Mar 31, 2014
I. BASIS OF PREPARATION OF FINANCIAL STATEMENTS
a) Accounting Convention: The financial Statements are prepared under
historical cost convention on accrual basis in accordance with
generally accepted accounting principles and applicable accounting
standards in India. The financial statements adhere to the
presentational requirements of the Companies Act, 1956.
b) Use of Estimates: The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumption that affect the reported
amounts of assets and liabilities and disclosures thereof at the date
of financial statements and the reported amounts if revenue and expense
during the reporting period
II. REVENUE RECOGNITION:
The revenue has been recognized in conformity with the requirements of
Accounting Standard - 9, issued by the Institute of Chartered
Accountants of India.
III. VALUATION OF STOCKS:
As evident from the balance sheet and as per our scrutiny company has
no closing stock at the year end.
IV. TANGIBLE FIXED ASSETS:
Fixed assets are shown at cost less accumulated depreciation. The cost
includes all the cost that is incidental to bringing the assets to its
current working position and any other subsequent capitalization.
V. DEPRECIATION:
Depreciation on assets has been provided on pro rata basis under
straight line, method and as per the relevant rates mentioned in the
Companies Act, 1956.
VI. IMPAIRMENT OF ASSETS:
The Company reviews the carrying amounts of its fixed assets to
determine whether there is any indication that those assets suffered an
impairment loss. If any such indication exists, the recoverable amount
of the assets is estimated in order to determine the extent of
impairment loss. Recoverable amount is the higher of assets not selling
prices and value in use.
VII. CASH FLOW STATEMENT:
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non cash
nature and deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular operation, financing and
investing activities of the company are segregated.
VIII. PROVISION FOR CURRENT TAX AND DEFERRED TAX:
The company is a loss making entity and therefore accounting for taxes
on income as per AS Â 22 has not been done.
IX. Treatment of Retirement Benefits
i) The contributions to Provident Fund are charged to profit & loss
Account every year.
ii) The employees doesn''t fall under Gratuity Act, hence no provision
required
X. Accounting policies not specifically referred to are consistent
with generally accepted accounting principles.
Mar 31, 2012
A) Accounting Convention:
The financial Statements are prepared under historical cost convention
on accrual basis in accordance with generally accepted accounting
principles and applicable accounting standards in India. The financial
statements adhere to the presentational requirementsoftheCompaniesAct,
1956.
b) Use of Estimates: The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumption that affect the reported
amounts of assets and liabilities and disclosures thereof at the date
of financial statements and the reported amounts if revenue and expense
during the reporting period.
II. REVENUE RECOGNITION:
The revenue has been recognized in conformity with the requirements of
Accounting Standard - 9, issued by the Institute of Chartered
Accountants of India.
III. VALUATION OF STOCKS:
As evident from the balance sheet and as per our scrutiny company has
no closing stock at the year end.
IV. TANGIBLE FIXED ASSETS:
Fixed assets are shown at cost less accumulated depreciation. The cost
includes all the cost that is incidental to bringing the assets to its
current working position and any other subsequent capitalization.
V. DEPRECIATION:
Depreciation on assets has been provided on pro rata basis under
straight line, method and as per the relevant rates mentioned in the
Companies Act, 1956. The arrears of depreciation amounting to Rs.
199,864/- pertaining to previous year has been charged during the
current year. This ultimately led to the under reporting of profit by
Rs. 199,864/-.
VI. IMPAIRMENT OF ASSETS:
The Company reviews the carrying amounts of its fixed assets to
determine whether there is any indication that those assets suffered an
impairment loss. If any such indication exists, the recoverable amount
of the assets is estimated in order to determine the extent of
impairment loss. Recoverable amount is the higher of assets not selling
prices and value in use.
VII. CASH FLOW STATEMENT:
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of a non cash
nature and deferrals or accruals of past or future cash receipts or
payments. The cash flows from regular operation, financing and
investing activities of the company are segregated.
VIII. PROVISION FORCURRENTTAXAND DEFERRED TAX:
The company is a loss making entity and therefore accounting for taxes
on income as per AS - 22 has not been done.
IX. Treatment of Retirement Benefits
i) The contributions to Provident Fund are charged to profit & loss
Account every year.
ii) The employees doesn''t fall under Gratuity Act, hence no provision
required
X. Accounting policies not specifically referred to are consistent
with generally accepted accounting principles.
Jun 30, 2010
A) Accounting Convention and Method of Accounting
The financial statement have been prepared under the historical cost
convention and in accordance with generally accepted accounting
practices, applicable accounting standards, relevant disclosure
requirement of the Companies Act, 1956, and on the basis of going
concern.
b) Method of Accounting
The financial accounts have been prepared under accrual method.
c) Fixed Assets
i) Fixed assets are stated at cost less depreciation.
ii) The cost of a fixed asset comprises its purchase price and rule
prescribed under Schedule XIV to the Companies Act, 1956, under
Straight Line methods.
d) Depreciation
Depreciation on fixed asset is provided in accordance with the rates
and rules prescribed under Schedule XIV to the Companies Act, 1956,
under straight Line Method.
e) Inventories
i) Finished goods have been valued at lower of cost or net realizable
value.
ii) Raw materials have been valued at lower of cost or market value.
iii) Goods in process have been valued at raw material and cost
incurred up to the stage of production plus direct expenses apportioned
or net realization value which ever is lower.
f) Sales
Sales are recognized when goods are recorded net of trade discounts,
rebates and sales tax.
g) Capital Work in Progress
All expenditure, including advances given during the project
construction period are accumulated and shown as Capital Work in
progress until the assets are ready use. Assets under construction are
not depreciated.
Project remained suspended for a long period due to financial crisis
because the Company could not make further payments to complete the
projects . So Suppliers /Contractors could not finished the projects
and forfeited the advance amount given by the Company. The Management
did their best to complete the project unfortunately they couldnt
complete the same .Now The Management decided to write off the amount
because they thought the project was no longer be completed.
h) Investments
All investments (unquoted) are stated at cost. i) Treatment of
Retirement Benefits
i) The contributions to Provident Fund & Family Pension Fund are
charged to profit & loss Account every year.
ii) As regard liability towards leave encashment, the employees have
the option of encashing or availing the non-availed leave at the time
of retirement/leaving service. The liabilities on this account,
therefore, cannot be estimated and accrued till the employees exercise
their option.
iii) No Provision for gratuity has been made in the books of accounts.
j) Accounting policies not specifically referred to are consistent with
generally accepted accounting principles.
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