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Accounting Policies of Oswal Minerals Ltd. Company

Mar 31, 2014

A) Basis of Preparation

The financial Statements have been prepared to comply in all material respects with the Accounting Standards notified by companies(Accounting Standards) Rules 2006,(as amended) read with General Circular No 15/2013 dated 13th September 2013 and General Circular No 8/2014 dated 4th April 2014 issued by Ministry of Corporate Affairs and the relevant provisions of the Companies Act 195. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which revaluation is carried out. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

b) Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefit will flow to the company and the revenue can be reliably measured.

Sales of Goods

Revenue is recognized when the significant risks and rewards of ownership of the goods have passed to the buyer. Sales are net of trade discounts and sales tax.

c) Fixed Assets

Fixed Assets are stated at cost (or revalued amount, as the case may be) less accumulated depreciation and Impairment losses if any. Cost comprises the purchase price and any attributable cost of bringing the assets to its working condition for its indented use.

d) Depreciation

Depreciation on fixed assets is provided on written down value method as prescribed by schedule XIV to the Companies Act, 1956.

e) Inventory

Inventories are valued at lower of cost or net realizable value.

f) Foreign CurrencyTransactions

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing at the date of transaction. The exchange differences arising on settlement/transaction are recognized in the revenue accounts.

g) Taxon Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year based on the provisions of the Income Tax Act, 1961.

Deferred tax for the year is recognised on timing differences; being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred Tax Assets and Liabilities are measured using the tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

h) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders (after deducting preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the period. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividend relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for events of bonus issue, bonus elements in a rights issue to existing shareholders, share splits, and reverse share splits (consolidation of shares).

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares.

i) Provisions

A provision is recognized when an enterprise has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

Contingent liabilities are shown by way of note in the Notes to accounts in respect of obligations where based on the evidence available, their existence at the Balance Sheet date is considered not probable. Contingent assets are neither recognized in the accounts nor disclosed.

j) Use of Estimates .

The preparation of financial statements in conformity with generally accepted accounting principles requires the management to make estimates and assumptions that affect the reporting amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the results of operations during the reporting period. Although these estimates are based upon management''s best knowledge of current events and actions, actual results could differ from these estimates. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

a. There has been no movement in equity shares outstanding at the beginning and at the end of the year

b. The Company has only one class of equity share having a par value of Rs 10/-. Each holder is entitled to one vote per equity share. Dividend not proposed by the Board of Directors for equity share holders.

c. Repayment of capital on liquidation will be in proportion to the number of equity shares held by shareholders.

d. Details of shareholders holding more than 5% shares in the company:

Cash Credit, Letter of Credit and Buyers Credit Secured by

a. Hypothecation of Machinery, Equipment, Stock of Raw Materials, Semi-finished goods and Finished Goods.

b. Fixed Assets acquired out of such loan and other unencumbered assets.

c. Personal guarantee of a director.

d. Lien of Deposits.

Mar 31, 2009

A. Segment Reporting

The company engaged primarily in the business of trading in Alloys & Minerals. Hence there is no separate reportable segment reporting.

b. Related party Disclosures

Related party disclosures as required by Accounting Standard 18 "Related Party Disclosures ", (AS)- 18 issued by the Institute of Chartered Accountants of India are given below:-

c. Earnings per share

The earnings per share, computed as per the requirement under Accounting Standard 20, "Earning per Share (AS)-20 issued by The Institute of Chartered Accountants of India, is as follows:

d. Deferred Tax Assets :

As per Accounting standard 22 " Accounting for Taxes on Income (A5)-22 issued by the institute of Chartered Accountants of India, Deferred Tax resulting from timing differences between book and tax profit is accounted for at the current rate of tax to the extent that timing differences are expected to crystallize. Deferred Tax Assets during the year aggregating to Rs.66273.00 has been recognized in the Profit and Loss account. The details are as per annexure appended.

g. Contingent Liabilities

The Company has preferred an appeal against the demand raised by the Income Tax Department for the

A.Y.: 2001-02 Rs.5, 31,635.00

A.Y.: 2002-03 Rs.5, 17,353.00

h. Since the Company is Trading in Minerals & Alloys the description for the same differs on the basis of supply, requirements etc; in the absence of the relevant description it is not possible to give the quantitative details of stock as required under paragraph 3, 4c and 4d of part II of Schedule IV to the Companies Act, 1956.

i. The company had not availed any loan/deposits from public/shareholders except stated otherwise.

j. Balances from Sundry Debtors, Creditors are subject to confirmation and reconciliation,

k. Previous year figures have been regrouped or reclassified where necessary to make them comparable with current year''s figures.

Oct 21, 12:00 am
Oct 21, 4:14 pm
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