Mar 31, 2015
1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS:-
a) The financial statements have been prepared under the historical
cost convention in accordance with the generally accepted accounting
principles and comply with the Companies (accounting Standard) Rules
2006, the relevant provision of the Companies Act 2013.
b) The company generally follows mercantile system of accounting and
recognizes significant items of income and expenditure on accrual
basis. Considering the matching concept, the company recognizes its
revenue from information service business on receipt basis.
AS -1 - Disclosure of Accounting Policies
The Accounting Principles and policies recognized as appropriate for
measurement and reporting of the financial performance and the
financial position on mercantile system and recognize items of income
and expenditure on accrual basis. The statement on Significant
Accounting policy excludes disclosures regarding Accounting Standards
in respect of which there are no material transactions during year.
AS - 3 - Cash Flow Statement
Cash flow statement, as per AS - 3 is annexed with financial
statements.
AS -4 - Contingencies and Events occurring after Balance sheet date.
Sr. Particulars Amount
No. Rs.
1 Contingent Liabilities Nil
2 Liabilities Disputed under Income Tax Nil
3 Estimated Amount of Contracts remaining
to be executed on Capital accounts and
not provided for Nil
4 Material Events occurring after Balance sheet date are taken into
cognizance. There have been no material changes or events since the
date of balance sheet affecting financial statements as on the
Balance sheet date. Further, the dates of Balance sheet, no events
or circumstances have occurred, though properly excluded from the
accounts, are of such importance that they should be disclosed
through any medium.
AS - 5 - Net Profit and Loss for the period, extra ordinary items and
change in accounting policy.
1 Net Profit for the period
All items of income and expense in the period are included for
determination of net profit of the year unless specifically mentioned
elsewhere in the financial statements or required by an Accounting
Standard. Prior period items, extra ordinary items and changes in
accounting policy are disclosed only if those have material impact on
the affairs of the company.
2 Prior Period items: All material items of Income/ Expenditure
pertaining to prior period and expenses to subsequent period are
accounted separately. During the year, the company has debited deferred
tax Rs.1,111,131 for earlier years, against opening balance of profit &
loss account. The company has made error in calculations in the
preceding periods. The same has been corrected by debit to Opening
balance of surplus account.
3 Extra ordinary Items : Nil
4 Accounting Policies
The company has consistently followed accounting polices and there are
no material changes in accounting policy of the company from that
followed in previous year.
AS - 6 - Depreciation Accounting
a) The Gross Block of fixed assets is stated at cost or acquisition or
construction including any cost attributable to bringing the assets to
their working condition for their intended use.
b) Depreciation on fixed assets is provided on 'Straight Line Basis' at
the rate prescribed in Schedule II to the Companies Act. 2013.
c) Write Offs of Fixed Assets
The Company had depreciated fixed assets at rates specified under
Schedule XIV of Companies Act. 1956 till 31 March 2014. However,
Schedule II of Companies Act. 2013 requires company to depreciate its
assets over its useful-life with effect from 1 April 2014. Accordingly,
the company has calculated useful lives of all assets as on 1 April 2014
and depreciated their written down value on their remaining useful
lives. However, the written down values of assets, whose useful life has
become Nil as on 1 April 2014, are required to be adjusted towards
reserves and surplus. The Company has adjusted Rs. 32,14,399/-towards
reserves and surplus of the company. The change in rate of depreciation
or useful life of an asset is change in accounting estimate and is
therefore applied prospectively with effect from 1 April 2014.
AS -10 - Accounting of Fixed Assets
Fixed Assets reflected in the financial statements are stated at their
cost of acquisition including taxes, duties (Net of Refunds) and other
identifiable direct charges incurred upto date the asset is put to use
less accumulated depreciation where charged.
AS -13 - Accounting for Investments:-
The investments of the company are classified in to investments held
for maturity and investment held other than for maturity. The company
values its investments held for maturity at cost price ignoring any
changes in the market price of the same. However, if change in value is
on permanent basis, the same is recognized as profit or loss in profit
and loss account. While investment held for other than maturity is
valued at Market price by recognizing the same in profit and loss
account.
AS -14 - Accounting of Amalgamation
In 2009 the company has amalgamated Citizen Communication Limited by
issuing the fully paid of shares of the company as purchase
consideration. The amalgamation was in nature of merger. All the
assets and liability acquired is shown at book value. However, the
difference arise on amalgamation is not adjusted from profit and loss
account or reserves of the company. The company has shown them as
Goodwill on Asset side amounting to Rs. 1 crore. This has resulted to
overstatement of reserves of the company by Rs. 1 crore.
AS - 15 - Accounting for retirement benefits
Short-term employee benefits are recognized as an expense at the
undiscounted amount in the Profit and Loss Account of the year in which
the related service is rendered.
The eligible employees of the Company are entitled to receive benefits
under the Provident Fund, a defined contribution plan in which both the
employees and the Company make monthly contributions at a specified
percentage of the covered employees' salary (currently 12% of
employees' salary). The contributions as specified under the law are
paid to the Regional Provident Fund Commissioner and the Central
Provident Fund under the Pension scheme. The Company recognizes such
contributions as expense of the year in which the liability is
incurred.
The Company provides for the encashment of leave or leave with pay
subject to certain rules. The employees are entitled to accumulate
leave for availment as well as encashment subject to the rules. As per
the regular past practice followed by the employees, the company does
not create provisions for leave encashment but recognizes the same on
actual payment basis.
AS - 17 - Segment Reporting
The Company operates six segments viz Ahmedabad, Rajkot, Surat. Baroda.
Mumbai and Pune division on the basis of Geographical Critena. The
company has preferred to give segment reporting based on statewide
classifications of its divisions.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article