Mar 31, 2015
A. ACCOUNTING CONCEPTS :
The accounts have been prepared on historical cost convention. The
company follows the accrual basis of accounting. The financial
statements are prepared in accordance with accounting standards
specified under sectionl33 of the companies act 2013,read with rule 7
of the companies ( Accounts) Rules ,2014 and the relevant provision of
companies act,2013.
b. USE OF ESTIMATES ;
The preparation of financial statements requires the management of the
company to make estimates and assumption that effect 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. Differences between the actual results and estimates
are recognized in the period in which the results are
known/materialized. Though the management believes that the estimates
used are prudent and reasonable, actual results could differ from these
estimates.
c. FIXED ASSETS
Fixed Assets are stated at cost less accumulated depreciation thereon.
The cost of fixed assets comprises purchase price and any directly
attributable cost of bringing the asset to its working condition for
its intended use. Borrowing cost directly attributable to acquisition
or construction of those fixed assets which takes substantial period of
time to get ready for their intended use are capitalized.
d. DEPRECIATION
In respect of fixed Assets, depreciation is charged on WDV basis to
write of the cost of the fixed asset. Useful life of fixed Asset is
taken on the basis of its use
e. INVESTMENTS
Investments are classified into current investments and non current
investments. Investments that are intended to be held for one year or
more as on the date of Balance sheet are classified as non current
investments and investments that are held for less than one year as on
the date of Balance Sheet are classified as current investments. Non
current investment are valued at cost. Income from investment is
recognized in the year in which it is accrued and states at gross.
f. INVENTORIES
The stock in trade during the year is valued at cost or net realizable
value whichever is less.
g. Employee Benefits :
No provision is made in respect of retirement benefits.
h. Revenue Recognition :
i) Revenue has been recognized as and when there is a reasonable
certainty of its ultimate realization
i. Contingent Liability :
i) Provisions are recognized for present obligation of uncertain timing
or amount as a result of a past event where a reliable estimate can be
made and it is probable that an outflow or resources embodying economic
benefits will be required to settle the obligation. Where it is not
possible that an outflow or resources embodying economic benefits will
be required or the amount cannot be estimated reliably, the obligation
is disclosed as contingent liability, unless the probability of outflow
or resources embodying economic benefits is remote.
ii) Possible obligations whose existence will only be confirmed by the
occurrence or non-occurrence of one or more uncertain events are also
disclosed as contingent liabilities unless the probability of outflow
of resources embodying economic benefit is remote.
j. Previous year's figures have been regrouped wherever necessary to
confirm to current year's groupings.
k. Cash and Cash equivalents
Cash and cash equivalents for the purpose of cash flow statement
comprise cash at bank and in hand and short term investments with an
original maturity of three months or less
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