Mar 31, 2014
1. Basis of Preparation of Financial Statements
The Financial Statements has-c been prepared under Historical Cost
conventions and on accrual basis in accordance with the Generally
Accepted Accounting Principles (''GAAP'') applicable in India,
Companies (Accounting Standard) Rules, 2006 notified by Ministry of
Company Affairs and Accounting Standards issued by the Institute of
Chartered Accountants of India as applicable and relevant provisions
of the Companies Act, 1956, as adopted consistently bv the Company
except refer point no. 16 regarding accounting policy on foreign
exchange transactions.
2. Use of Estimates
The preparation of Financial Statements in conformity with Indian GAAP
requires estimates and assumptions to be made that affects the
reported amounts of assets and liabilities on the date of the Financial
Statements and the reported amounts of revenue 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.
3. Fixed Assets
Fixed Assets are capitalized at cost less accumulated depreciation
inclusive of purchase price, duties and other non refundable taxes,
direct attributable cost of bringing asset to its working condition
and financing cost till commercial production, if any.
Projects, if any, under which assets are not ready for their intended
use are shown as Capital Work-in-Progress. However no project was
undertaken during the year under review.
4. Depreciation / Amortization
Depreciation on fixed assets is provided on Written Down Value Method
(WDV) at the rates and in the manner prescribed in Schedule XIV to the
Companies Act, 1956.
5. Inventories
Finished Goods are valued at cost or net realizable value whichever is
lower.
Shares held by Company as stock-in-trade is valued at cost as per
consistent accounting policy decided & followed bv the management.
Shares. Debentures and other Securities, purchased if any, are
accounted under Stock-in-trade on trade dates. However during the year
no transactions were noted.
6. Revenue Recognition
Sales are recognized when the substantial risks and rewards of
ownership in the goods are transferred to buyers. Interest earned, if
any, on loans is recognized on accural basis. Dividend is recognized
when the right to receive the payment is established.
7. Investment
Investments are classified as Current & Non Current Investments.
Current Investments are carried at lower of cost or Market / Fair
Value determined on an individual investment basis. Non-Current
investments are valued at cost. However no fresh Investment was made
by the Company during the year.
8. Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as pan 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 charged to Profit and Loss A/c.
9. Taxation
Tax expenses for the year comprise of current tax and deferred tax.
Current tax is measured as amount of tax payable in respect of taxable
income for current year as per Income Tax Act 1961 after considering
tax allowances and exemptions, if any. Deferred Tax assets or
liabilities are recognized for further tax consequence attributable to
timing difference between taxable income and accounting income that
originate in one year and arc capable of reversal in one or more
subsequent year. Deffered Tax liability is created on account of
timing difference on Depreciation as per Companies Act and Income Tax
Act.
10. Leases
Operating Lease
Lease where the lesser effectively retains substantially all risks and
benefits of the asset are classified as Operating lease Operating lease
payments are recognized as an expense in the Profit & Loss account.
11. Impairment of Assets
An asset is impaired when the carrying cost of assets exceeds its
recoverable value. An impairment loss is charged to Protit & Loss in
the year in which an asset is identified as Impaired. As on Balance
Sheet date, the Company reviews the carrying amount of Fixed Assets to
determine whether there are any indications that those assets lave
suffered "Impairment loss".
12. Earnings per Share
In determining the Earning Per share, the company the net profit after
tax which includes anv post tax effect of any extraordinary /
exceptional item. The number of shares used in computing basic
earnings per share is the weighted average number of shares
outstanding during the period.
The number of shares used in computing Diluted earnings per share
comprises the weighted average number of shares considered for
computing Basic Earnings per share and also the weighted number of
equity shares that would have been issued on conversion of all
poteruially dilutive shares.
13. Retirement Benefits
According to management, since the number of employees are less than
mandatory limit, Company has not yet applied for registration under
Provident Fund Act or ESIC Act and even not made provision for
gratutity payments.
14. Segmental Reporting
Company operated only in one segment viz. Trading Activity.
15. Related Party Transactions
As per accounting standard 18 (AS-18) Related party disclosures,
notified in the companies (Accounting Standards) Rules 2006, the
disclosure of transactions with the related parties defined in AS-18
arc given below;
1. Key Managerial Personnel:
a) Mrs. Ranjana Gupta
b) Mr. Raghav Gupta
2. Relatives of Key Management Personnel
Name of the Relative Relation
Mr Vinod Gupta Husband of Ranjann Gupta and
Father of Raghav Gupta
Mr. Abhinav Gupta Son of Ranjana Gupta and
Brother of Raghav Gupta
Vinod Gupta (HUF) Hindu Undivided Family of Vinod Gupta
3. Parties where control exists
Name of the Party Nature of Control
Arkay Enclave Pvt Ltd. Common Directorship
Man gala Capital Services Pvt. Ltd. Common Directorship
Morris Properties Pvt. Ltd. Common Directorship
Parivar Realtors Pvt. Ltd. Common Directorship
Raghav Realtors Pvt. Ltd. Common Directorship
Vivek Steel Industries Pvt Ltd. Common Directorship
VRAR Properties Pvt. Ltd. Common Directorship
16. Foreign Exchange Transactions
i) Transactons in Foreign currency are recorded at the rate of
exchange prevailing on the date of payment instead of on the date
of the respective transactions & to this extent company has not
complied with Accounting Standard on Foreign Exchange Transaction
issued by ICAI.
ii) Monetary items denominated in foreign currencies at the year end
are stated at rate of exchange prevailing on the date of payment
instead of restating at year end rates & to this extent company has
not complied with Accounting Standard on Foreign Exchange Transaction
issued by ICAI.
iii) Any income or expense on account of exchange difference either on
settlement or on translation is generally recognized jn the Statement
of Pro fit and l oss, except in case of long term liabilities, where
they relate to acquisition of fixed assets'' in which case thev are
adjusted to the carrying cost of such assets. But Company has recorded
transaction on payment basis only and hence there is no gain or loss &
to this extent company has not complied with Accounting Standard on
Foreign Exchange Transaction issued by ICAI.
17. Contingent Liabilities & Provisions
Provisions are recognized only when there is a present obligation as a
result of past events 3nd when a reliable estimate of the amount of
obligation can be made.
Contingent Liability is disclosed for by way of note for
a) Possible obligation which will be confirmed only by future events
not wholly within the control of the Company or
b) Present obligations arising from the past events where it is not
probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount of the obligation
cannot be made.
c) Contingent Assets are not recognized in the financial statements
since this may result in the recognition of income that may never be
realized.
Mar 31, 2013
(A) Basis of preparation of financial statements:
The Financial Statement have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
(B) Fixed Assets & Depreciation:
Fixed Assets are stated at cost of acquisition less accumulated
Depreciation.
ii) Depreciation of Fixed is provided on WDV method at the rates
prescribed Schedule XIV of the Companies Act, 1956.
(C) Investments: Long-term investments are valued at cost. No
adjustment is made in the carrying cost of investment as the decline
and diminution has been considered of temporary nature and investments
have been made on long-term basis.
(D) Inventories: Finished goods and shares held as stock in trade are
valued at cost. After 31st March, 2013 it was observed that the stocks
were overvalued by Rs. 25,000 and the current value of the inventory is
Rs. 1,06,11,588/-.
(E)Basis of Accounting: All Income & Expenditure items having a
material bearing on the financial statement ate recognized on accrual
basis leave encasement, bonus are accounted on cash basis.
(F)Share Issue Expenses and preliminary Expenses: Share Issue Expenses
and Preliminary Expenses are written off in equal installments every
year over a period of ten years.
Mar 31, 2012
(A) Basis of preparation of Financial statements.
The Financial Statement have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act. 1956 as adopted
consistently by the Company.
(B) Fixed Assets & Depreciation:
Fixed Assets are stated at cost of acquisition less accumulated
Depreciation.
ii) Depreciation of Fixed is provided on WDV method at the rates
prescribed Schedule XIV of the Companies Act. 1956.
(C) Investments: Long-term investments are valued at cost. No
adjustment is made in the carrying cost of investment as the decline
and diminution has been considered of temporary nature and investments
have been made on long-term basis.
(D) Inventories: Finished goods and shares held as stock in trade are
valued at cost.
(E)Basis of Accounting: All Income & Expenditure items having a
material bearing on the financial statement ate recognized on accrual
basis leave encasement, bonus are accounted on cash basis.
(F)Share Issue Expenses and preliminary Expenses: Share Issue Expenses
and Preliminary Expenses are written off in equal installments every
year over a period of ten years.
Mar 31, 2010
(A) Basis of preparation of Financial statements:
The Financial Statement have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
(B) Fixed Assets & Depreciation:
i) Fixed Assets are stated at cost of acquisition less accumulated
Depreciation.
ii) Depreciation of Fixed is provided on WDV method at the rates
prescribed Schedule XIV of the Companies Act, 1956.
(C) Investments: Long-term investments are valued at cost. No
adjustment is made in the carrying cost of investment as the decline
and diminution has been considered of temporary nature and investments
have been made on long-term basis.
(D) Inventories: Finished goods and shares held as stock in trade are
valued at cost.
(E) Basis of Accounting: All Income & Expenditure items having a
material bearing on the financial statement ate recognized on accrual
basis lesve encasement, bonus are accounted on cash basis.
(F) Share Issue Expenses and preliminary Expenses: Share Issue Expenses
and Preliminary Expenses are written off in equal installments every
year over a period of ten years.
Mar 31, 2009
(A) Basis of preparation of Financial statements:
The Financial Statement have been prepared under the historical cost
convention in accordance with the generally accepted accounting
principles and the provisions of the Companies Act, 1956 as adopted
consistently by the Company.
(B) Fixed Assets & Depreciation:
i) Fixed Assets are stated at cost of acquisition less accumulated
Depreciation.
ii) Depreciation of Fixed is provided on WDV method at the rates
prescribed Schedule XIV of the Companies Act, 1956.
(C) Investments: Long-term investments are valued at cost. No
adjustment is made in the carrying cost of investment as the decline
and diminution has been considered of temporary nature and investments
have been made on
(D) Inventories: Finished goods and shares held as stock in trade are
valued at cost.
(E) Basis of Accounting: All Income & Expenditure items having a
isaterial
(F) Share Issue Expenses and preliminary Expenses: Share Issue Expenses
and PreliminaRY Expenses are written off in equal installments every
year over a period often years.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article