Mar 31, 2015
Basis for preparation of accounts
The financial statements have been prepared on an accrual basis of
accounting and in accordance with the Generally Accepted Accounting
Principles in India, provisions of the Companies Act, 2013 and comply
in material aspects with the accounting standards notified under
Section 133 of the Act, read with Companies (Accounting Standards)
Rules, 2014, except for gratuity which is accounted on cash basis.
Estimates
The preparation of financial statements requires the Management of the
Company to make estimates and assumptions that affect the reported
balance of assets and liabilities, revenue and expenses and disclosures
relating to contingent liabilities. The Management believes that the
estimates used in the preparation of the financial statements are
prudent and reasonable. Future results could differ from these
estimates. Any revision of accounting estimates is recognised
prospectively in the current and future periods.
Revenue Recognition
Revenue is recognised to the extent that is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured.
There was no revenue from business operations during the year since the
company have not undertaken any business.
Pursuant to approval of the members through postal ballot on
30.10.2008, the company has amended the main objects of the company
accordingly Company has stopped the spinning activity from 31.12.2008
Government Grants and Subsidies Government grants in the nature of
promoters contribution like investment subsidy, where no repayment is
expected in respect thereof, are treated as capital reserve.
Tangible Fixed Assets
There are no Fixed Assets Depreciation and Amortisation
As there are no fixed assets, there is no depreciation provision.
Valuation of Inventories
There was no inventory in the current financial year.
Foreign Currency Transaction
There was no foreign currency transaction during the year.
Investments
Non-current investments are stated at cost
Retirement Benefits
Periodic contributions towards post retirement benefit plan such as
provident fund are charged to the Statement of Profit and Loss.
However, no provision for gratuity is made which is contrary to the
Accounting Standard 15 issued by The Institute of Chartered Accountants
of India.
Taxation
Current income tax is measured at the amount expected to be paid to the
tax authorities in accordance with the provisions of local Income Tax
Laws as applicable to the financial year.
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.
Deferred Tax
Company has not recognised deferred tax asset as there in no reasonable
certainity that in future sufficient taxable income will be available
against which such defered tax asset can be realised.
Previous year's figures have been regrouped/ reclassified wherever
necessary to correspond with the current year's
classification/disclosures.
Mar 31, 2014
Basis for preparation of accounts
The financial statements have been prepared on an accrual basis of
accounting and in accordance with the Generally Accepted Accounting
Principles in India, provisions of the Companies Act, 1956 and comply
in material aspects with the accounting standards notified under
Section 211 (3C) of the Act, read with Companies (Accounting Standards)
Rules, 2006.
Estimates
The preparation of financial statements requires the Management of the
Company to make estimates and assumptions that affect the reported
balance of assets and liabilities, revenue and expenses and disclosures
relating to contingent liabilities. The Management believes that the
estimates used in the preparation of the financial statements are
prudent and reasonable. Future results could differ from these
estimates. Any revision of accounting estimates is recognised
prospectively in the current and future periods.
Revenue Recognition
Revenue is recognised to the extent that is probable that the economic
benefits will flow to the Company and the revenue can be reliably
measured.
There was no revenue from business operations during the year since the
company have not
Pursuant to approval of the members through postal ballot on
30.10.2008, the company has amended the main objects of the company
accordingly Company has stopped the spinning activity from 31.12.2008
Government Grants and Subsidies
Government grants in the nature of promoters contribution like
investment subsidy, where no repayment is expected in respect thereof,
are treated as capital reserve.
Tangible Fixed Assets
Fixed assets are stated at cost of acquisition less accumulated
depreciation and impairment losses, if any.The cost of fixed assets
includes interest on borrowings attributableto acquisition of
qualifying fixed assets up to the date the asset is ready for its
intended use and other incidental expenses incurred up to that date
Depreciation and Amortisation
Depreciation on fixed assets was provided to the extend of depreciation
amount on Straight-Line basis at the rate and in the manner prescribed
in Schedule XIV to the companies Act, 1956 up to 31.12.2008 being on
which date the spinning activity was stopped.
Valuation of Inventories
There was no inventory in the current financial year.
Foreign Currency Transaction
There was no foreign currency transaction during the year.
Investments
Non-current investments are stated at cost Retirement Benefits
Liability on account of short term employee benefits is recognised on
an undiscounted and accrual basis during the period when the employee
renders service/vesting period of the benefit.
Periodic contributions towards post retirement benefit plan such as
provident fund are charged to the Statement of Profit and Loss.
Taxation
Current income tax is measured at the amount expectedto be paid to the
tax authorities in accordance with the provisions of local Income Tax
Laws as applicable to the financial year.
Earnings Per Share
Basic earnings per share is calculated by dividingthe net profit or
loss for the period attributable to equity shareholders by the weighted
average number of equity shares outstanding during the period.
Mar 31, 2013
Basis of accounting and preparation of financial statements
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 are prepared under the historical cost convention; income
and expenditure are accounted on accrual basis except gratuity which
will be accounted on payment basis. The accounting policies adopted in
the preparation of the financial statements are consistent with those
followed in the previous year.
Use of estimates
The preparation of the financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recongised in the period
in which the results are materilised.
Tangible Fixed Assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date.
Depreciation and Amortisation
Depreciation on fixed assets was provided to the extent of depreciable
amount on Straight-Line method (SLM) on pro-rata basis at the rates and
in the manner prescribed in Schedule XIV to the Companies Act, 1956 up
to 31.12.2008 being on which date the spinning activity was stopped.
Foreign currency transactions and translations
There were no foreign currency transactions during the year (previous
year Nil.
Government grants, subsidi. and export incentives
Government grants in the nature of promoters'' contribution like
investment subsidy, where no repayment is ordinarily expected in
respect thereof, are treated as capital reserve.
Investments
Long-term investments are stated at cost of acquisition. Provision for
diminution in the value is made only if such a decline is other than
temporary.
Revenue recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. There is no revenue from
operations during the year since the company has not undertaken any
business.
Pursuant to approval of the members through postal ballot on
30.10.2008, the Company has amended the main objects of the Company
accordingly Company has stopped the spinning activity from 31.12.2008.
Other income
The main source of other income is from rental income by leasing
existing building of the company which is recognized on accrual basis.
Employee benefits
Short term employee benefits are recognized as an expense in the profit
and loss account of the year in which the related service is rendered,
which includes salary to staff, provident fund contribution and
contribution to the Employees State Insurance.
Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax by number of equity shares outstanding during the year.
Taxes on income
As the Company has no taxable income for the A.Y. 2013-2014, no tax
provision is made. Taking into account the consideration of prudence,
no asset or liability is anticipated on account of deferred tax.
Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate discount factor. When there is indication that
an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
Provisions and contingencies
Provisions involving substantial degree of estimation in measurement
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 the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2012
Basis of accounting and preparation of financial statements
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 are prepared under the historical cost convention, income
and expenditure are accounted on accrual basis except gratuity which
will be accounted on payment basis. The accounting policies adopted in
the preparation of the financial statements are consistent with those
followed in the previous year.
Use of estimates
The preparation of the financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recongised in the period
in which the results are materilised.
Tangible Fixed Assets
Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date.
Depreciation and Amortisation
Depreciation on fixed assets was provided to the extent of depreciable
amount on Straight-Line method (SLM) on pro-rata basis at the rates and
in the manner prescribed in Schedule XIV to the Companies Act, 1956 up
to 31.12.2008 being on which date the spinning activity was stopped.
Foreign currency transactions and translations
There were no foreign currency transactions during the year (previous
year Nil.
Government grants, subsidies and export incentives
Government grants in the nature of promoters' contribution like
investment subsidy, where no repayment is ordinarily expected in
respect thereof, are treated as capital reserve.
Investments
Long-term investments are stated at cost of acquisition. Provision for
diminution in the value is made only if such a decline is other that
temporary.
Revenue recognition
Revenue is recognized only when it can be reliably measured and it is
reasonable to expect ultimate collection. There is no revenue from
operations during the year since the company has not undertaken any
business.
Pursuant to approval of the members through postal ballot on
30.10.2008, the Company has amended the main objects of the Company
accordingly Company has stopped the spinning activity from 31.12.2008.
Other income
The main source of other income is from rental income by leasing
existing building of the company which is recognized on accrual basis.
Employee benefits
Short term employee benefits are recognized as an expense in the profit
and loss account of the year in which the related service is rendered,
which includes salary to staff, provident fund contribution and
contribution to the Employees State Insurance.
Earnings per share
Basic earnings per share is computed by dividing the profit / (loss)
after tax by number of equity shares outstanding during the year.
Taxes on income
As the Company has no taxable income for the A.Y. 2012-2013, no tax
provision is made. Taking into account the consideration of prudence,
no asset or liability is anticipated on account of deferred tax.
Impairment of assets
The carrying values of assets / cash generating units at each Balance
Sheet date are reviewed for impairment. If any indication of impairment
exists, the recoverable amount of such assets is estimated and
impairment is recognised, if the carrying amount of these assets
exceeds their recoverable amount. The recoverable amount is the greater
of the net selling price and their value in use. Value in use is
arrived at by discounting the future cash flows to their present value
based on an appropriate ' discount factor. When there is indication
that an impairment loss recognised for an asset in earlier accounting
periods no longer exists or may have decreased, such reversal of
impairment loss is recognised in the Statement of Profit and Loss,
except in case of revalued assets.
Provisions and contingencies
Provisions involving substantial degree of estimation in measurement
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 the
notes. Contingent Assets are neither recognized nor disclosed in the
financial statements.
Mar 31, 2011
1.1 The accounts are prepared in accordance with the historical cost
convention, income and expenditure are accounted on accrual basis
except gratuity which will be accounted on payment basis.
1.2. Fixed Assets: Fixed assets are stated at cost less Depreciation.
Depreciation is being provided at revised rates specified as per
schedule XIV to the Companies Act 1956 on Straight-Line method on
prorata basis up to 31.12.2008 being on which date the spinning
activity was stopped.
1.3. Investments are stated at cost.
Mar 31, 2010
1.1 (a) The accounts are prepared in accordance with the historical
cost convention, income and expenditure are accounted on accrual basis
except gratuity which will be accounted on payment basis.
1.1 (b) Sales includes amounts recovered towards Sales Tax.
1.2. Fixed Assets: Fixed assets are stated at cost less Depreciation.
Depreciation is being provided at revised rates specified as per
schedule XIV to the Companies Act 1956 on Straight-Line method on
prorata basis up to 31.12.2008 being on which date the spinning
activity was stopped.
1.3. Investments are stated at cost.
2. Pursuant to approval of the members through postal ballot on
30.10.2008, the Company has amended the main objects of the Company,
accordingly Company has stopped the spinning activity from 31.12.2008.
3. On account of loss on sale of machineries, deteriorated rawmaterial
stock and payment of huge amount of arrears of sales tax on account of
non grant of textile policy by the State Government the company has
incurred loss of Rs.89.74 lakhs during the year.
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