Accounting Policies of Wellwin Industry Ltd. Company

Mar 31, 2014

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. 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.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. 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 recognised in the periods in which the results are known / materialise.

1.3 Inventories

There was no inventory as the company has wound up its activities.

1.4 Depreciation and amortisation

Depreciation has not been provided in the books because there was no operation during the reporting period.

1.5 Revenue Recognition

There was no revenue during financial year as there was no operation.

1.6 Fixed assets

During the reporting period, the fixed assets of the company has been transferred to M/s Chitra Construction Private Limited to set off the liability.

1.7 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

1.8 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is to be recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the current reporting period, there is no timing difference. Hence there is no change in deffered tax asset/liability.

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Mar 31, 2013

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. 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.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. 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 recognised in the periods in which the results are known / materialise.

1.3 Inventories

There was no inventory as the company has wound up its activities.

1.4 Depreciation and amortisation

Depreciation has not been provided in the books because there was no operation during the reporting period.

1.5 Revenue Recognition

There was no revenue during financial year as there was no operation

1.6 Other income

Interest income is accounted on accrual basis.

1.7 Fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets.

1.8 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

1.9 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is to be recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the current reporting period, there is no timing difference. Hence there is no change in deffered tax asset/liability.

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Mar 31, 2012

1.1 Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. 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.

1.2 Use of estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. 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 recognised in the periods in which the results are known / materialise.

1.3 Inventories

There was no inventory as the company has wound up its activities.

1.4 Depreciation and amortisation

Depreciation has not been provided in the books because there was no operation during the reporting period.

1.5 Revenue Recognition

There was no revenue during financial year as there was no operation

1.6 Other income

Interest income is accounted on accrual basis.

1.7 Fixed assets

Fixed assets are carried at cost less accumulated depreciation and impairment losses, if any. Machinery spares which can be used only in connection with an item of fixed asset and whose use is expected to be irregular are capitalised and depreciated over the useful life of the principal item of the relevant assets.

1.8 Earnings per share

Basic earnings per share is computed by dividing the profit / (loss) after tax (including the post tax effect of extraordinary items, if any) by the weighted average number of equity shares outstanding during the year.

1.9 Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Deferred tax is to be recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. During the current reporting period, there is no timing difference. Hence there is no change in deffered tax asset/liability.

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Mar 31, 2011

1. Land & Building will be sold and sale deed will be registered infavour of M/s. Chitra Constructions pvt ltd on clerance of IT dues.

2. The Plant & Machinery is in depleted condition which is beyond repairs. Necessarys permission has been obtained from Share Holders for sale of machinery in as is where condition.

3. We have further sales tax liability to be settled.

4. The Factory is closed and remains in the same position for the past 4 years.

5. The Company is in search of a suitable investor to restart the production.

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Mar 31, 2010

1) Fixed Assets

Fixed Assets are stated at historical cost, which includes costs directly attributable to bringing the assets to its present condition and location.

2) Depreciation

Since there was no operations in the company during the year under review, no depreciation has been charged as per accounting practice.

3) Revenue Recognition

Since there was no operations in the company during the year under review, no income has been booked during the current year, either by way of sales or by way of other income.

4) Retirement Benefits to the employees

The company has stopped production with effect from 15.12.2007 and has settled all the workers and employees before 31st March 2008, hence there are no retirement benefits due to any employee.

SCHEDULE 15

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Mar 31, 2009

1.Deferred Tax

Deferred Tax has been provided in accordance with the Accounting Standards AS - 22 Accounting for Taxes on Income.

2. Earnings Per Share

The Net Profit after tax available for Equity Share Holders is LOSS. Therefore Earnings Per Share is NIL.

3. Contingent Liabilities

a) Disputed Claims against the Company towards income tax demands not acknowledged as debts Rs 98.07 Lakhs

b) Bank Guarantee given Rs 1.00 Lakhs

c) Bills dicounted with the banker under bill discounting facility NIL

d) Interest claimed by Bank of India and Union Bank of India One time on over due account and not charged in books Settlement arrived with both banks

e) Guarantees given by the Company NIL