| (i) Basis of Preparation of financial statements:
The financial statements have been prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on the accrual basis except for certain financial
instruments which are measured at fair values. GAAP comprises mandatory
accounting standards notified under section 133 of the Companies Act,
2013 read together with Rule 7 of the Companies (Accounts) Rules, 2014,
the provisions of the Companies Act, 2013 and guide lines issued by the
Securities and Exchange Board of India (SEBI). Accounting policies have
been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policy hitherto in use or
different accounting policy is required by statute.
(ii) Revenue Recognition:
Sales are recognized, net of returns and trade discounts, on dispatch
of goods to Customers. Interest income is recognized on time proportion
basis.
(iii) Use Of Estimates:-
The presentation of financial statements in conformity with the
generally accepted accounting principal requires estimates and
assumptions to be made. That affects the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reporting period. Difference
between the actual result and estimates are recognized in the period in
which the results are known/materialized
(iv) Fixed Assets:-
Fixed Assets are stated at cost less accumulated depreciation. Cost is
inclusive of freight, duties (net of tax credits as applicable) levies
and any directly attributable cost of bringing the assets to their
working condition for their Intended use.
(v) Depreciation & Amortisation:-
Depreciation on fixed assets is provided on Straight Line Method (SLM)
on pro-rata basis as per the useful life prescribed in the Schedule II
of the Companies Act, 2013.
The carrying amount of the asset as on 01.04.2014, after retaining the
residual value, has been charged to Statement of Profit & Loss where
the remaining useful life of the asset is NIL.
(vi) Investments:-
Long term investments are stated at cost. Provision for diminution in
value of Long term investment is made only if such decline is other
than temporary in the opinion of management. Investments other than
long term investments being current investments are valued at cost or
fair value whichever is lower.
(vii) Inventories:-
Stock of finished goods is valued at lesser of Cost and Net Realizable
Value.
(viii) Provision:-
A provision is recognized when an enterprise 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. Provision are determined based
on management estimate require to settle the obligation at the balance
sheet date. These are reviewed at each balance sheet date and adjusted
to reflect the current management estimates.
(ix) Treatment Of Contingent Liabilities:-
Contingent liabilities are disclosed by way of note on the balance
sheet. Provision is made in the accounts for those liabilities which
are likely to Materialize after the year end till the finalization of
accounts and having effect on the position stated in the balance sheet
as at the year end.
(x) Foreign Exchange Transaction:-
Transactions entered into and concluded during the year in foreign
currency are recorded at the actual exchange rates prevailing at the
time of conclusion of transactions. In respect of transaction covered
by forward exchange contracts, the difference between the forward rate
and the exchange rate on the date of transaction is recognized as
income or expenses over the life of the contracts. Outstanding assets
and liabilities at the year end are converted into Indian rupees as per
FEDAI rate of exchange prevalent on the said date. Exchange rate
Difference arising out of subsequent settlements is dealt in the Profit
& Loss Accounts.
(xi) Taxation:-
Provision for taxation has been made in accordance with the rates of
Income Tax Act, 1961 prevailing for the relevant assessment year.
(xii) Deferred Taxation:-
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to timing differences that result between the
profits offered for income taxes and the profits as per the financial
statements. Deferred tax assets and liabilities are measured using the
tax rates and the tax laws that have been enacted or substantially
enacted at the balance sheet date. Deferred tax Assets are recognized
only to the extent there is reasonable certainty that the assets can be
realized in the future. Deferred Tax Assets are reviewed as at each
Balance Sheet date.
(xiii) Retirement and other Employee Benefit:
There is no defined contribution scheme prevailing in the company.
Provision in respect of leave encashment is recognized as an expense in
Profit & Loss Account for the period in which the employee has rendered
services. Expenses in respect of other short term benefit are
recognized on the basis of the amount paid or payable for the year for
which the services are rendered by the employee.
(xiv) Impairment of Assets:-
The Company assess whether there is any indication that any assets may
be impaired at the balance sheet date. If any indication exists, the
company estimates the recoverable amount and an impairment loss is
recognized in the accounts, to the extent the carrying amount exceeds
the recoverable amount.
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