Notes on financial statements for the year ended 31st March, 2015 1. SIGNIFICANT ACCOUNTING POLICIES 1.1. Accounting Convention The financial statements are brpared under the historical cost convention in accordance with applicable accounting standards and relevant brsentational requirements of the Companies Act, 2013. 1.2. Fixed Assets Fixed Assets are stated at cost and include installation charges, freight, duties, taxes and expenditure incurred during construction period wherever applicable. Assets under erection / commissioning are shown as capital work in progress. All expenditure during the construction period is allocated to Buildings and Plant & Machinery in the same proportion of the balances in the respective heads as on the date of commissioning of the project. 1.3. Debrciation Debrciation on the fixed assets is provided on Written Down Value Method at the rates and in the manner brscribed in Schedule - II to the Companies Act, 2013 for all the assets during the year under consideration. 1.4. Revenue Recognition The Company follows the mercantile system of accounting and recognises income and expenditure on accrual basis. 1.5. Employee Benefits "Retirement benefits to the employees have not been provided as no employee is eligible for the same. No Provision has been made in respect of Gratuity Liability. Provident Fund and ESI as no employee is eligible for the same, leave encashment shall be accounted on cash basis. 1.6. Provision For Income Tax Provision for Current Tax : Provision for Income Tax is made taking into consideration the Provisions of Income Tax Act, 1961. Provision for Deferred Taxation : As per the AS 22, since there is no reasonable certainty that the Company will get profits so as to absorb the carried forward losses and debrciation, the deferred tax asset has not been recognized in the financial statements. 2. FIXED ASSETS The company does not have any fixed assets in its block, except computers which are used in the office. Since there are no operations during the year no debrciation is provided on Fixed Assets. 3. EMPLOYEE BENEFITS Since there are no employees eligible for any retirement benefits as per the terms of the contract, no gratuity or leave encashment provisions are made as per AS 15 4. Impairement of Assets : In terms of the requirements of the Accounting standards-28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, no provision for impairment in value has been considered necessary by the management as there are no assets carried in the books, except computers. 5. Provision, Contingent Liabilities and Contingent Assets : As per the best estimate of the management, no provision is required to be made as per Accounting Standard (AS) 29 "Provision, Contingent Liabilities and Contingent Assets" as notified by the Companies (Accounting Standards) Rules 2006, in respect of any brsent obligation as a result of a past event that could lead to a probable outflow of resources which would be required to settle the obligation. 6. Segment Reporting As the Company has stopped operations and deriving the income from only other sources, segment reporting under Accounting Standard - 17 of ICAI is not applicable. As per our report of even date For Y. Raghuram & Co ,_. Chartered Accountants (FRN : 009415S) Sd/- (Y. Raghu Ram) Partner Memb No. 022678 For and on behalf of Board Sd/-(P. Amresh Kumar) Chairman &Managing Director Sd/-(M.A. Zameer) Director Place : Hyderabad Date : 29-05-2015 |