Mar 31, 2015
I Basis of preparation
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India (Indian GAAP) under
the historical cost convention on accrual basis. These financial
statements have been prepared to comply in all material aspects with
the accounting standards notified under Section 133 and other relevant
provisions of the Companies Act, 2013. The accounting policies adopted
in the preparation of the financial statements are consistent with
those followed in the previous year.
All assets and liabilities have been classified as current or
non-current as per the Company's operating cycle and other criteria set
out in the Schedule III to the Companies Act, 2013. Based on the nature
of products and the time between the acquisition of assets for
processing and their realisation in cash and cash equivalents, the
Company has ascertained its operating cycle as twelve months for the
purpose of current-non current classification of assets and
liabilities.
ii Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognised in the periods in which
the results are known/materialise.
iii Tangible Assets
Tangible Assets are stated at cost net of accumulated depreciation and
accumulated impairment losses if any. Cost comprises cost of
acquisition, construction and subsequent improvements thereto including
taxes and duties (net of credits and drawbacks), freight and other
incidental expenses related to acquisition and installation. Subsequent
expenditure related to an item of fixed asset are added to its book
value only if they increase the future benefits from the existing asset
beyond its previously assessed standard of performance. Losses arising
from the retirement of, and gains or losses arising from disposal of
tangible assets which are carried at cost are recognised in the
Statement of Profit and Loss.
iv Depreciation and amortization
Depreciation including amortization on fixed assets, is provided under
Written Down Value Method (WDV) in accordance with Schedule II to the
Companies Act, 2013.
v Borrowing Costs
Borrowing costs attributable to acquisition and / or construction of
qualifying assets are capitalised as a part of the cost of such assets
up to the date when such assets are ready for its intended use. Other
borrowing costs are charged to Statement of Profit and Loss.
vi Inventories
Inventories are stated at cost or net realisable value, whichever is
lower. Cost is determined on weighted average method and comprises
expenditure incurred in the normal course of business in bringing such
inventories to their present location and condition and includes, where
applicable appropriate overheads. Obsolete, slow moving and defective
inventories are identified at the time of physical verification and
where necessary, provision is made for such inventories.
vii Revenue Recognition
Sale of Goods are recognised when the substantial risks and reward of
ownership in the goods are transferred to the buyer as per the terms of
the contract and are recognised net of trade discounts, rebates, sales
taxes and VAT.
viii Other Income
Interest Income is generally recognised on a time proportion basis
taking into account the amount outstanding and the rate applicable,
when there is reasonable certainty as to realisation. All other items
are recognised on accrual basis.
ix Taxes on income
"Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961."
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets are recognised only if there is virtual certainty that there
will be sufficient future taxable income will be available against
which these can be realised. Deferred tax assets and liabilities are
offset if such items relate to taxes on income levied by the same
governing tax laws and the Company has a legally enforceable right for
such set off. Deferred tax assets are reviewed at each Balance Sheet
date for their realisability.
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
x Provisions, contingent liabilities and contingent assets
"Provisions are recognised when there is a present obligation as a
result of a past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle the obligation
and there is a reliable estimate of the amount of the obligation can be
made. Provisions (excluding retirement benefits) are measured at the
best estimate of the expenditure required to settle the present
obligation at the Balance sheet date and are not discounted to its
present value. These are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates."
Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which will be
confirmed only by the occurrence/non occurrence of one/more uncertain
future events not wholly within the control of the company or a present
obligation that arises from past events where it is either not probable
that an outflow of resources will be required to settle or a reliable
estimate of the amount cannot be made.
"A contingent asset isneither recognised nor disclosed in the financial
statements."
xi 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. Earnings
considered in ascertaining the Company's earnings per share is the net
profit for the period. The weighted average number of equity shares
outstanding during the period and for all periods presented is adjusted
for events, such as bonus shares, other than the conversion of
potential equity 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 period attributable to equity shareholders and the
weighted average number of shares outstanding during the period are
adjusted for the effects of all dilutive potential equity shares.
xii Cash and cash equivalents
In the Cash Flow Statement, cash and cash equivalents includes cash in
hand, demand deposits with banks, other short-term highly liquid
investments with original maturities of three months or less.
Mar 31, 2014
1.1 CORPORATE INFORMATION:
NEWEVER TRADE WINGS LTD (" the Company ") was incorporated as private
limited company under the provisions of Companies Act,1956 on April 27,
2012 as Newever Infrahomes Private Limited. Later on it was converted
to public limited company on June 07,2012 as Newever Infrahomes
Limited. During the financial year 2013-14, the name of the company has
been changed /altered from Newever Infrahomes Ltd. to Newever Trade
Wings Limited and went for listing on 17th October, 2013 in Bombay
Stock Exchange, SME Platform having Scrip Code 536644 its ISIN No. is
INE596O01010 . The Company is presently engaged in the business of
trading in Iron & Steel and other Related Commodities.
1.2 BASIS OF ACCOUNTING:
The financial statements are prepared under the historical cost
convention on an accrual basis in accordance with the Generally
Accepted Accounting Principles in India (Indian GAAP) and Accounting
Standards (AS) as notified by the Companies (Accounting Standards)
Rules, 2006 as amended, the provisions of the Companies Act, 1956.
Accounting policies have been consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in the accounting policy
hitherto in use. The financial statements has been prepared and
presented as per the requirement of revised Schedule VI as notified
under Companies Act,1956.
1.3 USE OF ESTIMATES:
The preparation of the financial statements in confirmity with GAAP
requires the Management to make estimates and assumptions that affect
the reported balances of asset 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.
The Management believes that the estimates used in preparation of the
financial statements are prudent and reasonable. Future results could
differ due to these estimates and the differences between the actual
results and the estimates are recognised in the periods in which the
results are known / materialise. During the year the management had not
made any estimates, hence no impairment loss been recognized for the
assets and no contingent liability has been provided.
1.4 INVENTORIES:
Inventories are valued at weighted average cost and the net realisable
value after providing for obsolescence and other losses, where
considered necessary. Cost is determined on a specific identification
basis. Cost includes all charges in bringing the goods to the point of
sale. Work-in-progress and finished goods include appropriate
proportion of overheads. Company does not have any Closing Stock of
inventories at the end of financial year 2013-14
1.5 DEPRECIATION AND AMORTISATION:
Depreciation has been provided on the written down value (WDV) method
as per the rates prescribed in Schedule XTV to the Companies Act, 1956.
1.6 REVENUE RECOGNITION:
Income from services:
Revenues from contracts priced on a time and material basis are
recognised when services are rendered and related costs are incurred.
Other Income:
Interest and other income is accounted on accrual basis.
1.7 TANGIBLE FIXED ASSETS:
Tangible fixed assets are carried at cost less accumulated depreciation
and impairment losses if any. Fixed Assets are stated in the books at
historical cost inclusive of all incidentals expenses incurred for
acquisition of such assets.
1.8 INTANGIBLE FIXED ASSETS:
Intangible assets are carried at cost less accumulated amortisation and
impairment losses, if any. The cost of an intangible asset comprises
its purchase price, including any import duties and other taxes (other
than those subsequently recoverable from the taxing authorities), and
any directly attributable expenditure on making the asset ready for its
intended use and net of any trade discounts and rebates. Subsequent
expenditure on an intangible asset after its purchase / completion is
recognised as an expense when incurred unless it is probable that such
expenditure will enable the asset to generate future economic benefits
in excess of its originally assessed standards of performance and such
expenditure can be measured and attributed to the asset reliably, in
which case such expenditure is added to the cost of the asset.
1.9 EMPLOYEE BENEFITS:
Short Term Employee benefits are recognized as an expenses at the
undiscounted amount in the Statement of profit and loss for the year in
which the services is rendered. Long Term Employee benefits include
gratuity, Leave Encashment.
1.10 BORROWING COST:
Borrowing costs include interest, amortisation of ancillary costs
incurred to the extent they are regarded as an adjustment to the
interest cost. Costs in connection with the borrowing of funds to the
extent not directly related to the acquisition of qualifying assets are
charged to the Statement of Profit and Loss over the tenure of the
loan.
1.11 EARNINGS PER SHARE (EPS): Basic EPS
Basic earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) by the weighted average number of equity shares outstanding during
the year.
Diluted EPS
Diluted earnings per share is computed by dividing the profit / (loss)
after tax (including the post tax effect of extraordinary items, if
any) as adjusted for dividend, interest and other charges to expense or
income relating to the dilutive potential equity shares, by the
weighted average number of equity shares considered for deriving basic
earnings per share and the weighted average number of equity shares
which could have been issued on the conversion of all dilutive
potential equity shares.
1.12 TAXES ON INCOME: Current tax
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Minimum alternate tax (MAT)
Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which
gives future economic benefits in the form of adjustment to future
income tax liability, is considered as an asset if there is convincing
evidence that the Company will pay normal income tax. Accordingly, MAT
is recognised as an asset in the Balance Sheet when it is probable that
future economic benefit associated with it will flow to the Company.
Deferred tax:
Deferred tax is recognised on timing differences, being the differences
between the taxable income and the accounting income that originate in
one period and are capable of reversal in one or more subsequent
periods. Deferred tax is measured using the tax rates and the tax laws
enacted or substantially enacted as at the reporting date. Deferred tax
liabilities are recognised for all timing differences. Deferred tax
assets in respect of unabsorbed depreciation and carry forward of
losses are recognised only if there is virtual certainty that there
will be sufficient future taxable income available to realise such
assets. Deferred Tax Asset has not been recognized as there is no
supporting evidence of utilizing the Deferred Tax Asset in the coming
year, it is in compliance with the Accounting Standard-22.
1.13 INVESTMENT:
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as Long - term investment. Current
investments are carried at lower of cost and fair value determined on
an individual investment basis. Long-term investments are carried at
cost. Provision for diminution in the value of long term investments is
made only if such decline is other than temporary in nature in the
opinion of the management.
1.14 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,
1.15 PROVISIONS AND CONTIGENCIES:
A provision is recognised when the Company has a present obligation as
a result of past events and 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.
1.16 PREVIOUS YEAR FIGURES:
Previous year''s figure are re-grouped and re-arranged where ever felt
necessary at the time of finalisation of accounts of current year.
1.17 LEASE:
The Company has operating lease for office that are renewable on
periodic basis. The amount of rent expenses included in statement of
profit and loss towards operating lease aggregate to Rs.1,08,500/-
1.18 CASH FLOW STATEMENT:
Cash Flows are reported using the indirect method whereby profit/(loss)
before tax is adjusted for the effects of transaction of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flows from operating, investing and financing
activities of the company are segregated based on the available
information.
Mar 31, 2013
1.1 BASIS OF PRF.PAR ATION OF FINANCIAL STATEMENTS
The financial statements are prepared in accordance with the generally
accepted accounting principles in India (GAAP) under the historical
cost convention. GAAP includes mandatory accounting standards
prescribed by the Companies (Accounting Standards) Rules, 2006 (as
amended)/ issued by the Institute of Chartered Accountants of India and
the relevant provisions of the Companies Act,i956.
Accounting policies are consistently applied except where a newly
issued accounting standard is initially adopted or a revision to an
existing accounting standard requires a change in policy thereto in
use. Where a change in accounting policy is necessitates due to changed
circumstances, detailed disclosure to that effect along with the impact
of such change is duly disclosed in the financial statements.
1.2 USE OF ESTIMATES
I The preparation of the financial statements in conformity with GAAP
requires the Management to make estimates and assumptions that affect
the reported amounts of assets and liabilities .disclosure of
contingent liabilities as at the date of the financial statements .and
the reported amount of income and expenses during the period like
useful lives of fixed assets .provision for doubtful
receivables/advances, provision for diminution in value of investments,
provision for employee benefits, future contracts costs expected to be
incurred to complete the projects, provision for taxation, provision
for contingencies etc. Actual results could differ from those
estimates. Changes in estimates are reflected in the financial
statement in the period in which changes are made and, if material.
Their effects are disclosed in the financial statements.
1.3 INVENTORIES
Inventory has been valued as per the Accounting Standard-2 issued by
"The Institute of Chartered Accountants of India" i.e. at cost or net
realizable value, whichever is lower. Cost is determined on a specific
identification basis .cost includes material cost, freight and other
incidental expenses incurred in bringing the inventory to the present
location/ condition.
1.4 CASH AND CASH EOUTVAT .F.NTS (FOR PURPOSES OF CASH FI/)W STATEMENT*
Cash and cash equivalents in the Cash Flow Statement comprise cash at
bank and in hand.
1.5 CASH FIXW STATEMENT
Cash flow are reported using the indirect method whereby profit/(loss)
before tax is adjusted for the effects of transaction of non-cash
nature and any deferrals or accruals of past or future cash receipts or
payments. The cash flow from operating, investing and financing
activities of the company are segregated based on the available
information
1.6 REVENUE RECOGNITION
Sales arc accounted for when the sale of goods are completed on accrual
basis, Sale is net of Sales Tax/ VAT. All the items of income and
expenses are recognized on accrual basis unless stated otherwise.
1.7 FIXED ASSETS
Fixed Assets are stated at actual cost less accumulated depreciation
and net of impairments. The Actual Cost includes all expenses incurred
to bring the assets to its present location and condition. The
Depreciation of fixed assets is computed on the written down value as
per the rates prescribed under Schedule XTV of the Companies Act, 1956.
Depreciation is charges on a pro-rata basis from the date of
capitalisation.
1.8 TAXES OF INCOME
The current income tax charge is determined in accordance with the
relevant tax regulations applicable to the company. Deferred tax charge
or credits are recognized for the future tax consequences attributable
to riming differences that result between the profit/0oss) offered for
income taxes and the proflt/(loss) as per the financial statements.