NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31st 2015 [1] Corporate information vlshvprabha Trading Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956, Its Shares are listed on Ahmadabad Stock exchange in India. [2 Basis of Preparation of financial Statements a) These financial statements have been brpared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards brscribed under Section 133 of the Companies Act, 2013 OAcf) read with Rule 7 of me Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable. All assets and liabilities have been classified as current or noncurrent as per the Company's normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current/non-current classification of assets and liabilities b) The accounting policies applied by the company are consistent with those used in the brvious year [3] SIGNIFICANT ACCOUNTING POLICIES 3.1 Use of Estimates Estimates and assumptions used in the brparation of the financial statements are based on managements evaluation of the relevant facts and circumstances as on date of the financial statements, which may differ from the actual results at a subsequent date. 3.2 Fixed Assets As on the date of the Balance Sheet, the company does not own any fixed assets, hence disclosure under this Clause is not required. 3.3 Inventories The Company does not have inventories of Raw Materials, Stores & Spares. The Stock-in-Trade consists of shares, which is valued at cost 3.4 Investments Investment, which are readily realizable and intended to be held for not more than one year from the date in which investments are made, are classified as current Investment. All other investments are classified as long term investment. On initial recognition, all investments are measured at cost. The cost comprises purchase price and directly attributable acquisition charges. Current Investment if any are carried in the financial statements at lower of cost and fair value determined on individual investment basis. Long term investments are carried at cost. Temporary diminution in the value of Investments meant to be held for long term period of time is not recognized. On disposal of an investment, the difference between its carrying amount and net disposal proceeds is charged or credited to the statement of Profit and Loss. 3.5 Revenue Recognition Income from Commodity Trading is recognized on the date of sales as per the bills/contract and is accounted on accrual basis. 3.6 Other Income Interest and Other Income, if any is accounted on accrual basis. Dividend Income is accounted for when the right to receive income is established by the reporting date. 3.7 Provisions, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognized when there is a brsent 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. Contingent Assets are neither recognized nor disclosed in the financial statements. 3.8 Taxes on Income a) The tax expense comprises of current tax and charged or credited to profit a loss account b) Current Tax is calculated in accordance with the tax laws applicable to the current financial year. c) The Company has been advised that as there is no material tax effect of timing difference based on the estimated computation for a reasonable period and hence there is no provision for deferred tax in terms of Accounting Standard (AS-22) on "Accounting for Taxes on Income* issued by the Institute of Chartered Accountants of India. d) Advance taxes and provisions for current income tax are brsented in the Balance Sheet after off-setting advance taxes paid and Income Tax provision arising in the same tax jurisdiction and the Company intends to settle the assets on liabilities on a net basis. 3.9 Impairment of Assets The Company makes an assessment of any indicator that may lead to impairment of assets on an annual basis. An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable value, which is higher of the net selling price and value in use. Any impairment loss is charged to profit and loss account in the year in which it is identified as impaired. 3.10 Earning Per Share Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting brference dividends if any and attributable taxes) by the weighted average number of equity shares outstanding during the period. For the purpose of calculating dilutive earnings per share, the net profit or loss for the period attributable to equity shareholders and weighted average number of shares outstanding during the period are adjusted for the effects of ail dilutive potential equity shares if any. Note No 2 : SEGMENT INFORMATION a) Primary Segment The business segment has been considered as the primary segment. The company is engaged in only one reportable segment. b) Secondary Segment The company operates in India and hence there are no geographical segments. Note No 3 : RELATED PARTY DISLCOSURES During the year the company has not undertaken any transaction with parties that require disclosure as per Accounting Standard 18 on related party transaction. Note No 4: CAPITAL COMMITMENTS The Company has no outstanding commitment on Capital Contract. Note No 5 : CONTINGENT LIABILITIES : NIL Note No 6 : ADDITIONAL COMMENTS i. In the opinion of the Board the current assets, and advances if realized in the ordinary course of business have value on realization at least to the amount at which these are staled in the Balance Sheet. The provision for all known liabilities are adequate and not in excess of the amount reasonable necessary. ii. Sundry Liabilities are subject to confirmation. iii. Figures have been rounded off to nearest Rupees. iv. On assessment of the impairment of fixed assets of the company as at the Balance Sheet date as required by Accounting Standard 28 "Impairment of Assets" Issued by the ICAI, the company is of the view that no provision for impairment of fixed assets is required. v. The brvious year's figure have been reworked, regrouped, rearranged and reclassified wherever necessary. Signatures to Note to "22 As per our attached Report of even date. For I. G. NAIK & CO„ Chartered Accountants (Firm Regn. No. 106810W) Sd/ I. G. NAIK Proprietor (M.No. 034504) Sd/ SUNIL SURVE Director Sd/ SURESH UPADHYAY Director Place : Mumbai Dated:2 6 MAY 2015 |