Mar 31, 2015
A) Basis of Preparation of Financial Statements:
The Financial Statements are prepared on going concern assumption and
under the historical cost convention, except for certain fixed assets
which are revalued in accordance with Generally Accepted Accounting
Principles in India and the provisions of the Companies Act, 2013.
B) Use of Estimates:
The preparation of financial statements requires certain estimates and
assumption to be made that effect the reported amount of assets and
liabilities as on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period.
Difference between the actual results and estimates are recognised in
the period in which the results are known / materialised.
C) Fixed Assets:
Fixed assets are stated at cost net of cenvat / value added tax and
includes amounts added on revaluation, less accumulated depreciation,
and impairment of loss, if any. All costs including financing costs
till commencement of production, net changes on foreign exchange
contracts and adjustments arising from exchange rate variations
attributable to the fixed assets are capitalised.
D) Investments:
Long-term investments are usually carried at cost. However, when there
is a decline, other than temporary, in the value of a long term
investment, the carrying amount is reduced to recognise the decline.
Indicators of the value of an investment are obtained by reference to
its market value, the investee's assets and results and the expected
cash flows from the investment. The current investments are valued at
lower of cost and fair value.
E) Depreciation:
From the FY 2014-15, the depreciation is systematically allocated over
the useful life of an asset as specified in part C of schedule II of
Companies Act, 2013.
F) Impairment of Asset:
The Carrying amount of asset is reviewed at each balance sheet date to
determine whether there is any indication of impairment. If any such
indication exists, the recoverable amount of the asset is estimated.
The recoverable amount is the greater of the asset's net selling price
and value in use, which is determined based on the estimated future
cash flow discounted to their present values. An impairment loss is
recognised whenever the carrying amount of an asset or its cash
generating unit exceeds its recoverable amount. Impairment loss is
reversed if there is change in the estimates used to determine the
recoverable amount.
G) Inventories
Items of inventories are valued at lower of cost or net realisable
value after providing for obsolescence, if any. Cost of inventories
comprises of cost of purchase, cost of conversion and other costs
incurred in bringing them to their respective present location and
condition. Cost of raw material is determined on weighted average
method. Scrap is valued at estimated realisable value. As on 31-03-2015
the company has no inventory.
H) Foreign Currency Transactions:
Foreign Currency Transactions are recorded at the exchange rates
prevailing at the transaction date. Current Assets and Current
Liabilities relating to Foreign Currency Transactions remaining
unsettled at the Balance Sheet date are translated at the yearend
rates. The resulting gain / loss, if any, is recognised in Profit &
Loss Account. As per the Notification issued by MCA, the Exchange
Fluctuation arising on reporting of Long Term Foreign Currency Monetary
items which is related to Depreciable Assets is charged off to Profit &
Loss account.
I) Revenue Recognition:
Sales are recognised on the basis of despatch of goods. In respect of
Export Sales, the revenue is recognised on the basis of Bill of Lading.
Miscellaneous sales are recognised on the basis of despatch of goods.
Other income such as interest etc., are recognised on time
proportionate basis. During the year the company has not earned any
income.
J) Employee Benefits:
There are no employees on role during the year. So no provision for
employee benefits is required as per AS -15 Employee Benefits.
K) Borrowing Cost:
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part 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 revenue. During the year no borrowing
costs are eligible for capitalization.
L) Provision for Current and Deferred Tax:
Provision for current tax is made after taking into consideration
benefits admissible and applicability of Minimum Alternate Tax under
the provisions of the Income Tax Act, 1961. Deferred tax resulting
from "timing difference" between taxable and accounting income is
accounted for using the tax rates and laws that are enacted or
substantively enacted as on the balance sheet date. Deferred tax asset
is not recognised in the books as mater of prudence. During the year
there is no need to make the provision for current tax due to losses.
M) Research and Development:
Capital expenditure incurred has been disclosed under their natural
heads of account and revenue expenditure incurred is charged off as a
distinct item in the Profit and Loss account. No amount was incurred
by the company during the year under this head.
N) Claims:
Claims by and against the company, including liquidated damages, are
recognised on acceptance basis.
O) Prior Period items:
Prior period items are income or expenses which arise in the current
period as a result of errors or omissions in the preparation of the
financial statements of one or more prior periods. Please refer to Note
14 for the details in this regard.
Mar 31, 2014
A) Basis of preparation
These financial statements have been prepared in accordance with the
generally accepted accounting principles in India under the historical
cost convention on accrual basis, except for certain financial
instruments which are measured at fair value. These financial
statements have been prepared to comply in all material aspects with
the accounting standards notified under Section 211(3C) [Companies
(Accounting Standards) Rules, 2006, as amended] and other relevant
provisions of the Companies Act, 1956.
b) Use of estimates
The preparation of financial statements requires the management of the
Group to make estimates and assumptions that affect the reported
balances of assets and liabilities as at the date of the financial
statements and reported amounts of income and expenses during the year.
Example of such estimates include, provision for income taxes.
c) Fixed Assets
Fixed assets are stated at cost, less accumulated depreciation /
amortization. Costs include all expenses incurred to bring the assets
to its present location and condition. Fixed assets exclude computers
and other assets individually costing 2500 or less which are not
capitalized except when they are part of a larger capital investment
program.
d) Depreciation / Amortization
The purchase of fixed assets cost less than 2500/- individually are
charged to Profit and loss Account in the same financial year. However
last year the company does not use any fixed assets for operational
purpose and more over the company has not operated even a single day in
the during the financial year 2013-14. So we the management has not
charged depreciation on fixed assets.
e) Investments
The company does not made any investments during the financial
year-2013-14.However, the company is having long term investment in
Transgel in the form of 2,950,000 shares of Rs10/- each.
f) Revenue recognition
The company does not have any commercial operations during the last
financial year. So the company does not have any income from
operations.
g) Taxation
Current income tax expense comprises taxes on income from operations.
Income tax payable is determined in accordance with the provisions of
the Income Tax Act, 1961. However the company has not provided income
tax provision for the financial year 2013-14.Because the company was
not derived income from operations in the last financial year 2013-14.
Deferred tax expense or benefit is recognised on timing differences
being the difference between taxable incomes and accounting income that
originate in one period and are capable of reversal in one or more
subsequent periods. Deferred tax assets and liabilities are measured
using the tax rates and tax laws that have been enacted or
substantively enacted by the balance sheet date.
In the event of unabsorbed depreciation and carry forward of losses,
deferred tax assets are recognised only to the extent that there is
virtual certainty that sufficient future taxable income will be
available to realise such assets. In other situations, deferred tax
assets are recognised only to the extent that there is reasonable
certainty that sufficient future taxable income will be available to
realise these assets.
Advance taxes and provisions for current income taxes are presented in
the balance sheet after off-setting advance tax paid and income tax
provision arising in the same tax jurisdiction and the Group intends to
settle the asset and liability on a net basis.
The Group offsets deferred tax assets and deferred tax liabilities if
it has a legally enforceable right and these relate to taxes on income
levied by the same governing taxation laws.
h) Foreign currency transactions
Income and expense in foreign currencies are converted at exchange
rates prevailing on the date of the transaction. Foreign currency
monetary assets and liabilities other than net investments in
non-integral foreign operations are translated at the exchange rate
prevailing on the balance sheet date and the exchange gains or losses
are recognised in the statement of profit and loss.
i) Provisions, Contingent liabilities and Contingent assets
A provision is recognised when the Group has a present obligation as a
result of past event and it is probable that an outflow of resources
will be required to settle the obligation, in respect of which reliable
estimate can be made. Provisions (excluding retirement benefits) are
not discounted to its present value and are determined based on 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 liabilities are not recognised
in the financial statements. A contingent asset is neither recognised
nor disclosed in the financial statements.
j) Cash and cash equivalents
The Group considers all highly liquid financial instruments, which are
readily convertible into cash and have original maturities of three
months or less from the date of purchase, to be cash equivalents.
Mar 31, 2012
A) The Company follows the Mercantile System of Accounting and
recognises the income & expenditure on accrual basis. The accounts are
prepared on historical cost basis based on the normally accepted
accounting principles as applicable for a going concern. There are no
manufacturing operations during the year. However as the management
intends to commence the operations, the accounts are prepared on a
going concern basis.
b) Fixed Assets : Fixed Assets are taken at cost less depreciation
provided up to the previous financial year.
c) Depreciation : Depreciation was provided up to the previous
financial year as per the rates under WDV method stated in Schedule XIV
to the Companies Act.1956. No depreciation was provided during the year
as there are no manufacturing operations and assets are not put to use.
d) Valuation of Inventories
Finished goods are valued at cost price or market price whichever is
less, and raw material and packing materials are valued at cost.
e) Capital Work-in-Progress
Capital Work-in-Progress includes the expenditure on the unfinished
building including advances for capital goods.
f) Retirement Benefits
The Company's contribution to Provident Fund and ESI are charged as
expenses. Provision for gratuity is not made there are no eligible
employees.