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Accounting Policies of Sanblue Corporation Ltd. Company

Mar 31, 2014

A) Basis of preparation of Financial Statement

The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards notified in the section 211 (3C) of the Companies Act 1956 and the relevant provisions of the Companies Act, 1956 as adopted consistently by the company.

The Company follows mercantile system of accounting & recognizes income & expenditure on accrual basis.

b) USE OF ESTIMATES:

Preparation of financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates, are recognized in the period in which the results are known/ materialized.

c) Fixed Assets.

Fixed Assets are stated at cost of acquisition and installation cost less accumulated depreciation and impairment loss, if any.

d) Depreciation:

Depreciation on Office Equipment , Computer , Mobile Phone & Printer has been provided on written down value at the rate prescribed in schedule XIV of the Companies Act 1956.Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis .

Building and Electrical Installation has been retired from active use and held for disposal , are valued at carrying amount as recoverable amount is more than the carrying amount , as per independent valuation carried out by the company. Hence depreciation is not provided as per Accounting Standard 6.

e) Impairment of Assets.

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal /external factors. An impairment loss is recognized wherever the carrying amount of fixed assets exceeds its recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

f) Cash and cash equivalents ( for purpose of Cash Flow Statement) Cash comprise cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

g) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/ (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.

h) Investments:

Investments are classified into current and Non Current investments.

Non Current investments are carried at cost. A provision for diminution in value of Non Current investments is made for each investment individually if such decline is other than temporary. Current investments are stated at the lower of cost or market value, computed category wise.

i) Revenue Recognition:

Revenue from consultancy, rental & interest income are recognized on mercantile system. Dividend income is recognized as and when the right to receive the amount is established.

j) Employee Benefit :

Short term employee benefits like salaries are provided on accrual basis. The provident fund , E.S.I , gratuity are not applicable to the company.

k) Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized when the company has present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Contingent Liabilities are disclosed by way of notes to financial statements. Contingent Assets are neither recognized nor disclosed in the financial statements. Provisional, Contingent Liabilities and Contingent Assets are reviewed at each balance sheet date.

l) Taxes on income:

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

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

n) Earnings per Share

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

a) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. The dividend if any proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended 31 March 2014, the company has not declared any dividend to equity shareholders (31 March 2013: Rs Nil).

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders

a) The Company has invested in shares of one of the enteprises significantly influenced by key management personnel namely, Sanblue Enterprises Pvt Ltd. The net worth of that company has turned negative. The permanent diminuton in value of investment has been reduced earlier. No provision has been made for any possible loss in value of investments, considering the instrinsic value of the business, the nature of invesments being of a long term nature and the expected improvement in performance of the investee company.

b) Investments :

No Provision for difference between book value and market value of Rs.2959628 ( P.Y. 3163987/-) in value of long term quoted investments in one script has been made since in the opinion of the management such difference is of temporary nature and do not represent a diminution other than temporary.


Mar 31, 2013

A) Basis of preparation of Financial Statement

The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards notified in the section 211 (3C) of the Companies Act 1956 and the relevant provisions of the Companies Act, 1956 as adopted consis- tently by the company.

The Company follows mercantile system of accounting & recognizes income & expenditure on accrual basis.

b) USE OF ESTIMATES :

Preparation of financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabili- ties on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates, are recognized in the period in which the results are known/ materialized.

c) Fixed Assets :

Fixed Assets are stated at cost of acquisition and installation cost less accumulated depreciation and impairment loss, if any.

d) Depreciation :

Depreciation on Office Equipment, Computer, Mobile Phone & Printer has been provided on written down value at the rate prescribed in schedule XIV of the Companies Act 1956. Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis.

Building and Electrical Installation has been retired from active use and held for disposal, are valued at carrying amount as recoverable amount is more than the carrying amount, as per independent valuation carried out by the company. Hence depareciations is not provided as per Accounting Standard 6.

e) Impairment of Assets :

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal /external factors. An impairment loss is recognized wherever the carrying amount of fixed assets exceeds its recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

f) Cash and Cash Equivalents (For Purpose of Cash Flow Statement)

Cash comprise cash on hand and demand deposits with banks. Cash equivalents are short-term balanes (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

g) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/ (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.

h) Investments :

Investments are classified into current and Non Current investments.

Non Current investments are carried at cost. A provision for diminution in value of Non Current invest- ments is made for each investment individually if such decline is other than temporary. Current invest- ments are stated at the lower of cost or market value, computed category wise.

i) Revenue Recognition:

Revenue from consultancy, rental & interest income are recognized on mercantile system. Dividend income is recognized as and when the right to receive the amount is established.

j) Employee Benefit :

Short term employee benefits like salaries are provided on accrual basis. The provident fund , E.S.I , gratuity are not applicable to the company.

k) Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized when the company has present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Contingent Liabilities are disclosed by way of notes to financial statements. Contingent Assets are nei- ther recognized not disclosed in the financial statements. Provisional, Contingent Liabilities and Contin- gent Assets are reviewed at each balance sheet date.

l) Taxes on income :

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

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

n) Earnings Per Share

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

Presentation and disclosure of financial statements

The Annual Accounts for the current year has been prepared as per Revised Schedule VI notified by Ministry of COrporate Affairs vide S.O.447(E) dated 28.02.2011. The previous year figures have also been regrouped/reclassified and re-casted as per the requirement of Revised Schedule VI.


Mar 31, 2012

A) Basis of preparation of Financial Statement

The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards notified in the section 211 (3C) of the Companies Act 1956 and the relevant provisions of the Companies Act, 1956 as adopted consistently by the company.

b) The Company follows mercantile system of accounting & recognizes income & expenditure on accrual basis.

b) USE OF ESTIMATES :

Preparation of financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liability on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates, are recognized in the period in which the results are known/ materialized.

c) Fixed Assets.

Fixed Assets are stated at cost of acquisition.

d) Cash and cash equivalents ( for purpose of Cash Flow Statement)

Cash comprise cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

e) Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/ (loss) before extraordinary items and tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the company are segregated based on the available information.

f) Depreciation :

Depreciation on Office Equipment , Computer , Mobile Phone & Printer has been provided on written down value at the rate prescribed in schedule XIV of the Companies Act 1956.Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis .

Building and Electrical Installation are retired from active use and held for disposal , are valued at carrying amount as recoverable amount is more than the carrying amount , as per independent valuation carried out by the company. Hence depreciation is not provided as per Accounting Standard 10.

g) Impairment of Assets.

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal /external factors. An impairment loss is recognized wherever the carrying amount of fixed assets exceeds its recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

h) Investments :

Investments are classified into current and Non Current investments.

Non Current investments are carried at cost. A provision for diminution in value of Non Current investments is made for each investment individually if such decline is other than temporary. Current investments are stated at the lower of cost or market value, computed category wise.

i) Revenue Recognition:

Revenue from consultancy, rental & interest income are recognized on mercantile system. Dividend income is recognized as and when the right to receive the amount is established.

j) Employee Benefit :

Short term employee benefits like salaries are provided on accrual basis. The provident fund , E.S.I , gratuity are not applicable to the company.

k) Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized when the company has present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Contingent Liabilities are disclosed by way of notes to financial statements. Contingent Assets are neither recognized not disclosed in the financial statements. Provisional, Contingent Liabilities and Contingent Assets are reviewed at each balance sheet date.

l) Taxation :

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

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

n) Earnings Per Share

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


Mar 31, 2011

A) Basis of preparation of Financial Statement :

a) The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards notified in the section 211 (3C) of the Companies Act 1956 and the relevant provisions of the Companies Act, 1956 as adopted consistently by the company.

b) The Company follows mercantile system of accounting & recognizes income & expenditure on accrual basis.

b) USE OF ESTIMATES :

Preparation of financial statements in conformity with generally accepted accounting principles require management to make estimates and assumptions that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates, are recognized in the period in which the results are known/ materialized.

c) Fixed Assets :

Fixed Assets are stated at cost of acquisition.

d) Depreciation :

Depreciation on Office Equipment, Computer, Mobile Phone & Printer has been provided on written down value at the rate prescribed in schedule XIV of the Companies Act 1956. Depreciation on Fixed Assets added/disposed off during the year is provided on pro-rata basis.

Building and Electrical Installation are retired from active use and held for disposal, are valued at carrying amount as recoverable amount is more than the carrying amount, as per independent valuation carried out by the company. Hence depreciation is not provided as per Accounting Standard 10.

e) Revenue Recognition :

Revenue from consultancy, rental & interest income are recognized on mercantile system. Dividend income is recognized as and when the right to receive the amount is established.

f) Employee Benefit :

Short term employee benefits like salaries are provided on accrual basis. The provident fund, E.S.I., gratuity are not applicable to the company.

g) Investments :

Investments are classified into current and long term investments.

Long term investments are carried at cost. A provision for diminution in value of long term investments is made for each investment individually if such decline is other than temporary . Current investments are stated at the lower of cost and gain value, computed category wise.

h) Provision, Contingent Liabilities and Contingent Assets :

Provisions are recognized when the company has present obligation as a result of past events, for which it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made for the amount of the obligation.

Contingent Liabilities are disclosed by way of notes to financial statements. Contingent Assets are neither recognized not disclosed in the financial statements. Provisional, Contingent Liabilities and Contingent Assets are reviewed at each balance sheet date.

i) Impairment of Assets :

The carrying amount of assets is reviewed at each balance sheet date for any indication of impairment based on internal /external factors. An impairment loss is recognized wherever the carrying amount of fixed assets exceeds its recoverable amount. The recoverable amount is measured as the higher of the net selling price and the value in use determined by the present value of estimated future cash flows.

j) Taxation :

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted us on the balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.


Mar 31, 2010

A) Basis of preparation of Financial Statement

a) The Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles, the Accounting Standards notified in the section 211 (3C) of the Companies Act 1956 and the relevant provisions of the Companies Act, 1956 as acopted consistently by the company.

b) The Company follows mercantile system of accounting & recognizes income & expenditure on accrual basis.

b) Fixed Assets

Fixed Assets are stated at cost of acquisition

c) Depreciation:

Depreciation on Office Equipment, Computer. Mobile Phone & Printer has been provided on written down value at the rate prescribed in schedule XIV of the Companies Act 1956. Depredation on Fixed Assets added disposed off during the year is provided on pro-rata basis.

Building, Electrical Installation, Furniture & fixtures are retired from active use and held for disposal. are valued at carrying amount as recoverable amount is more than the carrying amount. as per independent valuation carried out by the company. Hence depreciation is not provided as per Accounting Standard 10.

d) Revenue Recognition

Revenue from consultancy, rental & interest income are recognized on nercantile system

e) Employee Benefit:

Short term employee benefits like salaries are provided on accrual basis The provident fund, E.S. I, gratuity are not applicable to the company.

f) Investments:

Long term investment are stated at cost and where there is permanent diminution in the value of investment a provision / reduction is made wherever applicable.

g) Taxation :

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year that originate in one period and are capable of reversal in one or more subsequent periods. Such deferred tax is quantified using the tax rates and laws enacted or substantively enacted us on the balance sheet date. Deferred tax assets are recognized and carried forward to the extent that there is a reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

 
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