ACCOUNTING POLICIES Significant accounting policies are summarized below: 1.1 Basis of accounting and brparation of financial statements The financial statements of the Company have been brpared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been brpared on accrual basis under the historical cost convention. The accounting policies adopted in the brparation of the financial statements are consistent with those followed in the brvious year. 1.2 Use of estimates The brparation of financial statements requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provision for doubtful debts, employee benefits, provision for income taxes, accounting for contract costs expected to be incurred, the useful lives of debrciable fixed assets and provisions for impairment. 1.3 Revenue recognition Sale of goods Sales are recognised, net of returns , on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the delivery of goods to customers. Sales have been accounted excluding sales tax and value added tax. 1.4 Inventories Inventories are valued at the lower of cost or net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods including freight, inventories recorded in the books as on 31st March, 2015 are based upon the physical verification done by managment by actual count, weight or measurement. 1.5 Cash and cash equivalents (for purposes of Cash Flow Statement) Cash comprises cash in hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value. 1.6 Cash flow statement Cash flows are reported using the indirect method. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. The Statement has been brpared by the company in accordance with the requirement of clause 32 of Listing Agreement with Delhi Stock Exchange and is based on AS-3, issued by the ICAI. 1.7 Fixed Assets and Debrciation Fixed Assets are stated at cost of acquisition less debrciation. All costs attributable to bring the fixed assets to working condition are capitalized. Debrciation has been provided on the written down value method , at the rates brscribed in Schedule XIV to the Companies Act, 1956. 1.8 Investments Investments are stated at cost. 1.9 Foreign currency transactions There are no foreign currency transactions involved during the year under review Employee benefits No Contribution to Provident Fund and no provision for gratuity has been made since there is no employee covered under the Provident Fund Act and Payment of Gratuity Act. 1.10 Segment reporting The company runs in single segment hence segment reporting is not required. 1.11 Earnings per share Basic earnings per share is computed and disclosed using weighted average number of equity shares outstanding during the year. Since company does not fall in any of the categories, it is not required to disclose diluted earnings per share. 1.12 Taxes on income Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantially enacted as at the reporting date. Deferred tax liability are reviewed at each Balance Sheet date for their realisability. 1.13 Provisions and contingencies Disputed liabilities and claims against the Company including claims raised by fiscal authorities (e.g. Sales Tax , IncomeTax, Service Tax etc.), pending in appeal/court for which no reliable estimate can be made of the amount of the obligation are not provided for in accounts but disclosed in notes to accounts. A provision is recognised when the Company has a brsent obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates. 1.14 Service tax input credit Service tax is not applicable to the company. 2 NOTES TO ACCOUNTS 2.1 The Revised Schedule VI has become effective from 1st April, 2011 for the brparation of financial statements. This has significantly impacted the disclosure and brsentation made in the financial statements. Previous year’s figures have been regrouped / reclassified wherever necessary to correspond with the current year’s classification / disclosure. 2.3 Contingent Liabilities There are no contingent liabilities at the year ended on 31st March,2015 In terms of our report attached FOR J.K. MONGA & ASSOCIATES For and on behalf of the Board of Directors CHARTERED ACCOUNTANTS FRNO. 005747N (JAYANT K. MONGA) Partner Membership No. 84641 (PRATAP BURMAN) Director DIN : 00595389 (CHANCHALA BURMAN) Director DIN : 00720455 (NEELAM NAILWAL) Company Secretary Membership No. A 33377 (NARESH KUMAR BANSAL) CFO (BAPI KARMAKAR) CFO Place: New Delhi Date : 30th May, 2015 |