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Accounting Policies of Shree Global Tradefin Ltd. Company

Mar 31, 2016

Notes to Financial Statement as at and for the year ended 31st March, 2016

1. Significant Accounting Policies:

1.1) Basis of preparation

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 (‘Act’) read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2) Use of Estimates

The preparation of financial statements require judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences, if any, between actual results and estimates are recognized in the period in which the results are known / materialized.

1.3) Recognition of Revenue & Accrual of Expenses

a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. All revenues are accounted for on accrual basis except as otherwise stated.

b) Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

1.4) Fixed Assets Tangible Fixed assets

a) Fixed Assets are stated at cost of acquisition, less accumulated depreciation.

b) Depreciation on all the assets has been provided on Straight Line Method (“SLM”) as per Schedule II of the Companies Act, 2013. Assets individually costing Rs.5,000 or less are depreciated fully in the year of purchase.

1.5) Investments

Long-term investments are valued at cost of acquisition. Cost of acquisition includes brokerage, legal, professional and other charges incidental/ related to the acquisition. Provision for diminution in the value of Non-Current investments is made only if such a decline is other than temporary. Current Investments are carried at the lower of cost and quoted/fair value of each class of investments.

1.6) Inventories

Inventories are valued at cost or net realizable value whichever is lower. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads.

1.7) Cash & Cash Equivalents

Cash and cash equivalents for the purposes of Cash Flow Statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

1.8) Employee Benefits/Retirement Benefits

The Company’s contribution to Provident Fund is considered as defined contribution plans and Short term employee benefit expenses are charged as an expense to the Statement of Profit and Loss. The Company has unfunded defined benefit plans of gratuity for eligible employees, the liabilities for which are determined on the basis of actuarial valuations, conducted by an independent actuary at the end of the financial year in accordance with Accounting Standard 15 (Revised 2005) - ‘Employee Benefits’. Actuarial gains/ losses comprise experience adjustments and the effects of change in actuarial assumptions, and are recognized in the Statement of Profit and Loss as income or expenses

1.9) Leases

Lease rental for assets taken on operating lease are charged to the Statement of Profit and Loss in accordance with Accounting Standard 19 on Leases.

1.10) Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or (loss) after tax for the period to attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

The net profit / (loss) after tax and the weighted average number of shares outstanding during the year are adjusted for all effects of dilutive potential equity shares for calculating the diluted earnings per share.

1.11) Accounting of Taxes on Income :

Current tax is determined on the basis of the amount of tax payable for the year under Income Tax Act 1961.

Tax Credit for Minimum Alternate Tax (MAT) is recognized when there is virtual certainty of its realization against future tax liability.

Deferred Tax is recognized, subject to the consideration of prudence on timing difference, being the difference between the taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

1.12) Provisions, Contingent Liabilities & Contingent Assets

Provisions are recognized in respect of present obligations arising out of past events where there are reliable estimates of the probable outflow of resources. Contingent liabilities are the possible obligation of the past events, the existence of which will be confirmed only by the occurrence or non-occurrence of a future event. These are not provided for but are disclosed by way of Notes on Accounts. Contingent Assets are not provided for or disclosed.

ii. Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs.5/- per share. Each holder of equity shares is entitled to one vote per share.


Mar 31, 2015

1.1) Basis of preparation:

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified. Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

1.2) Use of Estimates :

The preparation of financial statements require judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences, if any, between actual results and estimates are recognized in the period in which the results are known / materialized.

1.3) Recognition of Revenue & Accrual of Expenses ;

a) Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. All revenues are accounted for on accrual basis except as otherwise stated.

b) Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

1.4) Fixed Assets : Tangible Fixed assets

a) Fixed Assets are stated at cost of acquisition, less accumulated depreciation.

b) Depreciation on all the assets has been provided on Straight Line Method ("SLM") as per Schedule II of the Companies Act, 2013. Assets individually costing Rs 5,000 or less are depreciated fully in the year of purchase.

1.5) Investments

Long-term investments are valued at cost of acquisition. Cost of acquisition includes brokerage, legal, professional and other charges incidental/related to the acquisition. Provision for diminution in the value of Non- Current investments is made only if such a decline is other than temporary.

Current Investments are carried at the lower of cost and quoted/fair value of each class of investments.

1.6) Inventories

Inventories are valued at cost or net realizable value whichever is lower. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads.

1.7) Cash & Cash Equivalents

Cash and cash equivalents for the purposes of Cash Flow Statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

1.8) Employee Benefits/Retirement Benefits

The Company's contribution to Provident Fund is considered as defined contribution plans and Short term employee benefit expenses are charged as an expense to the Statement of Profit and Loss. The Company has unfunded defined benefit plans of gratuity for eligible employees, the liabilities for which are determined on the basis of actuarial valuations, conducted by an independent actuary at the end of the financial year in accordance with Accounting Standard 15 (Revised 2005) – 'Employee Benefits'. Actuarial gains/ losses comprise experience adjustments and the effects of change in actuarial assumptions, and are recognised in the Statement of Profit and Loss as income or expenses

1.9) Leases

Lease rental for assets taken on operating lease are charged to the Statement of Profit and Loss in accordance with Accounting Standard 19 on Leases.

1.10) Earnings Per Share

Basic earnings per share is calculated by dividing the net Profit or (loss) after tax for the period to attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

The net Profit / (loss) after tax and the weighted average number of shares outstanding during the year are adjusted for all effects of dilutive potential equity shares for calculating the diluted earnings per share.

1.11) Accounting of Taxes on Income :

Current tax is determined on the basis of the amount of tax payable for the year under Income Tax Act 1961.

Tax Credit for Minimum Alternate Tax (MAT) is recognized when there is virtual certainty of its realisation against future tax liability.

Deferred Tax is recognized, subject to the consideration of prudence on timing difference, being the difference between the taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

1.12) Provisions, Contingent Liabilities & Contingent Assets

Provisions are recognized in respect of present obligations arising out of past events where there are reliable estimates of the probable outflow of resources. Contingent liabilities are the possible obligation of the past events, the existence of which will be confirmed only by the occurrence or non-occurrence of a future event. These are not provided for but are disclosed by way of Notes on Accounts. Contingent Assets are not provided for or disclosed.


Mar 31, 2014

1.1) Basis of preparation:

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notifed under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared under the historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

1.2) Use of Estimates :

The preparation of financial statements require judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Differences, if any, between actual results and estimates are recognized in the period in which the results are known / materialized.

1.3) Recognition of Revenue & Accrual of Expenses ;

a) Revenue is recognized to the extent that it is probable that the economic benefits will fow to the Company and the revenue can be reliably measured. All revenues are accounted for on accrual basis except as otherwise stated.

b) Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

1.4) Fixed Assets : Tangible Fixed assets

a) Fixed Assets are stated at cost of acquisition, less accumulated depreciation.

b) Depreciation is provided under the "Straight Line Method" at applicable rates specified in Schedule XIV of the Companies Act, 1956.

1.5) Investments

Current Investments are carried at the lower of cost and quoted/fair value of each class of investments. Long- term investments are valued at cost of acquisition. Cost of acquisition includes brokerage, legal, professional and other charges incidental/related to the acquisition.

1.6) Inventories

Inventories are valued at cost or net realizable value whichever is lower. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads.

1.7) Cash & Cash Equivalents

Cash and cash equivalents for the purposes of Cash Flow Statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

1.8) Employee benefits/Retirement benefits

Short term employee benefit expenses are accounted in the period during which the services have been rendered

1.9) Leases

Lease rental for assets taken on operating lease are charged to the Statement of Profit and Loss in accordance with Accounting Standard 19 on Leases.

1.10) Earnings Per Share

Basic earnings per share is calculated by dividing the net Profit or (loss) after tax for the period to attributable to equity shareholders by the weighted average number of equity shares outstanding during the period.

The net Profit / (loss) after tax and the weighted average number of shares outstanding during the year are adjusted for all effects of dilutive potential equity shares for calculating the diluted earnings per share.

1.11) Accounting of Taxes on Income :

Current tax is determined on the basis of the amount of tax payable for the year under Income Tax Act 1961.

Tax Credit for Minimum Alternate Tax (MAT) is recognized when there is virtual certainty of its realisation against future tax liability.

Deferred Tax is recognized, subject to the consideration of prudence on timing difference, being the difference between the taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.

1.12) Provisions, Contingent Liabilities & Contingent Assets

Provisions are recognized in respect of present obligations arising out of past events where there are reliable estimates of the probable outfow of resources. Contingent liabilities are the possible obligation of the past events, the existence of which will be confirmed only by the occurrence or non-occurrence of a future event. These are not provided for but are disclosed by way of Notes on Accounts. Contingent Assets are not provided for or disclosed.


Mar 31, 2013

1.1 Basis of preparation:

The financial statements are prepared under the historical cost convention, in accordance with Indian Generally Accepted Accounting Principles ("GAAP"), the Accounting Standards issued by the Institute of Chartered Accountants of India and the provisions of the Companies Act, 1956, as adopted consistently by the Company.

1.2 Use of Estimates :

The preparation of financial statements require judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities including contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between actual results and estimates are recognized in the period in which the results are known / materialized

1.3 Recognition of Revenue & Expenses :

a) Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. All revenue are accounted for on accrual basis except as otherwise stated. Revenue from sale of goods is recognized when all the significant risk & rewards of ownership of the goods have been passed to the buyers, usually on delivery of the goods.

b) Expenses are accounted on the accrual basis and provisions are made for all known losses and liabilities.

1.4 Fixed Assets :

Tangible Fixed assets

a) Fixed Assets are stated at cost of acquisition, less accumulated depreciation.

b) Depreciation is provided under the "Straight Line Method" at applicable rates specified in Schedule XIV of the Companies Act, 1956.

1.5 Investments :

Long Term Investments are stated at cost.

1.6 Inventories :

Inventories are valued at cost or net realizable value whichever is lower. Cost is determined on weighted average basis. Cost comprises expenditure incurred in the normal course of business in bringing such inventories to their location and condition and includes appropriate overheads.

1.7 Cash & Cash Equivalents :

Cash and cash equivalents for the purposes of Cash Flow Statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

1.8 Accounting of Taxes on Income :

Current tax is determined on the basis of the amount of tax payable for the year under Income Tax Act 1961. Deferred Tax is recognized, subject to the consideration of prudence on timing difference, being the difference between the taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods. Tax Credit for Minimum Alternate Tax (MAT) is recognized when there is virtual certainty of its realisability against future tax liability.

1.9 Provisions, Contingent Liabilities & Contingent Assets :

Provisions are recognized in respect of present obligations arising out of past events where there are reliable estimates of the probable outflow of resources. Contingent liabilities are the possible obligation of the past events, the existence of which will be confirmed only by the occurrence or non-occurrence of a future event. These are not provided for but are disclosed by way of Notes on Accounts. Contingent Assets are not provided for or disclosed.


Mar 31, 2012

A) System of Accounting:

The Financial statements are prepared under the historical cost convention and comply with the accounting standards prescribed in the Companies (Accounting Standards) Rules,20O6 and the relevant provisions of the Companies Act, 1956 to the external applicable and in conformity with the generally accepted accounting principal in India.

b) Fixed Assets:

All fixed assets are stated at historical cost of acquisition or construction which includes all expenses up to commissioning / putting the assets into use, unless any assets are revalued and for which, disclosure is made in the accounts.

c) Depreciation:

Depreciation is provided on straight-line method at the rates prescribed under Schedule VI of the Companies Act, 1956.

d) Income Taxes:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, subject to the consideration of prudence on timing difference, being the difference between the taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2010

A) System of Accounting :

The Financial statements are prepared under the historical cost convention and comply with the accounting standards presubscribed in the Companies (Accounting Standards) Rules,2006 and the relevant provisions of the Companies Act, 1956 to the external applicable and in conformity with the generally accepted accounting principal in India.

b) Fixed Assets :

All fixed assets are stated at historical cost of acquisition or construction which includes all expenses up to commissioning / putting the assets into use, unless any assets are revalued and for which, disclosure is made in the accounts.

c) Depreciation :

Depreciation is provided on straight-line method at the rates prescribed under Schedule VI of the Companies Act, 1956.

d) Income Taxes :

Current Tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred Tax is recognized, subject to the consideration of prudence on timing difference, being the difference between the taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods.


Mar 31, 2003

A) System of Accounting

Revenue / Income and costs / expenditure are generally accounted on accrual basis, as they are earned or incurred. Sales revenue is recognised on delivery as per contact terms.

b) Fixed Assets

All fixed assets are stated at historical cost of acquisition or construction which includes all expenses ip to commissioning / putting the assets into use, unless any assets are revealed and for which, disclosure is made in the accounts.

c) Depreciation

Depreciation is provided on straight the method as prescribed under section 205(2)(b) of the companies Act, 1956.

d) Gratuity

No provision for gratuity is made.

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