Notes on Financial Statements for the Period ended 31st March 2015 Note 1 Company Information & Accounting Policies Company Information The company is incorporated on 25th August, 1982 at Calcutta, West Bengal, India. It is a Public limited company by its shares. Accounting Policies Basis of Preparation of Financial Statements The accounts have been brpared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standards notified under Section 211(3c) of the Companies Act, 1956 and the relevant provisions thereof. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. and the relevant provisions thereof which continue to be applicable in respect of Section 133 of Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs. Based on the nature of products and the time between acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current / non-current classification of assets and liabilities. Use of Estimates The brparation of the financial statements in conformity with the generally accepted principles requires the management to make estimates and assumptions that effect the reported amount of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. The estimates and assumptions used in the accompanying financial statements are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from that estimates and assumptions used in brparing the accompanying financial statements. Any differences of actual results to such estimates are recognized in the period in which the results are known / materialized. Cash Flow Statement Cash flow statement has been brpared in accordance with the "indirect method" as explained in the AS-3 issued by the Institute of Chartered Accountants of India. Fixed Assets & Debrciation Fixed Assets are stated at cost less accumulated debrciation thereon. Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its brviously assessed standard of performance. Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their book value and net realisable value and are shown separately in the financial statements under Other Current Assets. Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the profit and loss account The cost of fixed assets comprises purchase price and any attributable cost of bringing the assets to its working condition for its intended use. The Company provides pro-rata debrciation from the date on which assets is acquired / put to use. Debrciation is provided on the Writtrn Down value method over the estimated useful lives of the assets or the rates brscribed under Schedule XIV of the Companies Act, 1956, whichever is higher. In respect of assets sold, prorata debrciation is provided upto the date on which assets is sold. On all assets debrciation has been provided using the Written Down Value method at the rates specified in Schedule XIV to the Companies Act, 1956.and the relevant provisions thereof which continue to be applicable in respect of Section 133 of Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs. Intangible Assets & Amortisation Intangibles assets are stated at cost less accumulated amortisation. These are being amortised over the estimated useful life, as determined by the management. Leasehold land is amortised over the primary period of the lease. Revenue Recognition Revenue is recognized to the extent it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized. a) Income is recognized on accrual basis as soon as the sale takes place and ownership transfer. Other Income Recognition Interest on investments is booked on a time proportion basis taking into account the amounts invested and the rate of interest. Dividend income on investments is accounted for when the right to receive the payment is established. Purchase Purchase is recognized on passing of ownership in share based on broker's purchase note as well as for textile materials based on purchase invoices along with challans. Expenditure Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities. Investments Current investments are stated at the lower of cost and fair value. Long-term investments are stated at cost. A provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments. Investments are classified into current and long-term investments. Investments that are readily realisable and are intended to be held for not more than one year from the date on which such investments are made, are classified as current investments. All other investments are classified as non current investments. Cash & Cash Equivalents The Company considers all highly liquid financial instruments, which are readily convertible into cash and have original maturities of three months or less from the date of purchase, to be cash equivalents. Impairment of Assets An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there is a change in the estimated recoverable value. Taxation Provision for current Income Tax is made on the taxable income using the applicable tax rates and tax laws. Deferred tax assets or liabilities arising on account of timing differences between book and tax profits, which are capable of reversal in one or more subsequent years is recognized using tax rate and tax laws that have been enacted or subsequently enacted. Deferred tax asset in respect of unabsorbed debrciation and carry forward losses are not recognized unless there is sufficient assurance that there will be sufficient future taxable income available to realize such losses. Earnings per Share Basic earning per share is calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods brsented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources. For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares. Stock in Trade Shares are valued at cost or market value, whichever is lower. Contingent Liabilities & Provisions A provision is recognised when there is a brsent obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its brsent value and is determined based on the best estimate required to settle the obligation at the year end date These are reviewed at each year end date and adjusted to reflect the best current estimate Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a brsent obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made. Other Notes and Additional Information forming part of Financial Statements i) In the opinion of the management, current assets, loans and advances and other receivables have realizable value of at least the amounts at which they are stated in the accounts Note 2.1 The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure, if any, relating to amount unpaid as at the year end together with interest paid/payable as required under the said act, have not been given. Note 2.2 The Payment of Gratuity Act, 1972 is not applicable to the company as the number of permanent employees in the company are below ten, Note 2.3 There are no impairment of Assets, as the management is of the opinion that the carrying value of assets is more than the realizable value as on 31st March, 2015. Note. 2.4 Related Party Disclosures: Directors are Key Management Personnel of the Company Directors of the Company 1) Amit Khemka 2) Purushottam Khandelwal 3) Vishal Kr. Saraswat 4) Bharti Fogla 5) Nand Kishore Fogla Note 2.5 Events Occurring after Balance Sheet Date No significant events which could effect the financial position as on March 31, 2015, to a material extent have been reported by the management, after the balance sheet date till the signing of the report. Note 2.6 Details of Loans given, Investments made, guarantees given covered under section 186(4) of The Companies Act, 2013 Details of loan given during the year is seperately attached.Investments made are disclosed with respective note, further no guarantee has been given by the Company. Note 2.7 Previous year's figures have been re-arranged and re-grouped wherever considered necessary. As per report of even date For BHARAT D. SARAWGEE & CO. Chartered Accountants Firm Regn. No.326264E Bharat D. Sarawgee Partner Membership No.F61505 For and on behalf of the Board JACKSON INVESTMENTS LIMITED Nand Kishore Fogla Director Purushottam Khandelwal Director Rajeev Ghosh CFO Priyanka Agarwal Company Secretary Place: Kolkata Date : 29th May 2015 |