Notes forming part of the financial statements NOTE: 1 SIGNIFICANT ACCOUNTING POLICIES: 1. BASIS OF ACCOUNTING:- The Accounts have been brpared on historical cost basis and accrual system of accounting unless otherwise stated. 2. INCOME RECOGNITION: - 2.1 Interest on investments is accounted for on accrual basis. 2.2 Dividend income is accounted for on receipt basis. 2.3 Profit or loss on sale of investments is accounted for as and when the transactions are entered in to. 3. EXPENSES: -The Company provides for all expenses on accrual basis. 4. FIXED ASSETS: Fixed Assets are valued at cost less debrciation. The debrciation has been provided as per rate brscribed in the Income Tax Act 1961. 5. INVENTORY: Inventory is valued at cost. 6. SALES are accounted for on accrual basis 7. GRATUITY: No provision for retirement benefits for employees has been made since the Gratuity Act and Provident Fund Act are not applicable to the Company and the company has adopted PAY-AS-YOU-GO method for the payment of other retirement benefits, if any payable to the Employees. 8. TAXATION (i) Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961. (ii) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the Balance Sheet date. 9. INVESTMENTS: Long term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such decline is other than temporary in the opinion of the management. 10. CONTINGENT LIABLITY: All known liabilities are provided for in the books of account except liabilities of contingent nature which have been adequately disclosed by way of "Notes to the Account'' Note:11 The Company has not accepted any public deposits during the year. Note:12 Based on the information available, the Company is of the opinion that as on the Balance Sheet date, no amounts are payable to Small Scale undertakings. Note:13 The company has only one business segment hence the AS-17 "Segment Reporting" issued by The Institute of Chartered Accountant of India, is not applicable. Note:14 Disclosures required under AS-18 on "Related Party Disclosures" No related party transaction was carried during the year. Note: 15 brvious year figures have been regrouped, rearranged and reclassified wherever necessary Note: 16 Figures have been rounded off to the nearest rupee. As per our attached report even date For Y. D. & Co. CHARTERED ACCOUNTANTS Firm Reg. No. 018846 N (CA RAKESH PURI) PARTNER /Mem. No. 092728 Place: Ludhiana Date: 22.05.2014 FOR AND ON BEHALF OF THE BOARD KETANBHAI SORATHIYA (DIRECTOR) ANIL MISTRY (DIRECTOR) Place: Mumbai Date: 22.05.2014 |