NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31ST MARCH, 2015 AND STATEMENT OF PROFIT & LOSS FOR THE YEAR ENDED ON 31ST MARCH, 2015. NOTE '1' : NOTES TO ACCOUNTS: i. ACCOUNTING CONCEPTS These financial statements have been brpared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standard notified under the relevant provisions of the Companies Act, 2013. The financial statements are brpared on accrual basis under the historical cost convention. All Assets and liabilities are classified as current or non current as per the Company's normal operating cycle and other criteria set out in Schedule III of the Act. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the company has ascertained its operating cycle as 12 month for the purpose of current- non current classification of assets and liabilities. ii. USE OF ESTIMATES: The brparation of financial statements in conformity with the GAAP requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements,the reported amounts of revenues and expenses during the reported period and the disclosures relating to contingent liabilities as of the date of the financial statements. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in outcomes different from the estimates. Difference between actual results and estimates are recognised in the period in which the results are known or materialise. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods. ii. Revenue Recognition The company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis as a going concern. iii. Investments (i) Recognition and Measurement: Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long-term investments and are carried at cost. However, provision for diminution in value of investments is made to recognise a decline, other than temporary, in the value of the investments. (ii) Presentation and Disclosure: Investments which are readily realisable and intended to be held not more than one year from balance sheet date, are classified as current investments. All other investments are classified as non-current investments. iv. Fixed Assets Fixed Assets are stated at cost less debr ciation. C ost of acquisition, fabrication or cons truction is inclusive of freight, duties and other incidental expenses during construction period. v. Impairment An asset is considered as impaired in accordance with Accounting Standard-28 on impairment of assets when at balance sheet date there are indications of impairment and the carrying amount of the asset exceeds its recoverable amount. The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of profit and loss . vi. Debrciation Debrciation on Fixed Assets is provided to the extent of debrciable amount on the Straight Line Method (SLM). Debrciation is provided based on useful life of the assets as brscribed in Schedule II to the Companies Act,2013. Debrciation on assets sold, discarded, demolished or scrapped, is provided upto the date on which the said asset is sold, discarded, demolished or scrapped. vii. Inventories The Closing stock is valued at lower of cost and net realisable value. viii. Taxes on income Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognised on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Where there is unabsorbed debrciation and carry forward losses, 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. ix. Foreign Currency Transaction Transactions in foreign currencies are recorded at the rate brvalent on the date of transaction. However, Export/Imports remaining unrealised/unpaid till the finalisation of accounts are stated at the exchange rate brvailing at the end of the year. x. Contingent Liabilities Liabilities of contingent nature are not provided for in the books and are disclosed by way of notes on accounts. 2. NOTES ON ACCOUNTS: 1. The brvious year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the brceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year. 2. No amoun t due/ payable to a ny Micro, Small & M edium Ent erprises. 3. Segment Reporting (a) Primary Segment (Business Segment) :-During the year the major operations of the company were trading operation, which constituted more than 90% of the total revenue of the company. Hence no separate disclosure of segments is required. (b) Secondary Segment (Geographical Segment) : The entire sales of company is within India therefore it has only one geographical segment. Hence no separate disclosure of segments is required. 4. Contingent Liabilities:- NIL 5. In the opinion of management, loans & advances and investments are approximately of the value stated, if realised in the ordinary course of business unless and otherwise stated. The provisions of all liabilities are adequate and not in excess of the amount reasonably necessary. 5. Figures have been rounded off to the neares t rupee. In terms of our report of even date For R.MOHNOT & CO., CHARTERED ACCOUNTANTS FIRM REGISTRATION NO.: 001654C (NARENDER MITTAL) PARTNER M.No.:072715 For & on behalf of the Board of Directors KISHORE MEHTA DIN :00043865 DIRECTOR NAWRATAN MALL MEHTA DIN :00858126 DIRECTOR GAURAV KAUSHIK M.No: ACS28821 COMPANY SECRETARY Jaipur May 30, 2015 |