Mar 31, 2015
1.1 Basis of preperation of Financial Statement
The financial statements are prepared under the historical cost
convention in accordance with the Generally Accepted Accounting
Principles in India and the provisions of the Compaies Act, 2013.
1.2 Use of Estimates
The preperation of financial statements requires extimates 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 recognised in the period
in which the results are known/ materialised.
1.3 Tangible and Intangible Fixed Assets
(i) Tangible andfixed assets are stated at cost of acquisition and
subsequent inmpovement thereto;less accumulated depreciation, amd
impairment loss, if any.
(ii) All cost, including financing costs freight, duties, taxes and
incidental expenses related to the acqisition and installation of fixed
assets.
(iii) Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortisation and impairment loss,
if any.
1.4 Depreciation/Amortisation
(i) Depreciation on tangible assets is provided on the basis of useful
life of the assets and in the mannner prescribed in the Schedule II to
the Companies Act, 2013.
(ii) Assets costing Rs. 5000 or lessare being fully depreciated in the
year of acquisition.
(iii) Cost of leasehold land is amortized over the period of lease.
(iv) The intangible assets are amortized over the useful economic life
of the respective assets.
1.5 Government Grants
Grants received/to be received, if any, against specified fixed assets
is/will be adjusted to the cost of the assets and in case where it is
not against any specifc fixed asset, the same is/will be taken as
Capital Reserve. Further, the revenue grants are/will be recognised in
the Statement of Profit and Loss in accordance with the related scheme
and in the period in which it is/will be admitted.
1.6 Foreign Currency Transactions
During the period under review there was no foreign exchange earnings
or out flow.
1.7 Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes less
accumulated depreciation and impairment loss, if any.
1.8 Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
increased/ reversed if there has been change in the estimate of
recoverable value. The recoverable value is the higher of the asset's
net selling price and value in use.
1.9 Investments
Current Investments are carried at lower of cost and market value
computed Investment wise. Long Term Investments are stated at cost or
fair value as required under order of the High Court. Provision for
diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion of the management.
1.10 Borrowing Cost
Borrowing costs for working caoital and motor car purchased are
recognised as expense in the year in which they are incurred.
1.11 Revenue Recognition
Revenue is recognised only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods adjusted for discounts (net), Value Added Tax
(VAT) and gain / loss on corresponding hedge contracts. Interest income
on investment is recognised on time proportion basis. Dividend is
considered when right to receive is established.
1.12 Derivative Instruments
All forward contracts enteredto hedge on unexecuted firm commitments
and higly probale forecast transactions, are recognized in the
financial statements at fair value at each repoeting date, in pursuance
of the announcement of The Institute of Chartered Accountants of India
(ICAI) on Accounting for Derivatives.
1.13 Insurance Claims
These are accounted as and when admitted/settled.
1.14 Taxes on Income and Deferred Tax
Provision for Income Tax is made on the basis of taxable income for the
year at current rates. Tax expense comprises of Current Tax and
Deferred Tax at the applicable enacted or substantively enacted rates.
Current Tax represents the amount of Income Tax payable/ recoverable in
respect of the taxable income/ loss for the reporting period. Deferred
Tax represents the effect of timing difference between taxable income
and accounting income for the reporting period that originate in one
period and are capable of reversal in one or more subsequent periods.
The Deferred Tax Asset is recognised and carried forward only to the
extent that there is a reasonable certainty that the assets will be
realised in future. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, Deferred Tax Assets are
recognised only if there is virtual certainty of realisation of
assets..
1.15 Inventories
Items of inventories are measured at lower of cost or net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of purchase and other costs incurre
in bringing them to their respective present location and condition.
Cost of trading and other products are determined on weighted average
basis.
1.16 Employee Benefits
Short term employee benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. These
benefits include compensated absences such as paid annual leave and
sickness leave. The undiscounted amount of short term employee benefits
expected to be paid in exchange for the services rendered by employees
are recognised as an expense during the period.
Long term employee benefits Defined benefit plans
Provident Fund
The company is not liable to pay provident fund and not providing any
long term benefit to its employees.
1.17 Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources. 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. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
assets are neither recognised nor disclosed in the Financial
Statements.
The Notes on account referred to above form an integral part of Balance
Sheet.
As per our report of even date attached.
Mar 31, 2014
A. Basis of preperation of Financial Statement
The financial statements are prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles in India and the provisions of the Compaies Act, 1956.
B. Use of Estimates
The preperation of 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 recognised in the period
in which the results are known/ materialised.
C. Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and, less
accumulated depreciatio, if any.
D. Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
increased/ reversed if there has been change in the estimate of
recoverable value. The recoverable value is the higher of the assets''
net selling price and value in use.
E. Investments
Current Investments are carried at lower of cost and market value
computed Investment wise. Long Term Investments are stated at cost or
fair value as required under order of the High Court. Provision for
diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion of the management.
F. Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets upto the commencement of commercial operations. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. Other borrowing costs are
recognised as expense in the year in which they are incurred.
G. Revenue Recognition
Revenue is recognised only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, service tax, excise duty
and sales during the trial run period, adjusted for discounts (net),
Value Added Tax (VAT) and gain / loss on corresponding hedge contracts.
Interest income on investment is recognised on time proportion basis.
Dividend is considered when right to receive is established.
H. Taxes on Income and Deferred Tax
Provision for Income Tax is made on the basis of taxable income for the
year at current rates. Tax expense comprises of Current Tax and
Deferred Tax at the applicable enacted or substantively enacted rates.
Current Tax represents the amount of Income Tax payable/ recoverable in
respect of the taxable income/ loss for the reporting period. Deferred
Tax represents the effect of timing difference between taxable income
and accounting income for the reporting period that originate in one
period and are capable of reversal in one or more subsequent periods.
The Deferred Tax Asset is recognised and carried forward only to the
extent that there is a reasonable certainty that the assets will be
realised in future. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, Deferred Tax Assets are
recognised only if there is virtual certainty of realisation of assets.
Computation of Deferred Tax 31.03.2014
W.D.V as per Companies Act 3,668,451
W.D.V as per Income Tax Act 3,574,759
Difference 93,692
Deferred Tax Liability @ 30.90% 28,951
Less: Already Provided 92,794
Deferred Tax Liability for the year 63,843
I. Inventories
Items of inventories are measured at cost after providing for
obsolescence, if any. Cost of inventories comprises of cost of
purchase, incidental cost of purchase and other costs including
overheads incurred in bringing them to their respective present
location and condition. Cost of trading and other products are
determined on weighted average basis.Closing Inventories has been
valued at cost or market value whichever is lower.
J. Employee Benefits
Shortterm employee benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. These
benefits include compensated absences such as paid annual leave and
sickness leave. The undiscounted amount of short term employee benefits
expected to be paid in exchange for the services rendered by employees
are recognised as an expense during the period.
K. Long term employee benefits: NIL
Defined benefit plans: NIL
Provident Fund
Since the company is not liabile for Provident Fund contributions so
they have neither collected any amount from their employee nor
deposited any amount on this a/c to designated authority.
L. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources. 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. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
assets are neither recognised nor disclosed in the Financial
Statements.
M. Earning per Share
In determining Earning per Share, the Company considers the net profit
aftertax and includes the post tax effect of any extraordinary/
exceptional item. The number of shares used in computing Basic Earning
per Share is the weighted average number of shares outstanding during
the period. The number of shares used in computing Diluted Earning per
Share comprises the weighted average shares considered for deriving
Basic Earnings per Share and also the weighted average number of shares
that could have been issued on the conversion of all dilutive potential
Equity Shares unless the results would be anti - dilutive. Dilutive
potential Equity Shares are deemed converted as of the begining of the
period, unless issued at a later date.
Mar 31, 2013
A. Basis of preperation of Financial Statement
The financial statements are prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles in India and the provisions ofthe Compaies Act, 1956.
B. Use of Estimates
The preperation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date ofthe financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual results and estimates are recognised in the period
in which the results are known/ materialised.
C. Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and, less
accumulated depreciatio, if any.
D. Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
increased/ reversed if there has been change in the estimate of
recoverable value. The recoverable value is the higher ofthe assets''
net selling price and value in use.
E. Investments
Current Investments are carried at lower ofcost and market value
computed Investment wise. Long Term Investments are stated at cost or
fair value as required under order ofthe High Court. Provision for
diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion ofthe management.
F. Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part ofthe cost of
such assets upto the commencement of commercial operations. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. Other borrowing costs are
recognised as expense in the year in which they are incurred.
G. Revenue Recognition
Revenue is recognised only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, service tax, excise duty
and sales during the trial run period, adjusted for discounts (net),
Value Added Tax (VAT) and gain / loss on corresponding hedge contracts.
Interest income on investment is recognised on time proportion basis.
Dividend is considered when right to receive is established.
H. Taxes on Income and Deferred Tax
Provision for Income Tax is made on the basis of taxable income for the
year at current rates. Tax expense comprises of Current Tax and
Deferred Tax at the applicable enacted or substantively enacted rates.
Current Tax represents the amount of Income Tax payable/ recoverable in
respect ofthe taxable income/ loss forthe reporting period. Deferred
Tax represents the effect of timing difference between taxable income
and accounting income for the reporting period that originate in one
period and are capable of reversal in one or more subsequent periods.
The Deferred Tax Asset is recognised and carried forward only to the
extent that there is a reasonable certainty that the assets will be
realised in future. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, Deferred Tax Assets are
recognised only if there is virtual certainty of realisation of assets.
I. Inventories
Items of inventories are measured at cost after providing for
obsolescence, if any. Cost of inventories comprises ofcost of purchase,
incidental cost of purchase and other costs including overheads
incurred in bringing them to their respective present location and
condition. Cost of trading and other products are determined on
weighted average basis.
J. Employee Benefits
Short term employee benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. These
benefits include compensated absences such as paid annual leave and
sickness leave. The undiscounted amount of short term employee benefits
expected to be paid in exchange for the services rendered by employees
are recognised as an expense during the period. K. Long term employee
benefits: NIL Defined benefit plans: NIL Provident Fund Since the
company is not liabile for Provident Fund contributions so they have
neither collected any amount from their employee nor deposited any
amount on this a/c to designated authority.
L. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources. 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. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
assets are neither recognised nor disclosed in the Financial
Statements.
M. Earning per Share
In determining Earning per Share, the Company considers the net profit
aftertax and includes the post tax effect of any extraordinary/
exceptional item. The number of shares used in computing Basic Earning
per Share is the weighted average number of shares outstanding during
the period. The number of shares used in computing Diluted Earning per
Share comprises the weighted average shares considered for deriving
Basic Earnings per Share and also the weighted average number of shares
that could have been issued on the conversion of all dilutive potential
Equity Shares unless the results would be anti - dilutive. Dilutive
potential Equity Shares are deemed converted as ofthe begining ofthe
period, unless issued at a later date.
Mar 31, 2012
A. Basis of preparation of Financial Statement
The financial statements are prepared under the historical cost
convention, in accordance with the generally accepted accounting
principles in India and the provisions of the Companies Act, 1956.
B. Use of Estimates
The preparation of 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 recognised in the period
in which the results are known/ materialised.
C. Own Fixed Assets
Fixed Assets are stated at cost net of recoverable taxes and, less
accumulated depreciation, if any.
D. Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
increased/ reversed if there has been change in the estimate of
recoverable value. The recoverable value is the higher of the assets'
net selling price and value in use.
E. Investments
Current Investments are carried at lower of cost and market value
computed Investment wise. Long Term Investments are stated at cost or
fair value as required under order of the High Court. Provision for
diminution in the value of long term investments is made only if such a
decline is other than temporary in the opinion of the management.
F. Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost of
such assets upto the commencement of commercial operations. A
qualifying asset is one that necessarily takes substantial period of
time to get ready for intended use. Other borrowing costs are
recognised as expense in the year in which they are incurred.
G. Revenue Recognition
Revenue is recognised only when it can be reliably measured and it is
reasonable to expect ultimate collection. Revenue from operations
includes sale of goods, services, sales tax, service tax, excise duty
and sales during the trial run period, adjusted for discounts (net),
Value Added Tax (VAT) and gain / loss on corresponding hedge contracts.
Interest income on investment is recognised on time proportion basis.
Dividend is considered when right to receive is established.
H. Taxes on Income and Deferred Tax
Provision for Income Tax is made on the basis of taxable income for the
year at current rates. Tax expense comprises of Current Tax and
Deferred Tax at the applicable enacted or substantively enacted rates.
Current Tax represents the amount of Income Tax payable/ recoverable in
respect of the taxable income/ loss for the reporting period. Deferred
Tax represents the effect of timing difference between taxable income
and accounting income for the reporting period that originate in one
period and are capable of reversal in one or more subsequent periods.
The Deferred Tax Asset is recognised and carried forward only to the
extent that there is a reasonable certainty that the assets will be
realised in future. However, where there is unabsorbed depreciation or
carried forward loss under taxation laws, Deferred Tax Assets are
recognised only if there is virtual certainty of realisation of assets.
I. Inventories
Items of inventories are measured at cost after providing for
obsolescence, if any. Cost of inventories comprises of cost of
purchase, incidental cost of purchase and other costs including
overheads incurred in bringing them to their respective present
location and condition. Cost of trading and other products are
determined on weighted average basis. Considering Prudent,the
Management has changed in accounting policies during the year under
review w.e.f. 01.07.201 1. Accordingly, the Investment in equity shares
quoted and unquoted both have been transferred from investment to
stock-in-trade in aggregating to Rs. 133129581 /-(on the basis of
market value of the shares on that day in the case of listed company and
at the cost in the case of unquoted equity shares).According to this
short term capital gain (unrealised) on that has been booked in books
ofthe account in agreegating to Rs. 9987065/-.
J. Employee Benefits
Short term employee benefits
All employee benefits payable wholly within twelve months of rendering
the service are classified as short term employee benefits. These
benefits include compensated absences such as paid annual leave and
sickness leave. The undiscounted amount of short term employee benefits
expected to be paid in exchange for the services rendered by employees
are recognised as an expense during the period.
Long term employee benefits: NIL
Defined benefit plans: NIL
Provident Fund
The directors of the company stated that the company are not liabile for
Provident Fund contributions so that they have neither collected any
amount from their employee nor deposited any amount on this a/c to
designated authority.
K. Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources. 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. When there is a possible obligation or
a present obligation in respect of which the likelihood of outflow of
resources is remote, no provision or disclosure is made. Contingent
assets are neither recognised nor disclosed in the Financial
Statements.
L. Earning per Share
In determining Earning per Share, the Company considers the net profit
after-tax and includes the post tax effect of any extraordinary/
exceptional item. The number of shares used in computing Basic Earning
per Share is the weighted average number of shares outstanding during
the period. The number of shares used in computing Diluted Earning per
Share comprises the weighted average shares considered for deriving
Basic Earnings per Share and also the weighted average number of shares
that could have been issued on the conversion of all dilutive potential
Equity Shares unless the results would be anti - dilutive. Dilutive
potential Equity Shares are deemed converted as of the beginning of the
period, unless issued at a later date. As per our report of even date
attached.
Mar 31, 2011
A. BASIS OF ACCOUNTING:
The Financial Statements are prepared under the historical cost
convention and in accordance with the requirements of the Companies
Act, 1956 and accepted accounting standards.
b. FIXED ASSETS:
Fixed assets have been stated at cost of acquisition less depreciation.
Depreciation has been provided on Diminishing Value Method at rates
specified by the Companies Act, 1956 in Schedule XIV. Depreciation on
addition/deduction is calculated prorata basis from the date of
addition/deduction.
c. INCOME RECOGNITION:
All revenue/incomes are recognised on Accrual Basis of Accounting.
d. EXPENSES:
All expenses have been accounted for on Accrual Basis of Accounting.
e. INCOME TAX:
The Current Charges for Income Tax is calculated in accordance with the
relevant tax regulations applicable to the Company. Deferred tax assets
and liabilities are recognised for further tax consequences
attributable to the timing differences that results between the profits
offered for income tax and profit as per the financial statements.
Deferred tax assets and liabilities are measured as per the tax
rates/laws that have been enacted or substantively enacted by the
Balance Sheet date.
f. The Company has taken over draft facility from Karnataka Bank Ltd.
against lien of fixed deposit with the Bank in the name of Company and
promoters of the Company. The outstanding amount as at 31-3-2011 is
Rs. 1,81,23,172/- (maximum outstanding during the year was Rs.
2,56,00,000/- against the sanction limit of Rs. 2,56,00,000/- the
amount has been shown as current liabilities with the reason of the
fact that limit has been taken for a very temporary period.
g. CAPITAL COMMITMENT:
Capital commitment as on 31.03.2011 Rs. Nil (Previous Year Rs. Nil)
g. DEBTORS: All the debtors are unsecured with the company.
Mar 31, 2010
A. BASIS OF ACCOUNTING :
The Financial Statements are prepared under the historical cost
convention and in accordance with the requirements of the Companies
Act, 1956 and accepted accounting standards.
b. FIXED ASSETS :
Fixed assets have been stated at cost of acquisition less depreciation.
Depreciation has been provided on Diminishing Value Method at rates
specified by the Companies Act, 1956 in Schedule XIV. Depreciation on
addition/deduction is calculated prorata basis from the date of
addition/deduction.
c. INCOME RECOGNITION :
All revenue/incomes are recognised on Accrual Basis of Accounting.
d. EXPENSES :
All expenses have been accounted for on Accrual Basis of Accounting.
e. INCOME TAX :
The Current Charges for Income Tax is calculated in accordance with the
relevant tax regulations applicable to the Company. Deferred tax assets
and liabilities are recognised for further tax consequences
attributable to the timing differences that results between the profits
offered for income tax and profit as per the financial statements.
Deferred tax assets and liabilities are measured as per the tax
rates/laws that have been enacted or substantively enacted by the
Balance Sheet date.
f. Capital Commitment :
Capital commitment as on 31.03.2010 Rs. Nil (Previous Year Rs. Nil)
g. Debtors: All the debtors are unsecured with the company.