NOTES ANNEXED TO AND FORMING PART OF FINANCIAL STATEMENTS 1. Basis of brparation of Financial Statement The Financial Statements of the company have been brpared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has brpared these Financial Statements to comply in all material respect with the accounting standards notified under the Companies (Accounting standards) Rule, 2006, (as amended) and the relevant provision of the companies Act, 2013. The Financial Statements have been brpared on the accrual basis and under the historical cost convention. 2. Summary of significant accounting policies : a. Use of estimates The brparation of Financial Statements in conformity with Indian GAAP requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management's best knowledge of current event and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future period. b. Fixed assets Fixed assets are carried at the cost of acquisition or construction less accumulated debrciation. The cost of fixed assets includes non-refundable taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets. c. Debrciation Debrciation on fixed asset is provided on the Written Down Value (WDV) Method. Debrciation is provided based on useful life of the assets as brscribed in Schedule II to the Companies Act, 2013. d. Revenue recognition Having regards to the size, nature and level of operation of the business, the company is applying accrual basis of accounting for recognition of income earned and expenses incurred in the normal course of business. e. Inventories Inventories include Cotton Fabrics and valuation of them has been made at cost. f. Taxes on Income Tax expense comprises of current tax and deferred tax. Current tax is measured at the amount expected to be paid to the tax authorities, using the applicable tax rates. Deferred income tax reflect the current period timing differences between taxable income and accounting income for the period and reversal of timing differences of earlier years/period. Deferred tax assets are recognised only to the extent that there is a reasonable certainty that sufficient future income will be available except that deferred tax assets, in case there are unabsorbed debrciation or losses, are recognised if there is virtual certainty that sufficient future taxable income will be available to realize the same. Deferred tax assets and liabilities are measured using the tax rates and tax law that have been enacted or substantively enacted by the Balance Sheet date. g. Provisions A provision is recognized when the company has a brsent obligation as a result of past event, it is probable that an outflow of resource embodying economic benefits will be require to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to their brsent value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are review at the end of each reporting date and adjusted to reflect the current best estimates. h. Earnings Per Share Basic Earnings per Share has been calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted Earnings per share has been computed by dividing the net profit after tax by the weighted average no. of equity shares considered for deriving basic earning per share and also the weighted average no. of equity shares that could have been issued upon conversion of all dilutive potential equity shares. i. Cash and cash equivalents 1. There is no Micro, Small and Medium Enterprises as defined under Micro, Small & Medium Enterprises Development Act, 2006 to which Company owes dues which are outstanding for a period more than 45 days as on Balance Sheet Date. The above information regarding Micro, Small and Medium Enterprises has been determined on the basis of information availed with the Company and has been duly relied by the auditors of the Company. 2. Provisions of Accounting Standard (AS) - 17 on 'Segment Reporting' are not been applicable to the Company. 3. Figures in brackets indicate negative (-) figures. Signed for the purpose of Identification FOR V.N. PUROHIT & CO. Chartered Accountants Firm Regn. 304040E For and on behalf of Board of Directors of QUASAR INDIA LIMITED O.P. Pareek Partner Membership No. 014238 Sd/-Ankit Agarwal Director DIN 05254327 Sd/- Ganesh Prasad Gupta Director DIN 03611693 Narendra Kumar CFO Gaur Sandeep Kumar Company Secretary M. No. 34263 Place : New Delhi, date : the 29th day of May 2015 |