NOTES TO FINANCIAL STATEMENTS

1. Significant Accounting Policies: Basis of Accounting:

These financial statements have been brpared under historical cost convention from books of accounts maintained on an accrual basis (unless otherwise stated hereinafter) in conformity with accounting principles generally accepted in India and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India and referred to Sec 129 & 133 of the Companies Act, 2013, of India. The accounting policies applied by the company are consistent with those used in brvious year.

Use of Estimates:

The brparation of the financial statements in conformity with the Indian GAAP requires Company management to make estimates and assumptions that affect the reported amount of assets and liabilities and the disclosure of contingent liabilities as on the date of the financial statements. Actual results could differ from these estimates and assumptions. Any revision to accounting estimates is recognized prospectively in the current and future periods.

Fixed Asset / Debrciation:

Fixed Assets are stated at cost less debrciation. In the case of new projects successfully implemented, substantial expansion of existing units and expenditure resulting into enduring benefit, all br-operative expenses incurred up to the date of installation are capitalized and added pro - rata to the cost of fixed assets.

(a) All fixed assets are stated at cost of acquisition, less accumulated debrciation. In case of fixed assets acquired for new projects/expansion, all related expenses incurred upto the date are capitalized.

(b) Debrciation has been provided based on life assigned to each asset in accordance with Schedule II of the Companies Act, 2013.

Debrciation has been provided and adjustment has been made in Fixed Assets account to arrive at proper residual value in accordance with the Companies Act, 2013. Consequent to the aforesaid changes, Debrciation has been calculated for FY 14-15 of Rs.112.72 lacs, which would have been Rs.108 lacs, if calculated under Companies Act 1956. The increase in Debrciation for the transitional provisional for Companies Act 2013 affected the Profit /Loss Account by decreasing the profit by Rs.4.72 lacs.

Foreign Currency Transaction:

Transaction in Foreign Currency is recorded at the exchange rate brvailing on the date of transaction. Monetary items in the form of Loans, Current Assets and Current Liabilities in foreign currency outstanding at the close of the year are translated in Indian Currency at the applicable rates of exchange brvailing on the date of Balance Sheet. Difference if any, resulting in income or expenses dealt with in profit & loss account under the head Foreign Exchange Fluctuation Gain.

Prior Period adjustments, Extra Ordinary Items and Changes in Accounting Policies:

Prior Period adjustments, extraordinary items and changes in accounting policies having material impact on the financial affairs of the Company are disclosed.

Borrowing Costs:

Borrowing Costs that are directly attributable to and incurred on acquiring qualifying assets (assets that necessarily takes a substantial period of time for its intended use) are capitalized. Other borrowing costs are recognized as expenses in the period in which same are incurred.

Segment Accounting:

The Company operates in a single segment of resale of footwear and accessories hence all the figures rebrsents only a single reportable segment.

Impairment of Assets:

In accordance with Accounting Standard 28 - Impairment of Assets, the carrying amount of the company's assets including intangible assets are reviewed at each balance sheet date to determine whether there is any indication of impairment based on internal / external factors. An asset is impaired when the carrying amount of the asset exceeds the recoverable amount.

An impairment loss is charged to the statement of Profit and loss in the year in which an asset is identified as impaired. An impairment loss recognised in prior accounting period is reversed if there has been change in the estimate of the recoverable amount.

Investment

Investments are classified into current and Long-term investments. A provision for diminution is made to recognize a decline, other than temporary, in the value of Long-term investments. Gain/loss on disposal of investments is recognized as income/expenditure.

Inventories:

Closing Stock is valued at cost price or market price, whichever is lower. Cost of goods is arrived at on FIFO basis.

Employee Benefit:

(a) Defined Contributions Plans such as Provident Fund etc., for company's own employees are charged to the Profit & Loss Account.

(b) The Company also has hired employees from outside agency & all statutory formalities in respect of those employees, if any, are to be complied by such agency as per their Contracts.

(c) Gratuity: Based on the completed number of years in service by the employee, this is the first year in which the company is required to recognize the liability for gratuity. Accordingly the company has a provision of Rs. 513,461/-. In due course of time, the company is in process to get the same valued on the basis of actuarial valuation and funding of the same.

Revenue recognition:

Revenues/Incomes and Costs/Expenditure are generally accounted on accrual, as they are earned or incurred. Sale of Goods is recognised on transfer of significant risks and rewards of ownership which is generally dispatch of goods.

Interest income is recognised on a time proportion basis talking into account the amount outstanding and the rate applicable

Dividend income is recognised when the right to receive dividend is established.

Taxes on Income:

Tax on income for the current period is determined on the basis of taxable Income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961. Deferred Tax is recognised on timing difference between the accounting income and the taxable income for the period and quantified using the tax rates and laws enacted as on the Balance Sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainly that sufficient future taxable income will be available against which such deferred tax assets can be realized. Minimum Alternative Tax credit is recognized as an asset only when and to the extend there is convincing evidence that the company will pay normal tax during the specified period.

Provisions and Contingent Liabilities:

Provisions are recognized in terms of Accounting Standards 29 - "Provisions, Contingent Liabilities and Contingent Assets" as notified by the Companies (Accounting Standards) Rules, 2006, when there is a brsent legal or statutory obligation as a result of past events where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent Liabilities are not recognized but disclosed in the financial statements. Contingent assets are neither recognised nor disclosed in the financial statement.

Proposed Dividend:

Dividend Proposed by the Board is provided in the books of account pending approval at the Annual General Meeting.

Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted 2.30 Disclosures under Section 22 of the Micro, Small and Medium Enterprises development Act, 2006 could not be furnished as none of the suppliers of the company have provided the details of their registration under the said act.

2.31 Balances of trade recievables, trade payables and loans & advances are subject to confirmation and consequential adjustments, if any.

2.32 In the opinion of the board, current assets, loans and advances have value in the ordinary course of business at least equal to the amount at which they are stated.

2.33 The figures of the brvious years have been regrouped / rearranged wherever necessary. The Figures of the brvious years are given in brackets. The company has compiled the above accounts based on the revised/ Modified schedule III applicable for the accounting period 2014-2015. The disclosure requirements are made in the notes to accounts or by way of additional statements. The other disclosures as required by the Companies Act are made in the notes to accounts.

As per our report of even date attached

On behalf of the board of Directors

For, K. Rungta & Co.

Chartered Accountants

B. K. ROY

(Company Secretary)

SADHANA ADHIKARY

(Director)

Firm Reg. No. 321068E

SUJAY BHATTACHERJEE

(Chief Financial Officer)

SUMANTA DEY

(Director)

K. L. Rungta

(Proprietor)

Membership No. 073418

Place : Kolkata,  

date : 29th May,2015