GENERAL INFORMATION RSC International Ltd. ( ‘ the Company’ ) is engaged in agency business of synthetic fabrics. SIGNIFICANT ACCOUNTING POLICIES: I . BASIS OF brPARATION OF FINANCIAL STATEMENTS These financial statements have been brpared in accordance with the Generally Accepted Accounting Principles in India under the historical cost convent ion on accrual bas is. Pursuant to Sect ion 133 of the Companies Act , 2013 read with Rule 7 of the Companies (Account s) Rules , 2014, till the standards of accounting or any addendum thereto are brscribed by Central Government in consul tat ion and recommendation of the National Financial Reporting Authority, the existing Accounting Standards notified under the Companies Act , 1956 shall continue to apply. Consequently, these financial statements have been brpared to comply in al l material aspects with the Accounting Standards notified under Sect ion 211(3C) of the Companies Act , 1956 [Companies (Accounting Standards ) Rules, 2006, as amended] and other relevant provisions of the Companies Act , 2013. Al l as sets and liabilities have been classified as current or noncurrent as per the Company’s operating cycle and other criteria set out in the Schedule III to the Companies Act , 2013. The Company has ascertained its operating cycle as 12 months for the purpose of current – non-current classification of assets and liabilities. I I . TANGIBLE ASSETS AND DEbrCIATION Fixed assets are stated at cost of acquisition or construct ion, less accumulated debrciation and accumulated amortization losses , if any. Al l costs relating to the acquisition and install at ion of f ixed assets are capitalized and include borrowing costs directly attributable to construct ion or acquisition of fixed assets , up to the date the asset is put to use. Losses arising from the retirement of and gains or losses arising from disposal of fixed assets which are carried at cost are recognized in the Statement of Prof i t and Loss . Debrciation is provided on pro- rata basis on the straight - line method over the estimated useful lives of the assets which in certain cases may be different than the lives brscribed under Schedule I I to the Companies Act , 2013, in order to reflect the actual usage of the assets. The estimates of the useful lives of the assets are based on a technical evaluation and have undergone a change on account of trans it ion to the Companies Act , 2013. The Companies Act , 2013 requires the Company to restate the value of al l fixed assets . Due to obsolescence of the Computer and Furniture, the Company has decided to write of f the full written down value of Rs. 938/- pertaining to the Computer. The cost of furniture is considered at opening WDV of Rs. 13,814.00 for the purpose of calculation of debrciation. I I I . INVESTMENTS Current investments are carried at cost or fair value, whichever is lower. Long- term investments are carried at cost . IV. REVENUE RECOGNITION The Company recognizes income from commission only after completion of sale of goods as per AS – 9 on ‘Revenue Recognition’ . Interest Income is recognized on an accrual bas is, considering the period of time, the amount outstanding and the rate applicable. V. DEFFERED TAX LIABILITY In view of insignificant difference in the amount of debrciation under the Companies Act , 2013 and the Income- tax Act , 1961, no provision for deferred tax is made during the year as required under Accounting Standard 22 issued by the ICAI . VI I I . EARNINGS PER SHARE Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to the equity shareholders by the weighted average number of equity shares outstanding during the period. IX. The Company has provided confirmation of balances pertaining to Sundry Debtors, Sundry Creditors , Loans and Advances and Bank accounts . X. Previous year figures are regrouped and rearranged wherever required. For and on behal f of Board For : Kamal Agrawal Chartered Accountant G C Jain Ankur Jain Director Kamal Agrawal Di rector M. No. 43529 Place: Mumbai Date: 29th May 2015 |