Notes forming part of the financial statements PART A 1 Corporate information M/s G.K. Consultants Limited is a Non Banking Financial Company registered with RBI. The company is engaged in business of consultancy, share trading, investment, hiring of assets, software business and other activities of a non banking finance company. It's registered office is situated in Delhi. 2 Significant accounting policies The significant accounting policies have been brdominantly brsented below in the order of the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). "The Company is not a Small and Medium Sized Company as defined in the General Instructions in respect of Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). Accordingly, the Company has complied with the all the Accounting Standards as applicable to Non Small and Medium Sized Company." 2.1 Basis of accounting and brparation of financial statements The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956 and the Companies Act, 2013.. The financial statements have been brpared on accrual basis. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year. 2.2 Use of estimates The brparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise. 2.3 Inventories Inventories are valued at cost (on FIFO). 2.4 Cash and cash equivalents (for purposes of Cash Flow Statement) Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. 2.5 Cash flow statement Cash flows are reported using the indirect method, whereby profit / (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. 2.6 Debrciation and amortisation Debrciation has been provided on the Straight Line Method as per the rates brscribed in Schedule II to the Companies Act, 2013. 2.7 Revenue recognition All incomes are generally accounted for on accrual basis as they are earned. 2.8 Other income Dividend income is accounted for on receipt basis. 2.9 Tangible fixed assets Fixed assets are carried at cost less accumulated debrciation and impairment losses, if any. The cost of fixed assets includes interest on borrowings attributable to acquisition up to the date the asset is ready for its intended use & other incidental expenses incurred up to that date. Subsequent expenditure relating to fixed assets is capitalised only if such expenditure results in an increase in the future benefits. 2.10 Intangible assets Intangible assets are carried at cost less accumulated amortisation and impairment losses, if any. The cost of an intangible asset comprises its purchase price, including any import duties and other taxes (other than those subsequently recoverable from the taxing authorities), and any directly attributable expenditure on making the asset ready for its intended use and net of any trade discounts and rebates. 2.11 Foreign currency transactions and translations Not applicable to the company. 2.12 Government grants, subsidies and export incentives Not applicable to the company. 2.13 Investments Long-term investments (excluding investment properties), are carried individually at cost less provision for diminution, other than temporary if any, in the value of such investments. Current investments are nil in the company. 2.14 Employee benefits Employee benefits which include provident fund, superannuation fund, gratuity fund, compensated absences, long service awards and post-employment medical benefits, are nil in the company as per terms of employment. 2.15 Employee share based payments Not applicable to the company. 2.16 Borrowing costs Borrowing costs include interest, amortisation of ancillary costs incurred and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan wherever applicable. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset up to the date of capitalization of such asset is added to the cost of the assets where ever applicable. 2.17 Segment reporting The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding how to allocate resources and in assessing performance. The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment whereever applicable. 2.18 Leases The company has not undertaken any lease agreement. 2.19 Earnings per share Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the number of equity shares outstanding during the year. 2.20 Research and development expenses The company has not incurred any research and development expenses. 2.21 Taxes on income Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company, if applicable. Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liabilities are recognized for all timing differences. Deferred tax assets in respect of unabsorbed debrciation and carry forward of losses are recognised only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Deferred tax assets are recognised for timing differences of other items only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each Balance Sheet date for their reliability. 2.22 Joint venture operations Not applicable to the company. 2.23 Impairment of assets No impairment of assets has been done during the financial year 2013-14 and in current financial year 2014-15. 2.24 Provisions and contingencies A provision is recognised when the Company has a brsent obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their brsent value and are determined based on the 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 are disclosed in the Notes. 2.25 Provision for warranty The provision for warranty is nil in the company. 2.26 Hedge accounting Not applicable to the company. 2.27 Derivative contracts Not applicable to the company. 2.28 Share issues expenses Not applicable to the company. 2.29 Insurance claims Not applicable to the company. 2.30 Service tax input credit Service tax input credit is accounted for in the books in the period in which the underlying service received is accounted and when there is no uncertainty in availing / utilising the credits. Additional information to the financial statements 1 Details of unutilized amounts out of issue of securities made for specific purpose Not applicable to the company. 2 Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 Dues to Micro and Small Enterprises are nil on the basis of information collected by the Management. This has been relied upon by the auditors. 3 Disclosure as per Clause 32 of the Listing Agreements with the Stock Exchanges Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company of such parties are nil. 4 Details on derivatives instruments and unhedged foreign currency exposures The derivative transaction were done under normal course of business. At the end of the financial year, there were no outstanding. There were no foreign currency dealings & exposures. 5 Disclosure required in terms of Clause 13.5A of Chapter XIII on Guidelines for brferential issues, SEBI (Disclosure and Investor Protection) Guidelines, 2000 There was no brferential issue during the year ended 31 March 2015 as well as in the Previous Year ended 31.03.2014. 6 Details of fixed assets held for sale No assets were held for sale neither on 31.03.2015 nor on 31.03.2014. 7 Value of imports calculated on CIF basis Not applicable to the company. 8 Expenditure in foreign currency No foreign currency expenditure in the company. 9 Details of consumption of imported and indigenous items Not applicable to the company because it is not engaged in manufacturing activities. 10 Earnings in foreign exchange : There were no earnings in foreign exchange. 11 Amounts remitted in foreign currency during the year on account of dividend Not Applicable to the company. 12 Employee Stock Option Scheme The company has never issued any ESOP and therefore, no disclosure is required to be made in this connection. 13 Note on Previous year's figures Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure. In terms of our report attached. For UMESH AMITA & CO. Chartered Accountants FRN: 007238C (CA. AKASH GARG) Partner, M. No. 420145 For and on behalf of the Board of Directors VIJAY KUMAR SINHA (Managing Director) DIN - 01089578 SHILPA VERMA (Company Secretary) M. No. A32810 SUBODH GUPTA (Director) DIN - 00006243 ASHOK KUMAR DAS (CFO) PAN: AELPD1892C Place : New Delhi. Date : 20.05.2015 |