Notes to Financial Statement as at and for the year 1. Significant Accounting Policies: 1.1) Basis of brparation: These financial statements are brpared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as brscribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. 1.2) Use of Estimates : The brparation of financial statements require judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences, if any, between actual results and estimates are recognized in the period in which the results are known / materialized. 1.3) Recognition of Revenue & Accrual of Expenses ; a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. All revenues are accounted for on accrual basis except as otherwise stated. b) Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities. 1.4) Fixed Assets : Tangible Fixed assets a) Fixed Assets are stated at cost of acquisition, less accumulated debrciation. b) Debrciation on all the assets has been provided on Straight Line Method ("SLM") as per Schedule II of the Companies Act, 2013. Assets individually costing Rs 5,000 or less are debrciated fully in the year of purchase. 1.5) Investments Long-term investments are valued at cost of acquisition. Cost of acquisition includes brokerage, legal, professional and other charges incidental/related to the acquisition. Provision for diminution in the value of Non-Current investments is made only if such a decline is other than temporary. Current Investments are carried at the lower of cost and quoted/fair value of each class of investments. 1.6) Inventories Inventories are valued at cost or net realizable value whichever is lower. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads. 1.7) Cash & Cash Equivalents Cash and cash equivalents for the purposes of Cash Flow Statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less. 1.8) Employee Benefits/Retirement Benefits The Company's contribution to Provident Fund is considered as defined contribution plans and Short term employee benefit expenses are charged as an expense to the Statement of Profit and Loss. The Company has unfunded defined benefit plans of gratuity for eligible employees, the liabilities for which are determined on the basis of actuarial valuations, conducted by an independent actuary at the end of the financial year in accordance with Accounting Standard 15 (Revised 2005) - 'Employee Benefits'. Actuarial gains/ losses comprise experience adjustments and the effects of change in actuarial assumptions, and are recognised in the Statement of Profit and Loss as income or expenses 1.9) Leases Lease rental for assets taken on operating lease are charged to the Statement of Profit and Loss in accordance with Accounting Standard 19 on Leases. 1.10) Earnings Per Share Basic earnings per share is calculated by dividing the net profit or (loss) after tax for the period to attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The net profit / (loss) after tax and the weighted average number of shares outstanding during the year are adjusted for all effects of dilutive potential equity shares for calculating the diluted earnings per share. 1.11) Accounting of Taxes on Income : Current tax is determined on the basis of the amount of tax payable for the year under Income Tax Act 1961. Tax Credit for Minimum Alternate Tax (MAT) is recognized when there is virtual certainty of its realisation against future tax liability. Deferred Tax is recognized, subject to the consideration of prudence on timing difference, being the difference between the taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. 1.12) Provisions, Contingent Liabilities & Contingent Assets Provisions are recognized in respect of brsent obligations arising out of past events where there are reliable estimates of the probable outflow of resources. Contingent liabilities are the possible obligation of the past events, the existence of which will be confirmed only by the occurrence or non-occurrence of a future event. These are not provided for but are disclosed by way of Notes on Accounts. Contingent Assets are not provided for or disclosed. 2) Dues to Small-Scale Industrial Undertakings : As of March 31st 2015, the Company has no outstanding dues to small-scale industrial undertakings. 3) In the opinion of the Board, Loans & Advances, Trade Receivables and Current Assets have a realizable value in the ordinary course of business not less than the amount at which they are stated in the Financial Statement. 4) The Company has not capitalized any borrowing costs during the year. 5) Segment Reporting: The Company is engaged in the business of Trading and there are no separate reportable segments as per Accounting Standard (AS-17) "Segment Reporting". The Company's operations are within India. 6) During the Financial Year, the Company has substantial Unabsorbed Debrciation & Carried forwarded losses. However, there is no reasonable certainty that these assets can be realized. Hence the Deferred Tax Assets have not been created. The policy is being followed by the Company from past years. 7) In the opinion of the management during financial year no diminution in value of Quoted investment is recognized in the financial statement as the fall in the value of the investment is of temporary nature. 8) Previous year's figures have been re-grouped and rearranged wherever necessary. For ASHOK S. JAIN & CO. Chartered Accountants Firm Registration No. 111791W Ashok S. Jain Proprietor Membership No. 044964 For and on behalf of the Board Rajesh Gupta Managing Director DIN : 00028379 Mohan Krishnamoorthy Director DIN : 02542406 Jaikishan Sarda Chief Financial Officer Jitendra K. Sharma Company Secretary Place : Mumbai Dated : 27.05.2015 |