SIGNIFICANT ACCOUNTING POLICIES & NOTES TO ACCOUNTS FOR THE YEAR ENDED 31 -03-2015 (A) Basis of Preparation of financial statement The financial statements have been brpared under the historical cost convention on an accrual basis and comply in all material aspects with the mandatory accounting standards and the relevant provisions of the Companies Act, 2013. (B) Use of Estimates The brparation and brsentation of financial statements in conformity with the Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on that date of the financial statements and the reported amounts revenue and expenses during the reporting period. Difference between the actual result and the estimates are recognized in the period in which the results are known / materialized (C) Valuation of Inventories Inventories are valued at lower of Cost and Net Realisable Value. Cost of traded goods is arrived at on FIFO basis. (D) Fixed Assets & Debrciation/Amortisation 1. Fixed Assets are stated at cost less accumulated debrciation except for those, which are revalued, in which case they are stated at the revalued cost less accumulated debrciation. 2. Debrciation is provided on the straight-line method as per the useful life brscribed in Schedule II of the Companies Act, 2013. (E) Revenue Recognition Sales are recognised when the significant risk and reward of ownership of the goods are passed to the customer. Sales are net off sales return, quantity discount and exclusive of value added tax collected. (F) Other Income Interest Income is recorded on a time proportion basis taking into account the amounts invested and the rate of interest. (G) Provision for Tax and Deferred Tax (i) Provision for Income tax is made on the basis of the estimated taxable income for the current accounting period in accordance with the Income- tax Act, 1961. (ii) The deferred tax for timing differences between the book profits and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent There is a virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. (H) Lease Lease rentals in respect of assets acquired under operating leases are charged to the Statement of Profit & Loss as incurred. (I) Impairment of Assets The Company assesses at each Balance Sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the management estimates the recoverable amount of the asset. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and Loss. If at the Balance Sheet date there is an indication that if a brviously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of debrciated historical cost. (J) Provision & Contingent Liability The Company creates a provision when there is a brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a brsent obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. 2 Assets taken on Lease The Company's major leasing arrangements are in respect of commercial brmises taken on leave and license basis. The aggregate lease rentals of Rs. 1,80,000/- (Previous Year Rs. 1,80,000/-) as Rent are grouped under Note No. 19 of "Other Expenses". The lease period is for the 11 months and renewable at mutual consent. 3 The Company is engaged only in trading of Chain and hence does not have any reportable segment. 4 The company has disposed off substantial part of the fixed assets during the last few years. However, the company intends to invest the surplus money from the sale of the assets into a profitable business and also the company is doing trading activity, hence the company's should be viewed as a going concern. Accordingly accounts have been brpared considering that the company is going concern. 5 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any. 6 In the opinion of the Board, Current Assets, Loans and Advances have value in the ordinary course of business at least equal to the amount at which they are stated. 7 Considering the size of the business of the Company, the Company has not appointed Company Secretary and Chief Financial Officer as required by sub section 1 of Section 203 of the Companies Act, 2013. 8 The brvious year figures have been regrouped/reclassified, wherever necessary to confirm to the current brsentation as per the Schedule III. As per our report of even date attached FOR AND ON BEHALF OF THE BOARD M/S. M. L. BHUWANIA & CO CHARTERED ACCOUNTANTS Firm's Registration Number: 101484W J. P. BAIRAGRA PARTNER MEMBERSHIP NO. 12839 RAJESH PODDAR DIRECTOR P.K.NEVATIA MANAGING DIRECTOR ANIL THARD DIRECTOR VANDANA NEVATIA DIRECTOR PLACE : MUMBAI DATED : 27.05.2015 |