Notes on Financial Statements for the Period ended 31st March 2015 Note 1 Company Information & Accounting Policies Company Information The company is incorporated on 17th April, 1982 at Calcutta, West Bengal, India. It is a Public limited company by its shares. The activities of the company include trading in textiles, investing in shares & other securities and other related activities. Accounting Policies Basis of Preparation of Financial Statements These financial statements have been brpared to comply in all material aspects with Generally Accepted Accounting Principles in India (Indian GAAP), the applicable Accounting Standards brscribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified) and other accounting principles generally accepted in India, to the extent applicable. 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 the Schedule III to the Companies Act, 2013. 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 Tangible Assets Tangible assets are stated at acquisition cost, net of accumulated debrciation and accumulated impairment losses, if any. Subsequent expenditures related to an item of tangible 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 or 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. Debrciation is provided on a pro-rata basis on the Wrtten Down Value Method at the rates brscribed under Schedule II to the Companies Act, 2013 with the exception of the following: - assets costing Rs. 5,000 or less are fully debrciated in the year of purchase. 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 sale takes place. 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. 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 . 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 Stocks are valued at cost or market value, whichever is lower. The comparison of Cost and Market value is done separately for each category of stock. 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 2.18 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 requied under the said act, have not been given Note 2.1 In accordance with the requirement under the Accounting Standard - 22 "Accounting for taxes on Income" the company has accounted for deferred Tax during the year. Consequently the reversal of deferred tax Liability of Rs. 26985/- during the year arising due to timing difference in debrciation & related items has been charged to Profit & Loss account. Note 2.2 Impairment Of Assets The management of the company has during the year carried out technological evaluation for identification of assets, if any , in accordance with Accounting Standard 28. Based on the judgement of the management and as certified by the directors , no provision for impairment is found to be necessary in respect of any assets. to be necessary in respect of any assets. Note2.3 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. Note2.4 Details of Loans given, Investments made, guarantees given covered under section 186(4) of The Companies Act, 2013 Loans given during the year are disclosed by way of seperate sheet, further no investments are made and no guarantees have been given by the Company. Note2.5 Previous Year figures have been rearranged and regrouped wherever considered necessary. |