NOTE 1: Significant Accounting Policies forming part of the accounts for the F. Y.2014-15 A. BASIS OF ACCOUNTING:- The financial statement have been brpared under the historical cost conventional accrual basis of accounting, in conformity with the accounting principles generally accepted in India, including the Accounting Standards specified under Section 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014. Accounting principles generally accepted in India requires management to make estimates and assumptions that affect the reported amounts of asset and liabilities and disclosures relating to contingent liabilities as at the date of financial statements and reported amounts of revenues and expenses during the reporting period. Some of the more important Accounting policies which have been applied are summarized below:- B. USE OF ESTIMATES The brparation of financial statements are in conformity with Indian GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods. Examples of such estimates include provisions for doubtful debts, provision for income taxes and the useful lives of fixed assets. C FIXED ASSETS:- 1. Fixed Assets are stated at cost of acquisition and valued at Historical cost. Related br operational expenses form part of the value of assets capitalized less Debrciation. 2. Directly identified expenses are being capitalized. All other allocable expenses during the period of construction for the project are being capitalized proportionately on the basis of the value of assets on date of production D. DEbrCIATION: i. Debrciation on debrciable assets has been provided in the books of accounts, as per the rates brscribed in schedule II of the companies Act, 2013 as per Written Down Value Method. ii Debrciation on additions to and deductions from fixed assets is being provided on pro-rata basis from /to the date of acquisition/disposal. E. INVESTMENTS :- Long term investments are carried out at cost less any other temporary diminution in value, determined on the specific identification basis. Current investments are carried at the lower of cost and fair value. Profit & Loss on sale of investment is determined on specific identification basis. F. INVENTORIES :- Stock of raw material, stores, finished goods, spares are valued at cost or net realizable value, and whichever is less. Net realizable value is calculated on the basis of average price of April i.e. to the year-end. The cost of inventories of Raw Material is computed ton average cost basis. Finished goods stocks are valued at the cost of raw material consumed and direct cost related to production excluding debrciation G. TAXES ON INCOME:- Current tax is determined as the amount of tax payable in respect of taxable income for the years. Deferred tax is recognised, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is an unabsorbed debrciation or carry forward loss, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets, other deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future. Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal tax after the tax holiday period. Accordingly, it is recognized as an asset in the balance sheet when it is probable that the future economic benefit associated with it will flow to the Company and the asset can be measured reliably. H. REVENUE RECOGNITION:- I .Mercantile method of accounting is employed. However where the amount is immaterial / negligible and / or establishment of accrual / Determination of amountis not possible, no entries are made for the accruals. ii. Interest on allotment/call/refund money is accounted for on cash basis I. BORROWING COST Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes a substantial period of time to get ready for its intended use or sale. All other borrowings costs are charged to revenue. J. EMPLOYEE BENEFITS a. Provident Fund is a defined contribution scheme and the contribution is charged to the Profit & Loss A/c of the year when the contributions to the Government Funds is due. b. Gratuity Liability is defined benefit obligations and are provided for on the basis of following formula:-Last drawn Salary * 15/26 * No. of Completed year of Services The above calculation is done only for those employees who have completed continuous five year of services. However, the above calculation of Gratuity is not as per Actuary Valuation c. Short Term Compensated absences are provided for based on estimates. Long Term compensated absences are provided for based on actuarial valuation. d. Actuarial gains / losses are immediate taken to the profit & loss account and are not deferred. IMPAIRMENT OF ASSETS An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is normally charged to Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. L. LEASE Finance leases, which effectively transfer to the Company substantially all the risks and benefits incidental to ownership of the leased item, are capitalized at the lower of the fair value and brsent value of the minimum lease payments at the inception of the lease term and disclosed as leased assets. Lease payments are apportioned between the finance charges and reduction of the lease liability based on the implicit rate of return. Finance charges are charged directly against income. Lease management fees, legal charges and other initial direct costs are capitalized. If there is no reasonable certainty that the Company will obtain the ownership by the end of the lease term, capitalized leased assets are debrciated over the shorter of the estimated useful life of the asset or the lease term. Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss account on a straight-line basis over the lease term. M. FOREIGN CURRENCY TRANSACTIONS Transactions in foreign currencies are recorded at the exchange rates brvailing on the dates of transactions and in case of purchase of materials and sale of goods, the exchange gains / losses on settlements during the year, are charged to Profit and Loss Account. Monetary assets and liabilities denominated in foreign currencies are translated at the rates brvailing on the date of Balance Sheet. Exchange gains / losses including those relating to fixed assets are dealt with in the Profit and Loss Account. N. EARNINGS PER SHARE The Company reports Basic and Diluted Earnings Per Share (EPS/DEPS) in accordance with Accounting Standard 20 on "Earnings Per Share". Basic EPS is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year. Diluted EPS is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares, except where the results are anti-dilutive. O. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS The Company recognizes provisions when there is brsent obligation as a result of past event and it is probable that there will be an outflow of resources and reliable estimate can be made of the amount of the obligation. A disclosure for Contingent liabilities is made in the notes on accounts when there is a possible obligation or brsent obligations that may, but probably will not, require an outflow of resources. Contingent assets are neither recognised nor disclosed in the financial statements. P. TRADE RECIEVABLE & PAYABLES Services rendered on credit are included in trade receivables at the balance sheet date & reduced by appropriate allowances for estimated doubtful amounts. Trade payables are stated at their nominal value. Q. CASH AND CASH EQUIVALENTS For the purpose of the cash flows, cash & cash equivalents comprise cash on hand, balances with bank and deposits with banks. R. CASH FLOW STATEMENT The cash flow statement is brpared as per the Indirect method brscribed under "Accounting Standard - 3" Cash Flow Statement issued by the Institute of Chartered Accountants of India. 2. Previous year's figures have been regrouped wherever necessary to confirm to this year's classifications 3. There is no claim against the company not acknowledged as debts. 4. Balance shown under the headings sundry creditors for Goods, expenses & others, sundry debtors, other current assets, banks and advances to suppliers are subject to confirmations. Necessary adjustment, if any will be made when the accounts are reconciled and settled. 5. In the opinion of the management there is no such event occurred after the date of Balance sheet, which needs to be adjusted in these accounts. 6. In the Opinion of the board of directors, the loans, advances and current assets have a value on realization in the ordinary course of business, at least equal to the amounts of which these are stated and that the provisions for the known liabilities are adequate and not in excess of the amount reasonably necessary. 7. Valuation & consumption of inventories has been taken as valued and certified by the management. 8. There were no employee at any time during the year drawing Rs.500000/-or more per month. 9. No. of employees in the company is not more than 10. Hence Gratuity Act and ESIC Act are not applicable. Since the no. of employees is less than 20, Provident fund Act is also not applicable. a. Business Segment: - The Company has considered business segment as the primary segment to disclose. The company is engaged in the rendering Cargo handling Services, which the context of AS-17 is issued by the Institute of Chartered Accountants of India, is considered the only business segments. b. Geographical Segment: - The Company provides Services within India. The condition brvailing in India being uniform No Separate geographical segment disclosure is considered necessary. (a) Defined Contribution Plans:- During the year the company has not employed more than 10 employees and therefore no Statutory Act Related employee are applicable. However company has not recognized any amount for Defined Contribution in the profit & loss Accounts as the employee's are not permanent. (b) Defined benefit plan:- No Provision of Gratuity and encashment of leave has been made for the employees up to 31.03.2015. 14. In respect of Micro / Small / Medium Enterprises Development Act, 2006, certain disclosure is required to make relating to Micro / Small / Medium Enterprises. The company could not get relevant information from its supplier about their coverage under the Act since the relevant information is not readily available, no disclosure have been made in the account. Hence disclosure, if any, relating to amounts unpaid as at the yearend together with interest paid/ payable as required under the said act have not been made 15. No interest has been recognized for the Earnest Money deposited with SBI. 16. During the year as per new debrciation schedule II of Companies Act Company have written off Rs. 83648 from earlier year profit for those assets whose life is expired as on 01-01-2014. 17. Significant accounting policies adopted by the Company aredisclosed in the statement annexed to these financial statements as Annexure I. AS PER OUR REPORT OF EVEN DATE. FOR NATURA HUE CHEM LIMITED FOR, MADURESH GUPTA AND CO CIN:L24117CT1995PLC009845 CHARTERED ACCOUNTANTS FIRM REGN. NO.005910C (M K GUPTA) RAVI KAMRA RAVINDRA POKHARNA PROPRIETOR DIRECTOR DIRECTOR M.NO.074636 DIN: 00745058 DIN: 01121333 PLACE: RAIPUR DATE: 30/05/205 |