Mar 31, 2014
(a) Basis of Preparation: - The financial statements of the company
have been prepared in accordance with generally accepted accounting
principles in India (Indian GAAP). The company has prepared these
financial statements to comply in all material respects with the
accounting standards notified under the Companies (Accounting
Standards) Rules, 2006, (as amended), the relevant provisions of the
Companies Act, 1956 (to the extend applicable) and the Companies Act,
2013 (to the extent notified). The financial statements have been
prepared on an accrual basis and under the historical cost convention.
The accounting policies adopted in the preparation of financial
statements are consistent with those of previous year.
(b) Use of estimates: - The preparation of financial statements in
conformity with Indian GAAP requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and the disclosure of contingent
liabilities, at the end of the reporting year. Although these estimates
are based on the management''s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result
in the outcomes requiring a material adjustment to the carrying amounts
of assets or liabilities in future years.
(c) Tangible fixed assets: - Fixed assets are stated at cost, net of
accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price, borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
(d) Depreciation on tangible fixed assets: - Depreciation on fixed
assets is calculated on Straight Line basis using the rates as
prescribed under the Schedule XIV to the Companies Act, 1956.
(e) Borrowing costs: - Borrowing cost includes interest, amortization
of ancillary costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost.
(f) Investments: - Investment have been treated as long term and
carried at cost. Cost includes purchase cost and attributable expenses.
(g) Inventories: - Trading Goods are valued at cost.
(h) Revenue recognition: - Revenue is recognized to the extent that it
is probable that the economic benefits will flow to the company and the
revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognized:
Sale of goods
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on delivery of the goods.
Interest
Interest Income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "Revenue from operations" in
the statement of profit and loss.
Dividends
Dividend income is recognized when the company''s right to receive
dividend is established by the reporting
date.
Other Income
The amounts receivable from various agencies are accounted on accrual
basis to the extent it is possible to ascertain the income with
reasonable accuracy.
(i) Foreign currency translation: - No Foreign Currency Transactions
has been made by the Company in the Financial Year 2013-14.
(j) Retirement and other employee benefits: - No liability in respect
of retirement benefits has been provided for since, none of its
employee are eligible for entitlement of retirement benefit for non
attainment of duration of services.
(k) Income taxes: - Tax expense comprises of current tax. Current
income-tax is measured at the amount expected to be paid to the tax
authorities in accordance with the Income-tax Act, 1961 enacted in
India. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date.
(l) Segment reporting: - The Company is a Non-banking Financial Company
and as such additional disclosure required under Accounting Standard -
17 "Segment Reporting" is not applicable.
(m) Earnings Per Share: - Basic Earnings per share is calculated by
dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares
outstanding during the period.
(n) Provisions, Contingent Liabilities and Contingent Assets: - A
provision is recognized when the Company has a present obligation as a
result of a past event, it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the Balance Sheet date.
A disclosure of contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require and outflow of resources. Where 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 recognized nor disclosed in the financial
statements.
(o) Cash and cash equivalents: - 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.
(p) Balance in respect of Trade Payable, Trade Receivable and Loans &
Advances are subject to confirmation.
(q) Cash Flow Statement: - Cash flows are reported using the indirect
method and cash flows from operating, investing and financing
activities of the Company are segregated.
(r) MSMED Act, 2006: - The Government of India has promulgated an act
namely The Micro, Small and Medium Enterprises Development Act, 2006,
which comes into force with effect from October 2, 2006. As per the
act, the Company is required to identify the Micro, Small and Medium
suppliers and pay them interest on over dues beyond the specified
period irrespective of the terms agreed with the suppliers. The Company
does not have any dues to any entity covered under the said act.
(s) Prudential Norms: - The Company has followed the prudential norms
issued by Reserve Bank of India, as applicable, and revenue / assets
have been represented (considering adjustments / write-off / net-off,
as applicable) keeping in line therewith and management prudence.
(t) NBFC Requirement regarding transfer of profit to reserve : 20% of
profit after tax (rounded off to next hundred) for the current year
have been transferred to Statutory Reserve Fund appropriating the
Statement of Profit & Loss as per requirement of the R.B.I. Act.
(u) Contingent Provision against Standard Assets : Contingent Provision
@0.25% against Standard Loans is made as per R.B.I. requirement for
NBFC appropriating surplus of the Statement of Profit & Loss.
Mar 31, 2013
(a) Basis of Preparation :- The financial statements of the company
have been prepared in accordance with generally accepted accounting
principles in India (Indian GAAP). The company has prepared these
financial statements to comply in all material respects 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 have been prepared on an
accrual basis and under the historical cost convention. The accounting
policies adopted in the preparation of financial statements are
consistent with those of previous year.
(b) Use of estimates :- The preparation of financial statements in
conformity with Indian GAAP requires the management to make judgments,
estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities and the disclosure of contingent
liabilities, at the end of the ''eporting year. Although these estimates
are based on the management''s best knowledge of current events and
actions, uncertainty about these assumptions and estimates could result
in the outcomes requiring a material adjustment to the carrying amounts
of assets or liabilities in future years.
(c) Tangible fixed assets :- Fixed assets are stated at cost, net of
accumulated depreciation and accumulated impairment losses, if any. The
cost comprises purchase price, borrowing costs if capitalization
criteria are met and directly attributable cost of bringing the asset
to its working condition for the intended use. Any trade discounts and
rebates are deducted in arriving at the purchase price.
(d) Depreciation on tangible fixed assets :- Depreciation on fixed
assets is calculated on Straight Line basis using the rates as
prescribed under the Schedule XIV to the Companies Act, 1956.
(e) Borrowing costs :- Borrowing cost includes interest, amortization
of ancillary costs incurred in connection with the arrangement of
borrowings and exchange differences arising from foreign currency
borrowings to the extent they are regarded as an adjustment to the
interest cost.
(f) Investments :- Investment have been treated as long term and
carried at cost. Cost includes purchase cost and attributable expenses.
(g) Inventories :- Trading Goods are valued at cost.
(h) Revenue recognition :- Revenue is recognized to the extent that it
is probable that the economic benefits will flow to the company and the
revenue can be reliably measured. The following specific recognition
criteria must also be met before revenue is recognized:
Sale of goods
Revenue from sale of goods is recognized when all the significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on delivery of the goods. Interest
Interest Income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "Revenue from operations" in
the statement of profit and loss.
Dividends
Dividend income is recognized when the company''s right to receive
dividend is established by the reporting date.
(i) Foreign currency translation :- r;reign currency transactions and
balances initial recognition
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
Conversion
Foreign currency monetary items are retranslated using the exchange
rate prevailing at the reporting date.
Non-monetary items, which are measured in terms of historical cost
denominated in a foreign currency, are reported using the exchange rate
at the date of the transaction. Non-monetary items, which are measured
at fair value or other similar valuation denominated in a foreign
currency, are translated using the exchange rate at the date when such
value was determined.
1. Exchange differences arising on a monetary item that, in substance,
forms part of the company''s net investment in a non-integral foreign
operation is accumulated in the foreign currency translation reserve
until the disposal of the net investment. On the disposal of such net
investment, the cumulative amount of the exchange differences which
have been deferred and which relate to that investment is recognized as
income or as expenses in the same year in which the gain or loss on
disposal is recognized.
2. Exchange differences arising on long-term foreign currency monetary
items related to acquisition of affixed asset are capitalized and
depreciated over the remaining useful life of the asset. For this
purpose, the company treats a foreign monetary item as "long-term
foreign currency monetary item", if it has a term of 12months or more
at the date of its origination.
3. Exchange differences arising on other long-term foreign currency
monetary items are accumulated in the "Foreign Currency Monetary Item
Translation Difference Account" and amortized over the remaining life
of the concerned monetary item.
4. All other exchange differences are recognized as income or as
expenses in the year in which they arise.
(j) Retirement and other employee benefits :- No liability in respect
of retirement benefits has been provided for since, none of its
employee are eligible for entitlement of retirement benefit for non
attainment of duration of services.
(k) Income taxes :- Tax expense comprises current and deferred tax.
Current income-tax is measured at the amount expected to be paid to the
tax authorities in accordance with the Income-tax Act, 1961 enacted in
India. The tax rates and tax laws used to compute the amount are those
that are enacted or substantively enacted, at the reporting date.
Deferred income taxes reflect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years.
Deferred tax is measured using the tax rates and the tax laws enacted
or substantively enacted at the reporting date.
Deferred tax liabilities are not recognized for all taxable timing
differences in view of volume & materiality concept. Deferred tax
assets are recognized for deductible timing differences only to the
extent -.at there is reasonable certainty that sufficient future
taxable income will be available against which such Deferred tax assets
can be realized. In situations where the company has no unabsorbed
depreciation or carry forward tax losses, all deferred tax assets are
recognized only if there is virtual certainty supported by convincing
evidence that they can be realized against future taxable profits.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company wntes-down the carrying amount of deferred
tax asset to the extent that it is no longer reasonably certain or
rfrtually certain, as the case may be, that sufficient future taxable
income will be available against which aeferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes
-easonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available.
(l) Segment reporting :- The company is a Non banking Financial Company
and as such additional : -closure required under Accounting Standard
-17 "Segment Reporting" is not applicable.
(m) Earnings Per Share :- Basic Earnings per share is calculated by
dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares
outstanding ring the period.
(n) Provisions , Contingent Liabilities and Contingent Assets :- A
provision is recognized when the Company has a present obligation as a
result of a past event, it is probable that an outflow of resources
will be required to settle the obligation, in respect of which a
reliable estimate can be made. Provisions are not discounted to its
present value and are determined based on best estimate required to
settle the obligation at the Balance Sheet date.
A disclosure of contingent liability is made when there is a possible
obligation or a present obligation that may, but probably will not,
require and outflow of resources. Where 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 recognized nor disclosed in the financial
statements.
(o) Cash and cash equivalents :- 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.
(p) Balance in respect of Trade Payable, Trade Receivable and Loans &
Advances are subject to , confirmation.
(q) The previous Year figures have been regrouped/rearranged,
whenever considered necessary to , conform to the current year
presentation.
Mar 31, 2012
A) Basis of Preparation
The financial statements of the company have been prepared in
accordance with generally accepted accounting principles in India
(Indian GAAP). The company has prepared these financial statements to
comply in all material respects 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 have been prepared on an accrual basis and under the
historical cost convention. The accounting policies adopted in the
preparation of financial statements are consistent with those of
previous year.
b) Use of estimates
The preparation of financial statements in conformity with Indian GAAP
requires the management to make judgments, estimates and assumptions
that affect the reported amounts of revenues, expenses, assets and
liabilities and the disclosure of contingent liabilities, at the end of
the reporting year. Although these estimates are based on the
management's best knowledge of current events and actions,
uncertainty about these assumptions and estimates could result in the
outcomes requiring a material adjustment to the carrying amounts of
assets or liabilities in future years.
c) Tangible fixed assets
Fixed assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any. The cost comprises purchase
price, borrowing costs if capitalization criteria are met and directly
attributable cost of bringing the asset to its working condition for
the intended use. Any trade discounts and rebates are deducted in
arriving at the purchase price.
d) Depreciation on tangible fixed assets
Depreciation on fixed assets is calculated on WDV basis using the rates
as prescribed under the Schedule XIV to the CompaniesAct, 1956.
e) Borrowing costs
Borrowing cost includes interest, amortization of ancillary costs
incurred in connection with the arrangement of borrowings and exchange
differences arising from foreign currency borrowings to the extent they
are regarded as an adjustment to the interest cost.
f) Investment
Investments, which are readily realizable and intended to be held for
not more than one year from the date on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments.
On initial recognition, all investments are measured at cost. The cost
comprises purchase price and directly attributable acquisition charges
such as brokerage, fees and duties. If an investment is acquired, or
partly acquired, by the issue of shares or other securities, the
acquisition cost is the fair value of the securities issued. Current
investments are carried in the financial statements at lower of cost
and fair value determined on an individual investment basis. Long-term
investments are carried at cost. However, provision for diminution in
value is made to recognize a decline other than temporary in the value
of the investments.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
g) Inventories
Trading Goods are valued at cost.
h) Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the company and the revenue can be
reliably measured. The following specific recognition criteria must
also be met before revenue is recognized:
Sale of goods
Revenue from sale of goods is recognized when alMhe significant risks
and rewards of ownership of the goods have been passed to the buyer,
usually on delivery of the goods.
Interest
Interest Income is recognized on a time proportion basis taking into
account the amount outstanding and the applicable interest rate.
Interest income is included under the head "other income" in the
statement of profit and loss.
Dividends
Dividend income is recognized when the company's right to receive
dividend is established by the reporting date.
I) Foreign currency translation
Foreign currency transactions and balance Initial recognitio
Foreign currency transactions are recorded in the reporting currency,
by applying to the foreign currency amount the exchange rate between
the reporting currency and the foreign currency at the date of the
transaction.
Conversion
Foreign currency monetary items are retranslated using the exchange
rate prevailing at the reporting date. Non-monetary items, which are
measured in terms of historical cost denominated in a foreign currency,
are reported using the exchange rate at the date of the transaction.
Non-monetary items, which are measured at fair value or other similar
valuation denominated in a foreign currency, are translated using the
exchange rate at the date when such value was determined.
Exchange differences
From accounting years commencing on or after 7 December 2006, the
company accounts for exchange differences arising on
translation/settlement of foreign currency monetary items as below:
1. Exchange differences arising on a monetary item that, in substance,
forms part of the company's net investment in a non-integral foreign
operation is accumulated in the foreign currency translation reserve
until the disposal of the net investment. On the disposal of such net
investment, the cumulative amount of the exchange differences which
have been deferred and which relate to that investment is recognized as
income or as expenses in the same year in which the gain or loss on
disposal is recognized.
2. Exchange differences arising on long-term foreign currency monetary
items related to acquisition of affixed asset are capitalized and
depreciated over the remaining useful life of the asset. For this
purpose, the company treats a foreign monetary item as "long-term
foreign currency monetary item", if it has a term of 12months or more
at the date of its origination.
3. Exchange differences arising on other long-term foreign currency
monetary items are accumulated in the "Foreign Currency Monetary Item
Translation Difference Account" and amortized over the remaining life
of the concerned monetary item.
4. All other exchange differences are recognized as income or as
expenses in the year in which they arise, j) Retirementand other
employee benefit etirement benefit in the form of provident fund is a
defined contribution scheme. The contributions to the provident fund
are charged to the statement of profit and loss for the year when the
contributions are due. The company has no obligation, other than the
contribution payable to the provident fund.
Accumulated leave, which is expected to be utilized within the next 12
months, is treated as short-term employee benefit. The company measures
the expected cost of such absences as the additional amount that it
expects to pay as a result of the unused entitlement that has
accumulated atthe reporting date.
The company treats accumulated leave expected to be carried forward
beyond twelve months, as long-term employee benefit for measurement
purposes. Such long-term compensated absences are provided for based on
the actuarial valuation using the projected unit credit method at the
year-end. Actuarial gains/losses are immediately taken to the statement
of profit and loss and are not deferred. The company presents the
entire leaves a current liability in the balance sheet, since it does
not have an unconditional right to defer its settlement fori 2 months
after the reporting date.
Expenses incurred towards voluntary retirement scheme are charged to
the statement of profit and loss immediately.
k) Income taxes
Tax expense comprises current and deferred tax. Current income-tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income-tax Act, 1961 enacted in India. The tax
rates and tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date.
Deferred income taxes reflect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date.
Deferred tax liabilities are recognized for all taxable timing
differences. Deferred tax assets are recognized for deductible timing
differences only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. In situations where the company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
profits.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The company writes-down the carrying amount of deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the company will pay normal income tax during the
specified year, i.e., the year for which MAT credit is allowed to be
carried forward. In the year in which the company recognizes MAT credit
as an asset in accordance with the Guidance Note on Accounting for
Credit Available in respect of Minimum Alternative Tax under the
Income- tax Act, 1961, the said asset is created by way of credit to
the statement of profit and loss and shown as "MAT Credit
Entitlement." The company reviews the "MAT credit entitlement"
asset at each reporting date and writes down the asset to the extent
the company does not have convincing evidence that it will pay normal
tax during the specified year.
I) Segment reportin
he Company is engaged mainly in Financing. Since all activities are
related to the main activity, there are no reportable segment as per
Accounting Standard on Segment Reporting (AS-17) m) Earnings Per Share
Basic earnings per share are calculated by dividing the net profit or
loss for the year attributable to equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average
number of equity shares outstanding during the year. Partly paid equity
shares are treated as a fraction of an equity share to the extent that
they are entitled to participate in dividends relative to a fully paid
equity share during the reporting year. The weighted average number of
equity shares outstanding during the year is adjusted for events such
as bonus issue, bonus element in a rights issue, share split, and
reverse share split (consolidation of shares) that have changed the
number of equity shares outstanding, without a corresponding change in
resources.
For the purpose of calculating diluted earnings per share, the net
profit or loss for the year attributable to equity shareholders and the
weighted average number of shares outstanding during the year are
adjusted for the effects of all dilutive potential equity shares, n)
Provisions
A provision is recognized when the company has a present obligation as
a result of past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Provisions are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
reporting date.
These estimates are reviewed at each reporting date and adjusted to
reflect the current best estimates.
Where the company expects some or all of a provision to be reimbursed,
for example under an insurance contract, the reimbursement is
recognized as a separate asset but only when the reimbursement is
virtually certain. The expense relating to any provision is presented
in the statement of profit and loss net of any reimbursement,
o) Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. The company does not recognize a
contingent liability but discloses its existence in the financial
statements,
p) Cash and cash equivalents
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.
q) Balance in respect of Trade Payable, Trade Receivable and Loans &
Advances are subject to confirmation.
r) Raw Material Consumption NIL
s) Expenditure in Foreign Currency NIL
t) Earnings in Foreign Currenc NIL
u)CIF Value of Import NIL
Mar 31, 2010
A) General : These accounts are prepared on the historical cost
convention and in accordance with applicable accounting standards
unless otherwise stated.
b) Revenue Recognition : The Company follows the mercantile system of
accounting and recognizes Income & Expenditure on accrual basis except
Rates & Taxes on cash basis.
c) Fixed Assets : Fixed Assets are stated at cost of acquisition
inclusive of freight, duties, taxes and incidental expenses relating to
acquisition / installation.
d) Depreciation : The Company has provided depreciation on straight
line method as per schedule XIV of the Companies Act, 1956 (as
amended).
e) Inventories : Stock of shares / securities are valued at cost.
f) Contingent Liability : Contingent Liabilities are not provided for
in Books of Account but are shown by way of Notes in Notes on Account.
g) Retirement Benefits : The Company will provide for Gratuity
Liability as and when the same will be applicable to the company.
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