1. COMPANY OVERVIEW
TAYLORMADE RENEWABLES LIMITED ('the Company') is dealing in business of providing renewable energy solutions.
2. SIGNIFICANT ACCOUNTING POLICIESA. BASIS OF ACCOUNTING:
• The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013("the Act"), as applicable. The Financial Statements have been prepared on Accrual Basis under the Historical Cost convention. The Accounting policies adopted in the preparation of the Financial Statements are consistent with those followed in the previous year.
• All the assets and liabilities have been classified as current and non-current as per the Company's normal operating cycle and other criteria set out in Schedule III of the Act. The Company has ascertained its operating cycle to be 12 months for the purpose of current and non-current classification of assets and liabilities.
B. PRESENTATION OF FINANCIAL STATEMENTS
• The Balance Sheet and the Statement of Profit and Loss are prepared and presented in the format prescribed in the Schedule III to the Companies Act, 2013 ( "the Act"). The disclosure requirements with respect to items in the Balance Sheet and Statement of Profit and Loss, as prescribed in the Schedule III to the Act, are presented by way of notes forming part of accounts along with the other notes required to be disclosed under the notified Accounting Standards, as applicable.
C. USE OF ESTIMATES:
The preparation of the Financial Statements in conformity with Generally Accepted Accounting Principles requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported amounts of income and expenditure during the period. 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 period in which the results are known/ materialized.
D. DEPRECIATION:
Depreciation has been provided by W.D.V. method as per Companies act 2013.
E. FIXED ASSETS:
Tangible Fixed Assets:
Gross Fixed Assets are stated at cost of Acquisition including incidental expense relating to acquisition and installation. Cost includes purchase price, taxes and duties which are not recoverable as credit under specific act, labour cost and other direct costs incurred up to the date the asset is ready for its intended use. Allocation of indirect expenses to capital account is done on the basis of technical evaluation by the management. If any.
F. INVESTMENTS:
Long-term investments 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 includes acquisition charges such as brokerage, fees and duties.
G. BORROWING COST AND FINANCE CHARGES:
Interest and other borrowing costs attributable to qualifying assets has not capitalized. Other interest and borrowing costs are charged to the revenue. If any, Other Finance cost incurred for raising long term borrowing is amortized over the tenure of the borrowing. If any,
Interest and other costs in connection with the borrowing of the funds to the extent related/ attributed to the acquisition / construction of qualifying assets till the time such assets are ready for its intended use or sale are capitalized as part of the cost of asset in conformity with the provision of AS -16 " Borrowing Costs" and other borrowing costs are charged to Profit and Loss Account for the year in which they are incurred.
H. INVENTORIES:
Inventories are valued at lower of cost and net realizable value after providing for obsolescence and other losses, where considered necessary.
I. REVENUE RECOGNITION:
Revenue from operations is recognized to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured.
Sales of Goods is recognized when significant risks and rewards of ownership of Goods have been passed to Buyers
Interest income is recognized on time proportion basis taking into account the principal amounts outstanding and the rate of interest.
J. TAXATION:
Taxes on income are accounted with AS-22 " Accounting for Taxes on Income". Taxes on income comprises both current tax and deferred tax.
• Provision for Income tax is determined considering the disallowance, exemptions and deductions and/or liabilities/ credits and set off available as laid down by the tax law and interpreted by various authorities.
• Deferred Tax being the tax effect of timing difference representing the difference between taxable income and accounting income that originate in one period and are cable of reversal in one or more subsequent period(s). This is measured using substantively enacted tax rate and tax regulation.
• Deferred tax liabilities are recognized for all taxable timing differences. Deferred tax assets including the unrecognized deferred tax assets, if any, at each reporting date, are recognized for deductible timing differences only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which deferred tax assets can be realize
• The carrying amount of deferred tax assets are reviewed at each reporting date and are adjusted for its appropriateness.
• Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and deferred tax assets and deferred taxes relate to the same taxable entity and the same taxation authority.
• Minimum Alternate Tax (MAT) paid in a year is charged to the Statement of Profit and Loss as current tax. The company recognizes MAT credit available as an asset only to the extent there is convincing evidence that the company will pay normal income tax during the specified period, i.e., the period for which MAT Credit is allowed to be carried forward. In the year in which the Company recognizes MAT Credit as an asset in accordance with the Guidance Note on Accounting for Credit Available in respect of Minimum Alternate Tax under the Income Tax Act, 1961, the said asset is created by way of credit to the statement of Profit and Loss and shown as "MAT Credit Entitlement."
The Company reviews the "MAT Credit Entitlement" asset at each reporting date and writes down the asset to the extent the company does not have convincing evidence that it will pay normal tax during the sufficient period.
K. PROVISIONS, CONTINGENT LIABILITIES AND ASSETS:
Provisions:
A provision is recognized when the company has present obligations as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligations and reliable estimate can be made of amount of the obligation. Provisions are not discounted at their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.
Contingent Liabilities:
A Contingent liability is a possible obligation that arises from the past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements by way of notes to accounts.
L. EMPLOYEE BENEFITS:
Defined contribution plan:
• Provident Fund is Defined contribution scheme for all applicable employees. Company's contribution to defined contribution scheme are recognized to the statement of Profit & Loss for the year when the contributions to the respective funds are due. There are no other obligations other than the contribution payable to the respective funds.
• Leave encashment is recognized as a liability as per rules of the company. Accumulated leave can be availed at any time during the tenure of employment but can be enchased on the completion of service, the liability is recognized on accrual basis.
• The company provides for Gratuity on the basis of actuarial valuation. The cost of providing defined benefits is determined using the Projected Unit Credit Method with acturial valuation being carried out at each balance sheet date.
• The Company presents the above liabilities as current and non-current in the balance sheet as per actuarial valuation by the independent actuary.
M. IMPAIRMENT OF ASSETS:
The carrying amounts of the assets are reviewed at each balance sheet date if there is any indication of impairment based on the internal/external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. An impairment loss recognised in the prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.
N. EARNING PER SHARE:
The company reports basic and diluted Earnings per share in accordance with accounting standard 20 "Earning per Share". Basic earnings per share are computed by dividing the net profit or loss after tax for the year by the weighted average number of equity shares outstanding during the year. Diluted earnings per shares outstanding during the year by the weighted average number of equity shares outstanding during the year as adjusted for the effects of all dilutive potential equity shares except where the result are anti - dilutive.
O. CASH AND CASH EQUIVALENTS:
Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and short-term investments with an original maturity of three months or less.
P. Pre-operative Expenditure:
Pre-operative Expenditure incurred for expansion project including specific financial cost till commencement of commercial production, attributable to fixed assets are capitalized.
3. RELATED PARTY DISCLOSURES:
The Company has not any transaction of a material nature with the promoters, Directors of management, their subsidiaries or relatives that may have potential conflict with the interest of the company at large. The register
of contacts containing the transaction in which Directors are interested in place before the board regularly for it approval.
The Company confirms that none of the transactions, if any, with the related parties was in material conflict with the interest of the Company.
4. In the opinion of the Board of Directors, the current assets, loans and advances would realize not less than the value stated if realized in the ordinary course of business. The provision for all known liabilities is adequate and reasonably estimated.
5. The Company has not received any memorandum (as required to be filled by the suppliers with the notified authority under Micro, Small and Medium Enterprise Development Act, 2006) claiming their status during the year as micro, small or medium enterprises. Consequently, there are no amounts paid/ payable to such parties during the year.
6. Previous year figures have been regrouped /rearranged wherever necessary to correspond with the current year's classifications/disclosure.
7. The Company is operationally and financially fully supported by its promoter companies. In view of the Company's long term business projections and promoter's commitment to the business by providing for necessary funds as and when need arises, the financial statements have been prepared on a going concern basis.
|