Mar 31, 2015
2.1 BASIS OF ACCOUNTING AND PREPARATION OF FINANCIAL STATEMENTS :
i) These Financial Statements have been prepared in accordance with
generally accepted accounting principles in India under the historical
cost convention on an accrual basis. Pursuant to Section 133 of the
Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules
2014, till the standards of accounting or any addendum thereto are
prescribed by Central Government in consultation and recommendation of
the National Financial Reporting Authority, the existing Accounting
Standards notified under the Companies Act, 1956 shall continue to
apply.
ii) Consequently these financial statements have been prepared to
comply in all material aspects with the accounting standards notified
under Section 211(3C) of the Companies Act, 1956 (Companies (Accounting
Standards) Rules, 2006, (as amended) and other relevant provisions of
the Companies Act, 2013.
2.2 USE OF ESTIMATES :
The preparation of financial statements in conformity with Indian GAAP
requires estimates and assumptions to be made that affect the reported
amounts of revenues, expenses, assets and liabilities and the
disclosure of contingent liabilities, at the end of the reporting
period. Differences between actual results and estimates are recognised
in the period in which the results are known / materialized.
2.3 FIXED ASSETS :
Tangible Assets
Tangible assets are stated at cost, net of accumulated depreciation and
accumulated impairment losses, if any.
Subsequent expenditure related to an item of fixed asset are added to
its book value only if it increases the future benefits from the
existing asset beyond its previously assessed standard of performance.
Items of fixed assets that have been retired from active use and held
for disposal are stated at the lower of their net book value and net
realizable value. Any expected loss, is recognised immediately in the
Statement of Profit and Loss.
Losses arising from the retirement of and gains or losses arising from
disposal of fixed assets which are carried at cost are recognized in
the Statement of Profit and Loss.
Intangible Assets
Intangible assets are stated at acquisition cost, net of accumulated
amortization and accumulated impairment losses, if any. Intangibles
assets are amortized on a straight line basis over the estimated useful
lives.
Gains or losses, if any arising from the retirement or disposal
proceeds and the carrying amount of the asset are recognised as income
or expense in the Statement of Profit and loss.
2.4 METHOD OF DEPRECIATION AND AMORTIZATION :
i) Depreciation, on tangible assets is calculated on written-down value
basis over the estimated useful lives of the assets.
ii) Effective 1st April 2014, the Company depreciates its fixed assets
over the useful life in the manner prescribed in Schedule II of the
Act, as against the earlier practice of depreciating at the rates
prescribed in Schedule XIV of the Companies Act, 1956.
iii) Cost of Goodwill and trademarks are amortized over the estimated
useful lives of 25 and 10 years
iv) Depreciation on additions to assets or on sale/discardment of
assets is calculated pro rata from the month of such addition or upto
the month of such sale/discardment, as the case may be.
2.5 LEASE :
Where the lessors effectively retain substantially all the risks and
benefits of ownership of the leased item the lease is classified as
operating leases. Operating lease payments are recognized as an expense
in the statement of profit and loss on a straight-line basis over the
lease term. Initial direct costs such as legal costs, brokerage costs,
etc. are recognized immediately in the statement of profit and loss.
2.6 BORROWING COSTS :
Interest and other borrowing costs attributable to qualifying assets
are capitalized. Other interest and borrowing costs are charged to
revenue.
2.7 GOVERNMENT GRANTS :
During the year, no grants and subsidies has been received from the
Government. Grants and subsidies from the government if any, received
against specific fixed assets are adjusted to the cost of the assets
and those in the nature of promoter's contribution are credited to
Capital Reserve. Revenue Grants are recognized in the Profit and Loss
account in accordance with the related scheme and in the period in
which these are accrued.
2.8 INVESTMENTS :
Investments that are readily realizable and are intended to be held for
not more than one year from the date, on which such investments are
made, are classified as current investments. All other investments are
classified as long-term investments. Current investments are carried at
lower of cost or fair value. 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 investments, such
reduction being determined and made for each investment individually.
2.9 VALUATION OF INVENTORIES :
Inventories consist of Raw materials, components, stores and spares,
Finished Goods. Raw materials, components, spares are stated at cost,
while finished goods are 'at cost or net realizable value, whichever is
lower'. Cost comprises all cost of purchase, cost of conversion and
other costs incurred in bringing the inventories to their present
location and condition. Cost of raw materials, components and stores
and spares is determined on a weighted average basis. Cost of finished
goods includes direct materials and labour and a proportion of
manufacturing overheads based on normal operating capacity. Due
allowance is estimated and made for defective and obsolete items,
wherever necessary, based on the past experience of the Company.
2.10 REVENUE RECOGNITION :
i) Revenues/incomes and Costs/Expenditures are generally accounted on
accrual, as they are earned or incurred.
ii) Sale of Goods is recognised on transfer of significant risks and
rewards of ownership which is generally on the dispatch of the goods
and there is no uncertainty regarding the collectability of the amount.
2.11 STATUTORY AND OTHER TAXES :
Excise duty/Service tax is not applicable to the company. Sales
tax/Value Added tax paid is set-off against the collection and in case
of payment of earlier years; the same is debited to Profit and Loss
account.
2.12 FOREIGN cuRRENcY TRANSIATIONS :
i) All transactions in foreign currency, are recorded at the rates of
exchange prevailing on the dates when the relevant transactions take
place
ii) Monetary items in form of current assets and current liabilities in
foreign currency, outstanding at the close of the year are converted in
Indian Currency at the appropriate rates of exchange prevailing on the
date of the Balance Sheet.
2.13 employee BENEFITS :
The company at present does not have any retirement benefit for the
employees concerned and the staff costs are accounted as period costs.
2.14 TAXATION :
Income-tax expense comprises current and deferred tax charge or credit.
Provision for current tax is made on the basis of the assessable income
at the tax rate applicable to the relevant assessment year. The
deferred tax asset and deferred tax liability is calculated by applying
the tax rate and the tax laws that have been enacted or substantively
enacted at the reporting date. In situations where the company has
unabsorbed depreciation or carry forward tax losses, all deferred tax
assets are recognized only if there is virtual certainty supported by
convincing evidence that they can be realized against future taxable
profits. At each balance sheet date, the carrying amounts of deferred
tax assets are reviewed to reassure realization. Minimum alternate tax
credit (MAT credit) is recognized as an asset only when and to the
extent there is convincing evidence that the company will pay normal
tax during the specified period. Such asset is reviewed at each Balance
Sheet date and the Carrying amount of the MAT credit asset is written
down to the extent there is no longer a convincing evidence to the
effect that the Company will pay normal income tax during the specified
period.
2.15 IMPAIRMENT OF ASSETS :
The carrying amounts of assets are reviewed at each Balance Sheet date
if there is any indication of impairment based on internal/external
factors. An asset is impaired when the carrying amount of the asset
exceeds the recoverable amount. An impairment loss is charged to the
Statement of Profit and Loss in the year in which an asset is
identified as impaired. An impairment loss recognised in prior
accounting periods is reversed if there has been change in the estimate
of the recoverable amount.
2.16 Segment REPoRTING :
At present the company deals only in single segment of household
cleaning items, hence the company's operating businesses are organized
and managed accordingly and no further segment identification is done
and no such accounting policies in respect to disclosures of the same.
The company prepares its segment information in conformity with the
accounting policies adopted for preparing and presenting the financial
statements of the company as a whole.
2.17 Earnings Per Share :
Basic earnings per share is calculated by dividing the net profit or
loss for the period attributable to equity shareholders (after
deducting attributable taxes) by the weighted average number of equity
shares outstanding during the period. The weighted average number of
equity shares outstanding during the period is adjusted for events if
any such as bonus issue, bonus element in a rights issue, share split,
and reverse share split (consolidation of shares) that have changed the
number of equity shares outstanding, without a corresponding change in
resources. For the purpose of calculating Diluted earnings per share,
the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding
during the period are adjusted for the effects of all dilutive
potential equity shares.
2.18 PRoVISioNS, coNTINGENT LIABILITIES AND coNTIGENT ASSETS :
Provisions: Provisions are recognized when there is a present
obligation as a result of past event, it is probable that an outflow of
resources embodying economic benefits will be required to settle the
obligation and there is a reliable estimate of the amount of the
obligation. Provisions are measured at best estimate of the expenditure
required to settle the obligation at the balance sheet date and are not
discounted to its present value.
Contingent Liabilities: Contingent liability are disclosed when there
is a possible obligation arising from past events, the existence which
will be confirmed by the occurrence or non-occurrence of one or more
uncertain future events not within the control of the company or a
present obligation that arises from past events where it is either not
probable that an outflow of resources will be required to settle or a
reliable estimated of the amount cannot be made.
Contingent Assets: Contingent Assets are neither recognised nor
disclosed in the financial statements.
2.19 cash and cash equivalents
Cash and cash equivalents for the purposes of cash flow statement
comprise cash at bank and in hand and short- term investments with an
original maturity of three months or less, if any.
Mar 31, 2010
A) Basis of Accounting
The accounts of the Company are prepared under the historical cost
convention and in accordance with the applicable accounting standards
except where otherwise stated.
b) Revenue Recognition
Revenue from the sale of goods is recognized upon passage of title to
the customer, which generally coincides with the delivery.
c) Fixed Assets
Fixed Assets are stated at historical cost of acquisition or
construction less accumulated depreciation, inclusive of invoice price,
freight, taxes, duties and other directly and indirectly attributable
cost for bringing the asset to its present location and working
condition for its intended use.
d) Depreciation
Depreciation has been charged on fixed assets on straight-line method
as per the rates specified in schedule xiv of the Companies Act, 1956.
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 for when
the asset is identified as impaired. The impairment loss recognized in
prior accounting period is reversed if there has been a change in the
estimate of recoverable amount.
f) Inventories:
Inventories are valued as follows:
i) Raw Materials At cost
ii) Work-in-process At cost
g) Employee retirement benefits:
The contribution to the provident fund is charged against revenue.
i) Deferred Taxation:
In accordance with the accounting standards AS-22 issued by the
Institute of Chartered Accountants of India, the deferred tax resulting
from timing differences f-etween book and tax profits is recognized
under the liability method.