XYZ (INDIA) LTD.
Schedules forming parts of Account as at 31stMarch2008
Schedule I
A. Significant Accounting Policies & Notes of Accounts
a. METHOD OF ACCOUNTING
The accounts have been prepared under the historical cost convention on
accrual basis and are materially compiled with the mandatory accounting
standards issued by the institute of chartered accountants of India and the
relevant provisions of the Companies Act, 1956.
b. Recognition of Income & Expenditure
The Company follows the Mercantile System of Accounting and
recognizes Income & Expenditure on Accrual Basis.
c. FIXED ASSETS AND DEPREICIATION
Depreciation on tangible fixed assets has been provided on Written Down
Value (WDV) at the rates prescribed under schedule XIV of the
companies act, 1956.
d. Taxation
No provision for income Tax made as the company incurred loss in the
current year.
e. Inventories
Inventories are taken at cost or market price whichever is less as certified
by the management.
f. Events occurring after Balance Sheet date
No significant events which could affect the financial position as on
31.3.2008 to a material extent have been reported by the assessee, after the
balance sheet date till the signing of report.
g. Prior period and Extraordinary Items
There are no material changes or credits which arises in the current period
on accounts of errors and omission in the preparation of the financial
statements for the one or more period.
h. Related Party Transactions(AS-18)
As per provisions of Accounting Standard 18 issued by the Chartered
Accountants’ of India ,the details of related party transactions are not applicable.
i. Borrowing Cost
Borrowing cost are recognized as expenses in the year in which they are
incurred.
j. Overall Valuation Policy
The account have been prepared on historical cost basis and on going concern.
k. Retirement Benefits
No provision have been made in the accounts for PPF, FPF, Gratuity and
Retirement Benefits for the employees . Management inform that this above
provision is not applicable to the company hence no such provision made
during the year.
l. Foreign Exchange Transactions
There are no foreign currency transactions made during the year.
m. Preliminary Expenses
Preliminary Expenses are written off over a period of 10 years in equal
proportion from the date of commercial activity.
n. Deferred Income Tax
During the period , no timing differences arises between taxable income and
accounting income ,hence no Deferred Tax Assets or Liabilities has been
recognized.
B. Notes Forming part of Accounts
a. Sales are recorded inclusive of excise duty and sales tax if any but after
deducting discount, rebate, rate difference and sales return.
b. Purchase includes purchase of raw material after deducting purchase
return ,discount ,rebate, and incentives.
c. In the opinion of the Board the Current Assets, Loans & Advances are
approximately of the value stated and realizable in the ordinary course of
business. The Provision for all known liabilities is adequate.
d. Sundry Debtors, Sundry Creditors & Loans & Advances balances are
subject to confirmation.
e. Auditor’s Remuneration
Particulars
2007-2008(in Rs)
Audit Fees
10000
Service Tax
1236
Total
11236
2006-2007(in Rs)
20000
2472
22472
f. Additional Information Pursuant to the Provision of Part II of the
Schedule VI of the Companies Act 1956.
A. Quantitative Information
i) Installed Capacity
:
ii) License Capacity
:
iii) Production /Sales of Stocks:
(In Qty)
Finished Goods
(In Pcs.)
a)
b)
c)
Opening Stock
Purchased
N.A
N.A
N.A
Sales
Closing
C.I.F Value of Imports, Expenditure and Earnings in Foreign Companies
2007-08 (In Rs)
2006-07(in Rs)
C.I.F Value Of Imports
N .A
N.A
Expenditure In Foreign
N.A
N.A
Companies.
Earning in Foreign Exchange N.A
N.A
-F.O.B Value of Exports
- Interest Received
g. This being the second year of the operation of the Company.
h. On this basis on information furnished to us the Company does not have
any amount due (inclusive of interest ) to as Small Scale Industrial
Undertaking.
Signatures To Schedule A to I
For.XYZ & CO.
Chartered Accountants’
CA NAME
Mem No.Place: Date : 5th September,2008
For and on Behalf of the Board
Director
Director