Note 1 SIGNIFICANT ACCOUNTING POLICIES :
a. Basis of Accounting :
The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act 2013, as adopted consistently by the company. The company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.
The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.
b. Fixed Assets :
Fixed assets are recorded at cost. The Company has provided depreciation on Straight Line method as per the Companies Act, 2013
c. Capital Work In Progress:
All Expenditure incurred relating to Development of Ship Yard are accumulated and shown as Capital Work in Progress.
d. Investments :
The company has not made any investment during the year.
e. Depreciation and Amortization :
The company has provided depreciation on Straight Line Method as per companies Act,2013 and calculation of remaining useful life is based on no of days for which asstes were put to use.
f. Impairment of Assets :
An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The company assesses at each Balance Sheet date whether there is any indication that any assets may be impaired and if such indication exists, the carrying value of such assets is reduced to its recoverable amount and a provision is made for such impairment loss in the statement of Profit & Loss A/c.The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.
g. Employee's Benefit :
Provident Fund,ESIC & LWF : Provident fund,ESIC and LWF contributions are made as per defined scheme and the contribution is charged to statement of Profit & Loss A/c of the year when it becomes due. The company has no other obligation other than to contribute and deposit to respective authorities.
Short term employee benefits are recognized as an expense in the statement of Profit & Loss A/c for the year in which the related service is rendered.
Long term employee benefit are recognized as an expense in the statement of Profit & Loss A/c for the year in which the employee has rendered service.
The Company's gratuity scheme is a defined benefit plan. The Company's net obligation in respect of the gratuity benefit is calculated by estimating the amount of future benefit that the employees have earned in return for their service in the current and prior periods, that benefit is discounted to determine its present value, and the fair value of any plan assets, if any, is deducted. The present value of the obligation under such benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method. The obligation is measured at present values of estimated future cash flows. The discount rates used for determining the present value are based on the market yields on government securities as at the balance sheet date.
h. Deferred Revenue Expenditure :
No Preliminary expenses recorded during the year.
i. Inventories :
Inventories are valued at the lower of cost on FIFO basis and the net realizable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale Work-in-progress and finished goods include appropriate proportion of overhead. Other stock is valued at estimated realizable Value.
j. Foreign Currency Transactions :
No foreign currency transactions during the current year. The foreign currency transaction during the previous year have been reported in notes to accounts and its corresponding exchange gain and loss has been shown in profit & loss account.
k. Lease Transactions :
The Company has been given the possession of G.I.D.C. land on 14-08-2013, to hold the same as Licencee to make necessary construction etc. Lease Deed for 99 years will be executed by G.I.D.C. after completion of construction & subject to compliance of prescribed conditions.
l. Revenue & Recognition :
Income and expenditure are recognized and accounted on accrual basis as and when they are earned or incurred. Revenue from Job Work transaction is recognized as and when job work or part of it is completed.
m. Income Tax :
Income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of Income-tax. Act, 1961.Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of being reversal in one or more subsequent periods.
The company has opted for new simplified tax scheme under section 115BAA of The Income Tax Act, 1961. So, provisions of Mat are not applicable to the company.
n. Earning per Share :
Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.
Diluted earnings per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares into equity shares.
o. Cash & cash Equivalents :
Cash comprises cash on hand and demand deposits with banks. Cash equivalents are term deposit balances, highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.
p. Cash Flow Statement :
The cash flow statement has been in accordance with the Accounting Standard (AS) - 3 on “Cash flow statements” prescribed in Companies (Accounts) rules, 2014.
|