Mar 31, 2015
A) Basis of Accounting
The accounts of the Company are prepared under the historical cost
convention and are in accordance with the applicable accounting
standards and accordingly accrual basis of accounting is followed for
recognition of income and expenses except where otherwise stated and
where the exact quantum is not ascertainable. Expenditure on issue of
share capital, if any, is accounted when actually incurred.
b) Revenue Recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured. The following specific recognition criteria are met
before revenue is recognized:
(i) Sales are recognised on dispatch to the customers and recorded net
of trade discounts, rebates, etc.
(ii) Interest income is recognised on a time proportion basis taking
in to account the amount outstanding and the applicable interest rate
(iii) Dividend income is recognised when the company's right to
receive dividend is established on the reporting date.
(iv) Other Income account on accrual basis
c) Fixed Assets
Fixed assets are stated at total capitalized costs relating and
attributable directly or indirectly to acquisition and installation
thereof as reduced by the accumulated depreciation thereon.
d) Depreciation/Amortization
Depreciation is provided on pro-rata basis on Straight Line Method at
the rate prescribed under schedule II to the Companies Act, 2013 with
the exception of the following:
(i) Assets costing Rs. 5000/- or less are fully depreciated in the year
of purchased
e) Inventories
Inventories are valued as follows:
(i) Raw Materials, Stores and Spares: at cost
(ii) Work in Progress: at lower of estimated cost or net realizable
value
(iii) Waste Materials, Damaged goods, Scrap: if any at net estimated
realizable value (iii) Finished Goods: at lower of cost or market
value.
f) Investments
Investments that are intended to be held for more than a year, from
the date of acquisition are classified as long term investment are
carried at cost less any provision for permanent diminution in value.
Investments other than long term investments are being current
investments are valued at cost or fair market value whichever is
lower.
g) Assets & Liabilities
The Assets and Liabilities are taken at the book value certified by
the Management
h) Foreign Currency Transactions
Foreign Currency Transactions are normally recorded at the exchange
rate, prevailing on the date of transaction or conversion, as the case
may be.
i) Taxes on Income
(i) Current Tax: Provision for Income Tax is determined in accordance
with the provisions of Income Tax Act, 1961.
(ii) Deferred Tax Provision: Deferred Tax is recognized on timing
differences between the accounting income and the taxable income for
the year, and quantified using the tax rates and laws enacted or
substantively enacted on the Balance Sheet date.
Deferred Tax Assets are recognized and carried forward to the extent
that there is a reasonable certainty that sufficient future taxable
income will be available against which such Deferred Tax Assets can
realized.
j) Miscellaneous Expenditure
Preliminary expenses / shares issue expenses etc. are not amortise
during the year.
k) Use of Estimates
The Preparation of the Financial statements in conformity with the
generally accepted accounting principles require the Management to
make estimates and assumptions that affect the reported amount of
assets, liabilities, revenue and expenses and disclosure of contingent
liabilities on the date of the financial statements. Actual results
could differ from the estimates. Any revision to accounting estimates
is recognised prospectively in current and future periods.
l) Previous year's figures
The Previous year's figures have been recast/restated, wherever
necessary to confirm to current year classification.
m) Loans & advances
Advances recoverable in cash, kind or value to be received are
primarily towards prepayments for value to be received and same has
been confirmed by the management.
Sundry Debtors, Creditors, Loans & Advances and bank balances are
stated as appear in the books of accounts in the ordinary course of
business. The balances are un-confirmed and are subject to
confirmation from the party/Bank.
Micro, Small and Medium Enterprises:-
There are no Micro, Small & Medium Enterprises in respect of whom the
company's dues are outstanding for more than 45 days as at the balance
sheet date
Mar 31, 2014
(a) Current/Non Current classification of assets and liabilities
As required by Revised Schedule VI, the Company has classified assets
and liabilities into current and non- current based on the operating
cycle. An operating cycle is the time between the acquisition of assets
for processing and their realisation in cash or cash equivalents. Since
in case of non-banking financial Company normal operating cycle is not
readily determinable, the operating cycle has been considered as 12
months.
(b) Use of estimates
The preparation of financial statements in conformity with Indian
Generally Accepted Accounting Principles ("IGAAP") requires the
management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities and the
disclosure of contingent liabilities, at the end of the reporting
period. 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 the outcomes requiring a
material adjustment to the carrying amounts of assets or liabilities in
future periods.
(c) Tangible Fixed assets
Tangible Fixed assets are stated at cost less accumulated depreciation
and impairment losses, if any. Cost comprises of purchase price and any
other directly attributable costs of bringing the asset to its working
condition for its intended use. Subsequent expenditure related to an
item of fixed asset is added to its book value only if it increases the
future benefits for existing assets beyond its previously assessed
standard of performance. All other expenses on existing fixed assets,
including day to day repair and maintenance expenditure and cost of
replacing parts, are charged to the statement of profit and loss for
the period during which such expenses are incurred.
Gains or losses arising from derecognition of fixed assets are measured
as the difference between the net disposal proceeds and the carrying
amount of the asset and are recognized in the statement of profit and
loss
i when the asset is derecognized.
(d) Intangible assets
; Intangible assets acquired separately are measured on initial
recognition at cost. Following initial recognition, intangible assets
are carried at cost less accumulated amortization and accumulated
impairment losses, if any.
j Internally generated intangible assets, excluding capitalized
development costs, are not capitalized and expenditure is reflected in
the statement of profit and loss in the year in which the expenditure
is incurred. |
i Subsequent expenditure related to an item of fixed asset is added to
its book value only if it increases the future benefits for existing
assets beyond its previously assessed standard of performance. All
other expenses on existing fixed assets, including day to day repair
and maintenance expenditure and cost of replacing parts, are charged to
the statement of profit and loss for the period during which such
expenses are incurred.
Intangible assets are amortized on a straight line basis over the
estimated useful economic life. Intangible assets not yet available for
use are tested for impairment annually. All other intangible assets
are assessed for impairment whenever there is an indication that the
intangible asset may be impaired.
Gains or losses arising from derecognition of an intangible asset are
measured as the difference between the net disposal proceeds and the
carrying amount of the asset and are recognized in the statement of
profit and loss when the asset is derecognized. |
(e) Depreciation on Tangible asset/Amortisation of Intangible asset I
Depreciation on tangible assets is provided using straight line method
at the rates prescribed under Schedule XIV of the Companies Act, 1956.
Leasehold improvements are depreciated on straight line basis over
shorter of useful lives or primary period of lease agreements which
ranges from three to five years.
Intangible assets includes domain names, trademarks, copyrights and
computer software, which are acquired, capitalized and amortized on a
straight-line basis over the estimated useful lives of 5 years.
All fixed assets costing Rs. 5,000 or less individually are fully
depreciated/amortised in the year of purchase.
(f) Loans I Loans are stated at the amount advanced, as reduced by the
amounts received up to the balance sheet date and loans assigned.
(g) Impairment of Assets f
; The carrying amounts of assets are reviewed at each balance sheet
date if there is any indication of impairment based on
internal/external factors. An impairment loss is recognized wherever
the carrying amount of an asset exceeds its recoverable amount. The
recoverable amount is the greater of the asset''s net selling price and
value in use. In assessing value in use, the estimated future cash
flows are discounted at the pre tax discount rate reflecting current
market assessment of time value of money and risks specific to asset.
After impairment, depreciation is provided on the revised carrying
amount of the assets over its remaining life. A previously recognised
impairment loss is increased or reversed depending on changes in
circumstances.
However the carrying value after reversal is not increased beyond the
carrying value that would have prevailed by charging usual depreciation
if there was no impairment.
(h) Investments
On Initial recognition, all investments are measured at cost.
Investments that are readily realisable and intended to be held for not
more than a year from the date on which such investments are made are
classified as current investments. All other investments are classified
as long-term investments. Current investments are carried at cost.
However, provision for diminution in value is made to recognise a
decline other than temporary in the value of the investments. Unquoted
investments in units of mutual funds are stated at net asset value.
(i) Revenue recognition
Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.
Interest income
Interest income from Retail loans is accounted based on applying
Internal Rate of Return (''IRR'') and from other loans is accounted based
on applying interest rate implicit in the contract. In case of
non-performing assets interest income is recognised on receipt basis as
per NBFC prudential norms.
Interest on all other assets is recognised on time proportion basis.
Income on discounted instruments
Income on discounted instruments is recognised over the tenor of the
instrument on straight line basis.
Fee income
Fee income on loans and subvention income is recognised as income
over the tenor of the loan agreements.
The unamortized balance is being disclosed as part of current
liabilities. For the agreements foreclosed/transferred through
assignment, balance of processing fees and subvention income is
recognised as income at the time of such foreclosure/ transfer through
assignment.
Commission and brokerage income
Commission and brokerage income earned for the services rendered are
recognised as and when they are due. Income from Assignment of loans
and receivables Income from assignment of loans and receivables is
amortised over the tenure of loans in accordance with the RBI circular
"Revisions to the Guidelines on Securitisation Transactions" dated
August 21, 2012.
Income on retained interest in the assigned asset, if any, is
accounted on accrual basis.
Dividend income
Dividend income is recognised when the shareholders'' right to receive
payment is established by the balance sheet date. Dividend from the
units of mutual funds is recognized on receipt basis in accordance with
the NBFC Regulation.
Profit/Loss on sale of investments
Profit/loss earned on sale of investments is recognised on trade date
basis. Profit or loss on sale of investments is determined on the basis
of the weighted average cost method.
On disposal of an investment, the difference between its carrying
amount and net disposal proceeds is charged or credited to the
statement of profit and loss.
(j) Accounting for Derivative Instruments Derivatives are financial
instruments falling under the category of "fair value through profit
and loss" as defined under Accounting Standard (AS) 30 - Financial
Instruments: Recognition and Measurement.
The Company has used derivative financial instruments such as commodity
futures for trading purpose which are initially recorded at fair value.
The same are subsequently measured at fair value at each reporting date
with their fair valuation gain/loss taken to Statement of Profit &
Loss.
On final settlement or squaring up of contracts for commodity futures,
the realised profit or loss after adjusting the unrealised loss, if
any, is recognised in the Statement of Profit & Loss.
(k) Securities issue expenses
Securities issue expenses are debited against securities premium
account in accordance with the provisions of Section 78 of the
Companies Act, 1956.
(l) Retirement and other employee benefits
Retirement benefit in the form of provident fund is a defined
contribution scheme. The Company has no obligation, other than the
contribution payable to the provident fund. The Company recognizes
contribution payable to the provident fund scheme as expenditure, when
an employee renders the related service. If the contribution payable to
the scheme for service received before the balance sheet date exceeds
the contribution already paid, the deficit payable to the scheme is
recognized as a liability after deducting the contribution already
paid. If the contribution already paid exceeds the contribution due for
services received before the balance sheet date, then excess is
recognized as an asset to the extent that the pre payment will lead to,
for example, a reduction in future payment or a cash refund.
Gratuity
The Company provides for the gratuity, a defined benefit retirement
plan covering all employees. The plan provides for lump sum payments to
employees upon death while in employment or on separation from
employment after serving for the stipulated year mentioned under ''The
Payment of Gratuity Act, 1972''. The Company accounts for liability of
future gratuity benefits based on an external actuarial valuation on
projected unit credit method carried out for assessing liability as at
the reporting date.
Actuarial gains and losses arising from experience adjustments and
change in actuarial assumptions are recognised in the statement of
profit and loss in the period in which they arise.
(m) Leave encashment
Earned leave during the financial year and remaining unutilized will be
encased at the yearend based on basic salary. The Company presents the
entire leave as a current liability in the balance sheet, since it does
not have an unconditional right to defer its settlement for twelve
months after the reporting date.
(n) Borrowing costs
Borrowing costs consists of interest and other ancillary cost that an
entity incurs in connection with borrowing of funds. Ancillary costs
incurred in connection with the arrangement of borrowings are amortised
over the tenor of borrowings.
(o) Loan origination cost
Loan origination costs such as credit verification, agreement stamping,
direct selling agents commission and valuation charges are recognised
as expense over the contractual tenor of the loan agreements. Full
month''s amortization is done in the month in which loans are disbursed.
For the agreements foreclosed or transferred through assignment, the
unamortised portion of the loan acquisition costs is recognised as
charge to the Statement of Profit and Loss at the time of such
foreclosure/transfer through assignment.
(p) Income Taxes
Income tax comprises of current and deferred tax. Current income tax is
measured at the amount expected to be paid to the tax authorities in
accordance with the Income Tax Act, 1961. Deferred income taxes
reflects the impact of current year timing differences between taxable
income and accounting income for the year and reversal of timing
differences of earlier years.
Deferred income taxes reflect the impact of timing differences between
taxable income and accounting income originating during the current
year and reversal of timing differences for the earlier years. Deferred
tax is measured using the tax rates and the tax laws enacted or
substantively enacted at the reporting date. Deferred income tax
relating to items recognized directly in equity is recognized in equity
and not in the statement of profit and loss.
Deferred tax liabilities are recognized for all taxable timing
differences. Deferred tax assets are recognized for deductible timing
differences only to the extent that there is reasonable certainty that
sufficient future taxable income will be available against which such
deferred tax assets can be realized. In situations where the Company
has unabsorbed depreciation or carry forward tax losses, all deferred
tax assets are recognized only if there is virtual certainty supported
by convincing evidence that they can be realized against future taxable
profits.
At each reporting date, the Company re-assesses unrecognized deferred
tax assets. It recognizes unrecognized deferred tax asset to the
extent that it has become reasonably certain or virtually certain, as
the case may be, that sufficient future taxable income will be
available against which such deferred tax assets can be realized.
The carrying amount of deferred tax assets are reviewed at each
reporting date. The Company writes-down the carrying amount of deferred
tax asset to the extent that it is no longer reasonably certain or
virtually certain, as the case may be, that sufficient future taxable
income will be available against which deferred tax asset can be
realized. Any such write-down is reversed to the extent that it becomes
reasonably certain or virtually certain, as the case may be, that
sufficient future taxable income will be available Deferred tax assets
and deferred tax liabilities are offset, if a legally enforceable right
exists to set-off current tax assets against current tax liabilities
and the deferred tax assets and deferred taxes relate to the same
taxable entity and the same taxation authority.
Minimum alternate tax (MAT) paid in a year is charged to the statement
of profit and loss as current tax. The Company recognizes MAT credit
available as an asset only to the extent that there is convincing
evidence that the Company will pay normal income tax during the
specified period, i.e., the period for which MAT credit is allowed to
be carried forward. In the year in which the Company recognizes MAT
credit as an asset in accordance with the Guidance Note on Accounting
for Credit Available in respect of Minimum Alternative Tax under the
Income-tax Act, 1961, the said asset is created by way of credit to the
statement of profit and loss and shown as MAT Credit Entitlement. The
Company reviews the MAT credit entitlement asset at each reporting date
and writes down the asset to the extent the Company does not have
convincing evidence that it will pay normal tax during the specified
period.
(q) Provisioning/Write-off on Overdue assets
The provisioning/write-off on overdue assets is as per the management
estimates, subject to the minimum provision required as per Non-
Banking Financial Companies Prudential Norms (Reserve Bank) Directions,
2007.
The Company accounts for provision for doubtful assets after taking
into account the time lag between an accounts becoming overdue, its
recognition as such and realisation of available security.
Provision on standard assets is made as per the notification
DNBS.PD.CC.No.207/ 03.02.002 /2010-11 issued by Reserve Bank of India.
(r) Earnings per share
Basic earnings per share are 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. 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 are adjusted for the
effects of all dilutive potential equity shares.
(s) Provisions
A provision is recognised when the Company has a present obligation as
a result of past event; it is probable that outflow of resources will
be required to settle the obligation, in respect of which a reliable
estimate can be made. Provisions are not discounted to its present
value and are determined based on 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.
(t) Contingent liabilities
A contingent liability is a possible obligation that arises from past
events whose existence will be confirmed by the occurrence or
non-occurrence of one or more uncertain future events beyond the
control of the Company or a present obligation that is not recognized
because it is not probable that an outflow of resources will be
required to settle the obligation. A contingent liability also arises
in extremely rare cases where there is a liability that cannot be
recognized because it cannot be measured reliably. The Company does not
recognize a contingent liability but discloses its existence in the
financial statements.
(u) Cash and Cash Equivalents
Cash and Cash Equivalents for the purpose of cash flow statement
comprise cash in hand and cash at bank including fixed deposit with
original maturity period of three months and short term highly liquid
investments with an original maturity of three months or less.
Mar 31, 2013
A) Basis for Pre parathion of Financial Statements
Financial statements a new prepared in accordance with generally
accepted accounting principles reloading accounting standards m India
under historical cost convention except so far s they relate to
revaluation of certain land and buildings
b) Use of estimates
The preparation of the financial statements m conformity vim me
generally accepted accounting panicles requires management to mace
estimates and assumptions half affect the reported amounts or assets
and liabilities on the date of the financial statements, disclosure of
congenial liabilities and reported amounts of revenues and expenses tor
the year. Estimates are based on historical experience, where
applicable and other assumptions that managerial believes are
reasonable under me circumstances, actual result could vary from
estimates and any such differences are deal! with m the period in which
the result are known/materialize.
c) Revenue Recognition
I) Revenue from the salts of Textile products is recognized when
delivery is made and invoice to the parties is being made. 10 Road and
Infrastructure work recognized running Account Slims for work
completed are recognized on percentage of completion method based on
completion of physical proportion of the contract worst.
Iv Other income account on accrual basis ,
d) Expenditure
Expenses are accounted on accrual basis and prevision is made for all
known losses and liabilities
e) Inventory
inventories are valued at cost or net realizable value whichever is
lower Cost of Inventory Is determined following vie FIFO basis Finished
goods and Worst In Progress include costs of conversion and other costs
incurred In bunging me Mentone^ lo their present location and
condition as certified by the management.
f) Fixed Assets
Fixed assets are stated at cost of acquisition for assets installed and
put to use less accumulated Depreciation 9) Depreciation
Depreciation on fixed assets has been proved using me straight-line
method as per the Companies Act, 1956 Depredation is charged on
pro-rata basis for assets purchased field during the year
h) Investments
Investments are classified into Current investments and long-term
investments Current Investments are earned al lower of costar market
value and provision is made to recognize any decline in me carrying
value Long-term investments are carried at cost and provision is made
to recognize any decline, other than temporary, m the value of such
investment
1) Retirement Benefits
In view of the number of employees being below the stipulated numbers,
the Provident Fount ESlC. Bonus and payment of Graluity Act are not
applicable to the company for the year
I) Taxation
income-13th extra hominess current tax expense and deterred tax
expense o t credit.
 Current tax
Pm vision for current tax is recognized in accordance with the
provisions of me Indian income Tax Act, 1961 and is made annually based
on tire tax liability after taking creditor tax allowances and
exemptions
 Deferred tax
effaced tax is recounted loin all the timings differences, subject
to the consideration of prudence m respect of deferred tax assets or
liability Deferred tax asset or liability are recognized ants earned
forward only to the extern mat there is a resonate certainly that
sufficient future taxable income win be available against which such
deferred tax asset Of Salty can be realized. Deferred Tax asset or
liabilities are measured sum (tie lax rates and tax laws that have
been enacted 0'' substantively enacted by the Balance sheet dale. Ataxia
Balance Sheet date . me company re-assesses unrecognized deferred tax
assets or liability, if any
Basic EPS is computed using the weighted average number of equity
shares outstanding during me year Diluted EPS Is compute using the
weighted average number of equity and dilutive equity equivalent shares
outstanding during the purred except where the results would be
ant dilutive
k) Provisions and Contingent Liabilities
A provision is recognized when the Company has present obligation as e
result of past events and it Is probable that an outflow of resources
will be required to settle such obligation, In respect of which a
reliable estimate can be made Contingent liabilities not provided for
In the accounts are disclosed in the account by way or notes specifying
the nature and quantum of such liabilities
if other Accounting Policies
Accounting Policies not specifically referred to are consistent win
generally accepted accounting practices.
Mar 31, 2011
1.SIGNIFICANT ACCOUNTING POLICIES
a Basis for Preparation of Financial Statements
The financial statements have been prepared under the historical cost
convention in accordance with Generally Accepted Accounting Principles,
Accounting Standards issued by The Institute of Chartered Accountants
of India and the provisions of The Companies Act 1956, as adopted
consistently by the Company. All income and expenditure having a
material bearing on the financial statements are recognized on accrual
basis.
b Revenue Recognition
Revenue from the sale of Textile products is recognized when delivery
is made and invoice to the parties is being made. Income from land
levelling work is recognized as and when the work has been successfully
accomplished and invoices have been raised to the Customers. In respect
of all other income Company account the same on accrual basis.
c Expenditure
Expenses are accounted on accrual basis and provision is made for all
known losses and liabilities.
d Inventory
Inventories are valued at cost or estimated net realizable value
whichever is lower. Cost of Inventory is determined following the FIFO
basis. Finished goods and Work in Progress include costs of conversion
and other costs incurred in bringing the inventories to their present
location and condition as certified by the management.
e Fixed Assets
Fixed assets are stated at cost of acquisition for assets installed and
put to use less accumulated Depreciation.
f Depreciation
Depreciation on fixed assets has been provided using the straight-line
method as per the Companies Act, 1956. Depreciation is charged on
pro-rata basis for assets purchased/sold during the year.
g Investments
Investments are classified into Current investments and long-term
investments. Current Investments are carried at lower of cost or market
value and provision is made to recognize any decline in the carrying
value. Long-term investments are carried at cost and provision is made
to recognize any decline, other than temporary, in the value of such
investment.
h Retirement Benefits
Contributions to defined contribution schemes such as Provident Fund
are charged to profit and loss account as incurred. The Company does
not provide for any post retirement benefits.
i. Taxation
Income-tax expense comprises current tax expense, and deferred tax
expense or credit
- Current tax
Provision for current tax is recognised in accordance with the
provisions of the Indian Income Tax Act, 1961 and is made annually
based on the tax liability after taking credit for tax allowances and
exemptions.
- Deferred tax
Deferred tax liability or asset is recognized for timing differences
between the profits/losses offered for income taxes and profits/losses
as per the financial statements. Deferred tax assets and liabilities
are measured using the tax rates and tax laws that have been enacted or
substantively enacted at the balance sheet date.
Deferred tax assets are recognised only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carried forward loss
under taxation laws, deferred tax assets are recognised only if there
is a virtual certainty of realisation of such assets. Deferred tax
assets are reviewed as at each balance sheet date and written down or
written up to reflect the amount that is reasonably/virtually certain
to be realized.
j. Earnings per share ('EPS')
Basic EPS is computed using the weighted average number of equity
shares outstanding during the year. Diluted EPS is computed using the
weighted average number of equity and dilutive equity equivalent shares
outstanding during the period except where the results would be
anti-dilutive.
k. Provisions and Contingent Liabilities
The Company recognizes a provision when there is a present obligation
as a result of past event that probably requires an outflow of
resources and a reliable estimate can be made of the amount of the
obligation. A disclosure for contingent liabilities made when there is
a possible obligation or a present obligation that may, but probably
will not, require an outflow of resources. When there is a possible
obligation or a present obligation that the likelihood of outflow of
resources is remote, no provision or disclosure as specified in
Accounting Standard 29-'Provisions, Contingent Liabilities and
Contingent Assets' is made.
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