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Accounting Policies of Aaswa Trading & Exports Ltd. Company

Mar 31, 2014

A. The financial statements have been prepared on the historical cost convention basis and as a going concern with revenues considered and expenses accounted for wherever possible on their accrual, including provisions/adjustments for committed obligations.

b. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles CGAAP'') requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision of accounting estimates is recognized prospectively in current and future periods.

c. Fixed Assets

Fixed assets are recorded at historical costs. d. Depreciation

The company has provided depreciation under written down value method on all assets at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, as amended by notification no. GSR 756 (E) dated December 16, 1993 together with circular no. 14 dated December 20, 1993, issued by the Department of Company Affairs.

e. Inventories

Inventories are valued at cost.

f. Employee Benefits

Provision for gratuity is determined as per the provisions of the Gratuity Act, 1972.

g. Sales and Purchases

Sales and Purchases accounted net of returns and discounts.

h. Recognition of Income and Expenditure

Income and expenditure are recognised on accrual basis.

i. Contingent Liabilities

Contingent liabilities are not provided for in the books of accounts. The same are separately disclosed in the notes forming part of accounts.

j. Taxes on Income:

Provision for current tax provision is made annually based on the tax liability computed after considering tax allowances and deductions.

Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

k. Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset''s net selling price and its value. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in the arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

l. Provisions and Contingencies

Provisions are recognised when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognised nor disclosed.


Mar 31, 2013

A. The financial statements have been prepared on the historical cost convention basis and as a going concern with revenues considered and expenses accounted for wherever possible on their accrual, including provisions/adjustments for committed obligations.

b. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles (''GAAP'') requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Aptual resuits could differ from those estimates. Any revision of accounting estimates is recognized prospectively in current and future periods.

c. Fixed Assets

Fixed assets are recorded at historical costs.

d. Depreciation

The company has provided depreciation underwritten down value method on all assets at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956, as amended by notification no. GSR 756 (E) dated December 16, 1993 together with circular no. 14 dated December 20,1993, issued by the Department of Company Affairs.

e. Inventories

Inventories are valued at cost.

f. Employee Benefits

Provision for gratuity is determined as per the provisions of the Gratuity Act, 1972.

g. Sales and Purchases

Sales and Purchases accounted net of returns and discounts.

h. Recognition of Income and Expenditure

income and expenditure are recognised on accrual basis.

i. Contingent Liabilities

Contingent liabilities are not provided for in the books of accounts. The same are separately disclosed in the notes forming part of accounts.

j. Taxes on Income:

Provision for current tax provision is made annually based on the tax liability computed after considering tax allowances and deductions.

Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year that originate in one period and are capable oF reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

k. Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset''s net selling price and its value. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in the arm''s length transaction between knowledgeable, willing parties, less the costs of disposal.

I. Provisions and Contingencies

Provisions are recognised when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the company has a possible or present obligation where it is not probable that an Outflow of resources will be required to settle It. Contingent assets are neither recognised nor disclosed.


Mar 31, 2012

A. The financial statements have been prepared on the historical cost convention basis and as a going concern with revenues considered and expenses accounted for wherever possible on their accrual, including provisions/adjustments for committed obligations.

b. Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles ('GAAP') requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Any revision of accounting estimates is recognized prospectively in current and future periods.

c. Fixed Assets

Fixed assets are recorded at historical costs.

d. Depreciation

The company has provided depreciation under written down value method on all assets at the rates and in the manner specified in Schedule X!V of the Companies Act, 1956, as amended by notification no. GSR 756 (E) dated December 16, 1993 together with circular no. 14 dated December 20, 1993, issued by the Department of Company Affairs.

e. Inventories

Inventories are valued at cost.

f Employee Benefits

Provision for gratuity is determined as per the provisions of the Gratuity Act, 1972.

g. Sales and Purchases

Sales and Purchases accounted net of returns and discounts.

h. Recognition of Income and Expenditure

Income and expenditure are recognised on accrual basis.

i. Contingent Liabilities

Contingent liabilities are not provided for in the books of accounts. The same are separately disclosed in the notes forming part of accounts.

j Taxes on Income:

Provision for current tax provision is made annually based on the tax liability computed after considering tax allowances and deductions.

Deferred tax is recognised on timing difference between the accounting income and the 1 taxable income for the year that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the balance sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

k. Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an asset's net selling price.and its . value. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from sale of the asset in the arm's length transaction between knowledgeable, willing parties, less the costs of disposal.

I. Provisions and Contingencies

Provisions are recognised when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate . can be made of the amount of the obligation. Contingent liabilities are disclosed when the company has a possible or present obligation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognised nor disclosed.


Mar 31, 2010

(i) Method of Accounting

Accounts have been prepared based on historical costs and going concern concept with revenues considered and expenses accounted, wherever possible, on their accrual.

(ii) 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 exponsos during the reporting period. Difference between the actual results and estimates are recognized in the period in which the result are known / materialized.

(iii) Fixed Assets and Depreciation

Fixed assets are recorded at historical costs. Depreciation on fixed assets has been provided on written down value method at the rates and in the manner prescribed In Schedule XIV to the Companies Act, 1956, as amended by Notification No. GSR 756(E) dated December 16, 1993 together with Circular No.14 dated December 20, 1993, issued by the Department of Company Affairs.

(iv) Sales and Purchases

Sales and Purchases accounted net of returns and discounts.

(v) Employee Benefits

Provision for gratuity is determined as per the provisions of the Gratuity Act, 1972.

(vi) Inventories are valued at cost.

(vii) Recognition of Income and Expenditure

Income and expenditure are recognized on accrual basis.

(viii) Contingent Liabilities

Contingent liabilities are not provided for in the books of accounts. The same are separately disclosed in the notes forming part of accounts.

(ix) Tax on Income

Provision for Current tax is made annually based on the tax liability computed after considering tax allowances & deductions.

Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the ax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable/virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

(x) Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of asset in the arms length transaction between knowledgeable, willing parties, less the costs of disposal. The company assesses at each balance sheet date whether there is any indication that an asset may be impaired.

(xi) Provisions and contingencies

Provisions are recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the company has a possible or present obligation where it is not probable that an outflow of resources will De required to settle it. Contingent assets are neither recognized nor disclosed.


Mar 31, 2009

(i) Method of Accounting

Accounts have been prepared based on historical costs and going concern concept with revenues considered and expenses accounted, wherever possible, on their accrual.

(ii) 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 reporting period. Difference between the actual results and estimates are recognized in the period in which the result are .known / materialized.

(iii) Fixed Assets and Depreciation

Fixed assets are recorded at historical costs. Depreciation on fixed assets has been provided on written down value method at the rates arid in the manner prescribed in Schedule XIV to the Companies Act, 1956, as amended by Notification No. GSR (E) dated December 16, 1993 together with Circular No. 14 dated December 20, 1993, issued by the Department of Company Affairs.

(iv) Sales and Purchases

Sales and Purchases accounted net of returns and discounts.

(v) Retirement Benefits

Provision for gratuity is determined as per the provisions of the Gratuity Act, 1972.

(vi) Inventories are valued a* cost.

(vii) Recognition of Income and Expenditure Income and expenditure are recognized on accrual basis.

(viii) Contingent Liabilities

Contingent liabilities are not provided for the books of accounts. The same are separately disclosed in the notes forming part of accounts.

(ix) Tax on Income

Provision for Current tax is made annually based on the tax li-bility computed after considering tax allowances & deductions.

Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there is a reasonable/virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

(x) Impairment Loss

Impairment loss is provided to the extent the carrying amount of assets exceeds their recoverable amounts. Recoverable amount is the higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flows expected to arise from the continuing use of the assets and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of asset in the arms length transaction between knowledgeable, willing parties, less the costs of disposal. The company assesses at each balance sheet date whether there is any indication that an asset may be impaired.

(xi) Fiovisions and contingencies

Provisions are recognized when the company has a legal and constructive obligation as a result of a past event, for which it is probable that cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent liabilities are disclosed when the company has a possible or present obl;gation where it is not probable that an outflow of resources will be required to settle it. Contingent assets are neither recognized. nor disclosed.

 
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