Mar 31, 2015
(i) Method of accounting
The company maintains its accounts on accrual basis following the
historical cost conventions in compliance with the generally accepted
accounting principles and accounting standards, specified to be
mandatory under Section 133 of the Companies Act, 2013 read with the
Rule 7 of the Companies (Accounts) Rules 2014 and relevant provisions
of the Companies Act, 2013.
The Revised Schedule VI as notified by the companies act, 2103 for the
preparation and presentation of financial statements has became
applicable to the company for the year ended 31st March, 2015. The
company has also reclassified the prior figures in accordance with the
requirements applicable for the current year.
(ii) Fixed Assets and Depreciation
Fixed assets are normally stated at original cost and WDV method has
been followed for providing Depreciation on fixed assets at the rate
prescribed under the schedule IV of the companies act, 2013.
(iii) Inventories
There is no inventories, this is not applicable.
(iv) Foreign currency transactions
Foreign currency transactions are recorded at the exchange rates
prevailing on the dates of the transaction. Resultant gains and losses
are included in the Statement of Profit and Loss.
As per the notification issued by the Ministry of Corporate Affairs,
the Exchange Fluctuation arising on reporting of Long Term Foreign
Currency Monetary items relating to Depreciable Assets is charged off
to Profit & Loss account.
(v) Taxes on Income
Tax expenses comprises of current tax and deferred tax. Current taxes
are measured at the amounts expected to be paid using the applicable
tax rates and tax laws. Deferred tax Assets and Liabilities are
measured using tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date. The effect on deferred
tax assets and liabilities of a change in tax rates is recognized in
the profit and loss account in the year of change. Deferred tax assets
and deferred tax liabilities are recognized for the future tax
consequences attributable to differences between the financial
statements carrying amounts of exiting assets and liabilities and their
respective tax bases and operating loss carry forward.
(vi) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that takes necessarily
substantial period of time to get ready for its intended use. All other
borrowing costs are recognized as an expense in the period in which
they are incurred.
(vii) Inventories
Inventories are valued at cost or net realizable value whichever is
lower.
(viii) Cash and cash equivalents
Cash and cash equivalents for the purpose of cash flow statement
comprise of cash at bank and in hand.
(ix) Provisions
A provision is recognized when the company has a present obligation as
a result of past events, 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.
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