Mar 31, 2015
A. BASIS OF ACCOUNTING
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis . GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules,
2014 and guidelines issued by the Securities and Exchange Board of
India (SEBI). Accounting policies have been consistently applied.
B. USE OF ESTIMATES
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include provisions for doubtful debts, future obligations
under employee retirement benefit plans, income taxes, and the useful
lives of tangible assets and intangible assets. - Accounting estimates
could change from period to period. Actual results could differ from
those estimates. Appropriate changes in estimates are made as the
Management becomes aware of changes in circumstances surrounding the
estimates. Changes in estimates are reflected in the consolidated
financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes.
C. CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature and defferals and accruals of past or future cash receipts or
payments.
Cash & cash equivalent comprises cash on hand and deposit with
financial insitutions, highly liquid investments which are readily
convertible into cash.
D. IMPAIRMENT OF ASSETS
An asset is concerned as impaired in accordance with Accounting
Standard 28 on 'Impairment of Assets", when at balance sheet date there
are indications of impairment and the carrying amount of the asset, or
where applicable the cash generating unit to which the asset belongs,
exists is recoverable amount (i.e. the higher of the asset's net
selling price and value in use). The assets of the company are
considered impaired and no Impairment loss has been recognised in the
financial statements.
E. CONTINGENT LIABILITY
Contingent liabilities as defined in accounting standard 29 on
"provisions, contingent liabilities and contingent assets" are
disclosed by way of notes to the accounts. Provision is made if it is
probable that an outflow of future economic benefits will be required
for an item previously dealt with as a contingent liability. There were
no transactions covered under this category and no provision has been
made during this year.
F. ACCOUNTING FOR TAXES ON INCOME
Income taxes are accounted for in accordance AS 22 "Accounting for
Taxes and Income" issued by the ICAI. Tax expense comprises both
current and deferred tax. Current tax is measured at the amount
expected to be paid to/ recovered from the tax authorities using the
applicable tax rates. Deferred tax assets and liabilities are
recognized for future tax consequences attributable to timing
difference between taxable income and accounting income that are
capable of reversing in or more subsequent periods and or measured
using relevant enacted tax rates. At each Balance Sheet, the Company
reassesses unrecognized deferred tax assets to the extent they have
become reasonably certain or virtually certain of realization, as the
case may be.
G. EMPLOYEE BENEFITS Defined Contribution Plan
As there are less number of employees on the roll of company, the
company has not devised any recognised contribution plan.
H. FOREIGN CURRENCY TRANSACTION
There is no foreign currency transaction during the financial year
2014-15, hence there is no exchange difference.
I. SEGMENT REPORTING
As The Company has closed down its operation, there are no separate
reportable segments as per Accounting Standard (AS) 17 "Segment
Reporting "
Mar 31, 2014
BASIS OF ACCOUNTING
The Financial Statements have been prepared under historical cost
convention on accrual basis and comply with notified accounting
standards as referred to in Section 211(3C) and other relevant
provisions of the Companies Act,1956.
All assets and liabilities have been classsified as current or
non-current as per the companyÂs normal operating cycle and other
criteria set out in Revised Scheule VI to the Companies Act, 1956 Based
on the nature of the services and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as twelve
months for the purpose of current and non-current clasification of
assets and liabilities.
USE OF ESTIMATES
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires the
management to make estimates that affect the reported amount of assets
and liabilities, disclosure of contingent liabilities as at the date of
the financial statements and reported amounts of revenues and expenses
for the year. Actual results could differ from these estimates.
The Company is a Small and Medium Sized Company (SMC) as defined in the
general instructions in respect of accounting standards notified under
the companies Act 1956. Accordingly, the company has compiled with the
accounting standards as applicable to a Small and Medium Sized Company.
VALUATION OF INVENTORY
The company does not have any Inventory as on 31.3.2014.
IMPAIRMENT OF ASSETS
An asset is concerned as impaired in accordance with Accounting
Standard 28 on ÂImpairment of Assets", when at balance sheet date
there are indications of impairment and the carrying amount of the
asset, or where applicable the cash generating unit to which the asset
belongs, exists is recoverable amount (i.e. the higher of the assetÂs
net selling price and value in use). There were no reduction or gain
against the carrying amount to the recoverable amount and no effect for
the impairment is recognized in the profit and loss account.
CONTINGENT LIABILITY
Contingent liabilities as defined in accounting standard 29 on
"provisions, contingent liabilities and contingent assets" are
disclosed by way of notes to the accounts. Provision is made if it is
probable that an outflow of future economic benefits will be required
for an item previously dealt with as a contingent liability. There were
no transactions covered under this category and no provision has been
made during this year.
ACCOUNTING FOR TAXES ON INCOME
Income taxes are accounted for in accordance AS 22 "Accounting for
Taxes and Income issued by the ICAI. Tax expense comprises both current
and deferred tax. Current tax is measured at the amount expected to be
paid to/ recovered from the tax authorities using the applicable tax
rates. Deferred tax assets and liabilities are recognized for future
tax consequences attributable to timing difference between taxable
income and accounting income that are capable of reversing in or more
subsequent periods and or measured using relevant enacted tax rates. At
each Balance Sheet, the Company reassesses unrecognized deferred tax
assets to the extent they have become reasonably certain or virtually
certain of realization, as the case may be.
EMPLOYEE BENEFITS
Defined Contribution Plan
The Company has defined contribution plans for employees. But there are
no permanent employees during the financial year. Hence there is no
Contributions Paid/Payable to these plans during the financial year.
FOREIGN CURRENCY TRANSACTION
There is no foreign currency transaction during the financial year
2013-14, hence there is no exchange difference.
SEGMENT REPORTING
As The Company has closed down its operation, there are no separate
reportable segments as per Accounting Standard (AS) 17 "Segment
Reporting".
EARNINGS PER SHARE:
Basic/Diluted earnings per share is calculated by dividing the net
profit/loss for the year attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding as at the end of the year. As there were no shares
considered as dilutive, same denominator as applicable for Basic EPS
has been used for computing the dilutive Earnings Per Share
In the opinion, of the Board of Directors and to the best of their
Knowledge and belief, the value on realization of Current Assets, Loans
and Advances in the ordinary course of business will not be less than
the amount at which they are stated in the Balance sheet.
Confirmation of Balances from certain parties for the amounts due to
them or due from them is yet to be received / reconciled.
The timing differences related mainly to depreciation and unabsorbed
losses and the net effect of such differences will result in deferred
tax asset or liability. The company has not earned any taxable income
hence as a measure of prudence net deferred tax asset relating to the
above period has not been recognized in the accounts.
Since there is no tax liability, no Provision for Income Tax has been
made in the books of accounts as per the provisions of the Income Tax
Act.
Mar 31, 2012
BASIS FOR PREPARATION OF FINANCIAL STATEMENTS BASIS OF ACCOUNTING
The Financial Statements have been prepared under historical cost
convention on accrual basis and comply with notified accounting
standards as referred to in Section 211(3C) and other relevant
provisions of the per the Companies Act, 1956.
All assets and liabilities have been classsified as current or
non-current as per the company's normal operating cycle and other
criteria set out in Revised Scheule VI to the Companies Act, 1956.
Based on the nature of the services and their realisation in cash and
cash equivalents, the Company has ascertained its operating cycle as
twelve months for the purpose of current and non-current clasification
of assets and liabilities.
USE OF ESTIMATES
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires the
management to make estimates that affect the reported amount of assets
and liabilities, disclosure of contingent liabilities as at the date of
the financial statements and reported amounts of revenues and expenses
for the year. Actual results could differ from these estimates.
The Company is a Small and Medium sized company (SMC) as defined in the
general instructions in respect of accounting standards notified under
the companies Act 1956. Accordingly, the company has compiled with the
accounting standards as applicable to a Small and Medium Sized Company.
VALUATION OF INVENTORY
The company does not have any Inventory as on 31.3.2012.
IMPAIRMENT OF ASSETS
An asset is concerned as impaired in accordance with Accounting
Standard 28 on 'Impair- ment of Assets", when at balance sheet date
there are indications of impairment and the carrying amount of the
asset, or where applicable the cash generating unit to which the asset
belongs, exists is recoverable amount (i.e. the higher of the asset's
net selling price and value in use). There were no reduction or gain
against the carrying amount to the recoverable amount and no effect for
the impairment is recognized in the profit and loss account.
CONTINGENT LIABILITY
Contingent liabilities as defined in accounting standard 29 on
"provisions, contingent liabilities and contingent assets" are
disclosed by way of notes to the accounts. Provision is made if it is
probable that an outflow of future economic benefits will be required
for an item previously dealt with as a contingent liability. There were
no transactions covered under this category and no provision has been
made during this year.
ACCOUNTING FOR TAXES ON INCOME
Income taxes are accounted for in accordance AS 22 "Accounting for
Taxes and Income" issued by the ICAI. Tax expense comprises both
current and deferred tax. Current tax is measured at the amount
expected to be paid to/ recovered from the tax authorities using the
applicable tax rates. Deferred tax assets and liabilities are
recognized for future tax consequences attributable to timing
difference between taxable income and accounting income that are
capable of reversing in or more subsequent periods and or measured
using relevant enacted tax rates. At each Balance Sheet, the Company
reassesses unrec- ognized deferred tax assets to the extent they have
become reasonably certain or virtu- ally certain of realization, as the
case may be.
EMPLOYEE BENEFITS
Defined Contribution Plan
The Company has defined contribution plans for employees. But there are
no permanent employees during the financial year. Hence there is no
Contributions Paid/Payable to these plans during the financial year.
FOREIGN CURRENCY TRANSACTION
There is no foreign currency transaction during the financial year
2011-12, hence there is no exchange difference.
SEGMENT REPORTING
As The Company has closed down its operation, there are no separate
reportable seg- ments as per Accounting Standard (AS) 17 "Segment
Reporting "
In the opinion, of the Board of Directors and to the best of their
knowledge and belief, the value on realization of Current Assets, Loans
and Advances in the ordinary course of business will not be less than
the amount at which they are stated in the Balance sheet.
Confirmation of Balances from certain parties for the amounts due to
them or due from them is yet to be received / reconciled.
For the year ended on March 31, 2012, the company has not generated any
sales revenue from the Plant & Machinery capable of manufacturing 13000
tons P.A of Steel Ingots from Metal Scraps during the financial year
2011-12 but earned only exempted dividend income from the investment in
shares of companies.
The timing differences related mainly to depreciation and unabsorbed
losses and the net effect of such differences will result in deferred
tax asset or liability. The company has not earned any taxable income
hence as a measure of prudence net deferred tax asset relating to the
above period has not been recognized in the accounts.
Since there is no tax liability, no Provision for Income Tax has been
made in the books of accounts as per the provisions of the Income Tax
Act.
MANAGERIAL REMUNERATION
Payment of Managerial Remuneration and other benefits inclusive of
perquisites not made to the Managing Director and Director against
their option.
MICRO, MEDIUM & SMALL ENTERPRISES ACT, 2006.
In spite of the absence of a database identifying Creditors as Small
Scale industrial Undertakings, it is the opinion of the management that
there are no parties, which can be classified as Small Scale industrial
Undertaking to whom the Company owes any sum. The Auditors have
accepted the representation of the management in this matter.
As per the Business Plan prepared by the Management, they are exploring
the possibilities to revive the manufacturing activities along with the
present investment of surplus funds into the diversified projects.
According to the information and explanation given to us, we are of the
opinion that the changes in the Fixed Assets have not affected the
going concern status of the company.
Figures shown in the accounts have been rounded off to the nearest
rupee.
Mar 31, 2010
1) BASIS FOR PREPARATION OF FINANCIAL STATEMENTS
The Financial Statements are prepared under Historical Cost Convention
on Accrual Basis of accountings.
2) USE OF ESTIMATES
The preparation of the financial statements in conformity with the
accounting standards generally accepted in India requires the
management to make estimates that affect the reported amount of assets
and liabilities, disclosure of contingent liabilities as at the date of
the financial statements and reported amounts of revenues and expenses
for the year. Actual results could differ from these estimates.
3) The Company is a Small and Medium sized company (SMC) as defined in
the general instructions in respect of accounting standards notified
under the companies Act 1956. Accordingly, the company has compiled
with the accounting standards as applicable to a Small and Medium Sized
Company.
4) FIXED ASSETS
Expenditure which are of a capital nature are capitalized at cost,
which comprises of purchase price of materials, labour, consultancy
charges and directly attributable cost of bringing the assets to its
working conditions for the intended use
5) DEPRECIATION
Depreciation is provided on written down value basis as per the rates
prescribed under Schedule XIV of the companies Act, 1956.
6) VALUATION OF INVENTORY
The company does not have any Inventory as on 31.3.2010.
7) IMPAIRMENT OF ASSETS
An asset is concerned as impaired in accordance with Accounting
Standard 28 on Impairment of Assets", when at balance sheet date there
are indications of impairment and the carrying amount of the asset, or
where applicable the cash generating unit to which the asset belongs,
exists is recoverable amount (i.e. the higher of the assets net
selling price and value in use). There were no reduction or gain
against the carrying amount to the recoverable amount and no effect for
the impairment is recognized in the profit and loss account.
8) REVENUE RECOGNITION
Dividend income is recognized on receipt basis
9) CONTINGENT LIABILITY
Contingent liabilities as defined in accounting standard 29 on
"provisions, contingent liabilities and contingent assets" are
disclosed by way of notes to the accounts. Provision is made if it is
probable that an outflow of future economic benefits will be required
for an item previously dealt with as a contingent liability. There were
no transactions covered under this category and no provision has been
made during this year.
10) ACCOUNTING FOR TAXES ON INCOME
Income taxes are accounted for m accordance AS 22 "Accounting for Taxes
and Income" issued by the ICAI. Tax expense comprises both current and
deferred tax. Current tax is measured at the amount expected to be paid
to/ recovered from the tax authorities using the applicable tax rates.
Deferred tax assets and liabilities are recognized for future tax
consequences attributable to timing difference between taxable income
and accounting income that are capable of reversing in or more
subsequent periods and or measured using relevant enacted tax rates. At
each Balance Sheet, the Company reassesses unrecognized deferred tax
assets to the extent they have become reasonably certain or virtually
certain of realization, as the case may be.
11) EMPLOYEE BENEFITS
Defined Contribution Plan
The Company has defined contribution plans for employees. But there are
no permanent employees during the financial year. Hence there is no
Contributions Paid/Payable to these plans during the financial year.
12) INVESTMENT
The investment of Rs.2,50,000/- in the Equity Shares of "M/s.Kaveri Gas
Power Limited" and investment of Rs.3,03,80,000/- in the Preference
Shares of "M/s.Kaveri Gas Power Limited", under the same management
whose shares are unquoted are valued at cost. The Management is of the
opinion that there is no diminishing value on these Investments.
13) FOREIGN CURRENCY TRANSACTION
There is no foreign currency transaction during the financial year
2009-10 hence there is no exchange differences.
14) SEGMENT REPORTING
The Company is engaged primarily in the business of manufacturing steel
Ingots from the scrap materials and there are no separate reportable
segments as per Accounting Standard (AS) 17 "Segment Reporting "
15) RELATED PARTY TRANSACTION
In accordance with Accounting standard (AS) 18, the disclosures
required as given below:
17) DISCONTINUED OPERATIONS (PURSUANT TO AS 24):
1. Discontinued since : 01.08.2003
2. Segment : Primarily Manufacturing
of Steel Ingots
3. Carrying amount of total assets : Rs.57,383,987/-
4. Carrying amount of total liabilities : Rs.1,04,423/-
5. Profit from ordinary activities : NIL
6. Income Tax expenses : NIL
7. Gain on Disposal of Assets : NIL
8. Cash flow from discontinued operations:
Operating activities
Investing activities : NIL
Financial activities
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