| Accounting Convention:
The financial statements are prepared under the Historical Cost
Convention on a Going Concern basis.
The Company generally follows the Mercantile System of Accounting and
recognizes Income and Expenditure on Accrual basis accepts those with
significant uncertainties and is consistent with generally accepted
accounting principles.
The significant accounting policies followed by the Company are stated
below:
a) Use of Estimates:
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of the financial statements and the reported
amount of revenues and expenses during the reported period. Difference
between the actual results and estimates are recognized in the period
in which the results are known / materialized.
b) Fixed Assets:
1. Fixed Assets are stated at cost net of MODVAT / CENVAT / Value
Added Tax less accumulated depreciation and impairment loss, if any.
For this purpose, cost includes cost of acquisition and all costs
directly attributable to bringing the assets for its present use and
condition.
2. The advance payment of total Rs. 56.50 lac against purchase of Land
has been made during 2011-12 & 2012-13 of Rs. 16.50 lac & Rs. 50.00
respectively, however this was wrongly shown under the head
"Office-Building" but no depreciation has been charged on said amount
during the respective years. Presently it is shown as Advance against
Purchase of Land. Now the Land was under dispute due to death of one of
the co-owner but the land is under possession of company as per court
of the law.
c) Depreciation:
Depreciation of Fixed Assets is charged on 'Written down Value Method'
as per Schedule XIV to the Companies Act, 1956.
Leasehold land is amortized over the period of lease.
d) Impairment of Assets:
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An impairment loss is charged to the
Profit and Loss Account in the year in which an asset is identified as
impaired. The impairment loss recognized in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
e) Investments:
Current investments are carried at the lower of cost and quoted / fair
value, computed category wise. Long-term investments are stated at
cost. Provision for diminution in the value of long-term investments is
made only if such a decline is other than temporary in the opinion of
the management.
f) Inventories:
Inventories are valued at the lower of cost or estimated net realizable
value. Cost of finished Goods includes cost of material; direct labor,
direct expenses and production overheads except depreciation.
g) Debtors :
The company has written off an amount of Rs. 48,43,909/- in total vide
there board resolution passed on 15th May 2014 at registered office of
the company.
Sr. No. Particulars Amount
1. B B Corporation 13,65,000/-
2. Durga Udyog 12,60,000/-
3 Jansampark Sanchalaye, Madhya Pradesh 98,000/-
4. Dr. Anjali Pathak 78,000/-
5. Gayatri Media 60,000/-
6. Hemraj Awasthi 1,30,000/-
7. HS Gill 1,30,000/-
8. Indra Swarup Awasthi 1,30,000/-
9. Jaipal 1,55,000/-
10. Ravi Mishra 1,30,000/-
11. Sonali Dhantre 70,000/-
12. Vinod Pathak 1,30,000/-
13. Maxtell India Limited 11,07,909/-
As per explanation of the management the above mentioned companies have
become insolvent.
h) Preliminary and Share Issue Expenses:
Preliminary and Share Issue Expenses are carried forward at cost.
Preoperative expenses have been amortized over a period of 10 years.
i) Employee Benefits and Gratuity Provisions:
Retirements benefits and Gratuity provisions are not applicable to the
Company as Company has less than 10 employees.
We) Taxes on Income:
Current taxes
Provision for Income Tax is determined in accordance with the
provisions of the Income Tax Act, 1961.
Deferred taxes
Deferred tax assets and liabilities arising on account of timing
differences, being the difference between the taxable income and the
accounting income that originate in one period and are capable of
reversal in one or more subsequent periods, are recognized using the
tax rates and tax laws that have been enacted.
TDS
It is observed that amount of TDS as per books of Account is of Rs
24,92,004/- but as per Form no 26 AS it shows the credit balance of Rs
29,54,527/- which is higher by an amount of Rs 4,62,523/-
reconciliation for the same has to be made.
j) Segment Reporting:
The Company operates only in one segment viz. Media Business and hence
there are no other reportable segments as per the Accounting Standard
17.
k) Borrowing Cost
Borrowing costs that are attributable to the acquisition or
construction of qualifying assets are capitalized as part of the cost
of such assets. A qualifying asset is one that necessarily takes
substantial period of time to get ready for intended use. All other
borrowing costs are charged to revenue.
l) Financial Derivatives:
Financial derivatives contracts are accounted on the date of their
settlement and realized gain / loss, if any, in respect of settled
contract are recognized in the profit and loss account, along with the
underlying transactions.
m) Foreign Currency Transactions:
Transactions in foreign currencies, to the extent not covered by
forward contracts, are accounted at exchange rates prevailing at the
time of the transactions are affected and expressed at the year-end
exchange rates. Any other exchange differences except relating to Fixed
Assets are dealt with in the Profit and Loss Account. Non-monetary
foreign currency items, if any, are carried at cost.
n) Provisions, Contingent Liabilities and Contingent Assets:
Provisions, involving substantial degree of estimation in measurement,
are recognized when there is present obligation as result of past
events and it is probable that will be an outflow of resources.
Contingent Liabilities are not recognized and estimated amount of
contracts remaining to be executed have not been ascertained.
Contingent Assets are neither recognized nor disclosed in the financial
statements.
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