Mar 31, 2018
1. SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention, on accrual basis of accounting and are in accordance with the Indian Accounting Standards (Ind AS), the provisions of the Companies Act, 2013 and including Accounting Standards notified under Companies (Accounting Standard), Rules 2014 as amended from time to time.
1.2 Use of estimates
The preparation of financial statements in conformity with Indian Accounting Standards (Ind AS) requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. Examples of such estimates includes future obligation with respect to employee benefits, income taxes, useful lives of fixed assets.
1.3 Fixed assets and depreciation Tangible assets
a. Fixed assets are stated at the cost of acquisition less accumulated depreciation and impairment loss ascertained, if any. The cost represents purchase price (net of recoverable taxes) and all other incidental expenses related to the acquisition and installation of the respective assets and also includes major improvements, if any. All costs, direct or indirect, relating to the acquisition and installation of fixed assets and bringing to its working condition for its intended use are capitalized and include borrowing costs and adjustment arising from foreign exchange rate variations directly attributable to construction or acquisition of fixed assets.
b. Depreciation on Fixed Assets has been provided on Written Down Method at the rates prescribed in Schedule II to the Companies Act, 2013, on useful life of the assets. In case the asset is acquired/ sold during the year or used part of the year the depreciation has been provided on a pro-rata basis with reference to the days of addition/ put to use or disposal.
Intangible assets
Intangible assets are stated at their cost of acquisition, less accumulated amortization and accumulated impairment losses thereon. An intangible assets is recognized where it is probable that future economic benefits attributable to the assets will flow to the enterprise and where its costs can be reliably measured. The Depreciable amount of intangible assets is allocated based on the estimates of the useful life of the assets not exceeding five years.
Impairment of assets
An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss A/c in the year in which assets is identified as impaired. The impairment loss is recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
1.4 Investments
Investments that are readily realizable and intended to be held for not more than a year are classified as long term investment. Current investments are carried at lower of cost and fair value determined on an individual item basis. Long term investments are carried at cost. However provision for diminution in value is made to recognize a decline other than temporary in the value of the investment.
1.5 Revenue recognition
Income and expenditure is recognized and accounted for on accrual basis. Revenue is recognized to the extent that is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue from the sale of goods is recognized on transfer of significant risks and rewards of ownership to the customer and when no significant uncertainty exists regarding realisaton of consideration. Sales are recorded net of sales returns, VAT, Cash and Trade discount. Revenue from rendering of services is recognized when the performance of agreed contractual task has been completed.
1.6 Foreign currency transactions
The transactions of foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Monetary assets and liabilities denominated are translated at functional currency closing rates of exchange of reporting date.
1.7 Inventories:
a) Finished and semi-finished goods products and purchased by the company are carried at lower of cost and net realizable value after providing for obsolescence, if any.
b) Work-in-progress is carried at lower of cost plus conversion cost.
c) Stock of raw materials, stores, spare parts and packing materials are valued at lower of cost less CENVAT credit/VAT availed or net realizable value.
d) Cost of Inventories comprises all costs of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.
1.8 Taxation
Income Tax expense comprises current tax and deferred tax charge/credit. Current tax is the amount of tax worked out on the taxable income for the year determined in accordance with the relevant provisions of the Income Tax Act, 1961 in force and is on an estimate basis.
Deferred tax is recognised, subject to the consideration of prudence, 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 asset if any is recognised, only when there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.
1.9 - Leases
Finance lease
Leases which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased item are capitalised at the inception of the leased term at the lower of the fair value of the leased property and present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised as finance costs in the statement of profit and loss account.
Aleased asset is depreciated on a straight line basis over the useful life of the asset or the useful life is envisaged in SCH II of the companies Act, 2013 whichever is lower.
Operating lease
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as Operating Lease.
Operating lease payments are recognised as an expense in the statement of profit and loss on a straight line basis over the lease term.
1.10 Provision for Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimates in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes to accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.
1.11 Retirement Benefits
Gratuity is payable to the employees who has completed five years of service at the time of resignation/ super-annuation. None of the employees have completed five years of service. The provision of gratuity is made on estimate basis.
1.12 Borrowing Costs
Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowings costs are charged to revenue.
Mar 31, 2016
I. COMPANY INFORMATION
The Viaan Industries Limited (The Company) is a Public Limited company domiciled in India and incorporated under the provisions of The Companies Act.
II. SIGNIFICANT ACCOUNTING POLICIES
1.1 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention, on accrual basis of accounting and are in accordance with the Indian Generally Accepted Accounting Principles (GAAP), the provisions of the Companies Act, 2013 and the Accounting Standards notified under Companies (Accounting Standard), Rules 2014 as amended from time to time.
1.2 Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires management to make estimates and assumptions that affects the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. Examples of such estimates includes future obligation with respect to employee benefits, income taxes, useful lives of fixed assets.
1.3 Fixed assets and depreciation
Tangible assets
a) Fixed assets are stated at the cost of acquisition less accumulated depreciation and impairment loss ascertained, if any. The cost represents purchase price (net of recoverable taxes) and all other incidental expenses related to the acquisition and installation of the respective assets and also includes major improvements, if any. All costs, direct or indirect, relating to the acquisition and installation of fixed assets and bringing to its working condition for its intended use are capitalized and include borrowing costs and adjustment arising from foreign exchange rate variations directly attributable to construction or acquisition of fixed assets.
b) Depreciation on Fixed Assets has been provided on Written Down Method at the rates prescribed in Schedule II to the Companies Act, 2013, on useful life of the assets. In case the asset is acquired/ sold during the year or used part of the year the depreciation has been provided on a pro-rata basis with reference to the days of addition/ put to use or disposal.
Intangible assets
a) Intangible assets are stated at their cost of acquisition, less accumulated amortization and accumulated impairment losses thereon. An intangible assets is recognized where it is probable that future economic benefits attributable to the assets will flow to the enterprise and where its costs can be reliably measured. The Depreciable amount of intangible assets is allocated based on the estimates of the useful life of the assets not exceeding five years.
Impairment of assets
a) An assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit and Loss A/c in the year in which assets is identified as impaired. The impairment loss is recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
1.4 Investments
Investments that are readily realizable and intended to be held for not more than a year are classified as long term investment. Current investments are carried at lower of cost and fair value determined on an individual item basis. Long term investments are carried at cost. However provision for diminution in value is made to recognize a decline other than temporary in the value of the investment.
1.5 Revenue recognition
Income and expenditure is recognized and accounted for on accrual basis. Revenue is recognized to the extent that is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue from the sale of goods is recognized on transfer of significant risks and rewards of ownership to the customer and when no significant uncertainty exists regarding realization of consideration. Sales are recorded net of sales returns, VAT, Cash and Trade discount.
1.6 Foreign currency transactions
The company follows Accounting Standard 11 issued by the Institute of Chartered accountants of India to account for the foreign exchange transactions.
1.7 Inventories:
a) Finished and semi-finished goods products and purchased by the company are carried at lower of cost and net realizable value after providing for obsolescence, if any.
b) Work-in-progress is carried at lower of cost plus conversion cost.
c) Stock of raw materials, stores, spare parts and packing materials are valued at lower of cost less CENVAT credit/VAT availed or net realizable value.
d) Cost of Inventories comprises all costs of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition.
e) Liability for excise duty in respect of goods manufactured by the company is accounted upon removal of goods from the factory.
1.8 Taxation
Income Tax expense comprises current tax and deferred tax charge/credit.
Current tax is the amount of tax worked out on the taxable income for the year determined in accordance with the relevant provisions of the Income Tax Act, 1961 in force and is on an estimate basis.
Deferred tax is recognized, subject to the consideration of prudence, 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 asset if any is recognized, only when there is a virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.
1.9 - Leases Finance lease
Leases which effectively transfer to the company substantially all the risks and benefits incidental to ownership of the leased item are capitalized at the inception of the leased term at the lower of the fair value of the leased property and present value of minimum lease payments. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognized as finance costs in the statement of profit and loss account.
A leased asset is depreciated on a straight line basis over the useful life of the asset or the useful life is envisaged in SCH II of the companies Act, 2013 whichever is lower.
Operating lease
Leases, where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as Operating Lease.
Operating lease payments are recognized as an expense in the statement of profit and loss on a straight line basis over the lease term.
1.10 Provision for Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimates in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes to accounts. Contingent Assets are neither recognized nor disclosed in the financial statements.
1.11 Government Grants and subsidies
Grants and subsidies from the Government are recognized when there is reasonable certainty that the Grant/Subsidy will be received and all attaching conditions will be compiled with, when the grant or subsidy relates to an expense item, it is recognized as income over the periods necessary to match them on systematic basis to the costs, which it is intended to compensate. Where the grant or subsidy relates to an assets, its value is deducted from the gross value of the assets concerned in arriving at the carrying amount of the related assets. Government grants of the nature of promoters'' contribution are credited to capital reserve and treated as a part of shareholders'' Funds.
1.12 Retirement Benefits
None of the employees has completed the five year of service hence no provision of retirement benefits are not provided in the books.
1.13 Borrowing Costs
Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowings costs are charged to revenue.
1.14 Extraordinary and Exceptional Activity
Extraordinary activity are those activity which are clearly distinct from ordinary activity of the enterprise and therefore are not expected to recur frequently or regularly. The following are the exceptional and extraordinary items which were written off RTA expenses.
- E voting Charges Rs. 11,400/-
- Handling charges for Master Data Rs. 4,275/-
- Agent Fees Rs. 4,275/-
Mar 31, 2014
(a) Use of Estimates
The preparation of the Financial Statements in confirmity with
Generally Accepted Accounting Principles (GAAP) in India requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilitles and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amount of income and expenses during the period. Examples of
such estimates includes future obligation with respect to employees
benefits, income taxes, useful lives of fixed assets etc. Although
these estimates are based upon ma nagement''s best knowledge of current
events and actions, actual results could differ from these estimates.
Difference between the actual results and estimates are recognised in
the period In which the results are known / materialised-
(b) Fixed Assets and Depreciation
(i) Tangible Assets
Tangible assets are stated at their cost of acquisition net of
receivable CENVAT and VAT Credits. Ail costs, direct or indirect
relating to the acquisition and installation of fixed assets and
bringing it to its working condition for Its intended use are
capitalised and Include borrowing costs and adjustments arising from
foreign exchange rate variations directly attributable to construction
or acquisition of fixed assets. Depredation on fixed assets Is provided
on written down value method (WDV) on a pro-rata-basis at the rates and
In the manner specified in Schedule XIV to the Companies Act, 1956. In
respect of assets acquired/sold during the year, depreciation has been
provided on pro-rata basis with reference to the days of addttion/put
to use or disposal.
(ii) Intangible Assets
Intangible Assets are stated at their cost of acquisition, less
accumulated amortization and accumulated impairment losses thereon. An
intangible asset is recognized where it Is probable that future
economic benefits attributable to the asset will flow to the enterprise
and where its cost can be reliably measured. The depreciable amount of
intangible assets is allocated based on the estimates of the useful
life of the asset not exceeding five years.
(e) Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
Impaired. The Impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of
recoverable
amount
(d) investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. AH other
investments are classified as long-term investment. Current investment
are carried at lower of cost and fair value determined on an individual
item basis. Long-term Investments are carried at cost. However,
provision for diminution in value is made to recognise a decline other
than temporary in the value of the Investments.
(e) Inventories
(I) Finished and Semi-Finished products produced and purchased by the
Company are carried at lower of cost and net realisable value after
providing fo obsolescence, if any.
(II) Work-in-progress is carried at lower of cost and net realisable
value.
(III) Stock of raw materials, stores, spare parts and packing materials
are valued at lower of cost less CENVAT Credit/ VAT availed or net
realisable value.
(iv) Cost of inventories comprises all costs of purchase, cost of
conversion and other costs incurred in bringing them to their
respective present location and condition.
(v) Liability for excise duty in respect of goods manufactured by the
Company is accounted upon removal of goods from the factory.
(f) Revenue Recognistion
Income and expenditure is recognized and accounted for on accrual
basis. Revenue is recognised to the extent that it is probable that the
economic benefit will flow to the Company and the revenue can be
reliably measured. Revenue from sale of goods is recognised on transfer
of significant risks and rewards of ownership to tire customer and when
no significant uncertainty exists regarding realisation of the
consideration. Sales are recorded net of sales returns sales tax/VAT,
cash and trade discounts.
(g) Foreign Currency Transactions
The company follows Accounting Standard 11 issued by the Institute of
Chartered Accountants of India to account for the foreign exchange
transactions.
(h) Government Grants and Subsidies
Grants and Subsidies from the Government are recognized when there Is
reasonable certainty that the Grant/Subsidy will be received and all
attaching conditions will be complied with. When the Grant or Subsidy
relates to an expense Item, it is recognised as income over the
periods necessary to match them on a systematic basis to the costs,
which It Is Intended to compensate. where the Grant or Subsidy relates
to an asset, its value is deducted from the gross value of the asset
concerned In arriving at the carrying amount of the related asset
Government Grants of the nature of Promoters'' contribution are credited
to Capital Reserve and treated as a part of Shareholders'' Funds.
(i) Retirement Benefits
Contributions to the provident fund and employees state insurance (if
any) is made monthly at a pre-determined rate to the Provident Fund
Commissioner and Employees State Insurance Fund respectively and
debited to the profit & loss account on an accrual basis.
Provision for outstanding Leave Encashment benefit and Gratuity (if
any) for employees, if any is accounted for on accrual basis.
(j) Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. AH other borrowing costs are charged to revenue.
(k) Lease Policy
(i) Finance Leases
Leases which effectively transfer to the company substantially all the
risks and benefits incidental to ownership of the leased, item, are
capitalised at the inception of the lease term at the lower of the fair
value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate
of interest on the remaining balance of the liability. Finance charges
are recognised as finance costs in the Statement of Profit and Loss.
A leased Asset is depreciated on a straight-line basis over the useful
life of the asset or the useful life envisaged in Schedule XIV to the
Companies Act, 1956, whichever is lower.
(ii) Operating Leases
Leases, where the lessor effectively retains substantially all the
risks and benefits of ownership of the leased item, are classified as
Operating lease. Operating lease payments are recognised as an expense
In the statement of profit and loss on a straight-line basis over the
lease term.
(I) Earning Per Share
The Company reports Basic and Diluted earnings per equity share In
accordance with the Accounting Standard - 20 on Earning Per Share. In
determining earning per share, the Company considers the net profit
after tax and Includes the post tax effect of any
extraordinary/exceptIonal hems. The number of shares used in computing
basic earning per share is the weighted avergae number of equity shares
outstanding during the period. The numbers of shares used In computing
diluted earning per share comprises the weighted average number of
equity shares that would have been issued on the conversion of all
potential equity shares. Dilutive potential equity shares have been
deemed converted as of the beginning of the period, unless issued at a
later date.
(m) Provision for Current and Deferred Tax
Provision for current Income Tax and Wealth Tax are made after taking
into consideration benefits admissible under the provisions of the
Income Tax Act, 1961. Deferred Tax resulting from "timing difference"
between book and taxable profit is accounted for using the tax rates
and laws that are enacted or subtantively enacted as on the balance
sheet date. The deferred tax asset is recognised and carried forward
only to the extent that there is a reasonable certainity that
sufficient future taxable income will be available against which such
deferred tax asset can be realized.
(n) Provision. Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation In measurement
are recognised when there is a present obligation as a result of past
events and it is probable that there will be an outflow of resources.
Contingent Liabilities are not recognised but are disclosed In the
notes. Contingent Assets are neither recognised nor disclosed in the
financial statements.
(o) Extraordinary AND EXCEPTIONAL ACTIVITY
Extraordinary activity are those activity which are clearly distinct
from ordinary activity of the enterprise and, therefore are not
expected to recur frequently or regularly. The following are the
exceptional and extraordinary Items: a)Filing fees b)lssue Charges
c)Depository Fees d)RTA Expenses e)Professional Fees
Mar 31, 2013
(a) Change in Accounting Policy
(i) Presentation and disclosure of financial statement
During the year ended 31st March 2012, Revised Schedule VI notified
under the Companies Act 1956, has become applicable to the company, for
preparation and presentation of its financial statements. The adoption
of revised Schedule VI does not impact recognition and measurement
principles followed for preparation of financial statements. However,
it has significant impact on presentation and disclosures made in the
financial statements. The Company has also reclassified the previous
year figures in accordance with the requirements applicable in the
current year.
The revised schedule VI allows line items, sub-line items and
sub-totals to be presented as an addition or substitution on the face
of the financial statements when such presentation is relevant to an
understanding of the company''s financial position or performance or to
cater to industry/sector-specific disclosure requirements.
(b) Use of Estimates
The preparation of the Financial Statements in conformity with
Generally Accepted Accounting Principles (GAAP) in India requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amount of income and expenses during the period. Examples of
such estimates includes future obligation with respect to employees
benefits, income taxes, useful lives of fixed assets etc. Although
these estimates are based upon management''s best knowledge of current
events and actions, actual results could differ from these estimates.
Difference between the actual results and estimates are recognised in
the period in which the results are known / materialised.
(c) | Fixed Assets and Depreciation
(i) Tangible Assets
Tangible assets are stated at their cost of acquisition net of
receivable CENVAT and VAT Credits. All costs, direct or indirect,
relating to the acquisition and installation of fixed assets and
bringing it to its working condition for its intended use are
capitalised and include borrowing costs and adjustments arising from
foreign exchange rate variations directly attributable to construction
or acquisition of fixed assets. Depreciation on fixed assets is
provided on written down value method (WDV) on a pro-rata-basis at the
rates and in the manner specified in Schedule XIV to the Companies Act,
1956. In respect of assets acquired/sold during the year, depreciation
has been provided on pro-rata basis with reference to the days of
addition/put to use or disposal.
(ii) Intangible Assets
Intangible Assets are stated at their cost of acquisition, less
accumulated amortization and accumulated impairment losses thereon. An
intangible asset is recognized where it is probable that future
economic benefits attributable to the asset will flow to the enterprise
and where its cost can be reliably measured. The depreciable amount of
intangible assets is allocated based on the estimates of the useful
life of the asset not exceeding five years.
(d) Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit & Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
(e) Investments
Investments that are readily realisable and intended to be held for not
more than a year are classified as current investments. All other
investments are classified as long-term investment. Current investment
is carried at lower of cost and fair value determined on an individual
item basis. Long-term investments are carried at cost. However,
provision for diminution in value is made to recognise a decline other
than temporary in the value of the investments.
(f) Inventories
(i) Finished and Semi-Finished products produced and purchased by the
Company are carried at lower of cost and net realisable value after
providing for obsolescence, if any.
(ii) Work-in-progress is carried at lower of cost and net realisable
value.
(iii) Stock of raw materials, stores, spare parts and packing materials
are valued at lower of cost less CENVAT Credit/ VAT availed or net
realisable value.
(iv) Cost of inventories comprises all costs of purchase, cost of
conversion and other costs incurred in bringing them to their
respective present location and condition.
(v) Liability for excise duty in respect of goods manufactured by the
Company is accounted upon removal of goods from the factory.
(g) Revenue Recognition
Income and expenditure is recognized and acc ounted for on accrual
basis. Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. Revenue from sale of goods is recognised on transfer
of significant risks and rewards of ownership to the customer and when
no significant uncertainty exists regarding realisation of the
consideration. Sales are recorded net of sales returns, sales tax/VAT,
cash and trade discounts.
(h) Foreign Currency Transactions
The company follows Accounting Standard 11 issued by the Institute of
Chartered Accountants of India to account for the foreign exchange
transactions.
(i) Government Grants and Subsidies _
Grants and Subsidies from the Government are recognized when there is
reasonable certainty that the Grant/Subsidy will be received and all
attaching conditions will be complied with. When the Grant or Subsidy
relates to an expense item, it is recognised as income over the periods
necessary to match them on a systematic basis to the costs, which it is
intended to compensate. Where the Grant or Subsidy relates to an asset,
its value is deducted from the gross value of the asset concerned in
arriving at the carrying amount of the related asset. Government Grants
of the nature of Promoters'' contribution are credited to Capital
Reserve and treated as a part of Shareholders'' Funds.
(j) Retirement Benefits
Contributions to the provident fund and employees state insurance (if
any) is made monthly at a pre-determined rate to the Provident Fund
Commissioner and Employees State Insurance Fund respectively and
debited to the profit & loss account on an accrual basis.
Provision for outstanding Leave Encashment benefit and Gratuity (if
any) for employees, if any is accounted for on accrual basis.
(k) Borrowing Costs
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalised as part of the cost
of such assets. All other borrowing costs are charged to revenue.
(l) Lease Policy
Finance Leases
Leases which effectively transfer to the company substantially all the
risks and benefits incidental to ownership of the leased item, are
capitalised at the inception of the lease term at the lower of the fair
value of the leased property and present value of minimum lease
payments. Lease payments are apportioned between the finance charges
and reduction of the lease liability so as to achieve a constant rate
of interest on the remaining balance of the liability. Finance charges
are recognised as finance costs in the Statement of Profit and Loss.
A Leased Asset is depreciated on a straight-line basis over the useful
life of the asset or the useful life envisaged in Schedule XIV to the
Companies Act, 1956, whichever is lower.
Mar 31, 2012
Significant Accounting Policies General
1. The Financial Statements are prepared on mercantile basis under the
historical cost convention in accordance with the generally accepted
accounting principles in India, Accounting Standards notified under
section 211(3C) of the Companies Act 1956, read with the Companies
(Accounting Standard) Rules, 2006 and the other relevant provisions of
the Companies Act, 1956.
Revenue Recognition
2. All revenue and expenses are accounted on accrual basis.
Turnover
3. Turnover is stated after adjusting rebates and discounts and
excluding Sales tax
Investments
4. Investments are valued at cost.
Retirement Benefit
5. None of the Employee has completed the service period to become
eligible for payment of gratuity.
Income Tax
6. Provision for taxes comprising of current tax is measured in
accordance with Accounting Standard 22-"Accounting For Taxes On Income"
issued by the Institute of Chartered Accountants of India :
7. Tax expenses comprises of current and deferred tax.
8. Provision for current income tax and fringe benefit tax is made on
the basis of relevant provisions of Income Tax Act, 1961 as applicable
to the financial year.
9. Deferred Tax is recognized subject to the consideration of prudence
on timing differences, being the difference between taxable Income and
Accounting Income that originate in one period and are capable of
reversal in one or more subsequent periods.
Provisions, Contingent Liabilities & Contingent Assets
Disclosures in terms of Accounting Standards (AS 29) Provisions,
Contingent Liabilities and Contingent Assets issued by the Institute of
Chartered Accountants of India :
10. The Company creates a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation.
11. A disclosure for a contingent liability is made when there is a
possible obligation or present obligation that probably will not
require an outflow of resources or where reliable estimate of the
amount of the obligation cannot be made.
12. Contingent Assets are neither recognized nor disclosed.
Others
13. None of the Finished Products or Raw Materials, Stores, Spares and
Components consumed or purchased during the year have been imported.
14. None of the Earnings / Expenditures is in Foreign Currency.
15. Balance of Debtors, Creditors, Deposits, Loans and Advances are
subject to confirmation.
15. In the opinion of the Board, the Current Assets, Loans & Advances
are approximately of the value stated if realized in the ordinary
course of business. The provision for depreciation and all known
liabilities are adequate and not in excess of the amounts reasonably
necessary.
16. Investments of the Company have been considered by the management
to be of a long term nature and hence they are long term investments
and are valued at cost of acquisitions.
Segment Report
17. Based on the Similarity of activities, risks and reward structure,
organization structure and internal reporting systems, the Company has
structured its operations into the following Segment :- Short-term
funding to its Clients as well as Deposits with Banks
Investments in Capital Market & Mutual Fund related activities
Mar 31, 2009
1. The accounts of the company have been prepared on the basis that
the company is going concern. In view of the losses made, the ability
of the company to continue as a going concern is dependent on the
availability of continuing finance and company''s future profitability.
In case this may not be possible the value of assets and liabilities as
shown in the Balance sheet may change materially and impact of which
may not be presently ascertainable and cannot be stated in accounts.
2. Fixed assets are stated as cost less depreciation.
3. Depreciation on fixed assets has been provided on written down
value method at the rates prescribed in Schedule XIV of the Companies
Act 1956.
4. Investment in quoted unquoted shares are stated at cost.
5. No interest has been charged on Loan given during year.
6. In the opinion of Board of Directors the current assets and
advances are approximately of the value stated, if realized in the
ordinary course of business unless otherwise stated. The provision for
all other liabilities is adequate and not in excess of the amount
reasonably necessary.