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Accounting Policies of Shivansh Finserve Ltd. Company

Mar 31, 2015

1. Basis of Preparation of Financial Statements:

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India, to comply with the applicable mandatory Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules,2014 and the relevant provisions of the Companies Act, 2013. The accounting policies adopted in the preparation of financial statements are consistent with those followed in the previous year, except wherever specified.

2. Going Concern :

The financial statements are prepared on a going concern basis. The management of the Company believes that, the Company will continue to operate as a going concern and will be in a position to meet all its liabilities as they fall due for payment.

3. Use of Estimates:

In preparing the Company's financial statements in conformity with the accounting principles generally accepted in India, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Any revision to accounting estimates is recognised prospectively in the current and future periods.

4. Fixed Assets:

Fixed Assets is stated at cost of acquisition (net of CENVAT, wherever applicable) as reduced by accumulated depreciation. The cost of assets includes other direct/indirect and incidental cost incurred to bring them into their working condition.

When assets are disposed or retired, their cost is removed from the financial statements. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between sales proceeds and the carrying amount of the asset and is recognised in Statement of Profit and Loss for the relevant financial year.

5. Depreciation:

In respect of fixed assets acquired during the year, depreciation/ amortization is charged on a straight line basis so as to write off the cost of the assets over the useful lives as prescribed in Schedule II of the Companies Act, 2013 and for the assets acquired prior to April 1, 2014, the carrying amount as on April 1, 2014 is depreciated over the remaining useful life of the assets. Depreciation on grant portion of the assets is adjusted to the grant account.

6. Revenue Recognition:

Revenue is recognised when practically all risk and rights connected with ownership have been transferred to the buyer. This usually occurs upon dispatch, after the price has been determined and collection of the sales proceeds is reasonable certain.

i. Interest Income

Interest Income is recognized on accrual basis.

7. Earning Per Share:

Basic earnings per share is calculated by dividing net profit after tax for the year attributable to Equity Shareholders of the company by the weighted average number of Equity Shares issued during the year. Diluted earnings per share is calculated by dividing net profit attributable to equity Shareholders (after adjustment for diluted earnings) by average number of weighted equity shares outstanding during the year.

8. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognized when there is a present obligation as a result of past event and 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.

A disclosure for a contingent liability is made when there is a possible or present obligation that may, but probably will not require an outflow of resources.

Contingent Assets are neither recognized nor disclosed in the financial statements

9. Income Tax

Provision for current tax is made after taking into consideration benefits admissible under the provision of the Income Tax Act, 1961.


Mar 31, 2014

2.1. ACCOUNTING CONVENTION

The Company follows mercantile system of accounting and recognizes income and expenditure on accrual basis unless otherwise disclosed by way of note.

* These accounts have been prepared under the historical cost conventions, on accrual basis and on the accounting principles of a going concern.

* Accounting policies unless specifically stated to be otherwise are consistent and are in consonance with generally accepted a unting principles.

* The Accounting Standards and relevant guidelines notes issued by the Institute of Chartered Accountants of India and relevant provisions of the Companies Act, 1956.

2.2. FIXED ASSETS

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises of freight, duties, taxes, interest and other incidental expenses related to acquisition and installation.

2.3. INVESTMENTS

Long term investments are stated at cost less provision for diminution in value other than temporary if any.

2.4. INVENTORIES

Inventories are valued at lower of cost or net realizable value. Cost of inventories is computed on a FIFO basis. Finished Goods and Work in progress included raw material cost, Cost of conversion and other cost in bringing the inventories to their present location and condition.

2.5. DEPRECIATION AND AMMORTIZATION

Depreciation is charged under the straight line method in accordance with the rates and manner specified in Schedule XIV to the Companies Act, 1956.

2.6. IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/ external factors. An impairment loss Is recognized wherever the carrying amount of asset exceeds its recoverable amount

2.7. USE OF ESTIMATES

The preparation of financial statements in conformity with Indian GAAP requires management to make estimates and assumptions Considered in the reported amount of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The management believes that the estimates used in the preparation of financial statements are prudent and reasonable. Future results could differ due to these estimates and the difference between actual results and the estimates as are recognized in the period in which the results are known/ materialized.

2.8.REEVENUE RECOGNITION

i. Revenue is recognized with the dispatch of goods to the customers adopting the mercantile system of accounting, li. Other miscellaneous revenue are recognized when amount and reliability is certain.

2.9.BORROWING COST

Borrowing cost relating to (i) funds borrowed for acquisition of qualifying fixed assets are capitalized till the date of commissioning and thereafter charged to Profit and loss A/c and (ii) funds borrowed for other purposes are charged to Profit and Loss A/c.

2.10-FQREIGN CURRENCY TRANSACTION

The company has opted for accounting the exchange differences arising on reporting of long term Foreign Currency monetary items in line with companies (Accounting standards ) Amendment rules 2009 relating to accounting standard 11 (AS-11) notified by Government Of India on 31st March, 2009.

2.11. RESEARCH AND DEVELOPMENT

Revenue expenditure charged to Profit and loss Account under respective heads of account and capital expenditure added to the cost of fixed assets in the year in which incurred.

2.12. GOVERNMENT GRANTS

Gr relating to Fixed Assets are shown as deduction from the gross value of fixed assets and those of the nature of Project Capital Subsidy Reserves and other Government Grants including export incentives are credited to Profit and loss account or deducted from the related expense.

2.13. EMPLOYEE BENEFITS

Company's contribution to Provident Fund are charged to Profit and Loss Account is accounted for on accrual basis. Gratuity under the payment of Gratuity Act is provided for on accrual basis.

2.14. TAXATION

Tax liability is estimated considering the provision of the Income Tax Act, 1961. Deferred Tax is recognized subjects to the consideration of Prudence, on timing difference, 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.

2.15. PROVISIONS. CONTINGENT LIABILITIES AND CONTINGENT ASSETS

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


Mar 31, 2013

1.1 Basis of Preparation of financial Statements

i. The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles, applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and provisions of the Companies Act, 1956 adopted consistently by the Company,

ii. The Company follows the mercantile systems of accounting and recognizes significant items of incomes and expenditure on accrual basis. Wherever it is not possible to determine the quantum of accrual with reasonable certainly, e.g. insurance & others claims, refund of customs duty, VAT and export incentives these continue to be accounted for on settlement basis.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Managements to makes estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Managements believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates as are recognized in the periods in which the results are known/materialize.

1.3 Fixed Assets

Fixed Assets are stated at cost less accumulated depreciation. Cost comprises of fright, duties, taxes, interest and other incidental expenses related to acquisition and installation.

1.4 Depreciation/Amortization

Depreciation is changed under the Straight Line Method in accordance with the rates and manner specified in Schedule XIV to the Companies Act, 1956.

1.5 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there any indication of impairment based on internal/extemal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

1.6 Investment

Long term investments are started at cost less provision for diminution in value other than temporary, if any.

1.7 Inventories

Inventories are valued at lower of cost and net realizable value. Cost of inventories is computed on a FIFO basis Finished Goods and Work in progress included raw material cost. Cost of conversion and other cost in bringing the inventories to their present location and conditions.

1.8 Revenue Recognition

i. Revenue is recognized with the dispatch of goods to the customers adopting the mercantile system of accounting.

ii. Other Miscellaneous Revenue are recognized when amount and reliability is certain.

1.9 Borrowing Cost

Borrowing cost relating to (i) funds borrowed for acquisition of qualifying fixed assets are capitalized till the date of commissioning and thereafter charged to Profit and Loss Account and (ii) funds borrowed for other purposes are charged to profit and loss Account.

1.10 Foreign Currency Transactions

The Company has opted for accounting the exchange differences arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 relating to accounting Standard 11 (AS-11) notified by Government of India on 31st March, 2009.

1.11 Research & Development

Revenue expenditure charged to Profit and Loss Account under respective heads of account and capital expenditure added to the cost of fixed Assets in the year in which it is incurred.

1.12 Governments Grants

Grants relating to Fixed Assets arc shown as deduction from the gross value of the Fixed Assets and those of the nature of project Capital Subsidy are credited to Capital Subsidy Reserves & others Governments grants including export incentives are credited to Profit & Loss Account or deducted from the related expenses.

1.13 Employee Benefits

Company's Contribution to Provident Fund are charged to Profit & Loss Account is accounted for on accrual basis. Gratuity under the payment of Gratuity Act is provided for on actuarial basis,

1.14 Taxation

Tax liability is estimated considering the provision of the Income Tax Act, 1961. Deferred Tax is recognized subjects to the consideration of prudence, on timing difference, 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.

1.15 Provisions, Contingent Liabilities and Contingent Assets

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


Mar 31, 2012

1.1 Basis of Preparation of financial Statements

i. The financial statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles, applicable Accounting Standards as prescribed under the Companies (Accounting Standards) Rules, 2006 and provisions of the Companies Act, 1956 adopted consistently by the Company.

ii. The Company follows the mercantile systems of accounting and recognizes significant items of incomes and expenditure on accrual basis. Wherever it is not possible to determine the quantum of accrual with reasonable certainly, e.g, insurance & others claims, refund of customs duty. VAT and export incentives these continue to be accounted for on settlement basis.

1.2 Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Managements to makes estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Managements believes that the estimates used in preparation of the financial statements arc prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates as are recognized in the periods in which the results are known/materialize.

1.3 Fixed Assets

Fixed Assets are staled at cost less accumulated depreciation. Cost comprises of fright, duties, taxes, interest and other incidental expenses related to acquisition and installation.

1.4 Depreciation/Amortization

Depreciation is changed under the Straight Line Method in accordance with the rates and manner specified in Schedule XIV to the Companies Act. 1956.

1.5 Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there any indication of impairment based on internal/extemal factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

1.6 Investment

Long term investments are started at cost less provision for diminution in value other than temporary, if any.

1.7 Inventories

Inventories are valued at lower of cost and net realizable value. Cost of inventories is computed on a FIFO basis Finished Goods and progress included raw material cost. Cost of conversion and other cost in bringing the inventories to their present location and conditions.

1.8 Revenue Recognition

i. Revenue is recognized with the dispatch of goods to the customers adopting the mercantile system of accounting.

ii. Other Miscellaneous Revenue are recognized when amount and realisability is certain.

1.9 Borrowing Cost

Borrowing cost relating to (i) funds borrowed for acquisition of qualifying fixed assets are capitalized till the date of commissioning and thereafter charged to Profit and Loss Account and (ii) funds borrowed for other purposes are charged to profit and loss Account.

1.10 Foreign Currency Transactions

The Company has opted for accounting the exchange differences arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 relating to accounting Standard 11 (AS-ll) notified by Government of India on 31st March, 2009.

1.11 Research & Development

Revenue expenditure charged to Profit and Loss Account under respective heads of account and capital expenditure added to the cost of fixed Assets in the year in which it is incurred.

1.12 Governments Grants

Grants relating to Fixed Assets are shown as deduction from the gross value of the Fixed Assets and those of the nature of project Capital Subsidy arc credited to Capital Subsidy Reserves & others Governments grants including export incentives are credited to Profit & Loss Account or deducted from the related expenses.

1.13 Employee Benefits

Company's Contribution to Provident Lund arc charged to Profit & Loss Account is accounted for on accrual basis. Gratuity under the payment of Gratuity Act is provided for on actuarial basis.

1.14 Taxation

Tax liability is estimated considering the provision of the Income Tax Act, 1961. Deferred Tax is recognized subjects to the consideration of prudence, on timing difference, 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.

1.15 Provisions, Contingent Liabilities and Contingent Assets

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


Mar 31, 2011

1. BASIS OF PREPARATION OF FINANCIAL STATEMENTS :

a. The financial statements have been prepared under the historical cost convention,in accordance with the generally accepted acccounting principals and the provisions of the Companies Act,1956, as adopted consistenly by the company.

b. The Company follows mercantile system of accounting and recognines significant items of income and expenditure on accrual basis.

4. REVENUE RECOGNITION :

a. Revenue is recognised with the despatch of goods to the customers adopting the mercantile system of accounting.

b. Other Miscellaneuos Revenue are recognised when amount and realisa- bility is certain.

5. TAXES ON INCOME :

i. Provision for I-tax has to be made on the basis of provisions of I- Tax Act and MAT as per section 115JB.

ii. In accordance with the Accounting Standard AS-22 Accounting of Taxes on Income issued by the Institute of Chartered Accountants of India deferred tax liabilities & assets arising from timing difference are expected to crystallize in later years are recognized only there is virtual certainty of relaistion of profit.

6. PRELIMINARY EXPENSES :

Preliminary Expenses are amortised over a period of five years, in accordance with the provisions of Section 35D of Income Tax Act,1961.

7. INSURANCE CLAIM :

Insurnace Claim are accounted for on settlement basis.

8. EMPLOYEE RETIREMENT BENEFITS :

Company's contibution to provident fund are charged to profit & loss account.No provision for gratuity has been made in books and the same will dealt as and when paid.

9.INVESTMENT & SECURITY DEPOSITS :

a. Investments are valued at cost.

b. Income on investment are being accounted for on cash basis.

 
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