24.1 Use of estimates
The preparation of the financial statements in conformity with Indian
GAAP requires the Management to make estimates and assumptions
considered in the reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and expenses during the
year. The Management believes that the estimates used in preparation of
the financial statements are prudent and reasonable. Future results
could differ due to these estimates and the differences between the
actual results and the estimates are recognized in the periods in which
the results are known / materialize.
24.2 Inventories
There is no closing stock of Inventory.
24.3 Cash and cash equivalents (for purposes of Cash Flow Statement)
Cash comprises cash on hand and demand deposits with banks. Cash
equivalents are short-term balances (with an original maturity of three
months or less from the date of acquisition), highly liquid investments
that are readily convertible into known amounts of cash and which are
subject to insignificant risk of changes in value.
24.4 Cash flow statement
Cash flows are reported using the indirect method, whereby profit /
(loss) before extraordinary items and tax is adjusted for the effects
of transactions of non-cash nature and any deferrals or accruals of
past or future cash receipts or payments. The cash flows from
operating, investing and financing activities of the Company are
segregated based on the available information.
24.5 Depreciation and amortization
Depreciation has been provided on the straight-line method over the
useful lives of assets estimated by the Mangement.Depriciation for
asset purchased /sold during a period is propotionately charged except
in respect of the following :
a. ) Intangible assets being Trade Mark which are amortized over the
estimated useful life of 10 years.
b. ) No depreciation has been charged by the management on the
Completion of CRM Software as is still under devlopment.
The estimated useful life of the intangible assets and the amortization
period are reviewed at the end of each financial year and the
amortization method is revised to reflect the changed pattern.
24.6 Revenue recognition Sale of goods
Sales are recognized, net of returns and trade discounts, on transfer
of significant risks and rewards of ownership to the buyer, which
generally coincides with the delivery of goods to customers. Sales
exclude sales tax and value added tax.
Sale of services
"Revenues from contracts priced on a time and material basis are
recognized when services are rendered and related costs are incurred.
""
Other Income
Interest income is accounted on accrual basis.
24.7 Tangible fixed assets
"Fixed assets are carried at cost less accumulated depreciation and
impairment losses, if any. The cost of fixed assets includes interest
on borrowings attributable to acquisition of qualifying fixed assets up
to the date the asset is ready for its intended use and other
incidental expenses incurred up to that date. Exchange differences
arising on restatement / settlement of long-term foreign currency
borrowings relating to acquisition of depreciable fixed assets are
adjusted to the cost of the respective assets and depreciated over the
remaining useful life of such assets. Machinery spares which can be
used only in connection with an item of fixed asset and whose use is
expected to be irregular are capitalized and depreciated over the
useful life of the principal item of the relevant assets. Subsequent
expenditure relating to fixed assets is capitalized only if such
expenditure results in an increase in the future benefits from such
asset beyond its previously assessed standard of performance....
24.8 Intangible assets
"Intangible assets are carried at cost less accumulated amortization
and impairment losses, if any. The cost of an intangible asset
comprises its purchase price, including any import duties and other
taxes (other than those subsequently recoverable from the taxing
authorities), and any directly attributable expenditure on making the
asset ready for its intended use and net of any trade discounts and
rebates. Subsequent expenditure on an intangible asset after its
purchase / completion is recognized as an expense when incurred unless
it is probable that such expenditure will enable the asset to generate
future economic benefits in excess of its originally assessed standards
of performance and such expenditure can be measured and attributed to
the asset reliably, in which case such expenditure is added to the cost
of the asset. .
24.9 Foreign currency transactions and translations Initial recognition
Transactions in foreign currencies entered into by the Company at the
exchange rates prevailing on the date of the transaction or at rates
that closely approximate the rate at the date of the transaction.
Measurement of foreign currency monetary items at the Balance Sheet
date
"Foreign currency monetary items (other than derivative contracts) of
the Company outstanding at the Balance Sheet date are restated at the
year-end rates.""
Treatment of exchange differences
Exchange differences arising on settlement of short-term foreign
currency monetary assets and liabilities are recognized as income or
expense in the Statement of Profit and Loss.
24.10 Employee benefits
Types of employee benefits
Employee benefits include Provident Fund, Gratuity fund, Compensated
absences.
Liabilities with regard gratuity is determined the Mangement.
Defined contribution plans
The Company's contribution to provident fund are considered as defined
contribution plans and are charged as an expense as they fall due based
on the amount of contribution required to be made.
24.11 Segment reporting
The Company identifies primary segments based on the dominant source,
nature of risks and returns and the internal organization and
management structure. The operating segments are the segments for which
separate financial information is available and for which operating
profit/(loss) amounts are evaluated regularly by the Executive
Management in deciding how to allocate resources and in assessing
performance.
The Company operates in single business Segment namely "Event
Management Services".Therefore disclosure under accounting standard 17
is not applicable.
24.12 Earnings 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 dividing the profit
after tax by the weighted average number of equity shares considered
for deriving basic earnings per share and also the weighted average
number of equity shares that could have been issued upon conversion of
all dilutive potential equity shares. The diluted potential equity
shares are adjusted for the proceeds receivable had the shares been
actually issued at fair value which is the average market value of the
outstanding shares.
Dilutive potential equity shares are deemed converted as of the
beginning of the period, unless issued at a later date. Dilutive
potential equity shares are determined independently for each period
presented.
The number of shares and potentially dilutive equity shares are
adjusted retrospectively for all periods presented for any shares
pleased bonus shares issues including for changes effected prior to the
approval of the financial statements by the Board of Directors.
Lease under which the Company assumes substantially all the risks and
rewards of owner ship are classified as finance lea.
24.13 Taxes on income
Current tax is the amount of tax payable on the taxable income for the
year as determined in accordance with the provisions of the Income Tax
Act, 1961.
Deffered tax is not recognised as virtual certainity doesnot exist.
No provision for taxes has been made in the Current year on account of
brought forward losses.
24.14 Provisions and contingencies
A provision is recognized when the Company has a present obligation as
a result of past events and it is probable that an outflow of resources
will be required to settle the obligation in respect of which a
reliable estimate can be made. Provisions (excluding retirement
benefits) are not discounted to their present value and are determined
based on the best estimate required to settle the obligation at the
Balance Sheet date, if any. These are reviewed at each Balance Sheet
date and adjusted to reflect the current best estimates. Contingent
liabilities are disclosed in the Notes.
24.15 Investments
Long-term investments (excluding investment properties), are carried
individually at cost less provision for diminution, other than
temporary, in the value of such investments. Current investments are
carried individually, at the lower of cost and fair value. Cost of
investments include acquisition charges such as brokerage, fees and
duties.
24.16 Leases
"Assets leased by the Company in its capacity as lessee where
substantially all the risks and rewards of ownership vest in the
Company are classified as finance leases. Such leases are capitalised
at the inception of the lease at the lower of the fair value and the
present value of the minimum lease payments and a liability is created
for an equivalent amount. Each lease rental paid is allocated between
the liability and the interest cost so as to obtain a constant periodic
rate of interest on the outstanding liability for each year.""Lease
arrangements where the risks and rewards incidental to ownership of an
asset
substantially vest with the lessor are recognised as operating leases.
Lease rentals under operating leases are recognised in the Statement of
Profit and Loss on a straight-line basis."
24.17 Service tax input credit
Service tax input credit is accounted for in the books in the period in
which the underlying service received is accounted and when there is no
uncertainty in availing / utilizing the credits.
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