and losses carried forward exist, are recognized only to
the extent that there is virtual income will be available against which
such deferred tax assets can be realized.
Deferred tax assets are reassessed for the appropriateness of their
respective carrying amounts at each balance sheet date.
The Company offsets, on a year on year basis, it''s current and non
current tax assets and liabilities, where it has a legally enforceable
right and where it intends to settle such assets and liabilities on a
net basis.
8. PROVISIONS AND CONTINGENT LIABILITIES:
i. Provisions are recognized when the company event, it is probable
that an outflow of resources will be required to settle the obligation,
and a reliable estimate can be made of the amount of obligation.
ii. A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may, but probably will
not, require an outflow of resources, where there is a possible
obligation or present obligation in respect of which the likelihood of
outflow of resources is remote, no provision or disclosure is made.
i. Loss contingencies arising from claims, litigation, assessment,
fines, penalties, etc. are recorded when it is probable that a
liability has been incurred and the amount can be reasonably estimated.
Contingent assets are neither recognized nor disclosed in the financial
statements
9. EARNINGS PER SHARE:
i. Basic:
The number of equity share used in computing basic earning per share is
the weighted average number of share outstanding during the year.
ii. Diluted:
The number of equity share used in computing diluted earnings per share
comprises the weighted average number of equity share considered for
deriving basic earning per share and also the weighted average number
of equity share that could have been issued on the conversion of all
dilutive potential equity shares.
Dilutive potential equity share are deemed converted as of the
beginning of the period unless issued at a later date. The number of
equity share adjusted for any stock splits and bonus share issued.
10. CASH FLOW STATEMENT :
Cash Flow are reported using the indirect method, whereby net profits
before tax is adjusted for the effects of transactions of non cash
nature and any deferrals or accruals of part or future cash receipts or
payments. The cash flows from regular revenue generating investing and
financing activities of the company are segregated.
Mar 31, 2013
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
i. The financial statements have been prepared in compliance with all
material aspects with the Accounting Standards notified by Companies
(Accounting Standards) Rules, 2006 (as amended and the relevant
provisions of the Companies Act, 1956.
ii. Financial Statements are based on historical cost and are prepared
on accrual basis except for certain financial instruments which are
measured at fair value.
iii. The preparation of financial statements in conformity with the
generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent liabilities at the date of
financial statements and the results of operations during the reporting
period end.
iv. Accounting Policies have been consistently applied by the company
and are consistent with those used in the previous year and except
where a newly issued accounting standard is initially adopted or a
revision to an existing accounting standard requires a change in the
accounting policy hitherto in use.
2. FIXED ASSETS:
i. Fixed assets are stated at cost of acquisition or construction (net
of MODVAT/ CENVAT credit availed), net of accumulated depreciation,
amortization and impairment losses if any, except freehold land which
is carried at cost less impairment losses.
ii. Advances paid towards the acquisition of fixed assets outstanding
at each Balance Sheet date and the cost of fixed assets not ready for
their intended use before such date are disclosed under Capital Work in
Progress.
iii. Machinery spares which can be used only in connection with a
particular item of fixed asset and the use of which is irregular are
capitalized at cost net of MODVAT/ CENVAT.
3. DEPRECIATION:
i. Depreciation is provided on Straight Line Method ("S.L.M"). The
depreciation rates prescribed in Schedule XVI to the Companies Act,
1956 are considered as the minimum rates. If the management''s estimate
of the useful life of a fixed asset at the time of acquisition of the
asset or of the remaining useful life on a subsequent review is shorter
than that envisaged in the aforesaid schedule, depreciation at a higher
rate based on the management''s estimate of useful life/ remaining life.
ii. Depreciation on additions to fixed assets is provided on a
pro-rata basis from the date of acquisition or installation and in the
case of new project, from the date of commencement of commercial
production. Depreciation on assets sold, discarded, demolished or
scrapped is provided up to the date on which the said asset is sold,
discarded, demolished or scrapped.
iii. In respect of an asset for which impairment loss is recognized,
depreciation is provided on the revised carrying amount of the assets
over its remaining useful life.
iv. Where depreciable assets are revalued, depreciation is provided on
the revalued amount and the additional depreciation on accretion to
assets on revaluation is transferred from revaluation reserve to the
Statement of Profit and Loss Account.
v. Asset costing less than Rs. 5,000/- are fully charged to the
Statement of Profit and Loss in the year of acquisition.
4. CASH AND BANK BALANCES :
i. Cash and Bank balances in the Balance Sheet comprise cash at bank
including fixed deposits, cheques in hand and cash in hand.
ii. 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.
5. REVENUE RECOGNITION:
i. Profit or loss from sale of investments in shares and securities,
whether held as current investment or long term investment, are
recognized on transaction dates.
ii. Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable.
iii. In respect of other heads of income, the Company follows the
practice of accounting of such income on accrual basis subject to the
prudential norms as may be applicable.
6. EMPLOYEE BENEFITS:
Short term Employee benefits:
All employee benefits payable wholly within twelve months rendering the
services are classified as short term employee benefits. Benefits such
as salaries, wages and short term compensated absences, etc. and the
expected cost of ex-gratia is recognized in the period in which
employee renders the related services.
7. TAXATION:
i. Income Tax:
The Current charge for income taxes is calculated in accordance with
the relevant tax regulations. Tax liability for taxes has been computed
after considering Minimum Alternative Tax (MAT). The excess tax paid
under MAT provisions being over and above regular tax liability can be
carried forward and set off against future tax liabilities computed
under regular tax provisions. Accordingly, MAT credit has been
recognized, wherever applicable on the balance sheet which can be
carried forward for the period of ten year form the year of
recognition.
ii. Deferred Tax:
Deferred tax assets and liabilities are recognized for the future tax
consequences attributed to timing differences that result between
profit offered for income taxes and the profit as per the financial
statements.
Deferred tax assets and liabilities are measured using the tax rate and
tax laws that have been enacted or substantively enacted by the balance
sheet date. The effect on deferred tax assets and liabilities of a
changes in tax rates is recognized in the period that includes the
enactment / substantive enactment date.
Deferred tax assets on timing differences are recognized only if there
is a reasonable certainty that sufficient future taxable income will be
available against which such deferred tax assets can be realized
however, deferred tax assets on the timing difference when unabsorbed
depreciation and losses carried forward exist, are recognized only to
the extent that there is virtual income will be available against which
such deferred tax assets can be realized.
Deferred tax assets are reassessed for the appropriateness of their
respective carrying amounts at each balance sheet date.
The Company offsets, on a year on year basis, it''s current and non
current tax assets and liabilities, where it has a legally enforceable
right and where it intends to settle such assets and liabilities on a
net basis.
8. PROVISIONS AND CONTINGENT LIABILITIES:
i. Provisions are recognized when the company event, it is probable
that an outflow of resources will be required to settle the obligation,
and a reliable estimate can be made of the amount of obligation.
ii. A disclosure for a contingent liability is made when there is a
possible obligation or a present obligation that may,
but probably will not, require an outflow of resources, where there is
a possible obligation or present obligation in respect of which the
likelihood of outflow of resources is remote, no provision or
disclosure is made.
i. Loss contingencies arising from claims, litigation, assessment,
fines, penalties, etc. are recorded when it is probable that a
liability has been incurred and the amount can be reasonably estimated.
Contingent assets are neither recognized nor disclosed in the financial
statements
9. EARNINGS PER SHARE:
i. Basic:
The number of equity share used in computing basic earning per share is
the weighted average number of share outstanding during the year.
ii. Diluted:
The number of equity share used in computing diluted earnings per share
comprises the weighted average number of equity share considered for
deriving basic earnings per share and also the weighted average number
of equity share that could have been issued on the conversion of all
dilutive potential equity shares.
Dilutive potential equity share are deemed converted as of the
beginning of the period unless issued at a later date. The number of
equity share adjusted for any stock splits and bonus share issued.
10. CASH FLOW STATEMENT :
Cash Flow are reported using the indirect method, whereby net profits
before tax is adjusted for the effects of transactions of non cash
nature and any deferrals or accruals of part or future cash receipts or
payments. The cash flows from regular revenue generating investing and
financing activities of the company are segregated.
Company has issued only one category of Equity Shares as stated above.
Company does not have any kind of Outstanding Preference Shares or
Convertible Warrant or any other kind of instrument other than the
Equity Shares as stated above
For the period of Five Years immediately preceding, 31st March, 2013
company has not:-
(i) allotted any Shares as fully paid up pursuant to contract(s)
without payment being received in cash
(ii) allotted any shares as fully paid up by way of bonus shares.
(iii) bought back any shares.
The Company has transferred an amount of Rs. 9,33,244/- (P.Y. Rs.
6,99,365/-) to the Reserve Fund in accordance with the provisions of
Section 45-IC of the RBI Act, 1934.
The Company has transferred an amount of Rs. 1,41,264/- (P.Y. Rs.
1,25,319/-) to a separate account titled as Contingent Provisions
against Standard Assets in accordance with RBI Notification No.
DNBS.223/CGM (US) - 2011 dated January 17, 2011 and the balance of the
account has been shown under the head Reserves and Surplus
Mar 31, 2012
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:
The accounts have been prepared under historical cost convention, on
the accrual basis of accounting and the same are in accordance with the
generally accepted accounting principles and the provisions of The
Companies Act, 1956.
2. FIXED ASSETS:
Fixed assets are stated at cost less accumulated depreciation.
3. DEPRECIATION:
Depreciation is provided on straight line method on pro-rata basis at
the rates and in the manner specified in Schedule XIV to The Companies
Act, 1956.
4. INCOME RECOGNITION:
i. Profit or loss from sale of investments in shares and securities,
whether held as current investment or long term investment, are
recognized on transaction dates.
ii. Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable.
iii. In respect of other heads of income, the Company follows the
practice of accounting of such income on accrual basis subject to the
prudential norms as may be applicable.
5. TAXATION:
Provision for Current Income Tax payable for a year is made after
considering exemptions / deductions as may be available and at the
rates applicable under The Income Tax Act, 1961.
Deferred Tax Assets and Liabilities are recognized for the future tax
consequences of timing differences, subject to the consideration of
prudence and using the tax rates and tax laws that have been enacted.
The carrying amount of deferred tax asset / liability is reviewed at
each balance sheet date.
6. EARNINGS PER SHARE:
Basic earnings per share is calculated by dividing the net profit or
loss, after taxation, for the period attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the period. Diluted earnings per equity share is
calculated by taking into account the weighted average number of shares
outstanding during the period and further adjusted for the effects of
all dilutive potential equity shares. However at present the company
does not have any outstanding dilutive potential equity shares.
Mar 31, 2010
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The accounts have been prepared under historical cost convention, on
the accrual basis of accounting and the same are in accordance with the
generally accepted accounting principles and the provisions of the
Companies Act, 1956.
2. FIXED ASSETS
Fixed assets are stated at cost less accumulated depreciation.
3. DEPRECIATION
Depreciation is provided on straight line method on pro-rata basis at
the rates and in the manner specified in Schedule XIV to the Companies
Act, 1956.
4. INVESTMENTS
Investment activity is one of the segments of the business activities
carried on by the Company and the investments are dealt accordingly as
follows:
i. Investments in quoted shares and securities are held and stated at
cost and any gain or loss arising on sale of investments is accounted
for in the year of sale.
ii. Investments in quoted shares and securities are either current
investments or long term investments and any diminution in the value of
such investments is provided for by transfer to a provision account.
iii. Investments in un-quoted shares and securities being long term
investments are stated at cost. However provision for diminution, other
than temporary, in the value of such investments, if any, is made to
recognize a decline.
5. STOCK-IN-TRADE
Stock-in-Trade consists of Shares and Securities and the same is valued
scrip- wise at cost or market value whichever is lower.
6. INCOME RECOGNITION
i. Profit or loss from dealing in shares and securities and
derivatives are recognized on transaction dates.
ii. Profit or loss from sale of investments in shares and securities,
whether held as current investment or long term investment, are
recognized on transaction dates.
iii. Dividend income is accounted on receipt basis.
iv. Interest income is recognized on a time proportion basis taking
into account the amount outstanding and the rate applicable.
v. In respect of other heads of income, the Company follows the
practice of accounting of such income on accrual basis subject to the
prudential norms as may be applicable.
7. TAXATION
Provision for Current Income Tax payable for a year is made after
considering exemptions / deductions as may be available and at the
rates applicable under the Income Tax Act, 1961.
Deferred Tax Assets and Liabilities are recognized for the future tax
consequences of timing differences, subject to the consideration of
prudence and using the tax rates and tax laws that have been enacted.
The carrying amount of deferred tax asset / liability is reviewed at
each balance sheet date.
8. EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the net profit or
loss, after taxation, for the period attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the period. Diluted earnings per equity share is
calculated by taking into account the weighted average number of shares
outstanding during the period and further adjusted for the effects of
all dilutive potential equity shares. However at present the company
does not have any outstanding dilutive potential equity shares.