| a) Basis for Accounting
The financial statements are prepared under the historical cost
convention on an accrual basis of accounting in accordance with the
Generally Accepted Accounting Principles, Accounting Standards notified
under Section 211(3C) of the Companies Act, 1956 and the relevant
provisions thereof. During the year, Revised Schedule VI notified under
the Companies Act, 1956 has become applicable to the Company for
preparation and presentation of its financial statements. The Company
has reclassified the previous year figures in accordance with the
requirements in the current year.
b) Revenue Recognition
(i) Revenue from sale of goods is recognised net of rebates and
discounts on transfer of significant risks and rewards of ownership to
the buyer.
(ii) Revenue from services rendered is recognised on prorata basis in
proportion to the stage of completion of the related transaction.
c) Tangible Assets
Tangible assets are stated at cost less accumulated depreciation and
net of impairment, if any.
d) Intangible Assets
Intangible assets are stated at cost less accumulated amortisation and
net of impairment, if any. An intangible asset is recognised if it is
probable that the expected future economic benefits that are
attributable to the asset will flow to the Company and its cost can be
measured reliably. Intangible assets having finite useful lives are
amortised on a straight line basis over there estimated useful lives.
e) Depreciation and Amortisation
Depreciation is provided on a straight line basis applying the rates
specified in Schedule XIV to the Companies Act, 1956 except the
following where the management has decided to put the following fixed
assets held for sale
f) Impairment
Fixed assets are reviewed for impairment whenever events or changes in
circumstances indicate that their carrying amount may not be
recoverable. An impairment loss is recognised in the Statement of
Profit and Loss if the carrying amount of an asset exceeds its
recoverable amount.
g) Foreign Currency Transactions
Transactions in foreign exchange currencies are recorded at ruling rate
on the date of the transaction. Monetary items of assets and
liabilities are translated on reporting date. Exchange differences are
recognized, if any material, in the statement of profit and loss for
the period. However there are no such items to be recognized.
h) Inventories
Inventories are valued at cost or net realizable value whichever is
lower. However there are no inventories as on the end of reporting
period.
i) Deferred Tax
Deferred tax is accounted for by computing the tax effect of timing
differences which arise during the year and reverse in subsequent
periods. However deferred tax was not provided during the year as the
company has incurred loss during the year.
j) Loans and Advances
During the period ended 30th September 2014 the company has not paid
instalments regularly with respect to the Term Loan and the loan is
overdue. The OD interest is also not paid and the same has became
overdue for non-payment of interest.
k) Exceptional Items
Depreciation not provided for assets which the management has put for
sale and the list of assets are as mentioned below:
l) Earnings per share
The earnings considered in ascertaining the company's Earnings per
Share (EPS) comprise of the net profit after tax less dividend
(including dividend distribution tax) on preference shares. The number
of shares used for computing the basis EPS is the weighted average
number of shares outstanding during the year. During the period under
review the company has incurred cash loss.
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