Mar 31, 2015
A) Financial Statements have been prepared at historical cost and in
accordance with the generally accepted accounting principle son Going
Concern basis.
b) WIP & Consumables are stated at cost and Raw Material and Finished
Goods are valued at cost or market value whichever is lower as per AS-
2. Finished Goods and Process stock include cost of conversion and
other cost incurred in bringing the inventories to their present
location and condition after considering the credit of VAT and Canvas.
c) Cash Flow Statement is prepared by the "Indirect method" set out in
AS 3 on "Cash Flow Statement" and presents the cash flow by operating,
investing and financing activities of the company. Cash and Cash
equivalents presented in Cash Flow Statement consist of Cash on Hand and
demand deposits with banks.
d) Payment related to earlier years booked as expenses in the current
year are classified as "Prior Period Item" as per AS- S, as these are
clearly distinct from ordinary activities of the company. Further,
Accounting policies have been changed in respect of Depreciation on
Fixed Assets. The Changes has been made in the estimated useful life of
the assets. The revised estimation of useful life of the assets
has-been taken on the basis useful life of the assets as prescribed
under Schedule II to the Companies Act 2013.
e) Fixed Assets are stated at cost less depreciation charged on
"Straight Line Method" in accordance with the schedule
HtoCompaniesAct2013.
f) Depreciation on fixed assets has been charged on "Straight Line
Method" on Pro-rata basis and has been realigned in accordance with
schedule II to the Companies Act, 2013. Life span of all the assets
have been recalculate and taken as per schedule II. Carrying value of
assets is now depreciated over its remaining useful life. Residual
value of the assets has been taken as nil in case of all assets which
is also with the provisions of Schedule II. The assets of which
residual life remains nil as on 01.04.2014, the book value of these
assets has been transferred to retained earnings, which isa deviation
from AS 6.
g) All expenses and income are accounted for on accrual basis and
accordingly company follows the Mercantile System of Accounting except
stated otherwise as per AS 9. Claims / refunds not ascertainable with
reasonable certainty are accounted for on settlement basis.
h) No Transactions in foreign currency done during the year. Previous
year there was Income arise on account of foreign exchange fluctuation
of Rs. 39,048/- which was booked as income as per AS 11, issued by
ICAI.
i) As per AS-15, Employee Benefits, provisions of employee benefits are
to be done on accrual basis, but in the absence of actuarial valuation
it is not possible to quantify the amount payable on account of
Gratuity and Leave Encashment benefits and are to be accounted for on
cash basis. Its effect on Pro fit and Loss of the company is not
determined.
j) Borrowing costs are interest and other costs incurred by an
enterprise in connection with the borrowing of funds for acquisition of
qualifying asset. A qualifying asset is an asset that necessarily takes
a "substantial period of time" to get ready for its intended use or
sale. The company has not acquired any "qualifying asset" during the
financial year as per AS-16, Borrowing Cost issued by ICAI.
k) The company does not have separate segment that are subject to
separate risk and returns. Hence, the provisions of clause 41 of
listing agreement and AS-17 issued by ICAI with regard to segmental
reporting are not applicable to the company.
l) Transactions entered by the company with the related parties, has
been disclosed by way of notes as defined under AS -18 issued by ICAI.
m) Basic earnings per share is calculated by dividing Net profit after
tax for the year attributable to Equity Shareholders of the company by
the weighted average number of equity shares outstanding during the
year. Diluted earnings per share is calculated by dividing Net profit
after tax for the year attributable to Equity Shareholders of the
company (after adjustment of diluted earnings) by the weighted average
number of equity shares outstanding during the year. Basic earnings per
share is Rs.(-) 2.35 per share and diluted earnings per share is Rs.
(-) 2.35 per share. [Previous Year Basic EPS Rs. (-) 0.94 Per Share and
Dilute deposers.(-)0.94].
n) There is no subsidiary company of the company, also the company has
neither obtained any economic benefit from its activities nor did the
company entered into any joint venture with any entity Hence, the
provisions of AS-21,23 and 27 issued by ICAI not applicable to the
company.
o) As per AS-22, "Taxes on Income", company has Deferred Tax Asset. The
company has been reporting negative income during the year and also
over the last few years. Considering the past trend and in the absence
of reasonable certainty that sufficient future taxable income would be
available against which deferred tax assets would be realized. Hence
deferred tax assets has not been accounted for which is in accordance
with AS-22 issued by ICAI.
p) Due to having loss in the current financial year and accumulated
carried forward loss under the income tax act, no provision for current
year taxation is made for the year.
q) During the year the company has again started its commercial
production after the production activity was closed since long. The
company has introduced new production line in addition of earlier one.
The board is of the opinion that the company is still in the line of
operation and not discontinued its line of operation as per AS 24.
r) Asset is treated as impaired when carrying cost of the assets
exceeds its recoverable amount. No asset is impaired during the year.
Also inventory and other assets have realizable value at which it is
stated in the books of accounts; hence no impairment loss needs to be
booked as per AS-28, issued by ICAI.
s) Contingent liabilities are not provided for but disclosed, if any by
way of notes on account and will be accounted for in the year of
occurrence as per AS 29.
Mar 31, 2014
Attached to and forming part of the financial statement As at 31st
March 2014
1. Financial Statements have been prepared at historical cost and in
accordance with the generally accepted accounting principles on Going
Concern basis.
2. WIP & Consumables are stated at cost and Raw Material and Finished
Goods are valued at cost or market value whichever is lower as per AS-2
3. Property tax and Stock Exchange Fee of earlier years have been paid
during the year under audit and hence the amount is treated as "Prior
Period Item' as per AS-5, as this is clearly distinct from ordinary
activities of the company.
4. Fixed Assets are stated at cost less depreciation charged on S.L M.
basrs at the rates and in the manner prescribed and specified in
schedule X!V to the Companies Act. 1956 as perAS-6.
5. As per the requirement of Companies (Amendment) Act, 1988 all
expenses and income are accounted for on accrual basis and accordingly
Company follows the Mercantile System of Accounting except stated
otherwise as per AS 9,
6. Income arises on account of foreign exchange fluctuation towards
payment in foreign currency to M/s Health Machinery Company Ltd. as
advance against machine purchase. Later on on cancellation of the
order, the amount was received back in foreign currency and income is
booked of Rs, 39048/- against foreign exchange fluctuation. The
difference in the transaction value is booked as income as per AS 11
issued by ICAI.
7. As per AS-15, Employee Benefits, provisions of employee benefits
are to be done on accrual basis, but in the absence of actuarial
valuation it is not possible to quantify the amount payable on account
of Gratuity and Leave Encashment benefits and are to be accounted for
on cash basis. Its effect on Profit and Loss of the company is not
determined.
8. The company has not acquired any qualifying assets during the
financial year as per AS-16, Borrowing Cost issued by ICAI.
9. The company does not have separate segment that are subject to
separate risk and returns. Hence, the provisions of clause 41 of
listing agreement and AS-17 issued by ICAI with regard to segmental
reporting are not applicable to the company
10 No transactions have been entered by the company with the related
parties, as defined under AS -18 issued by ICAI, during the year under
audit.
11. Asper AS 20, Earnings per share comes to Rs.(-) 0.94 per share and
diluted EPS is Rs. (-) 0.94 per share, [Previous Year Rs. (-) 0.83 Per
Share].
12. There is no subsidiary company of the company, also the company
has neither obtained any economic benefit from its activities nor did
the company entered into any joint venture with any entity. Hence, the
provisions of AS-21,23 and 27 issued by ICAI not applicable to the
company
13. As per AS-22, "Taxes on Income company has Deferred Tax Asset. The
company has been reporting negative income during the year and also
over the last few years, Considering the past trend and in the absence
of reasonable certainty that sufficient future taxable income would be
available against which deferred tax assets would be realized. Hence
deferred tax assets has not been accounted for which is in accordance
with AS-22 issued by ICAI.
14. Due to having loss in the current financial year and accumulated
carried forward loss under the income tax act, no provision for current
year taxation is made for the year.
15. During the year under audit, the company has not done any
commercial production nor done any related activities. However, as per
the explanations of board, the company is still in the line of
operation and not discontinued its line of operation as per AS 24.
16. During the year under audit, on the basis of explanation and
information given to us, inventory and other assets have realizable
value at which it is stated in the books of accounts. Hence no
impairment loss needs to be booked as perAS-28, issued by ICAI.
17. Contingent liabilities are not provided for but disclosed, if any
by way of notes on account and will be accounted for in the year of
occurrence as per AS 29.
Mar 31, 2012
1. Financial Statements have been prepared at historical cost and in
accordance with the generally accepted accounting principles on Going
Concern basis.
2. WIP & Consumables are stated at cost and Raw Material and Finished
Goods are valued at cost or market value whichever is lower as per AS-
2.
3. Fixed Assets are stated at cost less depreciation charged on S.L.M.
basis at the rates and in the manner prescribed and specified in
schedule XIV to the Companies Act, 1956 as per AS-6.
4. As per the requirement of Companies (Amendment) Act, 1988 all
expenses and income are accounted for on accrual basis and accordingly
Company follows the Mercantile System of Accounting except stated
otherwise as per AS Â 9.
5. No Transaction in Foreign Exchange has entered into by the company
during the year. Hence, there arises no difference in transaction
values as per AS Â 11, issued by ICAI.
6. As per AS-15, Employee Benefits, provisions of employee benefits
are to be done on accrual basis, but in the absence of actuarial
valuation it is not possible to quantify the amount payable on account
of Gratuity and Leave Encashment benefits and are to be accounted for
on cash basis. Its effect on Profit and Loss of the company is not
determined.
7. The company has not acquired any qualifying assets during the
financial year as per AS-16, Borrowing Cost issued by ICAI.
8. The company does not have separate segment that are subject to
separate risk and returns. Hence, the provisions of clause 41 of
listing agreement and AS-17 issued by ICAI with regard to segmental
reporting are not applicable to the company.
9. As per AS Â 20, Earnings per share comes to Rs. (-) 3.78 per share
and diluted EPS is Rs. (-) 3.78 per share. [Previous Year Rs. (-) 0.88
Per Share].
10. There is no subsidiary company of the company, also the company has
neither obtained any economic benefit from its activities nor did the
company entered into any joint venture with any entity. Hence, the
provisions of AS-21, 23 and 27 issued by ICAI not applicable to the
company.
11. As per AS-22, "Taxes on Income" company has Deferred Tax Asset. The
company has been reporting negative income during the year and also
over the last few years. Considering the past trend and in the absence
of reasonable certainty that sufficient future taxable income would be
available against which deferred tax assets would be realized. Hence
deferred tax assets has not been accounted for which is in accordance
with AS-22 issued by ICAI.
12. Due to having loss in the current financial year and accumulated
carried forward loss under the income tax act, no provision for current
year taxation is made for the year.
13. Major part of obsolete inventory disposed off during the year by
the company but as per the explanations of board, the company is still
in the line of operation and not discontinued its line of operation as
per AS Â 24.
14. Obsolete / unusable Inventory of the company has been disposed off
at its market value and the residual inventory has value at which it is
stated in the books of accounts. Loss on account of impairment is
booked on disposing off of obsolete inventory in the profit and loss
account and no further impairment loss need to be booked as per AS-28,
issued by ICAI.
15. Contingent liabilities are not provided for but disclosed, if any
by way of notes on account and will be accounted for in the year of
occurrence as per.