1. Basis of Accounting
The Financial Statements are prepared under the historical cost convention on accrual basis and in
accordance with Schedule III of the Companies Act, 2013, and the accounting standards specified
in Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies ( Accounts ) Rules,
2014.
2. Use of Estimates
The preparation of Financial Statements requires estimates and assumption to be made that
affect the reported amount of assets and liabilities on the date of Financial Statements and the
reported amount of revenues and expenses during the reported period. Difference between the
actual result and estimates are recognized in the period in which results are known / materialized.
3. Property, Plant and Machinery
All the Assets except vehicles are taken over, sold, realized and adjusted against loan dues by the
Bank in the earlier years. During the year under review, there is no transaction.
4. Depreciation
Depreciation on Fixed Assets is provided on straight line method as per the useful life prescribed
in Schedule II of the Companies Act, 2013. No addition made during the year. In respect of
Assets up to Rs 5000 each, the policy of the Company is to charge 100% depreciationin the year
in which such assets are installed or put to use.
5. Investments
Investments are meant to be Long Term Investments and are stated at cost.
6. Employee Retirement Benefits
The Management certifies that all dues to workers are settled and no provision is made for
Employee Retirement Benefit.
7. Foreign Currency Transaction
No such foreign currency transaction.
8. Interest on Borrowings
Interest is not charged to the Profit & Loss Account from the date on which the Assets took over
by the Bankers under SARFAESI proceedings.
9. Taxes on Income.
(a) In compliance with Ind As 12 relating to “INCOME TAXES” the company has not recognized
Deferred Tax Liability / Assets for current year on account of absence of virtual certainty.and
in the absence of any Assets
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