| A. BASIS OF ACCOUNTING
These financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis . GAAP comprises mandatory
accounting standards as prescribed under Section 133 of the Companies
Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules,
2014 and guidelines issued by the Securities and Exchange Board of
India (SEBI). Accounting policies have been consistently applied.
B. USE OF ESTIMATES
The preparation of the financial statements in conformity with GAAP
requires management to make estimates and assumptions that affect the
reported balances of assets and liabilities and disclosures relating to
contingent liabilities as at the date of the financial statements and
reported amounts of income and expenses during the period. Examples of
such estimates include provisions for doubtful debts, future obligations
under employee retirement benefit plans, income taxes, and the useful
lives of tangible assets and intangible assets. - Accounting estimates
could change from period to period. Actual results could differ from
those estimates. Appropriate changes in estimates are made as the
Management becomes aware of changes in circumstances surrounding the
estimates. Changes in estimates are reflected in the consolidated
financial statements in the period in which changes are made and, if
material, their effects are disclosed in the notes.
C. CASH FLOW STATEMENT
Cash flows are reported using the indirect method, whereby profit
before tax is adjusted for the effects of transactions of non-cash
nature and defferals and accruals of past or future cash receipts or
payments.
Cash & cash equivalent comprises cash on hand and deposit with
financial insitutions, highly liquid investments which are readily
convertible into cash.
D. IMPAIRMENT OF ASSETS
An asset is concerned 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, or
where applicable the cash generating unit to which the asset belongs,
exists is recoverable amount (i.e. the higher of the asset's net
selling price and value in use). The assets of the company are
considered impaired and no Impairment loss has been recognised in the
financial statements.
E. CONTINGENT LIABILITY
Contingent liabilities as defined in accounting standard 29 on
"provisions, contingent liabilities and contingent assets" are
disclosed by way of notes to the accounts. Provision is made if it is
probable that an outflow of future economic benefits will be required
for an item previously dealt with as a contingent liability. There were
no transactions covered under this category and no provision has been
made during this year.
F. ACCOUNTING FOR TAXES ON INCOME
Income taxes are accounted for in accordance AS 22 "Accounting for
Taxes and Income" issued by the ICAI. Tax expense comprises both
current and deferred tax. Current tax is measured at the amount
expected to be paid to/ recovered from the tax authorities using the
applicable tax rates. Deferred tax assets and liabilities are
recognized for future tax consequences attributable to timing
difference between taxable income and accounting income that are
capable of reversing in or more subsequent periods and or measured
using relevant enacted tax rates. At each Balance Sheet, the Company
reassesses unrecognized deferred tax assets to the extent they have
become reasonably certain or virtually certain of realization, as the
case may be.
G. EMPLOYEE BENEFITS Defined Contribution Plan
As there are less number of employees on the roll of company, the
company has not devised any recognised contribution plan.
H. FOREIGN CURRENCY TRANSACTION
There is no foreign currency transaction during the financial year
2014-15, hence there is no exchange difference.
I. SEGMENT REPORTING
As The Company has closed down its operation, there are no separate
reportable segments as per Accounting Standard (AS) 17 "Segment
Reporting "
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