Notes to accounts forming part of Financial Statement ended on 31.03.2015 Note No. 1 : SIGNIFICANT ACCOUNTING POLICIES 1.01) Accounting Assumptions The financial statements are brpared under the historical cost convention, on accrual basis of accounting and in accordance with the provisions of the Companies Act, 1956 and the accounting standards notified by the Companies (Accounting Standards) Rules, 2006 (Indian GAAP), as adopted consistently by the Company. That the company has closed its commercial / business activity and has sold its entire plant & machinary. 1.02) Use of estimates The brparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenue and expenses during the reported period. Actual results could differ from these estimates and any revision to such accounting estimates is recognised prospectively in the period in which the results are ascertained. 1.03) Basis of Accounting a) Fixed Assets Fixed Assets are valued at cost less Accumulated debrciation . All Cost including financial Cost till commencement of Commercial production , Pre-operative expenses etc .attributable the fixed Assets are capitalized. During the year company has sold entire plant & machinary. b) Debrciation Debrciation on fixed assets is not provided during the year. c) Inventories Inventories are valued at estimated realizable value.The Company is having only damaged/rejected goods only. d) Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and there is no any uncertainties exists regarding the determination of the amount ,or its associated cost and it would not be unreasonable to expect ultimate collection e) Prior Period Adjustments Expenses/Income pertaining to brvious years are booked in the current year under the natural heads of Accounts and its shown separately in the books of accounts. f) Retirement and other employee benefits: During the year company has no staff.The company has closed its business/commercial activity. Gratuity fund are administered through a scheme with life insurance corporation of India g) Foreign Currency Transactions During the year company is not having any foreign currencytransaction. h) Borrowing Costs Borrowing costs attributable to acquisition / construction of qualifying assets are capitalized with the respective assets till the date of commercial use of the assets and other borrowing costs are charged to the Profit and Loss Account. That the company has closed its credit facilities and entire interest has been charged to the Profit & Loss Account.During the year part of the inventory is sold by the company. i) Provisions and Contingent Liabilities Provision The Company recognizes a provision when there is a brsent obligation as a result of past event that may probably require an outflow of resources in future. Provisions are not discounted to its brsent value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that may, but probably will not, require 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. j) Provision for Taxation Provision for Income Tax has not been made as the company has incurred loss during the year k) Deferred Tax Asset/Liability Refer Note No-5 l) Earnings per Share Basic EPS Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average numbers of equity shares outstanding during the year. Diluted EPS For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity share holders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The calculation of Earning Per Share as required under Accounting Standard (AS) - 20 is as under: m) Impairment of Assets The carrying of the assets is reviewed at each balance sheet that if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset net selling price and value in use. In assessing value in use, the Estimated future cash flows are discounted to their brsent value at the weighted average Cost of capital. n) Previous year's figures have been rearranged and regrouped wherever necessary so as to make them comparable with those of the current year. 2 Balances of personal accounts like , Receivables, Payables and Loans & Advances are subject to their respective confirmations and reconciliations. 3 Figures of the brvious year have been regrouped or rearranged, wherever considered necessary, to suit the current year's brsentation. 4 Contingent liabilities & commitments (to the extent not provided for) Notes to Accounts 1 to 9 form an integral part of financial statements. FOR SADANI & SINGHI CHARTERED ACCOUNTANTS Firm Registration No. 004415C VINOD SADANI PARTNER (MEMBERSHIP NO : 073007 ) For and on behalf of the Boards of Director GUNWANT RAJ M. SINGHVI MANAGING DIRECTOR DIN: 00218731 JAYESH SHAH DIRECTOR DIN: 00218776 PLACE : MUMBAI DATED : 16.05.2015 |