Mar 31, 2015
1 Basis of Accounting
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with Generally Accepted
Accounting Principles [GAAP] comprising the mandatory Accounting
Standards as specified under the section 133 of the Companies Act, 2013
read with Rule 7 of Companies (Accounts) Rules, 2014 and other
accounting pronouncements of the Instituted Chartered Accountants of
India.
2 Use of Estimates
The preparation of the financial statements is 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 / materialised.
3 Change in Accounting Policy
Any change in the Accounting Policy, which has a material effect in the
current period, is disclosed The amount by which any item in the
financial statements is affected by such change is also disclosed.
4 Fixed Assets
Tangible Fixed Assets are stated at cost of acquisition and any
subsequent improvements thereto, including taxes, duties, freight and
other incidental expenses related to its acquisition and installation.
5 Deprecation
Tangible Assets
Tangible assets, other than lease hold land, are depredated on a
pro-rata basis based oh. the Written Down Value method over the
estimated useful lives of the assets specified in Schedule II to the
Companies Act, 2013,
Lease hold Land
The Lease hold land is amortised over the period of lease.
6 Investments
Long Term Investments are valued at Cost, Current investments are
valued at lower of cost or market value.
7 Revenue Recognition
Revenue is recognised on the transfer of significant risks and rewards
of ownership to the buyer, for a consideration. Income from interest is
recognized on accrual basis.
8 Extraordinary and Exceptional items
Income or expenses that arise from events or transactions that are
clearly distinct fromthe ordinary activities of the Company are
classified as extraordinary items Specific. disclosure of such events /
transactions is made in the financial statements. Similarly, any
external event beyond the control of the Company, significantly
impacting income or expense, is also treated as extraordinary item and
disclosed as such.
Income or Expense from ordinary activities of the Company of such size,
nature or incidence that, its disclosure improves an understanding of
the performance' of the Company are classified as an exception item and
accordingly disclosed in the notes to accounts.
9 Borrowing Costs
Borrowing costs include interest, commitment charges, amortization of
ancillary costs, finance charges in respect of assets acquired on
finance lease and exchange differences arising from foreign currency
borrowing, to the extent they are regarded as an adjustment to interest
costs.
Borrowing' costs that are attributable to the acquisition, construction
or production of a qualifying asset are capitalized / inventorised as
part of cost of such asset till such time the asset is ready for' its
intended use or sale. A qualifying, asset is an asset that necessarily
requires a substantial period of time to get ready for its intended use
or sale. All other borrowing costs are charged as an expense in the
period in which they are incurred,
10 Taxes on Income
Tax on Income for the Current Period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the income Tax Act, 1961.
Deferred tax is recognised on timing differences between the accounting
income and taxable income for the year and quantified by the tax rates
and laws enacted or substantially enacted as at the Balance Sheet date.
Deferred tax assets are recognised and carried forward to the extent
that there, is reasonable certainty that sufficient future taxable
income will be available against which such deferred assets can be
realised.
11 Provisions and contingent liabilities,
A provision is recognised when
a. the Company has a present obligation as a. result of past events
b. it is probable that an outflow of resources will be required to
settle the obligation
c. the amount of the obligation can be reliably estimated.
Provisions (excluding retirement benefits.) are not discounted to their
present value and are determined based on the best estimate required to
settle the obligation at the Balance Sheet date. These are reviewed at
each Balance Sheet date and adjusted to reflect the current best
estimates.
Contingent liability is disclosed in case of
a. a present obligation arising from past events, when it is not
probable that an outflow of resources will be required to settle the
obligation,
b. a present obligation arising from past events, when no reliable
estimate is possible,
c. a possible obligation arising from past events where the probability
of outflow of resources is not remote.
12 Commitments
Commitments are future liabilities for contractual expenditure.
Commitments are classified and disclosed as follows;
a. Estimated amount of contracts remaining to be executed on capital
account and not provide for
b. Other non-cancellable commitments, if any, to the extent they are
considered material arid relevant in the opinon of management.
13 Impairment of Assets
The amount of impairment loss is recognised and charged to Profit and
Loss Statement when the carrying amount of asset exceeds its
recoverable amount at the Balance Sheet date. Recoverable amount is
determined at higher of net selling price and value in use. if at the
Balance Sheet date there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount subject to a
maximum of depreciated historical cost.
Mar 31, 2014
1 Basis of Accounting
The Company maintains its accounts on accrual basis following the
historical cost convention in accordance with Generally Accepted
Accounting Principles [GAAP] comprising the mandatory Accounting
Standards issued under the Companies (Accounting Standards) Rules, 2006
(as amended) and the relevant provisions of the Companies Act, 1956.
2 Use of Estimates
The preparation of the financial statements is 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 recognized in the periods in which
the results are known / materialized.
3 Change in Accounting Policy
Any change in the Accounting Policy, which has a material effect in the
current period, is disclosed. The amount by which any item in the
financial statements is affected by such change is also disclosed.
4 Fixed Assets
Tangible Fixed Assets are stated at cost of acquisition and any
subsequent improvements thereto, including taxes, duties, freight and
other incidental expenses related to its acquisition and installation.
5 Depreciation
Tangible Assets:
Depreciation on Fixed assets has been provided on Written Down Method
at the rates and in the manner prescribed in Schedule XIV to Companies
Act, 1956.
Lease hold Land
The Lease hold land is amortized over the period of lease.
6 Investments
Long Term Investments are valued at Cost. Current Investments are
valued at lower of cost or market value.
7 Revenue Recognition
Revenue is recognized on the transfer of significant risks and rewards
of ownership to the buyer, for a consideration. Income from interest is
recognized on accrual basis.
8 Extraordinary and Exceptional items
Income or expenses that arise from events or transactions that are
clearly distinct from the ordinary activities of the Company are
classified as extraordinary items. Specific disclosure of such events /
transactions is made in the financial statements. Similarly, any
external event beyond the control of the Company, significantly
impacting income or expense, is also treated as extraordinary item and
disclosed as such.
Income or Expense from ordinary activities of the Company of such size,
nature or incidence that its disclosure improves an understanding of
the performance of the Company are classified as an exception item and
accordingly disclosed in the notes to accounts.
9 Borrowing Costs
Borrowing costs include interest, commitment charges, amortization of
ancillary costs, finance charges in respect of assets acquired on
finance lease and exchange differences arising from foreign currency
borrowing, to the extent they are regarded as an adjustment to interest
costs.
Borrowing costs that are attributable to the acquisition, construction
or production of a qualifying asset are capitalized / inventoried as
part of cost of such asset till such time the asset is ready for its
intended use or sale. A qualifying asset is an asset that necessarily
requires a substantial period of time to get ready for its intended use
or sale. All other borrowing costs are charged as an expense in the
period in which they are incurred.
10 Taxes on Income
Tax on Income for the Current Period is determined on the basis of
taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961.
Deferred tax is recognized on timing differences between the accounting
income and taxable income for the year and quantified by the tax rates
and laws enacted or substantially enacted as at the Balance Sheet date.
Deferred tax assets are recognized and carried forward to the extent
that there is reasonable certainty that sufficient future taxable
income will be available against which such deferred assets can be
realized.
11 Provisions and contingent liabilities.
A provision is recognized when
a. the Company has a present obligation as a result of past events
b. it is probable that an outflow of resources will be required to
settle the obligation
c. the amount of the obligation can be reliably estimated.
Provisions (excluding retirement benefits) are not discounted to their
present value and are determined based on the best estimate required to
settle the obligation at the Balance Sheet date. These are reviewed at
each Balance Sheet date and adjusted to reflect the current best
estimates.
Contingent liability is disclosed in case of
a. a present obligation arising from past events, when it is not
probable that an outflow of resources will be required to settle the
obligation.
b. a present obligation arising from past events, when no reliable
estimate is possible.
c. a possible obligation arising from past events where the
probability of outflow of resources is not remote.
12 Commitments
Commitments are future liabilities for contractual expenditure.
Commitments are classified and disclosed as follows;
a. Estimated amount of contracts remaining to be executed on capital
account and not provide for
b. Other non-cancellable commitments, if any, to the extent they are
considered material and relevant in the opinion of management.
13 Impairment of Assets
The amount of impairment loss is recognized and charged to Profit and
Loss Statement when the carrying amount of asset exceeds its
recoverable amount at the Balance Sheet date. Recoverable amount is
determined at higher of net selling price and value in use. If at the
Balance Sheet date there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed
and the asset is reflected at the recoverable amount subject to a
maximum of depreciated historical cost.
Mar 31, 2010
1. The accounts are prepared on accrual Basis on historical cost
convention, except otherwise stated. The Basis of accounts is a Going
Concern Concept.
2. Revenue Recognition:
(a) Sales are recognized on actual delivery & billing,
(b) Income from interest is recognized on accrual basis.
3. Preliminary Expenses:
In view of no commercial operations, preliminary & Public issue
expenses are not written off.
4. Stock - In - Trade: Stock - in - Trade of hardware & finished goods
is valued at cost of purchase.
5. Investments: All investments are considered Long Term & no
permanent diminution in their values is estimated. Hence, they are
valued at cost of Acquisition.
6. Contigent Liabilities:
(a) Gujarat Electricity Board has filed a suit against the company for
recovery of electricity dues, penalty etc, for approx. Rs.3 lacs for
which no provision is made. The company expects that the same shall be
scrapped as the demand is unreasonable. No provision ismade for the
same.
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