NOTES ON FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST MARCH 2015 Note : 1 Company Overview Hit Kit Gloabal Solutions Limited ("the company") is engaged in retail selling of vegetables in the market which is produced in the Farm. Significant Accounting Policies Basis of Presentation The financial statements are brpared in accordance with Indian GAAP under the historical cost convention on the accrual basis. GAAP comprises mandatory accounting standards brscribed by the Companies (Accounting Standards) Rules, 2006 and guidelines issued by SEBI. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use. Use of Estimates The brparation of financial statements is conformity with the GAAP (generally accepted accounting principles) requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of financial statements and the reported amounts of revenues and expenses during the reporting year. Differences between actual results and estimates are recognized in the year in which the results are known / materialized. Fixed Assets and Debrciation / Amortization Assets are stated at actual cost less accumulated debrciation, less impairment if any. The actual cost capitalised includes material cost, freight, installation cost, duties and taxes, finance charges and other incidental expenses incurred during the construction/installation stage. Debrciation on fixed assets is provided on the straight-line method based on useful lives of assets as estimated by the Management. Debrciation for assets purchased / sold during the period is proportionately charged. Intangible assets are amortized over their respective individual estimated useful lives on a straight-line basis, commencing from the date the asset is available for its use. Leasehold improvements are written off over the lower of the remaining primary Period of lease or the life of the asset. Debrciation methods, useful lives and residual values are reviewed at each reporting date. The cost of and the accumulated debrciation of fixed assets sold, retired or otherwise or disposed off are removed from the stated values and the resulting gains and losses are included in the profit and loss Accounts. Impairment An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to there Profit and Loss Account in the year in which an asset is identified as Impaired. The impairment loss recognised in prior accounting year is reversed if there has been a change in the estimate of recoverable amount. Investments Long term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temparary. Inventories Inventories are valued "at lower of cost and net realizable value". Revenue Recognition The company generally follows mercantile system of accounting and recognises significant terms of income and expenditure on accrual basis. Revenue from Software & Retail Business consists primarily on account of sale of goods and is recognised on delivery to the clients. Borrowing Cost Borrowing costs that are attributable to the acquisition of qualifying assets are capitalised as a part of such assets. A qualifying asset is one that necessarily takes substantial year of time to get ready for intended use. All other borrowing costs are charged against revenue. Research and Development Expenditure incurred on Research & Development is charged to revenue and fixed assets in the year it is incurred as per nature of expenses. Taxation Tax liability is estimated considering the provisions of the Income Tax Act, 1961. Deferred tax resulting from "timing differences" between book and taxable profit is accounted for using the tax rates and laws that have been enacted or substantively enacted as on the Balance Sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable /virtual certainty that the asset will be realised in future. Cash Flow Statement Cash Flow Statement has been brpared in accordance with indirect method brscribed in Accounting Standard 3 issued by the Institite of Chartered Accountants of India. Earning Per Share Basic earnings per share is calculated 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. For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilative potential equity shares. Provision, Contingent Liabilities and Contingent Assets Provisions involving substantial degree of estimation in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent Assets are neither recognised nor disclosed in the financial statements. Dues to Small Scale industrial undertaking: There are no Micro and Small Enterprises to whom the company owes dues, for more than 45 days as at March 31st, 2015. This information as required to be disclosed under the micro, Small and Medium Enterprises development Act, 2006 has been determined to the extent such parties have been identified on the basis of Information available to the company. Note : 1 Quantitative Information: The provisions of clause are not applicable to the company and hence no Quantitative details are given. Note : 2 Liabilities and Assets : The balance in parties accounts are subject to confirmation and reconciliation, if any. In the opinion of the management all current liabilities and current assets including sundry debtors and loans and advances in the normal course of business would be relize the value at least to the extent stated in the Balance Sheet. Note : 3 Foreign Currency Transactions : No foreign Currency Transactions are done by the company during the year under report. Note : 4 Contigent Liabilites : Provisions involving substantial degree of estimation in measurement are recognised when there is a brsent obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes. Contingent assets are neither recognised nor disclosed in the financial statement. Note : 30 Retirement Benefits: The provisions of payment of Gratuity Act, 1972 are not applicable to the company. Note : 5 Details of Loans given, Investment made and Guarantee given covered under section 186(4) of the Companies Act, 2013: (i) The Company has not given any loans or guarantees. (ii) Investment made by the Company as at 31st March, 2015. Note : 6 The provisions of PF / ESIC Act are not applicable to the company. Note : 7 During the year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from April 01, 2014, the Company revised the estimated useful life of relevant assets to align the useful life with those specified in Schedule II. Note : 8 Segment Reporting : The Company operates in single segment in "Retail Business". Note : 9 As required by the Accounting Standard 18 "Related Party Disclouser" are given below: A. List of Related Parties i) Promoters: Webnet Infoways Limited ii) Key Management Personnel : Shri. Rajesh Mavani (Chief Financial Officer w.e.f. 28.03.2015) Shri. Kamal Agrawal- Chief Executive Officer (w.e.f. 01.04.2015) Shri. Pradeep Vyas (Company Secretary appointed w.e.f. 27.05.2015) B. Transaction with Related Parties : ( Previous year figures in italics) i) With related party referred to in a (i) above : - Advance given : NIL (Rs. 1,30,30,000/-) - Advance received back : NIL (2,01,02,000/-) i) Key Management Personnel & other relatives: - Commission paid: Rs. 5,000/- (Rs. NIL ) C. No Balances were outstanding at the end of the current year (P.Y. NIL) from / to any of the Related parties; Note: Related party relationships are identified by the Company and relied upon by the Auditors. Note : 10 The brvious year figures have been accordingly regrouped/reclassified and brsented to conform to the current year's classification. Figures have been rounded off to nearest rupee wherever applicable. "As per our Report of even date" For Ajmera Ajmera & Associates, Firm Registration No. 123989W Chartered Accountants Amit Khandelwal Non-Exe.Chairman A.B. Sharma Director Sandeep Ajmera Partner Membership No. 48277 For and on Behalf of the Board Rajesh Mavani Chief Financial Officer Pradeep Vyas Company Secretary PLACE : Mumbai DATE : 27.05.2015 |