Mar 31, 2018
STATEMENT ON SIGNIFICANT ACCOUNTING POLICIES
1. STATMENT ON SIGNIFICANTACCOUNTLNG POLICIES
This note provides a list of the Significant Accounting Policies adopted in the preparation of these Financial Statements. These policies have been consistently applied to all the years presented, unless otherwise stated.
1.1 BASIS FOR PREPARATION OF ACCOUNTS
a) Statement of compliance with Ind AS
The Standalone Financial Statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under Section133 of the Companies Act, 2013 (the Act) [Companies (Indian Accounting Standards) Rules,2015] and other relevant provisions of the Act.
The Financial statements for the year ended 31st March 2017 were prepared in accordance with the accounting standards notified under Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act.
These Financial Statements for the year ended 31st March, 2018 are the first financial statements of the Company under Ind AS. The date of transition to Ind AS is 1st April, 2017. The transition from Indian GAAP (IGAAP) to Ind AS has not affected the reporting of companyâs financial position, financial performance and Cash Flow. An explanation of how the transition from previous GAAP to Ind AS has affected the presentation of Companiesâ Balance Sheet and Statement of Profit and Loss, is set out in Note 1.1.1 to 1.1.3
b) Current versus Non-Current classification
All assets and liabilities have been classified as Current or Non-Current as per the Companyâs normal operation cycle
i.e. twelve months and other criteria set out in the Schedule III of the Act.
c) Historical Cost Convention
The financial statements are prepared on accrual basis of accounting under historical cost convention in accordance with Generally Accepted Accounting Principles in India and the relevant provisions of the Companies Act, 2013 including Indian Accounting Standards notified There under.
1.2 USE OF ESTIMATES
The presentation of the financial statements are in conformity with the Ind AS which requires the management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on managementâs evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.
This notes provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the Financial Statements.
Information about assumption and estimation uncertainties that have a significant risk of resulting in a material adjustment within the next financial year are included in the following note:
1.3 REVENUE RECOGNITION
i) Sale of Goods
Revenue from the sale of goods is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer and no significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods. Revenue from the sale of goods is measured at the fair value of the consideration received or receivable, net of returns and allowances, related discounts and volume rebates. A. Sales are stated exclusive of value added tax/Goods & Service Tax.
ii) Profit/(Loss) on derivatives
Profit/ (Loss) on derivatives contracts which have matured/ squared up during the year are changed to Profit and Loss Account. The Company enters into certain derivative contracts which may or may not be designated as hedges.
iii) Interest
Interest is recognized on time proportion basis.
iv) Other Income
Other Income by way of Interest on Fixed Deposits is recognized on time proportion basis
1.4 PROPERTY, PLANT AND EQUIPMENTS TANGIBLE ASSETS
Items of Property, Plant and Equipment are stated at historical cost less depreciation. Historical cost includes expenditure that is directly attributable to the acquisition of the items.
Transition to Ind AS
On transition to Ind AS, the Company has elected to continue with the carrying value of all of its Property, Plant and Equipment recognized as at 1 April 2017 measured as per the IGAAP and use that carrying value as the deemed cost of the property, plant and equipment hence regarded thereafter as historical cost.
1.5 DEPRECIATON AND AMORTISATION
Depreciation is calculated to systematically allocate the cost of Property, Plant and
Equipment net of the estimated residual values over the estimated useful life. Depreciation is computed using Straight Line Method (SLM) over the useful lives of the assets as specified in Schedule II to the Companies Act, 2013.
The residual values are not more than 5% of the original cost of the item of Property, Plant and Equipment. The assetâs residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Assets Amortization Period
Computers 3 Years
1.6 FINANCIAL ASSETS & LIABILITIES
Financial Assets and Liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.
Cash and Cash Equivalents
The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subjects to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash Equivalents consist of balances with banks which are unrestricted for withdrawal and usage.
Trade Payables
These amounts represent liability for good and services provided to the Company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period.
Trade Receivables
These amounts represent receivables for goods and service provided by the company prior to the end of financial year which are unpaid. The amounts are unsecured and are usually received within 30 days of recognition. Trade and other receivables are presented as current assets unless payment is not due within 12 months after the reporting period.
1.7 INVENTORIES
Items of Inventory are measured at lower of the cost and Net Realizable value. Cost of Inventory comprises of cost of purchase and other cost Incurred to acquire it.
The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.
1.8 EMPLOYEE BENEFITS
The company operates the following post-employment schemes:
A. Defined benefits plans Gratuity; Fund
B. Defined contribution Plan - Provident Fund Defined benefit plans Gratuity
The company provides for gratuity, a defined benefit retirement plan (âthe Gratuity Planâ) covering eligible employees. The Gratuity Plan provides a lump-sum payment to vested employees at retirement, death, Incapacitation or termination of employment, of an amount based on the respective employeeâs salary and the tenure of employment with the Company. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method. The Company recognizes the net obligation of a defined plan in its Balance Sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability / asset are recognized in net profit in the Statement of Profit and Loss.
Defined Contribution Plans
Eligible employees of company receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employeeâs salary. The Company contributes a portion to recognized provident Fund set up by Employees
Provident Fund Organization of India which is deposited to government account within due date as set under Employeesâ Provident Funds & Miscellaneous Provisions Act, 1952. The rate at which the annual interest is payable to the beneficiaries by the trust is being administered by the Government.
1.9 VAT / GST
VAT / GST Credit of Stock in Trade and Other Consumables is accounted at the time of purchase and the same is being adjusted to pay the tax liability arising due to outward supply of Goods/Services.
1.10 ACCOUNTING FOR TAXES ON INCOME
Income Taxes
The income tax expense is the tax payable on the current periodâs taxable income based on the applicable income tax rate for each jurisdiction adjusted by changes in Deferred Tax Assets and Liabilities attributable to temporary difference.
The current income tax charge is calculated on the basis of the laws enacted or substantively enacted at the end of the reporting period i.e. as per the provisions of the Income Tax Act, 1961, as amended from time to time. Management periodically evaluates positions taken in tax returns with respect to situation in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on the rates and tax laws enacted or substantively enacted, at the reporting date in the country where the Company operates and generates taxable income.
Deferred Taxes
Deferred tax is provided in full on temporary difference arising between the tax bases of the assets and liabilities and their carrying amounts in standalone financial statements. Deferred tax amounts of income taxes recoverable in future periods in respect of deductible temporary differences.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled.
Deferred Tax Assets are recognized for all deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilize those temporary differences and losses.
Deferred Tax Assets and Liabilities are offset when there is a legally Enforceable right to offset current tax assets and liabilities and when the Deferred tax balances relate to the same taxation authority. Current and Deferred Tax is recognized in the Statement of Profit and Loss The carrying amount of Deferred Tax Assets is reviewed at each Reporting date and reduced to the extent that it is no longer probable That sufficient taxable profit will be available to allow all or part of the Deferred Tax Asset to be utilized. Unrecognized Deferred Tax Assets are Re-assessed at each reporting date and are recognized to the extent that It has become probable that future taxable profits will allow the deferred Tax asset to be recovered.
1.11 PROVISIONS
Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement. Provisions are not recognized for future operating losses.
Provisions are measured at the present value of managementâs best estimate of the expenditure required to settle the present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.
1.12 CONTINGENT LIABILITIES
Contingent Liabilities are not provided for till the same are crystallized.
1.13 EARNING PER SHARE
Basic Earnings per Share Basic Earnings per Share is calculated by dividing the profit attributable to owners of the Company by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the companyâs earnings per share are the net profit for the period after deducting preference dividends, if any, for the period.
1.14 CASH AND CASH EQUIPMENTS
Cash and Cash Equivalents comprise cash and deposits with banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents. For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions and other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
1.15 STATEMENT OF CASH FLOWS
Cash Flows are reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing Cash Flows. The cash flows from operating, investing and financing activities of the Company are segregated.
Mar 31, 2015
A ACCOUNTING CONVENTION
a. The financial accounts are prepared as a going concern under the
historical cost convention on an a accrual basis except those with
significant uncertainties and are in accordance with the Companies
Act,2013
b. Accounting policies not stated explicitly otherwise are consistent
and in consonance with generally accepted accounting principles followed
by the Company
B USE OF ESTIMATES
a. The preparation of financial statements requires estimates and
assumptions to be made that affect the a reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period
b. Differences between the actual results and estimates are recognised
in the period in which the results are known/materialized
C CONTINGENT LIABILITIES
Contingent Liabilities are not provided for till the same are
crystallized
D REVENUE RECOGNINTION
a Interest income is recognised on time proportion basis
b. Revenue is recognised only when it can be reliably measured and it is
reasonable to except ultimate collection.
E PROVISION FOR CURRENT AND DEFFERED TAX
a. Provision for current tax is made on the basis of taxable income for
the current accounting year determined in accordance with the Income tax
Act,1961
b Deferred tax is recognised, subject to consideration of prudence, on
timing difference, being the difference between taxable income and
accounting income that originate in one period are capable of reversal
in one or more subsequent periods
Mar 31, 2014
1 ACCOUNTING CONVENTION
The financial statements are prepared on accrual basis, under the
historical cost convention in accordance with the generally accepted
accounting principles in India, the Accounting Standards issued by the
Institute of Chartered Accountants of India and the requirements of the
Companies Act, 1956.
2 FIXED ASSETS
The company has disposed off the fixed asset during the year.
3 DEPRECIATION:
Since the company has disposed off the fixed asset, there is no
depreciation.
4 Other Accounting Policies
These are consistent with general accepted Accounting practice.
5 EARNINGS PER SHARE
The earnings per share is calculated by dividing the net profit /
(loss) for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year.
The company has not issued any potential equity shares.
Mar 31, 2013
1 ACCOUNTING CONVENTION
The financial statements are prepared on accrual basis, under the
historical cost convention in accordance with the generally accepted
accounting principles in India, the Accounting Standards issued by the
Institute of Chartered Accountants of India and the requirements of the
Companies Act, 1956.
2 FIXED ASSETS
The fixed assets are valued at cost less accumulated depreciatiion.
Depreciation is provided on WDV method at the rates and manner
prescribed in the Companies Act, 1956. 3 DEPRECIATION:
3 DEPRECIATION
The company has provided depreciation on its assets on written down
value method basis as per the rates provided in Schedule XIV of the
Companies Act.
4 Other Accounting Policies
These are consistent with general accepted Accounting practice.
5 EARNINGS PER SHARE
The earnings per share is calculated by dividing the net profit /
(loss) for the year attributable to the equity shareholders by the
weighted average number of equity shares outstanding during the year.
The company has not issued any potential equity shares.
6 CONTINGENT LIABILITIES
As stated by the directors, company does not have any contingent
liabilities in the contract Execution/Completion.
Mar 31, 2011
A) Accounting Convention
The financial statements are prepared on accrual basis, under the
historical cost convention, in accordance with the generally accepted
accounting principles in India, the Accounting Standards issued by the
Institute of Chartered Accountants of India and the requirements of the
Companies Act, 1956.
b) Fixed Assets
Fixed assets are carried at cost of acquisition less accumulated
depreciation.
c) Depreciation
The Company has provided depreciation on its assets on written down
value method basis as per the rates provided in Schedule XIV of the
Companies Act.
d) Other Accounting Policies
These are consistent with general accepted Accounting practice.
Mar 31, 2010
A) Accounting Convention
The financial statements are prepared on accrual basis, under the
historical cost convention, in accordance with the generally accepted
accounting principles in India, the Accounting Standards issued by the
Institute of Chartered Accountants of India and the requirements of the
Companies Act, 1956.
b) Fixed Assets
Fixed assets are carried at cost of acquisition less accumulated
depreciation.
c) Depreciation
The Company has provided depreciation on its assets on written down
value method basis as per the rates provided in Schedule XIV of the
Companies Act.
d) Other Accounting Policies
These are consistent with general accepted Accounting practice.