NOTES TO THE FINANCIAL STATEMENT -31ST MARCH ,2015 1.1CORPORATE INFORMATION Leena consultancy limited is a public company domiciled in india incorporated under the provision of the companies act 1956. 1.2 basis of brparation The financial statement of the company are consistently brpared and brsented under historical cost convention on an accrual basis in accordance with the generally accepted accounting principlcs in india . the company has brpared these financial statements to comply in all material respects with the accounting standards specified under section 133 of the companies act 2013 the read together with rule 7 of the companies accounts rules 2014 as well as prudential norms on income recognition ,asset classification and provision issued by RBI. in accordance with first provision to section 129(1) and classer 6 of the general instruction given in schedule III to the act the rerms used in the enclosed financial statement are in accordance with the accounting standards . All assets and liabilities have been classified as current or non current as per the company normal operating cycle and other critheria set out in the schedule III of companies act 2013 the act the company has ascertained its operating cycle as 12 month for the purpose of current non current classification of assets and liabilities. The accounting policies adopted in the brparation of financial statement are consistent with those of brvious year. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1.3 USE OF ESTIMATES The brparation of financial statement in conformity with Indian GAAP requires the management to make judgments estimates and assumptions that affect the reported amounts of revenues expenses assets and hiabilites and the disclosure of contingent liabilities as at the date of financial statement and reported amount of revenue and expenses during the contingent liabilities as at the date of financial statement and reported amount of revenue and expenses during the reporting period such estimates are on reasonable and prudent basis taking in to account all available information actual results could differ from estimates . differences on account revision of estimates actual outcome and existing estimates are recognized prospectively once results are known materialized in accordance with the requirement of the respective accounting standard as may be applicable . 1.4TANGIBLE FIXED ASSETS THE COMPANY DOES NOT HAVE ANY FIXED ASSETS INVESTMENT Investment which are readily realizable and intended to be held for not more than one year from the date on which such investments all other investment are classified as long term investments On intial recognition all investment are measured at cost the cost comprises purchase price and directly attributable acquisition charges such as brokerage fees and duties if an investment is acquired or partly acquired by the issue of shares or other securities the acquisition cost is the fair value of the securities issued . if an investmet is acquired in exchange for another asset the acquisition cost of the investment is determined by reference to the fair value of the asset given up or by reference to the fair value of the investment acquired whichever is more clearly evident. Current investment are carried in the financial statement at lower of cost and fair value determined on an individual investment basis. Long term investment are carried at cost however provision for diminution in value is made to recognized a decline other than temporary in value of the investment On disposal of an investment the difference between its currying amount and net disposal proceeds is charged or credited to the statement of profit and loss. 1.6INVENTORIES The company does not have any inventories 1.7REVENUE RECOGNITION 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. INTEREST Interest income is recognized on a time proportion basis taking into account the amount outstanding and the applicable interest rate . interest income is included under the head other income in the statement of profit and loss. DIVIDENDS Dividend income is recognized when the company right to received dividend is established by the reporting date. 1.8 INCOME TAXES a)provision for current tax is made on the basis of taxable profit computed for the current accounting period (reporting period)in accordance with the provision of income tax act 1961. b)deferred tax is calculated at the retes and laws that have been enacted or substantively enacted as of the balance sheet date and is revognized on timing differences that originate in one period and are reversal in one or more subsequent period . deferred tax assets are recognized on carry forward of unabsorbed debrciation and tax losses only if there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized . other degerred tax assets are revognised only to the extent there is a reasonable certainty of realization in future .the effect on deferred tax assets and assets and liabilities of change intax rates is recognized in the profit &loss account in the period of enactment of the change . c)the carrying amount of deferred tax assets are reviewed at each reporting date. The company writes down the carrying amount of deferred tax asset to the extent that it is no longer reasonable certain or virtually certain as the case may be that sufficient future taxable income will be available against which deferred tax asset can be realized any such weite down is reversed to the extent that it become reasonable certain or virtually certain as the case may be that sufficient future taxable income will be available d deferred tax assets and deferred tax liabilities are offset if u legtally enforceable right to set off current tax asserts against current tax liabilities and the deferred tax assets and deferred t axes relate to the same taxable entity and the same taxation authority. e)minimum alternate tax paid in a year is charged to the statement of profit andloss as current tax . the company recognizes mat vredit available as an asset only to the extent that there is convincing evidence that the company will pay normal income tax during the specified period the period for which mat credit is allowed to be carried forward. In the year in which the company recognizes MAT credit is allowed to be carried forward in the year in which the company recognizes mat credit as an asset in accordance with the guidance note on accounting for credit available in respect of minimum alternative tax under the income tax act 1961 the said asset created by way of credit to the statement of profit and loss and shown as mat credit entilenment the company reviews the mat credit entilenent asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the specified period . 1.9 EARNINGS PER SHARE a)basis canings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders afer deducting brference dividends and attributable taxes by the weighted average number of equality shares ourstanding during the period partly paid equity shares are treated as a fraction of an equity that they are wntiled to participate in dividends relative to a fully paed equity share during the reporting period the weighted average number of equity shares outstanding during the period is adgusted for events such as bonus issued bonus element in a right issue share split and reverse share split that have have change the number the number of equity shares outstanding without a corresponding change in resources. b. 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 adjusted for the effects of all dilutive potential equity shares. 1.10PROVISION a)a provision is recognized when the company has a brsent 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 a reliable estimate can be made of the amount of the obligation provision 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 reviewed at each reporting date and adjusted potential equity shares. b.where the company expects some or all a provision to be reimbursed for example under an insurance contract the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain the expense relating to any provion is provision is brsented in the statement of profit and loss net of any reimbursement . 1.11 COMTINGENT LIABILITIES &CONTINGENT ASSETS a)contingent liabilities are disclosed separately by way of note to financial statement after careful evaluation by the management of the facts and legal aspects of the matter involved in the case of i.a probable obligation arising the past event when it is not probable that an outflow of resources will be required to settle the obligation ii. contingent assets are neither recognized nor disclosed 1.12CASH AND CASH EQUIVALENTS Cash and cash equivalents for the purposes of cash flow statement companies cash at bank cash in hand demand deposits with banks and other short term investments with an orginal maturity of three months or less 2.brvious year figures have been regrouped rearranged wherever necessary to confirm with current year figyres AS PER OUR REPORT OF EVEN DATE FOR K.I.THACKER &ASSOCIATES CHARTERED ACCOUNTANTS FIRM REGN NO 110869 W KIRIT L THACKER PROPRIETOR MEM NO 035085 BY ORDER OF THE BOARD A,UNNIKRISHNAN DIRECTORS DIN 00007022 SANJAY JOHAR DIRECTORS DIN :00007304 SURESH PISHARODY CFO PLACE ; MUMBAI DATE ; 28 MAY 2015 |