NOTES ANNEXED TO AND FORMING PART OF FINANCIAL STATEMENTS 1. Basis of brparation of Financial Statement The Financial Statements of the company have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has brpared these Financial Statements to comply in all material respect with the accounting standards notified under the Companies ( Accounting standards) Rule, 2006, (as amended) and the relevant provision of the companies Act, 2013. The Financial Statements have been brpared on the accrual basis and under the historical cost convention. 2. Summary of significant accounting policies : a. Use of estimates The brparation of Financial Statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current event and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period. b. Fixed Assets Fixed assets are carried at the cost of acquisition or construction less accumulated debrciation. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets. c. Debrciation on Fixed Assets Debrciation on fixed asset is provided on the Written Down Value (WDV) Method. Debrciation is provided based on useful life of the asset as brscribed in Schedule II to the Companies Act 2013. d. Revenue Recognition Having regards to the size, nature and level of operation of the business, the company is applying accrual basis of accounting for recognition of income earned and expenses incurred in the normal course of business. e. Inventories Inventories include investments in shares of other companies. The company classified such investments as inventory and valuation of them has been made at cost. f. Taxes on Income Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed debrciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realize the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date. g. Provisions A provision is recognized when the company has a brsent obligation as a result of past event, it is probable that an outflow of resource embodying economic benefits will be require to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are review at the end of each reporting date and adjusted to reflect the current best estimates. h. Earning Per Share Basic Earning per Share has been calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted Earning per Share has been computed by dividing the net profit after tax by the weighted average no. of equity shares considered for deriving basic Earning per Share and also the weighted average no. of equity shares that could have been issued upon conversion of all dilutive potential equity shares. i. Cash and cash equivalents Cash and cash equivalents comprise cash in hand, cash at bank and short term investments with the original maturity of three months or less. j. Previous year figures The company has reclassified brvious year figures to conform to current year's classification. 1. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date. The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company. 2. Provisions of Accounting Standard (AS) - 17 on 'Segment Reporting' are not been applicable to the Company. 3. Deferred Tax Assets and Liabilities are recognized in respect of current year and prospective years. Deferred Tax Asset is recognized on the basis of reasonable / virtual certainty that sufficient future taxable income will be available against which the same can be realized. 4. In the opinion of the management, the current assets, loans and advances have a realizable value in the ordinary course of business is not less than the amount at which they are stated in the Balance Sheet. 5. The management has not charged debrciation on office brmises considering the brsent scenario of the Company. Due to this reason, there is an overstatement of profit in the books to the extent of Rs.204,776/- (approx.)in the current financial year. 6. Related party disclosures/ transactions There is no transaction entered with the related party covered by the Accounting Standard (AS) - 18 on 'Related Party Disclosure' during the period covered by these financial statements. 7. Quantitive Information in respect of Opening Stock, Purchases, Sales and Closing Stock pursuant to Schedule III of the Companies Act, 2013 are as per list attached. 8. Figures have been rounded off to the nearest rupees. 9. Figures in brackets indicate negative (-) figures. FOR V.N. PUROHIT & CO. For and on behalf of Board of Directors of Chartered Accountants PANKAJ PIYUSH TRADE AND INVESTMENT Firm Regn. 304040E Sd/- O.P. Pareek Partner Membership No. 014238 Sd/- V inod Kumar Bansal Managing Director DIN:00243709 Sd/- Renu Bansal Director DIN :05149389 Sd/- Usha Sharma CFO Sd/- Rakhi Rani Company Secretary M.No.-31715 Place :New Delhi, date : the 29th day of May 2015 |