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Accounting Policies of Pawansut Holdings Ltd. Company

Mar 31, 2015

I. Basic of preparation of financial statements:

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act,2013, read with rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

The company complies in all material respects, with the prudential norms relating to income recognition asset classification and provisioning for bad and doubtful debts and other matters.

II. Use of estimates:

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Difference between the actual results and estimates are recognized in the period in which the results are known /materialized.

III. Revenue Recognition:

i) Interest Income:

Interest income is recognized as it accrues on a time proportion basis taking into account the amount outstanding and the rate applicable except in the case of non-performing assets (NPAs') where is recognized, upon realization.

ii) Dividend Income:

Dividend income is recognized when the right to received payment is established.

iii) Income from investments:

Profit earned from sale of securities is recognized on trade date basis. The cost of securities is computed based on weighted average basis.

iv) Discount on investments:

The Difference between the acquisition cost and face value of debt instruments are recognized as interest income over the tenor of the instrument on straight line basis.

v) Loan processing fee income:

Loan processing fee income is recognized as and when it becomes due

vi) Management fee income:

Management fee income towards support services is accounted as and when it becomes due on contractual terms with the parties.

IV. Provision for Standard Assets:

The company previous provision for standard assets based on the prudential norms issued by RBI relating to provisioning.

V. Fixed Assets:

Fixed assets are stated at cost, less accumulated depreciation/ amortization. Costs include all expenses incurred to bring the asset to its present location and condition.

VI. Depreciation:

Depreciation on fixed assets has been provided on straight line method over the useful life prescribed in schedule II to the companies Act, 2013 after considering salvage value of five percent of original cost. The company has considered useful life of assets same as prescribed under the Companies Act, 2013.

Depreciation upto 31.03.2014 was provided on Straight line method at the rates prescribed in schedule XIV to the Companies Act, 1956.

Due to transition from schedule XIV to schedule II, depreciation on assets existing as on 31.03.2014, has been provided in such a way so that assets should be depreciated after considering salvage value over a useful life of assets as prescribed under schedule II of the Companies Act, 2013.

Assets of which useful life has already been expired but depreciation charged till previous financial year was less than 95% of original cost of the assets, difference of 95% of original cost and depreciation charged till last year, has been charged to profit and loss account as depreciation.

VII. Impairment of Assets:

The company assesses at each balance sheet date whether there is any indication that an asset may be impaired if any such indication exists. The company estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than that the carrying amount. The carrying amount is reduced to its recoverable amount.

The reduction is treated as an impairment loss and is recognized in the statement of profit and loss if at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

VIII. Investments:

Investments are classified as long term or current based on intention of the management at the time of purchase.

Current investments are valued scrip wise at cost or fair value whichever is lower.

IX. Repossessed Assets:

Assets repossessed against the settlement of loans are carried in the balance sheet at outstanding loans amount or market value whichever is lower. The difference between the outstanding loan amount and the market value is charged to statement of profit and loss in the year of repossession of assets.

X. Loan Origination/ Acquisition Cost:

All direct cost incurred for the origination is amortized over the average tenure of the loan.

XI. Borrowing Cost:

Borrowing cost which are directly attributable to the acquisition/ construction of fixed assets, till the time assets are ready for intended use, are capitalized as part of the cost of the assets. Other borrowing costs are recognized as expenses in the year in which they are incurred. Borrowing cost directly attributable to borrowing are expense over the tenure of the borrowing.

XII. Earning Per Share:

The basic earning per shares is computed by dividing the net profit/loss attributable to the equity shareholders for the period by the weighted average number of equity shares outstanding during the reported year. Diluted earning per share reflects the potential dilution that could occur if securities or other contract to issue equity shares were exercised or converted during the year. Diluted earning per share is computed by dividing the net profit after tax by weighted average number of equity shares and dilutive potential equity shares outstanding during the year. In computing dilutive earning per share, only potential equity shares that are dilutive and that reduce profit/increase loss per share are included.

XIII. Cash and cash equivalents:

Cash and cash equivalents in the financial statements comprise cash in hand and balance in bank in current accounts, deposit accounts and in margin money deposits.

XIV. Cash Flow Statement

Cash flow is reported using indirect method. The Cash Flow from operating, investing and financing activities of the company are segregated based on the available information.

XV. Taxation:

i) Current Tax:

Provision for current tax made after taking into consideration benefit admissible under the provision of the income tax act, 1961. Minimum alternate tax (MAT) credit entitlement is recognized where there is convincing evidence that the same can be realized in future.

ii) Deferred Tax:

The deferred tax charge or credit and the corresponding deferred tax liability or assets are recognized using the tax rate that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future however where there is unabsorbed depreciation or carried forward loss under taxation laws. Deferred tax liabilities are recognized only if there is virtual certainty or realization of such assets. Deferred tax liabilities are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtual certain (as the case may be) to be realized.


Mar 31, 2014

1. ACCOUNTING CONVENTION

The Company prepares its accounts on historical cost basis as a going concern.

2. 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 revenues and expenses, assets and liabilities and the disclosure of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3. FIXED ASSETS

Fixed Assets are stated at cost, net of excise/ custom duty where modvat credit on capital goods is availed and depreciated on Straight Line basis at rates specified in Schedule XIV of the Companies Act, 1956.

4. IMPAIRMENT OF ASSETS

The carrying amounts of the assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each balance sheet date. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the profit and loss account. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization, if no impairment loss had been recognized.

5. INVENTORIES

i) Stores & raw material are valued at cost. Cost includes the element of custom/excise duty paid (to the extent Modvat is not availed), forwarding & transportation charges incurred in bringing the goods to company''s premises.

ii) Goods in process are valued at material cost plus conversion cost upto the stage of process completed.

iii) Finished goods are valued at lower of cost and net realizable value. Cost for this purpose includes direct material, direct labour and appropriate production overheads.

iv) The value of unrectifiable/ scrapped/damaged goods is incorporated in books on basis of actual realization.

PAWANSUT HOLDINGS LIMITED

v) Excise Duty on finished product lying in the factory is accounted for, on removal of goods, since such liability arises only when they are sold. This however, had no impact on the profit and loss account of the Company.

6. RETIREMENT BENEFITS

No scheme with regard to retirement benefits in the form of super annuation/ pension/gratuity is in operation.

7. RESEARCH & DEVELOPMENT

Revenue expenditure on research and development is charged to Profit & Loss Account in the year in which it is incurred.

8. REVENUE RECOGNITION

Sale and expenses are recognized on accrual basis except gratuity which is accounted for on payment basis.

9. FOREIGN CURRENCY TRANSACTIONS

Foreign exchange transactions are recorded using the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Profit and Loss Account of the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the exchange rates on that date, the resultant exchange differences are recognized in the Profit and Loss Account.

10. INSURANCE CLAIMS

Insurance claims and expenses are accounted for when settled/ admitted by the Insurer.

11. TAXATION

Income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income-tax Act, 1961.

Deferred tax charge or credit is recognized using current tax rates on timing differences between taxable income and accounting income, which originate in one period and are capable of reversal in one or more subsequent periods.

Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Such assets are reviewed at each balance sheet date to reassess realization.

12. EARNING PER SHARE

Earning per share is calculated by dividing the net profit or loss for the year after prior period adjustments by the closing number of equity shares at the end of the year.


Mar 31, 2011

1. ACCOUNTING CONVENTION

The Company prepares its accounts on historical cost basis as a going concern.

2. 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 revenues and expenses, assets and liabilities and the disclosure of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3. FIXED ASSETS

Fixed Assets are stated at cost, net of excise/ custom duty where modvat credit on capital goods is availed and depreciated on Straight Line basis at rates specified in Schedule XIV of the Companies Act, 1956.

4. IMPAIRMENT OF ASSETS

The carrying amounts of the assets are reviewed at each balance sheet date to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each balance sheet date. An impairment loss is recognized whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment losses are recognized in the profit and loss account. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization, if no impairment loss had been recognized.

5. INVENTORIES

i) Stores & raw material are valued at cost. Cost includes the element of custom/excise duty paid (to the extent Modvat is not availed), forwarding & transportation charges incurred in bringing the goods to company''s premises.

ii) Goods in process are valued at material cost plus conversion cost upto the stage of process completed.

iii) Finished goods are valued at lower of cost and net realizable value. Cost for this purpose includes direct material, direct labour and appropriate production overheads.

iv) The value of unrectifiable/ scrapped/damaged goods is incorporated in books on basis of actual realization.

v) Excise Duty on finished product lying in the factory is accounted for, on removal of goods, since such liability arises only when they are sold. This however, had no impact on the profit and loss account of the Company.

6. RETIREMENT BENEFITS

No scheme with regard to retirement benefits in the form of super annuation/ pension/gratuity is in operation.

7. RESEARCH & DEVELOPMENT

Revenue expenditure on research and development is charged to Profit & Loss Account in the year in which it is incurred.

8. REVENUE RECOGNITION

Sale and expenses are recognized on accrual basis except gratuity which is accounted for on payment basis.

9. FOREIGN CURRENCY TRANSACTIONS

Foreign exchange transactions are recorded using the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the Profit and Loss Account of the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the exchange rates on that date, the resultant exchange differences are recognized in the Profit and Loss Account.

10. INSURANCE CLAIMS

Insurance claims and expenses are accounted for when settled/ admitted by the Insurer.

11. TAXATION

Income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income-tax Act, 1961.

Deferred tax charge or credit is recognized using current tax rates on timing differences between taxable income and accounting income, which originate in one period and are capable of reversal in one or more subsequent periods.

Where there is unabsorbed depreciation or carry forward losses, deferred tax assets are recognized only if there is virtual certainty of realization of such assets. Such assets are reviewed at each balance sheet date to reassess realization.


Mar 31, 2010

1 ACCOUNTING CONVENTION

The Company prepares Its -wunts on historical cost basis as a going concern.

2 USE OF ESTIMATES

The preparation of financial statements m conformity with Generally Accepted Accounting Principles [GAAP) requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses, assets and Unities and the disclosure of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3, FIXED ASSETS

Fixed Assets are stated at cost, net of excise/ custom duty where modvat cred.t on capital goods Is availed and depreciated on Straight Line basis at rates specified In Schedule XIV of the Companies Act, 1956.

4 IMPAIRMENT OF ASSETS

The carrying amounts of the assets are reviewed at each balance sheet date to determine whether there is any Indication of impairment. If any such indicate exists, the recoverable amount of the asset is estimated. For assets that are not yet available for use, the recoverable amount is estimated at each balance sheet date. An Impa-rment loss is recognized whenever the carrying amount of an asset or Its cash generating unit exceeds Its recoverable amount, impairment losses are recognised In the profit and loss account. An Impairment loss Is reversed If there has been a change In the estimates used to determine the recoverable amount. Ah impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization, if no impairment loss had been recognized,

S- INVENTORIES

I) Stores & raw material are valued at cost. Cost includes the element of custom/excise duty pa.d {to the extent Modvat is not allied), forwarding & transportation charges Incurred in bringing the goods to companyJs premises. Goods in process are valued at material cost plus conversion cost upto the stage of process completed.

Mi) Finished goods are valued at lower of cost and net realizable value. Cost for this purpose includes direct material, direct labour and appropri -.production overheads <-K%

Iv) The value or unrectifiable/ scrapped/damaged goods is incorporated in books on basis of actual realization.

v) Excise Duly on finished product lying In the factory is accounted for, on removal of goods, since such liability arises only when they are sold. This however, had no Impact on the profit and loss account of the Company h

6. RETIREMENT BENEFITS

No scheme with regard to retirement benefits in the form of super annuabon/ pension/gratuity 3s In operation*

7- RESEARCH a DEVELOPMENT

Revenue expenditure on research and development Is charged to Profit & Loss

p Account In Hie year In which it is incurred.

8. REVENUE RECOGNfTION

Sale and expenses are recognized on accrual basis except gratuity which is accounted for on payment basis.

9. FOREIGN CURRENCY TRANSACTIONS

Foreign exchange transactions are recorded using the exchange rate prevailing on the date of the transaction. Exchange differences arising on foreign exchange transactions settled during the year are recognized In the Profit and Loss Account of the yean

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the exchange rates on that date, the resultant exchange differences are recognized in the Profit and Loss Account.

10. INSURANCE CLAIMS

Insurance claims and expenses are accounted for when settled/ admitted by the Insurer.

11. TAXATION

Income tax liability is ascertained on the basis of assessable profits computed in accordance with the provisions of the Income-tax Act, 19$1.

Deferred tax charge or credit is recognized using current tax rates on timing differences between taxable Income and accounting income, which originate In one period and are capable of reversal In one or more subsequent periods.

Where there is unabsorbed depreciation or carry forward lossesr deferred tan assets are recognized only If there is virtual certainty of realization of such asse-£*5W-te assets are reviewed at each balance sheet date to reassess realization.


Mar 31, 2009

I) BASIS OF ACCOUNTING

The financial statements have been prepared on the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies act, 1956 and the applicable accounting standards issued by the Institute of Chartered Accountants of India.

ii) INCOME & EXPENSES

The company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

iii) DEPRECIATION

Depreciation is provided on fixed assets on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956.

iv) FIXED ASSETS

Fixed assets are stated at cost less depreciation.

v) TAXES ON INCOME

Current tax is the amount of tax on the taxable income for the year as determined in accordance with the provisions of the Income tax Act, 1961. Deferred tax liability/assets is recognised subject to the consideration of prudence on timing deference, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

vi) CONTINGENT LIABILITIES

Disputed liabilities and claims are treated, as contingent liabilities. Claims against the company not acknowledged as debts Rs. Nil (P.Y. Nil)

vii) RETIREMENT BENEFITS

The provision of provident fund and gratuity are not applicable to the company leave encashment is provided on the basis of leave entitlement of employees remaining unutilized at the end of the year.


Mar 31, 2008

I) BASIS OF ACCOUNTING

The financial statements have been prepared on the historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies act, 1956 and the applicable accounting standards issued by the Institute of Chartered Accountants of India.

ii) INCOME & EXPENSES

The company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

iii) DEPRECIATION

Depreciation is provided on fixed assets on straight-line method at the rates specified in schedule XIV of the Companies Act, 1956.

iv) FIXED ASSETS

Fixed assets are stated at cost less depreciation.

v) INVESTMENTS

The investments are stated at cost. Provision for diminution in value of investments is made by the company to recognises permanent decline if any in the value of each investment.

vi) TAXES ON INCOME

Current tax is the amount of tax on the taxable income for the year as determined in accordance with the provisions of the Income tax Act, 1961. Deferred tax liability/assets is recognised subject to the consideration of prudence on timing deference, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

vii) CONTINGENT LIABILITIES

Disputed liabilities and claims are treated, as contingent liabilities. Claims against the company not acknowledged as debts Rs. Nil (P.Y. Nil)

viii) RETIREMENT BENEFITS

The provision of provident fund and gratuity are not applicable to the company leave encashment is provided on the basis of leave entitlement of employees remaining unutilized at the end of the year.

 
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