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Accounting Policies of S M Energy Teknik & Electronics Ltd. Company

Mar 31, 2015

1.01 Basis of Preparation of Financial Statements

The financial statements are prepared under historical cost convention on accrual basis of accounting following generally accepted accounting principles in India and comply with Accounting Standards as prescribed under section 133 of the Companies Act,2013 ('Act') read with Rule 7 of the Companies (Accounts )Rules 2014 and the provisions of the Act. Accounting policies have been consistently applied by the Company unless otherwise stated. All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Schedule III to the Act, . Based on the nature of the services and their realisation in cash & cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

1.02 Recognition of Income an Expenditure

Items of income and expenditure are generally recognised on accrual basis except, certain items of income and expenditure in respect of which the amounts remain unascertained till the receipt or payment such as scrap sales, insurance claims, octroi refund, bank commission, bank charges and sales tax assessement dues.

1.03 Fixed Assets

Fixed assets are stated at cost of acquisition or construction less, accumulated depreciation /amortization and impairment loss if any.

1.04 Intangible Assets

Intangible assets, namely software is amortised equally over the period of 36 months from the date of put to use.

1.05 Depreciation and Amortisation

a) Pursuant to the enactment of the Companies Act.2013, The Company has effective from 1.4.2014 reassessed the useful life of its assets and has computed Depreciation on Straight Line Method with reference to the useful life of the assets as recommended in Schedule II ofthe Act.

Asset Life (in years)

Building 30

Plant & Machinery 15

Furniture Fixtures 10

Office Equipment 5

Computers 3

Electrical Installation 10

Vehicles 8

b) No write off has been made in respect of lease premium paid for leasehold land since the lease is granted for a long period.

1.06 Inventories:

a) Basis of valuation :

Raw Materials: : At Cost on FIFO Basis

Stores and Spare parts : At Cost on FIFO Basis

Work-in-Progress : At Cost or net realisation Value whichever is lower

Finished Goods : At Cost or net realisation value whichever is lower

b) Cost of inventories comprises of all cost of purchase, cost of conversion and other costs incurred in bringing them to their present location and condition.

c) The finished goods are inclusive of excise duty

1.07 Sales & Services

Sales are inclusive of Excise duty and exclusive of Sales Tax and Job work Income are inclusive of Service Tax.

1.08 Excise Duty

Excise duty has been accounted on the basis of both payment made in respect of goods cleared and also provision made for lying in bonded warehouses.

1.09 Foreign Currency Transactions

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies at the year end are restated at the year end rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

c) Non - Monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation, is recognised in the profit and loss account.

1.10 Employee Retirement Benefits Benefits

a) Gratuity and Leave Encashment liability are provided on actuarial basis.

b) Employer's contribution to Provided Fund is charged to Profit & Loss A/c.

1.11 Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualiflying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

1.12 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

1.13 Provision for Current Tax, Deferred Tax

Income tax expense comprises current tax i.e. amount of tax for the period determined in accordance with the income tax law and deferred tax charge or credit reflect the tax effects of timing difference between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or sustantialy enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainly that the assets can be realised in future; However,where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain(as the case may be) to be realised.

1.14 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes to accounts Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2014

1.01 Basis of Preparation of Financial Statements

The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956 read with the Companies ( Accounting Standards) .Rules 2006 (Accounting Standards Rule) as well as applicable pronouncements of the Institute of Chartered Accountants of India.(the ICAI). All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of the services and their realisation in cash & cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities

1.02 Recognition of Income an Expenditure

Items of income and expenditure are generally recognised on accrual basis except, certain items of income and expenditure in respect of which the amounts remain unascertained till the receipt or payment such as scrap sales, insurance claims, octroi refund, bank commission, bank charges and sales tax assessementdues.

1.03 Fixed Assets

Fixed assets are stated at cost of acquisition or construction less, accumulated depreciation /amortisation and impairment loss if any.

1.04 Intangible Assets

intangible assets, namely software is amortised equally over the period of 36 months from the date of put to use.

1.05 Depreciation and Amortisation

a) Depreciation is provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

b) No write off has been made in respect of lease premium paid for leasehold land since the lease is granted for a long period.

1.06 Inventories:

a) Basis of valuation :

Raw Materials: : At Cost on FIFO Basis

Stores and Spare parts : At Cost on FIFO Basis Work-in-Progress : At Cost or net realisation Value whichever is lower

Finished Goods : At Cost or net realisation value whichever is lower

b) Cost of inventories comprises of all cost of purchase, cost of conversion and other costs incurred in bringing them to their present location and condition.

c) The finished goods are inclusive of excise duty

1.07 Sales & Services

Sales are inclusive of Excise duty and exclusive of Sales Tax and Job work Income are inclusive of Service Tax.

1.08 Excise Duty

Excise duty has been accounted on the basis of both payment made in respect of goods cleared and also provision made for lying in bonded warehouses.

1.09 Foreign Currency Transactions

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailingonthedateofthetransaction.

b) Monetary items denominated in foreign currencies at the year end are restated at the year end rates. In case of monetary items which are covered by forward

- exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

c) Non - Monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation, is recognised in the profit and loss account.

1.10 Employee Retirement Benefits Benefits

a) Gratuity and Leave Encashment liability are provided on actuarial basis.

b) Employer''s contribution to Provided Fund is charged to Profit & Loss A/c.

1.11 Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

1.12 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identifined as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

1.13 Provision for Current Tax. Deferred Tax

Income tax expense comprises current tax i.e. amount of tax for the period determined in accordance with the income tax law and deferred tax charge or credit reflect the tax effects of timing difference between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or sustantialy enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainly that the assets can be realised in future; However,where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain(as the case may be) to be realised.

1.14 Provision. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes to accounts Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2013

1.01 Basis of Preparation of Financial Statements

The financial statements are prepared under historical cost convention, in accordance with the generally accepted accounting principles in India and provisions of the Companies Act, 1956 read with the Companies ( Accounting Standards) .Rules 2006 (Accounting Standards Rule) as well as applicable pronouncements of the Institute of Chartered Accountants of India.(the ICAI). All assets and liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of the services and their realisation in cash & cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities

1.02 Recognition of Income an Expenditure

Items of income and expenditure are generally recognised on accrual basis except, certain items of income and expenditure in respect of which the amounts remain unascertained till the receipt or payment such as scrap sales, insurance claims, octroi refund, bank commission, bank charges and sales tax assessementdues.

1.03 Fixed Assets

Fixed assets are stated at cost of acquisition or construction less, accumulated depreciation /amortisation and impairment loss if any.

1.04 Intangible Assets

Intangible assets, namely software is amortised equally over the period of 36 months from the date of put to use.

1.05 Depreciation and Amortisation

a) Depreciation is provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

b) No write off has been made in respect of lease premium paid for leasehold land since the lease is granted for a long period.

1.06 Inventories:

a) Basis of valuation :

Raw Materials: : At Cost on FIFO Basis

Stores and Spare parts : At Cost on FIFO Basis

Work-in-Progress : At Cost or net

realisation Value whichever is lower

Finished Goods : At Cost or net

realisation value whichever is lower

b) Cost of inventories comprises of all cost of purchase, cost of conversion and other costs incurred in bringing them to their present location and condition.

c) The finished goods are inclusive of excise duty

1.07 Sales & Services

Sales are inclusive of Excise duty and exclusive of Sales Tax and Job work Income are inclusive of Service Tax.

1.08 Excise Duty

Excise duty has been accounted on the basis of both payment made in respect of goods cleared and also provision made for lying in bonded warehouses.

b) Monetary items denominated in foreign currencies at the year end are restated at the year end rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

c) Non - Monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation, is recognised in the profit and loss account.

1.10 Employee Retirement Benefits Benefits

a) Gratuity and Leave Encashment liability are provided on actuarial basis.

b) Employer''s contribution to Provided Fund is charged to Profits Loss A/c.

1.11 Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

1.12 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identifined as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

1.13 Provision for Current Tax. Deferred Tax

Income tax expense comprises current tax i.e. amount of tax for the period determined in accordance with the income tax law and deferred tax charge or credit reflect the tax effects of timing difference between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or sustantialy enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainly that the assets can be realised in future; However.where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain(as the case may be) to be realised.

1.14 Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes to accounts Contingent assets are neither recognised nor disclosed in the financial statements.


Jun 30, 2012

1.01 Basis of Preparation of Financial Statements

The financial statements are prepared under historical cost convention , in accordance with the generally accepted accounting principles in India and provisions of the Companies Act,1956 read with the Companies (Accounting Standards),Rules 2006 (Accounting Standards Rule) as well as applicable pronouncements of the Institute of Chartered Accountants of India.(the ICAI). All assets and liabilities have been classified as current or non-current as per the Company's normal operating cycle and other criteria set out in Revised Schedule VI to the Companies Act, 1956. Based on the nature of the services and their realisation in cash & cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non- current classification of assets and liabilities.

1.02 Recognition of Income an Expenditure

Items of income and expenditure are generally recognised on accrual basis except, certain items of income and expenditure in respect of which the amounts remain unascertained till the receipt or payment such as scrap sales, insurance claims, octroi refund, bank commission, bank charges and sales tax assessement dues.

1.03 Fixed Assets

Fixed assets are stated at cost of acquisition or construction less, accumulated depreciation /amortisation and impairment loss if any.

1.04 Intangible Assets

Intangible assets, namely software is amortised equally over the period of 36 months from the date of put to use.

1.05 Depreciation and Amortisation

a) Depreciation is provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

b) No write off has been made in respect of lease premium paid for leasehold land since the lease is granted for a long period.

1.06 Inventories:

a) Basis of valuation:

Raw Materials: : At Cost on FIFO Basis

Stores and Spare parts : At Cost on FIFO Basis Work-in-Progress : : At Cost or net realisation

Value whichever is lower

Finished Goods : At Cost or net realisation

value whichever is lower

b) Cost of inventories comprises of all cost of purchase, cost of conversion and other costs incurred in bringing them to their present location and condition.

c) The finished goods are inclusive of excise duty

1.07 Sales & Services

Sales are inclusive of Excise duty and exclusive of Sales Tax. And Job work Income are inclusive of Service Tax.

1.08 Excise Duty

Excise duty has been accounted on the basis of both payment made in respect of goods cleared. And also provision made for lying in bonded warehouses.

1.09 Foreign Currency Transactions

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies at the year end are restated at the year end rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange difference and the premium paid on forward contracts is recognised over the life of the contract.

c) Non-Monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation, is recognised in the profit and loss account.

1.10 Employee Retirement

Benefits

a) Gratuity and Leave Encashment liability are provided on actuarial basis.

b) Employer's contribution to Provided Fund is charged to Profit & Loss A/c.

1.11 Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

1.12 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identifined as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of the recoverable amount.

1.13 Provision for Current Tax. Deferred Tax

a) Income tax expense comprises current tax i.e. amount of tax for the period determined in accordance with the income tax law and deferred tax charge or credit reflect the tax effects of timing difference between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised using the tax rates that have been enacted or sustantialy enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasonable certainly that the assets can be realised in future; However.where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognised only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is reasonably/ virtually certain(as the case may be) to be realised.

1.14 Provision. Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are disclosed in the notes to accounts Contingent assets are neither recognised nor


Mar 31, 2010

1. Basis of Preparation of Financial Statements

The Financial Statements have been prepared & presented under the historical cost convention on the accrual basis of accounting & are in conformity with Generally Accepted Accounting Principles and comply with the Accounting Standards notified in the Companies (Accounting Standards) Rules, 2006 and the provisions of the Companies Act, 1956.

2. Recognition of Income and Expenditure

Items of income and expenditure are generally recognised on accrual basis except, certain items of income and expenditure in respect of which the amounts remain unascertained till the receipt or payment such as scrap sales, insurance claims, octroi refund,bank comission.bank charges and sales tax assessement dues.

3. Fixed Assets

Fixed assets are stated at cost of acquisition or construction less, accumulated depreciation /amortisation and impairment loss if any.

4. Intangible Assets

Intangible assets, namely software is amortised equally over the period of 36 months from the date of put to use.

5. Depreciation and Amortisation

a) Depreciation is provided on the Straight Line Method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

b) No write off has been made in respect of lease premium paid for leasehold land since the lease is granted for a long period.

6. Inventories:

a) Basis of valuation :

Raw Materials : At Cost on FIFO Basis

Stores and Spare parts: At Cost on FIFO Basis

Work-in-Progress : At Cost or net realisation value whichever is lower

Finished Goods : At Cost or net realisation value whichever is lower

b) Cost of inventories comprises of all cost of purchase, cost of conversion and other costs incurred in bringing them to their present location and condition.

c) The finished goods are inclusive of excise duty.

7. Sales & Services

Sales are inclusive of Excise duty & exclusive of Sales Tax and Job work income are inclusive of Service Tax.

8. Excise Duty

Excise duty has been accounted on the basis of both payment made in respect of goods cleared and also provision made for goods lying in bonded warehouses.

9. Foreign Currency Transactions

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing on the date of the transaction.

b) Monetary items denominated in foreign currencies at the_year end are restated at the year end rates. In case of monetary items which are covered by forward exchange contracts, the difference between the year end rate and rate on the date of the contract is recognised as exchange differance and the premium paid on forward contracts is recognised over the life of the contract.

c) Non - Monetary foreign currency items are carried at cost.

d) Any income or expense on account of exchange difference either on settlement or on translation, is recognised in the profit and loss account.

10. Employee Retirement Benefits

a) Gratuity and Leave Encashment liability are provided on actuarial basis.

b) Employers contribution to Provided Fund is charged to Profit & Loss A/c.

11. Borrowing Cost

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as part of the cost of such assets. All other borrowing costs are charged to revenue.

12. Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identifined as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been change in the estimate of recoverable amount.

13. Provision for Current Tax, Deferred Tax and Fringe Benefit Tax Income tax expense comprises current tax i.e. amount of tax for the period determined in accordance with the income tax law and deferred tax charge or credit reflect the tax effects of timing difference between accounting income and taxable income for the period. The deferred tax charge or credit and the corresponding deferred tax liabilities or assets are recognised issuing tax rates that have been enacted or sustantialy enacted by the balance sheet date. Deferred tax assets are recognised only to the extent there is reasionable certainty that the assets can be realised in future. However, where there is unabsorbed depreciation or carried forward loss under taxation laws.deferred tax assets are recognised only if there is vertual certainty of realisation of such assets . Deferred tax assets are reviewed as at each balance sheet date and written down or written up to reflect the amount that is resionably/virtually certain (as the case may be) to be reliased.

14. Provision, Contingent Liabilities and Contingent Assets

Provision involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognised but are desclosed in the notes to accounts. Contingent assets are neither recognised, nor disclosed in the financial statements.

 
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