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Accounting Policies of Santowin Corporation Ltd. Company

Mar 31, 2015

A. ACCOUNTING CONCEPTS :

The accounts have been prepared on historical cost convention. The company follows the accrual basis of accounting. The financial statements are prepared in accordance with accounting standards specified under section 133 of the companies act 2013,read with rule 7 of the companies ( Accounts) Rules ,2014 and the relevant provision of companies act,2013.

b. USE OF ESTIMATES :

The preparation of financial statements requires the management of the company to make estimates and assumption that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences between the actual results and estimates are recognized in the period in which the results are known/materialized. Though the management believes that the estimates used are prudent and reasonable, actual results could differ from these estimates.

c. FIXED ASSETS

Fixed Assets are stated at cost less.accumulated depreciation thereon. The cost of fixed assets comprises purchase price and any directly attributable cost of bringing the asset to its working condition for its intended use. Borrowing cost directly attributable to acquisition or construction of those fixed assets which necessary takes substantial period of time to get ready for their intended use are capitalized.

d. DEPRECIATION

In respect of fixed Assets, depreciation is charged on WDV basis to write of the cost of the fixed asset. Useful life of fixed Asset is taken on the basis of its use

e. INVESTMENTS

Investments are classified into current investments and non current investments. Investments that are intended to be held for one year or more as on the date of Balance sheet are classified as non current investments and investments that are held for less than one year as on the date of Balance Sheet are classified as current investments. Non current investment are valued at cost. Income from investment is recognized in the year in which it is accrued and states at gross.

f. INVENTORIES

The stock in trade during the year is valued at cost or net realizable value whichever is less.

g. Employee Benefits :

No provision is made in respect of retirement benefits.

h. Revenue Recognition :

i) Revenue has been recognized as and when there is a reasonable certainty of its ultimate realization

i. Contingent Liability :

i) Provisions are recognized for present obligation of uncertain timing or amount as a result of a past event where a reliable estimate can be made and it is probable that an outflow or resources embodying economic benefits will be required to settle the obligation. Where it is not possible that an outflow or resources embodying economic benefits will be required or the amount cannot be estimated reliably, the obligation is disclosed as contingent liability, unless the probability of outflow or resources embodying economic benefits is remote.

ii) Possible obligations whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain events are also disclosed as contingent liabilities unless the probability of outflow of resources embodying economic benefit is remote.

j. Previous year's figures have been regrouped wherever necessary to confirm to current year's groupings.

k. Cash and Cash equivalents

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less


Mar 31, 2013

A) Revenue Recognition

Purchases are stated net of discount and rate difference. Sales are recognized when goods are invoiced to customer.

b) Fixed Assets

Fixed assets are stated at cost of acquisition less accumulated depreciation. The cost includes cost of acquisition / construction, installation and other related expenses. Expenditure on projects under implementation including preoperative expenses is treated as capital work in progress.

c) Depreciation

Depreciation is been provided on assets used during the year. Depreciation on addition/deletion during the year has been provided on pro-rata basis with reference to the month of addition and deletion.

d) Investments

All the investments are stated cost.

e) Stock-in-trade

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

2. Raw Material, Stores and Spare parts are valued at weighted average method.

3. Other goods like Goods in process and finished goods are valued on the basis of cost plus an appropriate share of manufacturing.

f) Contingencies / Provisions

A provision is recognised when the Company has a present obligation as a result of a past event and 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 of the amount of the obligation.

Contingent liabilities are not provided for unless a reliable estimate of probable outflow to the Company exists as at the Balance Sheet date. Contingent assets are neither recognised nor disclosed in the financial statements.

g) Taxation:

The tax expense comprises of current and deferred tax. Current income tax is measured in accordance with the Income Tax Act 1961. the tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Deferred taxes reflects the impact of timing differences between the taxable income and the accounting income originating during the current year and reversal of timing differences for the earlier years. The deferred tax is measured based on the tax rates and the tax laws enacted or substantially enacted as on the Balance Sheet date. Deferred Tax Assets are not recognized unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

h) There is no estimated amount of the contracts remaining to beexcuted net of advances and not provided for on capital accounts as at the balance sheet date. The Company does not have any contingent liabilities as on the balance sheet date.

i) The balances of Sundry Creditors, Sundry Debtors, Loans & Advances secured and unsecured loans and other current Assets & Liabilities appearing in the book of account are subjects to confirmation & reconciliation, if any

j) In the opinion of Board and as certified by the Managing Director all the expenses charged to revenue are genuine and have been solely and exclusively incurred for the business of the company. All the cash transaction covering receipts and payments are genuine and carried out of business expediency.

k) The company is in the process of identifying suppliers covered under the Interest on Delayed Payment to Small Scale & Ancillary Industrial Undertaking Act,1993 and is yet to ascertain and account for the liability.

l) Earning Per Share

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to the equity shareholders (after deducting preference dividends and attributable taxes, if any) by the weighted average number of shares outstanding during the year. For the purpose of calculating diluted earning per share, net profit & loss for the year attributable to equity shareholders and the weighted number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.


Mar 31, 2011

A. Basis of preparation of financial statements

The company follows mercantile system of accounting and recognizes income and expenditure on accrual basis. The financial statements are prepared under the historical cost concept as going concern and are consistent with generally accepted accounting principles.

b. Revenue recognition

Purchases are stated net of discount and rate difference. Sales are recognized when goods are invoiced to customer.

c. Fixed Assets

Fixed assets are stated at cost of acquisition less accumulated depreciation. The cost includes cost of acquisition construction, installation and other related expenses. Expenditure on projects under implementation including preoperative expenses is treated as capital work in progress.

d. Depreciation

Depreciation is been provided on assets used during the year. Depreciation on addition/deletion during the year has been provided for on pro-rata basis with reference to the month of addition and deletion.

e. Investments

All the investments are stated cost.

f. Foreign Currency

Transactions denominated in foreign currency are normally recorded at the exchange rate prevailing at the time of the transaction.

g. Stock-in-trade

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

2. Raw Material, Stores and Spare parts are valued at weighted average method.

3. Other goods like Goods in process and finished goods are valued on the basis of cost plus an appropriate share of manufacturing.

h. Taxation

Provision of Income-Tax is made after considering exemptions and deductions available at the rate applicable under the Income Tax Act, 1961.

 
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