Sep 30, 2014
A) Basis for Accounting
The financial statements are prepared under the historical cost
convention on an accrual basis of accounting in accordance with the
Generally Accepted Accounting Principles, Accounting Standards notified
under Section 211(3C) of the Companies Act, 1956 and the relevant
provisions thereof. During the year, Revised Schedule VI notified under
the Companies Act, 1956 has become applicable to the Company for
preparation and presentation of its financial statements. The Company
has reclassified the previous year figures in accordance with the
requirements in the current year.
b) Revenue Recognition
(i) Revenue from sale of goods is recognised net of rebates and
discounts on transfer of significant risks and rewards of ownership to
the buyer.
(ii) Revenue from services rendered is recognised on prorata basis in
proportion to the stage of completion of the related transaction.
c) Tangible Assets
Tangible assets are stated at cost less accumulated depreciation and
net of impairment, if any.
d) Intangible Assets
Intangible assets are stated at cost less accumulated amortisation and
net of impairment, if any. An intangible asset is recognised if it is
probable that the expected future economic benefits that are
attributable to the asset will flow to the Company and its cost can be
measured reliably. Intangible assets having finite useful lives are
amortised on a straight line basis over there estimated useful lives.
e) Depreciation and Amortisation
Depreciation is provided on a straight line basis applying the rates
specified in Schedule XIV to the Companies Act, 1956 except the
following where the management has decided to put the following fixed
assets held for sale
f) Impairment
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that their carrying amount may not be
recoverable. An impairment loss is recognised in the Statement of
Profit and Loss if the carrying amount of an asset exceeds its
recoverable amount.
g) Foreign Currency Transactions
Transactions in foreign exchange currencies are recorded at ruling rate
on the date of the transaction. Monetary items of assets and
liabilities are translated on reporting date. Exchange differences are
recognized, if any material, in the statement of profit and loss for
the period. However there are no such items to be recognized.
h) Inventories
Inventories are valued at cost or net realizable value whichever is
lower. However there are no inventories as on the end of reporting
period.
i) Deferred Tax
Deferred tax is accounted for by computing the tax effect of timing
differences which arise during the year and reverse in subsequent
periods. However deferred tax was not provided during the year as the
company has incurred loss during the year.
j) Loans and Advances
During the period ended 30th September 2014 the company has not paid
instalments regularly with respect to the Term Loan and the loan is
overdue. The OD interest is also not paid and the same has became
overdue for non-payment of interest.
k) Exceptional Items
Depreciation not provided for assets which the management has put for
sale and the list of assets are as mentioned below:
l) Earnings per share
The earnings considered in ascertaining the companyÂs Earnings per
Share (EPS) comprise of the net profit after tax less dividend
(including dividend distribution tax) on preference shares. The number
of shares used for computing the basis EPS is the weighted average
number of shares outstanding during the year. During the period under
review the company has incurred cash loss.
Sep 30, 2013
A) Basis for Accounting
The financial statements are prepared under the historical cost
convention on an accrual basis of accounting in accordance with the
Generally Accepted Accounting Principles, Accounting Standards notified
under Section 211(3C) of the Companies Act, 1956 and the relevant
provisions thereof. During the year, Revised Schedule VI notified
under the Companies Act, 1956 has become applicable to the Company for
preparation and presentation of its financial statements. The Company
has reclassified the previous year figures in accordance with the
requirements in the current year.
b) Revenue Recognition
(i) Revenue from sale of goods is recognized net of rebates and
discounts on transfer of significant risks and rewards of ownership to
the buyer.
(ii) Revenue from services rendered is recognized on prorate basis in
proportion to the stage of completion of the related transaction.
c) Tangible Assets
Tangible assets are stated at cost less accumulated depreciation and
net of impairment, if any.
d) Intangible Assets
Intangible assets are stated at cost less accumulated amortization and
net of impairment, if any. An intangible asset is recognized if it is
probable that the expected future economic benefits that are
attributable to the asset will flow to the Company and its cost can be
measured reliably. Intangible assets having finite useful lives are
amortized on a straight line basis over there estimated useful lives.
e) Depreciation and Amortization
Depreciation is provided on a straight line basis applying the rates
specified in Schedule XIV to the Companies Act, 1956 except the
following GIS-GPS software depreciated at 20% IVR PG software
depreciated at 20% Cobweb software depreciated at 20%
f) Impairment
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that their carrying amount may not be
recoverable. An impairment loss is recognized in the Statement of
Profit and Loss if the carrying amount of an asset exceeds its
recoverable amount.
I) Inventories
Inventories are valued at cost or net realizable value whichever is
lower. However there are no inventories as on the end of reporting
period.
J) Deferred Tax
Deferred tax is accounted for by computing the tax effect of timing
differences which arise during the year and reverse in subsequent
periods. However deferred tax was not provided during the year as the
company has incurred loss during the year.
K) Loans and Advances
During the period ended 30th September 2013 the company has not paid
instilments regularly with respect to the Term Loan and the loan is
overdue. The OD interest is also not paid and the same has became
overdue for nonpayment of interest.
L) Exceptional Items
During the period under review fixed assets worth(Gross value) Rs.
26,80,882/- was sold for Rs. 14,62,768/- as there was default in
payment of instilments
M) Earnings per share
The earnings considered in ascertaining the company''s Earnings Per
Share(EPS) comprise of the net profit after tax less dividend(including
dividend distribution tax) on preference shares. The number of shares
used for computing the basic EPS is the weighted average number of
shares outstanding during the year. During the period under review the
company has incurred cash loss.
N) Contingencies and events occurring after the balance sheet date
O) Employee Benefits
Based on the past experience and the position as on the reporting date,
no provision is made for the retirement benefits as none of the present
employees are entitled for the same.
P) Segment Reporting
The Company has identified three reportable segments, viz Construction,
Information Technology and Aquaculture in terms of requirements of
Accounting Standard 17. Revenue and expenses have been identified to a
segment on the basis of relationship to operating activities of the
segment.
Mar 31, 2010
1. Method of Accounting
a. The financial statements are prepared on a going concern basis with
historical costs in accordance with the accounting standards prescribed
in Sec 211 (3C) of the Companies Act, 1956.
b. The financial statements are prepared following the accrual method
of accounting excepting incomes with significant uncertainties.
2. Income Recognition
a. In respect of income from IT operations, on the basis of stage of
contractual entitlements.
b. In respect of aquaculture operations, at the point of sale.
c. In respect of construction operations, Cost of land comprises land
acquired on outright sale, as agreement holder, or as holder of
development right at acquisition cost.
3. FixedAssets
The fixed assets are accounted at acquisition cost, which includes
costs incidental to such acquisition and revenue costs, if any,
incurred during the construction period. The fixed assets are
depreciated at straight line rates prescribed in Schedule XIV of the
Companies Act, 1956 excepting proprietary software and GIS-GPS being
depreciated at 20% over 5 years on prorata basis.
4. Inventories
Finished goods are valued at cost or net realizable value which ever is
lower.
5. Gratuity:
The provision for gratuity liability is not made as it is not
applicable. As the terms of employment of Managing Director is of
contractual nature and does not provide for payment of gratuity, no
provision has been made.
6 Taxes on income
Provision for current tax is made in accordance with the provisions of
the Income Tax Act, 1961.- Provisions for Deferred taxes is made in
accordance with Accounting standard 22 of the Institute of Chartered
Accountants of India for the timing difference between tax on profit
under Income Tax Act and the Companies Act resulting in deferred tax
liability of Rs. 87,96,170/-.
7. Accounting for Foreign Exchange Transactions: Transactions in
foreign exchange currencies are recorded at the rate ruling on date of
the transaction. Monetary items of assets and liabilities are
translated on reporting date. Exchange differences are recognized, if
any material, in the profit and loss account for the period. However
there are no such items to be recognized.
8. Contingencies and Events occurring after Balance Sheet date:
a. Estimated amount of contracts remaining to be executed for capital
account and not provided for is Rs.82,25,450/- (Previous year Nil)
b. The company at its EGM dated 25" June 2010, pursuant to allotment
of Equity Shares to ShareWarrant Holders, has resolved to forfeit the
balance of share warrant amounts received for non receipt of consent
for allotment/or incomplete amount from the applicants.
c. The company was sanctioned a Term Loan of Rs.329,00,000/- and a
working capital limit of Rs. 100,00,000/- by Dhanalaxmi Bank Ltd
against the security of Plant & Machinery as proposed and Book Debts as
Primary Security and Companys land of 26.8 acres as Equitable Mortgage
towards collateral security and 700,000/- Equity Shares of the company
belonging to the promoter group.
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