Home  »  Company  »  Rajesh Exports L  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Rajesh Exports Ltd. Company

Mar 31, 2016

COMPANY OVERVIEW

Rajesh Exports Limited ("The Company") is an Indian public Company and incorporated under the provisions of Companies Act, 1956. The Company is a leading gold refiner and manufacturer of all kinds of Gold Jewellery, medallions and other Gold Products. The Company exports its products to various countries around the world and it also sells in whole sale and retail its products in India and also through its own retail showrooms under the brand name of SHUBH Jewellers.

The Company is having head quarters in Bangalore and manufacturing units at Whitefield, Associate firm M/s. A one Exports, Bangalore and subsidiary M/s.REL Singapore Pte Ltd at Singapore.

i. Basis of preparation of Standalone financial statements

The Stand alone financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) to comply with the accounting standards Specified under the Section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules, 2014, and relevant provisions of Companies Act, 2013 ("the 2013Act")/Companies Act, 1956 as applicable. The financial statements have been prepared under the historical cost convention on the accrual basis (except for interest income on interest bearing Advances). The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

ii. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of Assets and Liabilities and disclosure of contingent liabilities as at the date of financial statements and reported amounts of income and expenses during the year. Estimates and underlying assumptions are reviewed on an ongoing basis.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

iii. Fixed assets and Capital work-in-progress a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation and impairment loss if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price.

24 b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iv. Depreciation

The Company has provided depreciation on straight line method over the useful lives of the assets estimated by the management as per Schedule II of the Companies Act, 2013. Depreciation on additions or extensions to existing assets is provided so as to co-terminate with the life of the original asset if it becomes internal part of the existing asset or on the useful life of the asset if it is capable of independent use.

For Assets whose unit cost does not exceed Rs. 5,000 /- depreciation is provided at the rate of 100% in the year of capitalisation.

v. Inventories

Stock in trade is valued at cost or net realisable value, whichever is less. The cost formula used for this purpose is first in first out (FIFO) method. Cost of inventories comprises all costs of purchase, cost of conversion and the cost incurred in bringing the items of inventory to their present location and condition. Cost of work in progress and finished goods include material cost and appropriate share of manufacturing overheads. Material in transit is valued at cost price or market price, whichever is lower.

vi. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of Goods and interest income on fixed deposits made for margin purposes for procurement of Raw Materials. Sales are recorded net of trade discounts, rebates and value added tax if any and Export sales are accounted at notional rate and difference will be recorded at the realized foreign currency rates or year end rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits are accounted on accrual basis and other interest bearing loans and rent receivable are accounted on cash basis. Dividend income on investment is accounted as and when the right to receive the payment is established. Cost of goods include the purchase of raw material, labour charges, wastage charges, interest and other charges levied by the seller and foreign exchange hedging cost.

vi. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

viii. Foreign Currency Transactions

a. For its import and export transactions the company is exposed to currency fluctuations on foreign currency transactions, the company hedges it''s foreign exchange transactions against it''s own imports and exports and also by way of forward contracts with banks.

b. Initially all Imports and exports of goods (foreign exchange transactions) are recorded at notional rate at Rs.45/- Completed foreign exchange transactions are recorded at the actual exchange rate paid/ received and pending foreign exchange transactions, (the notional rates) are converted in to prevailing rates at the end of the year.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account.

viii. Employees Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period as and when the contribution to the respective fund is due. The Company has no obligation, other

24 than the contribution payable under the respective scheme. Company''s employees have not participated in Superannuation Schemes/ Plan. Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation. The Company does not provide leave encashment and carry forward of accumulated leave next year to its employees.

x. Taxation

The current Income tax is calculated in accordance with the relevant tax regulations. MAT credits are being recognised if there convincing evidence that the Company will pay normal tax after the tax holiday period and the resultant asset can be measured to reliably. The excess tax paid under MAT provision being over and above regular tax liability can be carried forward for a period of 10 years from the year of recognition and is available for set off against future tax liabilities computed under regular tax provisions, to the extent of MAT liability. Deferred tax is recognized on timing differences; being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets/ liabilities in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that such deferred tax Asset/ liability can be realised against future taxable profits.

xi. Segment reporting policies

The Company and other Companies in the group are mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by The Institute of Chartered Accountants of India are considered to constitute one single primary segment.

xii. Earning per share

Basic earning per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average of number of equity Shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the Weighted average numbers of shares outstanding during the period are adjusted for the effects of all diluted potential equity shares.

xiii. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare Cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xiv. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; 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. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xv. Investments

The Investments are made to enhance the company''s business interest. Investments are either classified as current or long term based on management''s intention. Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value. Cost for Overseas investments comprises the Indian rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment.

xvi. Cash Flow Statement

Cash Flow statement is reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of non cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flow. The cash flow from operating, investing and financing activities of company are segregated based on the available information.

xvii. Leases

Lease payments under operating Leases are recognised as an expense in the statement of Profit and Loss over a Lease term.

Lease rentals recovered on assets given under operating leases are recognised in the profit and loss account.

xvii. Cash and cash equivalents

Cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term balances (Including all bank deposits), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

xviii. Impairment of Assets

An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.


Mar 31, 2015

COMPANY OVERVIEW

Rajesh Exports Limited ("The Company") is an Indian public Company, incorporated under the provisions of Companies Act, 1956. The Company is a leading gold refiner and manufacturer of all kinds of Gold Jewellery, medallions and other Gold Products. The Company exports its products to various countries around the world and it also retails its products in India through its own retail showrooms under the brand name of SHUBH Jewellers.

The Company is having head quarters in Bangalore and manufacturing units at Whitefield, Associate firm M/s. A one Exports, Bangalore and subsidiary M/s.REL Singapore Pte Ltd at Singapore.

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) to comply with the accounting standards Specified under the Section 133 of the Companies Act, 2013, read with rule 7 of the Companies (Accounts) Rules,2014,and relevant provisions of Companies Act, 2013 ("the 2013Act")/Companies Act,1956 as applicable. The financial statements have been prepared on accrual basis (except in interest income on interest bearing Advances) under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

i. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

ii. Fixed assets and Capital work-in-progress

a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price.

b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iii. Depreciation

The Company has provided depreciation on straight line method over the useful lives of the assets estimated by the management as per Schedule II of the Companies Act, 2013. Depreciation on additions or extensions to existing assets is provided so as to co-terminate with the life of the original asset if it becomes internal part of the existing asset or on the useful life of the asset if it is capable of independent use.

For Assets whose unit cost does not exceed Rs. 5,000 /- depreciation is provided at the rate of 100% in the year of capitalisation.

iv. Inventories

Stock in trade is valued at cost or net realisable value, whichever is less. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition. Material in transit is valued at cost price or market price, whichever is lower.

v. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of goods and interest received on fixed deposits made for margin purposes of procurement of Raw Materials. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits are accounted on accrual basis and other interest bearing loans are accounted on cash basis. Dividend income on investment is accounted as and when the right to receive the payment is established. Cost of goods include the purchase of raw material, labour charges, wastage charges, interest and other charges levied by the seller and foreign exchange hedging cost.

vi. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

vii. Foreign Currency Transactions

a. For its import and export transactions the company is exposed to foreign exchange transactions, the company hedges it's foreign exchange transactions against it's own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid and pending foreign exchange transactions are recorded at notional rates, the notional rates are converted in to prevailing rates at the end of the year(Valued at Rs. 62.50 per USD) and the difference is recorded as fluctuation in foreign exchange. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account. Premium in respect of foreign exchange option contracts is charged to the Profit and Loss Account as and when the contracts are entered in to but the gain on such option contracts, is recognised only on maturity/ cancellation of such option contracts.

viii. Employees Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period when the contributions to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Superannuation Schemes is not applicable to the Company at present.

Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation.

The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

ix. Taxation

Provision for current tax is made on the basis of Taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized 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. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets/ liabilities in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that such deferred tax Asset/ liability can be realised against future taxable profits.

x. Segment reporting policies

The Company and other Companies in the group are mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by The Institute of Chartered Accountants of India are considered to constitute one single primary segment.

xi. Earning per share

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

xii. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xiii. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; 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. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xiv. Investments

The Investments are made to enhance the company's business interest. Investments are either classified as current or long term based on management's intention. Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value. Cost for Overseas investments comprises the Indian rupee value of the consideration paid for the investment translated at the exchange rate prevalent at the date of investment.

xv. Cash Flow Statement

Cash Flow statement are reported using the indirect method, where by profit before tax is adjusted for the effects of transactions of non cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flow. The cash flow from operating, investing and financing activities of company are segregated based on the available information.

xvi. Leases

Lease payments under operating Leases are recognised as an expense in the statement of Profit and Loss over a Lease term.

Lease rentals recovered on assets given under operating leases are recognised in the profit and loss account.

xvii. Cash and cash equivalents

Cash comprises of cash on hand and demand deposits with banks. Cash equivalents are short term balances (Including all bank deposits), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

xviii. Impairment of Assets

An Asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment loss is charged to Profit and Loss Statement in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.


Mar 31, 2014

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) under the historical cost convention. The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules,2006, (as amended) and the relevant provisions of the Companies Act, 1956. The provisions of Companies Act,2013 ( to the extent notified and applicable and other generally accepted accounting principles in India.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

i. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management’s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

ii. Fixed assets and Capital work-in-progress

a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, any trade discounts and rebates are deducted in arriving at the purchase price.

b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iii. Depreciation

The Company has provided depreciation on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use during the year.

Assets individually costing Rs. 5,000 /- or less are depreciated fully in the period / year of purchase.

iv. Inventories

Stock in trade is valued at cost or net realisable value ( International standard rate as on 31.03.2014), whichever is less for SEZ units and in respect of other units at cost or net realisable value ( Rate prevailing at Bangalore Market as on 31.03.2014), whichever is lower. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

v. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of goods and interest received on fixed deposits made for margin purposes for sake of procurement of raw materials. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits are accounted on accrual basis and other interest bearing loans are accounted on cash basis. Dividend income on investment is accounted as and when the right to receive the payment is established.

vi. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

vii. Foreign Currency Transactions

a. For its import and export transactions the company is exposed to foreign exchange transactions, the company hedges it’s foreign exchange transactions against it’s own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid and pending foreign exchange transactions are recorded at notional rates, the notional rates are converted in to prevailing rates at the end of the year and the difference is recorded as fluctuation in foreign exchange. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account.

viii. Employees Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period when the contributions to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Superannuation Schemes is not applicable to the Company at present.

Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation.

The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

xi. Taxation

Provision for current tax is made on the basis of Taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized 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. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets/ liabilities in respect of unabsorbed depreciation and carry forward of losses are recognised only if there is virtual certainty that such deferred tax Asset/ liability can be realised against future taxable profits.

xii. Segment reporting policies

The Company and the other Companies in the group are mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by the institute of chartered accounts, India are considered to constitute one single primary segment.

xiii.Micro and Small enterprises dues

Based on the information / Documents available with the Company, amounts due to micro and small enterprises is NIL

xiv. Earning per share

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

xv. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xvi. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; 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. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xvii. Investments

Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value.

xviii. Cash Flow Statement

The Cash Flow statement is prepared by the indirect method setout in the accounting standards on cash flow statement. Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand.


Mar 31, 2013

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) under the historical cost convention. The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for adoption of revised schedule VI, as detailed below.

i. Adoption of Revised Schedule VI

During the year ended March 31, 2013, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current period.

ii. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcome requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

iii. Fixed assets and Capital work-in-progress

a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes financing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, Any trade discounts and rebates are deducted in arriving at the purchase price.

b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iv. Depreciation

The Company has provided depreciation on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use during the year.

Assets individually costing Rs. 5000 /- or less are depreciated fully in the period / year of purchase.

v. Inventories

Stock in trade is valued at cost or net realisable value ( International standard rate as on 31.03.2013), whichever is less for E.O.U. and SEZ units and in respect of other units at cost or net realisable value ( Rate prevailing at Bangalore Market as on 31.03.2013), whichever is lower. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

vi. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of goods and interest received on fixed deposits made for margin purposes. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits and other interest bearing loans is accounted on accrual basis. Dividend income on investment is accounted for when the right to receive the payment is established.

vii. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the profit and loss account.

viii. Foreign Currency Transactions

a. For it''s import and export transactions the company is exposed to foreign exchange transactions, the company hedges it''s foreign exchange transactions against it''s own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid and pending foreign exchange transactions are recorded at notional rates, the notional rates are converted into prevailing rates at the end of the year and the difference is recorded as fluctuation in foreign exchange. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account. Premium in respect of foreign exchange option contracts is charged to the Profit and Loss Account as and when the contacts are entered in to but the gain on such option contracts, is recognized only on maturity / cancellation of such option contracts.

ix. Employees Benefits

Provident Fund contributions are charged to the Statement of profit and loss of the period when the contributions to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Superannuation Scheme is not applicable to the Company at present.

Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation.

The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

x. Taxation

Provision for current tax is made on the basis of Taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized 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. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that such deferred tax asset can be realized against future taxable profits.

xi. Segment reporting policies

The Company is mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by the institute of chartered accounts, India are considered to constitute one single primary segment.

xii. Micro and Small enterprises dues

Based on the information / Documents available with the Company amounts due to micro and small enterprises is NIL

xiii. Earning per share

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

xiv. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xv. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; 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. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xvi. Investments

Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fair market value, xvi. Cash Flow Statement

The Cash Flow statement is prepared by the indirect method setout in the accounting standard 3 on cash flow statement. Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and cash in hand.


Mar 31, 2012

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (GAAP) under the historical cost convention. The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules,2006, (as amended) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for adoption of revised schedule VI, as detailed below.

i. Adoption of Revised Schedule VI

During the year ended March 31, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current period.

ii. Use of Estimates

The preparation of financial statements in conformity with GAAP (generally accepted accounting principles) requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Estimates and underlying assumptions are reviewed on an ongoing basis. Although these estimates are based on the management's best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods.

iii. Fixed assets and Capital work-in-progress a. Tangible Assets:

Fixed assets are stated at historical cost less accumulated depreciation. The cost comprises purchase price, borrowing costs if capitalization criteria are met and includes fnancing cost if any, relating to borrowed funds attributable to construction or acquisition of fixed assets, up to the date when the asset is ready for intended use, Any trade discounts and rebates are deducted in arriving at the purchase price.

b. Work in Progress

Cost of fixed assets not ready for use before the balance sheet date is disclosed under capital work-in-progress. Advances paid towards the acquisition of fixed assets outstanding as of each balance sheet date is disclosed under long term loans and advances.

iv. Depreciation

The Company has provided depreciation on straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use during the year.

Assets individually costing Rs. 5000 /- or less are depreciated fully in the period / year of purchase.

v. Inventories

Stock in trade is valued at cost or net realisable value ( International standard rate as on 31.03.2012), whichever is less for E.O.U, SEZ and SIDCUL units and in respect of other units at cost or net realisable value ( Rate prevailing at Bangalore Market as on 31.03.2012), whichever is lower. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

vi. Revenue Recognition

Revenue is recognized only when it can be reliably measured and when it is reasonable to expect ultimate collection. Revenue from operations includes Sale of goods and interest received on fixed deposits made for margin purposes. Sales are recorded net of trade discounts, rebates and value added tax if any and are recorded at the realized foreign currency rates. Making charges income is recognized on dispatch of goods. Interest on bank deposits and other interest bearing loans is accounted on accrual basis. Dividend income on investment is accounted for when the right to receive the payment is established.

vii. Borrowing Costs

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date, when such asset is ready for its intended use. Other borrowing costs are charged to the Profit and loss account.

viii. Foreign Currency Transactions

a. For it's import and export transactions the company is exposed to foreign exchange transactions, the company hedges it's foreign exchange transactions against it's own imports and exports and also by way of forward contracts with banks.

b. Completed foreign exchange transactions are recorded at the actual exchange rate paid and pending foreign exchange transactions are recorded at notional rates, the notional rates are converted into prevailing rates at the end of the year and the difference is recorded as fluctuation in foreign exchange. Premium paid on forward contracts is recognized over the life of the contracts.

c. Premium in respect of forward foreign exchange contract is charged to the Profit and Loss Account. Premium in respect of foreign exchange option contracts is charged to the Profit and Loss Account as and when the contacts are entered in to but the gain on such option contracts, is recognized only on maturity / cancellation of such option contracts.

ix. Employees Benefits

Provident Fund contributions are charged to the Statement of Profit and loss of the period when the contributions to the respective fund is due. The Company has no obligation, other than the contribution payable under the respective scheme. Superannuation Scheme is not applicable to the Company at present.

Gratuity liability if applicable for the year under the Payment of Gratuity Act is accounted on the Basis of Actuarial valuation.

The Company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

x. Taxation

Provision for current tax is made on the basis of Taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized 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. The deferred tax is accounted for using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that such deferred tax asset can be realized against future taxable Profits.

xi. Segment reporting policies

The Company is mainly engaged in the business of gold and gold products. These, in the context of accounting standard 17 on segment reporting, issued by the institute of chartered accounts, India are considered to constitute one single primary segment.

xii. Micro and Small enterprises dues

Based on the information / Documents available with the Company amounts due to micro and small enterprises is NIL

xiii. Earning per share

Basic earning per share is calculated by dividing the net Profit or loss for the period attributable by the weighted average of number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net Profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all diluted potential equity shares.

xiv. Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability in the financial statements, but are disclosed in the notes.

xv. Provisions

A provision is recognised when the Company has a present obligation as a result of a past event; 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. Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the management.

xvi. Investments

Long term investments are stated at cost after deducting the provisions if any made for permanent diminution in values. Current investments are stated at lower of the cost and fare market value.

xvi. Cash Flow Statement

The Cash Flow statement is prepared by the indirect method setout in the accounting standard 3 on cash flow statement. Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and cash in hand.


Mar 31, 2011

1. Accounting convention:

a. The annual accounts have been prepared on the historical cost basis and confirms to the statutory provisions of the Companies Act, 1956, the General accounting practices prevailing in the country and applicable accounting standards. All income and expenditure having a material bearing on the financial statements are recognized on accrual basis.

2. Fixed assets:

a. Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation/ amortisation. All Costs relating to the acquisition, construction and installation of Fixed Assets are capitalized and include financing costs, if any, relating to borrowed funds attributable to construction or acquisition of Fixed Assets, up to the date the asset is ready for intended use, net of adjustments arising from exchange rate differences relating to specific borrowings, wherever applicable, attributable to those Fixed Assets.

b. Depreciation on fixed assets is provided on straight-line method basis at the rates and in the manner prescribed in Schedule XTV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use.

3. Borrowing cost:

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to the Profit & Loss Account.

4. Foreign currency transactions including futures and option contracts thereon: Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities without forward foreign exchange contract are translated at year-end exchange rates. Foreign currency monetary assets and liabilities with forward foreign exchange contract are recorded at forward exchange rates. The resulting exchange gain/loss on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise in the profit and loss account. Exchange differences attributable to the acquisition of the fixed assets, if any, are adjusted to cost of the respective assets. Premium in respect of forward foreign exchange contract is charged to the Profit & Loss Account. Premium in respect of foreign exchange option contracts is charged to the Profit & Loss Account as and when the contacts are entered into but the gain on such option contracts, if any, is recognized only on maturity/cancellation of such option contracts.

5. Investments:

Long-term investments are stated at cost after deducting provision, if any, made for permanent diminution in the values.

Current investments are stated at lower of cost and market/fair value.

6. Revenue recognition:

Sales are recorded net of trade discounts, rebates and value added tax, if any and are recorded at the realized foreign currency rates. Some of the goods have been imported on provisional basis without fixing the gold price. Some of the goods have also been exported on provisional basis without fixing the price of gold. All the provisional imports and exports have been accounted for as per the custom's assessment of the goods. When the price of import shipment is fixed or when price of the export shipment is fixed, the final invoice is submitted to the customs; the differential is accounted for as purchase or sales. Making charges income is recognized on despatch of goods.

Interest on bank deposits and other interest bearing loans is accounted on accrual basis. However, since previous financial year the company has adopted the'accounting policy with regard to accounting of interest income on interest bearing loans other than bank deposits to cash basis instead of accrual basis due to which the profit for the year has been understated by Rs.33,08,58,068/- Dividend income on investments is accounted for when the right to receive the payment is established.

7. Employees benefits:

Retirement benefits in the form of Provident Fund and Superannuation Schemes are not applicable to the company at present.

Gratuity liability for the year under the Payment of Gratuity Act is accounted on the basis of Actuarial valuation.

The company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

8. Taxation:

Provision for current tax is made on the basis of taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized; 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. The deferred tax is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that such deferred tax asset can be realized against future taxable profits.

9. Valuation of inventories:

Stock in trade is valued at cost or net realisable value (International standard rate as on 31.03.2011), whichever is less for E.O.U, SEZ & SIDCUL units and in respect of other units at cost or net realisable value (Rate prevailing at Bangalore Market as on 31.03.2011), whichever is lower. The cost formula used for this purpose is first in first out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

10. Book debts and advances:

Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the Management.

11. Cash flow statement:

The cash flow statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statement.

12. Business segments

The company is mainly engaged in the business of gold and gold products. These, in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.








Mar 31, 2010

1. Accounting convention:

a. The annual accounts have been prepared on historical cost basis and confrm to the statutory provisions of the Companies Act, 1956, the General accounting practices prevailing in the country and applicable accounting standards. All income and expenditure having a material bearing on the fnancial statements are recognized on accrual basis.

2. Fixed assets:

a. Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation/ amortisation. All Costs relating to the acquisition, construction and installation of Fixed Assets are capitalized and include fnancing costs, if any, relating to borrowed funds attributable to construction or acquisition of Fixed Assets, up to the date the assets is ready for intended use, net of adjustments arising from exchange rate differences relating to specifc borrowings, wherever applicable, attributable to those Fixed Assets.

b. Depreciation on fxed assets is provided on straight-line method basis at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions made during the year is provided for the period the assets were in use.

3. Borrowing cost:

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalised as a part of the cost of such asset up to the date when such asset is ready for its intended use.

Other borrowing costs are charged to the Proft & Loss Account.

4. Foreign currency transactions including futures and option contracts thereon:

Transactions in foreign currencies are recorded at the exchange rates prevailing on the date of transaction. Foreign currency monetary assets and liabilities without forward foreign exchange contract are translated at year-end exchange rates. The resulting exchange gain/loss on settlement of transactions and translation of monetary items are recognized as income or expense in the year in which they arise in the proft and loss account. Exchange differences attributable to the acquisition of the fxed assets, if any, are adjusted to the cost of the respective assets. Premium in respect of foreign exchange option contracts is charged to the Proft & Loss Account as and when the contacts are entered into but the gain on such option contracts, if any, is recognized only on maturity/cancellation of such option contracts.

5. Investments:

Long-term investments are stated at cost after deducting provision, if any, made for permanent diminution in the values.

Current investments are stated at lower of cost and market/fair value.

6. Revenue recognition:

Sales are recorded net of trade discounts, rebates and value added tax, if any and are inclusive of foreign currency fuctuation. Some of the goods have been imported on provisional basis without fxing the gold price. Some of the goods have also been exported on provisional basis without fxing the price of gold. All the provisional imports and exports have been accounted for as per the customs assessment of the goods. When the price of import shipment is fxed or when the price of the export shipment is fxed, the fnal invoice is submitted to the customs; the differential is accounted for as purchase or sales. However during the year the management has changed the accounting policy and accounted for the additional liability on account of increase in gold price as prevalent on 31st March 2010 in the case of all outstanding provisional imports and due to this change in accounting policy the proft for the year has been understated by Rs. 31,93,21,126.

Making charges income is recognized on dispatch of goods.

Interest on bank deposits and other interest bearing loans are accounted on accrual basis. However during the year the management has changed the accounting policy with regard to accounting of interest income on interest bearing loans other than bank deposits to cash basis due to which the proft for the year has been understated by Rs.14,82,02,244/- Dividend income on investments is accounted for when the right to receive the payment is established.

7. Employees benefts:

Retirement benefts in the form of Provident Fund and Superannuation Schemes are not applicable to the company at present.

Gratuity liability for the year under the Payment of Gratuity Act is accounted on the basis of Actuarial valuation.

The company does not provide leave encashment and carry forward of accumulated leave to next year to its employees.

8. Taxation:

Provision for current tax is made on the basis of taxable income for the current accounting year determined in accordance with the Income Tax Act, 1961.

Deferred tax is recognized; 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. The deferred tax is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date.

Deferred tax assets in respect of unabsorbed depreciation and carry forward of losses are recognized only if there is virtual certainty that such deferred tax asset can be realized against future taxable profts.

9. Valuation of inventories:

Stock in trade is valued at cost or net realisable value (International standard rate as on 31.03.2010), whichever is less for E.O.U, SEZ & SIDCUL units and in respect of other units at cost or net realisable value (Rate prevailing at Mumbai as on 31.03.2010), whichever is lower. The cost formula used for this purpose is frst in frst out (FIFO) method and includes direct cost incurred in bringing the items of inventory to their present location and condition.

10. Book debts and advances:

Provision/Write-off of doubtful and unrecoverable book debts and advances have been made, wherever found necessary by the Management.

11. Cash fow statement:

The cash fow statement is prepared by the indirect method set out in Accounting Standard 3 on Cash Flow Statement.

12. Business segments

The company is mainly engaged in the business of gold and gold products. These, in the context of Accounting Standard 17 on Segment Reporting, issued by the Institute of Chartered Accountants of India, are considered to constitute one single primary segment.




Mar 31, 2000

I. GENERAL :

a. The annual accounts have been prepared on the historical cost basis and confirms to the statutory provision of the Companies Act, 1956, and the general practies prevailng in the Country.

b. The accounts have been prepared accounted on cash basis.

ii. FIXED ASSETS :

a. Fixed assets have been accounted for at their historical cost.

b. Depreciation on fixed assets is provided on straight line method at the rates prescribed in Schedule XIV the Companies Act, 1956.

iii. VALUATION OF INVENTORIES :

Stock in Trade is valued at bullion price as per Mumbai standard rates as on 31.3.2000 and making charges as per cost,

iv. BOOK DEBTS AND ADVANCES :

Write-off of doubtful and unrecoverable book debts nnd advances have been made to the Satisfaction of auditors

v. As certified by the management all the correal assets mentioned in the Balance Sheet are realisable in ordinary course of business of the company.

vi. PROFIT AND LOSS ACCOUNT :

No provision has been made towards present liabilities of future payments of gratuity payable to employees and liability in this regard has not been ascertained. The same will be accounted as and when paid.

G. PURCHASE MENTIONED AMOVE ARE MAINLY IMPORTED

Note : Previous years figures are furnished in brackets.

 
Subscribe now to get personal finance updates in your inbox!