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Accounting Policies of Shree Steel Wire Ropes Ltd. Company

Mar 31, 2014

(a) Basis of Preparation :

The Financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Indian generally accepted accounting principles and Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provisions thereof.

(b) Revenue Recognition:

(i) The Company recognise Sales which are inclusive of Central Excise and Sales Tax. Excise duty related to sales turnover is presented as a reduction from Gross sales.

(ii) Labour charges received is recognised as and when the Job work is completed and the material is ready to dispatch to the contractor.

(iii) Interest on Bank deposits is recognized on the time basis determined by the amount outstanding and the rate of interest applicable as per bank and where no significant uncertainty is there on its collectability.

(iv) Revenue is recognised only when collectability of the resulting revenue is reasonably assured.

(c) Fixed Assets:

(i) Tangible Assets

Fixed Assets are recorded at cost of acquisition or construction. In respect of assets acquired on purchase of Business the fixed assets are recorded at the value determined by competent valuers.

(ii) Intangible Assets

Goodwill is shown at excess of purchase consideration over net tangible assets valued at the time of Business Purchase.

(d) Depreciation:

Depreciation on Tangible fixed assets is provided on straight line method at the rates and the manner specified in Schedule XIV to the Companies Act, 1956.

(e) Impairment:

At each balance sheet date, the Company assesses whether there is any indication that the fixed assets have suffered an impairment loss. As per the assessment conducted by the Company at 31st March 2014, there were no indications that the fixed assets have suffered an impairment loss.

(f) Investments:

Investments are classified as Current or Long term in according with Accounting standard 13 on Accounting for investments. Long Term Non Current investments are valued at cost.

(g) Inventories:

Inventories are measured at lower of the cost and net realisable value. Cost of inventories comprises all costs of purchase (net of input credits i.e. Excise and MVAT), cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost of Stores and Spares, raw materials, trading and other products are determined on weighted average basis. Cost of Stock in process and finished stock is determined by the absorption costing method.

Excise duty on finished goods is not included while valuing finished good inventories.

(h) Employee benefits:

Employee benefits such as salaries, allowances, and other employee benefits such as provident and other funds are charged as expenses to the profit and loss account in the period in which the service is rendered.

Company has an obligation towards gratuity, Company has opened on its own a gratuity fund which is an unapproved gratuity fund for the benefits of its employees.

(i) Foreign Currency Transactions:

There are no foreign currency transactions during the year.

(j) Borrowing Cost:

There is no Borrowing cost attributable to the acquisition of qualifying fixed assets which is incurred during the year. All other borrowing cost are charged to profit and loss account.

(k) Taxes on Income:

(i) Provision for Income Tax comprises of Current Tax i.e. tax on taxable income computed as per Income Tax Law applicable for the relevant accounting year.

(ii) Provision for deferred taxation is made using the liability method at the current taxation on all timing differences to the extent that is probable that a liability or assets will crystalise as at the balance sheet date, unless there is evidence to the contrary, deferred tax assets pertaining to business loss are only recognised to the extent that there are deferred tax liabilities offsetting them.

(l) Contingent Liabilities:

Contingent liabilities as defined in Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets. These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

(m) Earnings per share

The Company reports Earnings per share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic EPS is computed by dividing the net profit after tax for year by the weighted average number of equity shares outstanding during the year.

There was no dilution or fresh issue of equity shares, hence Basic and Dilution EPS are same.

(n) Calls in Arrears:

Details of number of shares against the amount of calls in arrears, are not provided by the company.

(o) Cash Flow Statement:

The Cash Flow Statement is prepared by the Indirect method set out in Accounting Standard 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the company.

Cash and cash equivalents presented in the Cash Flow Statement consist of cash on hand, balance in current accounts and demand deposits with the bank.


Mar 31, 2012

(a) Basis of Preparation:

The Financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Indian generally accepted accounting principles and Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provisions thereof.

(b) Revenue Recognition:

(i) The Company recognise Sales which are inclusive of Central Excise and Sales Tax. Excise duty related to sales turnover is presented as a reduction from Gross sales.

(ii) Labour charges received is recognised as and when the Job work is completed and the material is ready to dispatch to the contractor.

(iii) Revenue is recognised only when collectively of the resulting revenue is reasonably assured.

(c) Fixed Assets:

(i) Tangible Assets

Fixed Assets are recorded at cost of acquisition or construction. In respect of assets acquired on purchase of Business the fixed assets are recorded at the value determined by competent valuers.

(ii) Intangible Assets

Goodwill is shown at excess of purchase consideration over net tangible assets valued at the time of Business Purchase.

(d) Depreciation :

Depreciation on Tangible fixed assets is provided on straight line method at the rates and the manner specified in Schedule XIV to the Companies Act, 1956.

(e) Impairment:

At each balance sheet date, the Company assesses whether there is any indication that the fixed assets have suffered an impairment loss. As per the assessment conducted by the Company at 31st March 2012, there were no indications that the fixed assets have suffered an impairment loss.

(f) Investments:

Investments are classified as Current or Long term in according with Accounting standard 13 on Accounting for investments. Long Term Non Current investments are valued at cost.

(g) Inventories:

Inventories are measured at lower of the cost and net realisable value. Cost of inventories comprises all costs of purchase (net of input credits i.e. Excise and MVAT), cost of conversion and other cost incurred in bringing the inventories to their present location and condition. Cost of Stores and Spares, raw materials, trading and other products are determined on weighted average basis. Cost of Stock in process and finished stock is determined by the absorption costing method. Excise duty on finished goods is not included while valuing finished good inventories.

(h) Employee benefits:

Employee benefits such as salaries, allowances, and other employee benefits such as provident and other funds are charged as expenses to the profit and loss account in the period in which the service is rendered. Company has an obligation towards gratuity, Company has opened on its own a gratuity fund which is an unapproved gratuity fund for the benefits of its employees.

(i) Foreign Currency Transactions:

There are no foreign currency transactions during the year.

(j) Borrowing Cost:

There is no Borrowing cost attributable to the acquisition of qualifying fixed assets which is incurred during the year. All other borrowing cost are charged to profit and loss account.

(k) Taxes on Income:

(i) Provision for Income Tax comprises of Current Tax i.e. tax on taxable income computed as per Income Tax Law applicable for the relevant accounting year.

(ii) Provision for deferred taxation is made using the liability method at the current taxation on all timing differences to the extent that is probable that a liability or assets will crystalise as at the balance sheet date, unless there is evidence to the contrary, deferred tax assets pertaining to business loss are only recognised to the extent that there are deferred tax liabilities off setting them.

(l) Contingent Liabilities:

Contingent liabilities as defined in Accounting Standard 29 on Provisions, Contingent Liabilities and Contingent Assets. These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

(m) Earnings per share

The Company reports Earnings per share (EPS) in accordance with Accounting Standard 20 on "Earning Per Share". Basic EPS is computed by dividing the net profit after tax for year by the weighted average number of equity shares outstanding during the year. There was no dilution or fresh issue of equity shares, hence Basic and Dilution EPS are same.

(n) Calls in Arrears:

Details of number of shares against the amount of calls in arrears, are not provided by the company.

(o) Cash Flow Statement:

The Cash Flow Statement is prepared by the Indirect method set out in Accounting Standard 3 on "Cash Flow Statements" and presents the cash flows by operating, investing and financing activities of the company. Cash and cash equivalents presented in the Cash Flow Statement consist of cash on hand, balance in current accounts and demand deposits with the bank.


Mar 31, 2011

(a) System of Accounting :

The Company follows accrual system of accounting for all items of revenue and costs.

(b) Sales:

Sales are inclusive of Central Excise and Sales Tax.

(c) Inflation :

Assets and liabilities are shown at historical costs and no adjustments are made for changes in purchasing power of money.

(d) Fixed Assets:

Fixed Assets are recorded at cost of acquisition or construction. In respect of assets acquired on purchase of Business the fixed assets are recorded at the value determined by competent valuers. Goodwill is shown at excess of purchase consideration over net tangible assets valued at the time of Business purchase.

(e) Depreciation:

Depreciation on fixed assets is provided on straight line method at the rates and the manner specified in Schedule XIV to the Companies Act, 1956.

(f) Investments:

Long Term investments are shown at cost. Provision for diminution in the value of investments is made to recognize a decline of other than temporary in nature.

(g) Inventories:

Inventories are valued at lower of cost or net realisable value, on the weighted average basis. The valuation of inventories has been considered net of Central Excise Duty and Maharashtra Value Added Tax.

(h) Revenue Recognition:

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.

(i) Foreign Currency Transactions:

There are no Foreign Currency Transactions during the year

(j) Employee Retirement Benefit:

a) Company's contribution to Provident fund / superannuation fund are charged to Profit & Loss Account

b) The Company has provided the gratuity liability on the basis of actuarial Valuation.

c) Provision for unutilised leave due to employees is not provided.

(k) Taxes on Income:

Provision for Income Tax comprises of Current Tax i.e. tax on taxable income computed as per Income Tax Law applicable for the relevant accounting year.

Provision for deferred taxation is made using the liability method at the current taxation on all timing differences to the extent that is probable that a liability or assets will crystalise as at the balance sheet date, unless there is evidence to the contrary, deferred tax assets pertaining to business loss are only recognised to the extent that there are deferred tax liabilities off setting them.

(l) Borrowing Cost:

There is no Borrowing cost attributable to the acquisition of qualifying fixed assets is incurred during the year. All other borrowing cost are charged to profit & loss account.

(m) Contingent Liabilities:

These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in respect of those liabilities which are likely to materialise after the year end, till the finalisation of accounts and have material effect on the position stated in the Balance Sheet.

(n) Amortization of Miscellaneous Expenditure :

Preliminary and Public Issue expenses are nil.

(o) Calls in Arrears :

Details of number of shares against the amount of calls in arrears, are not provided by the company.


Mar 31, 2010

(a) System of Accounting :

The Company follows accrual system of accounting for all items of revenue and costs.

(b) Sales:

Sales are inclusive of Central Excise & Sales Tax.

(c) Inflation :

Assets and liabilities are shown at historical costs and no adjustments are made for changes in purchasing power of money

(d) Fixed Assets:

Fixed Assets are recorded at cost of acquisition or construction.In respect of assets acquired on purchase of Business the fixed assets are recorded at the value determined by competent valuers. Goodwill is shown at excess of purchase consideration over net tangible assets valued at the time of Business purchase.

Interest on borrowed fund utilised for acquisition of Fixed Assets have been capitalised upto the date of Assets being put to use.

(e) Depreciation :

Depreciation on fixed assets is provided on straight line method at the rates and the manner specified in Schedule XIV to the Companies Act, 1956.

(f) Investments:

Long Term investments are shown at cost. Provision for diminution in the value of investments is made to recognize a decline of other than temporary in nature. Current investments are carried at the lower of cost or market value as at the balance sheet date.

(g) Inventories:

Inventories are valued at lower of cost or net realisable value, on the weighted average basis. The valuation of inventories has been considered net of Central Excise and Maharashtra Value Added Tax.

(h) Revenue Recognition:

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.

(i) Foreign Currency Transactions:

There are no Foreign Currency Transactions during the year. (j) Employee Retirement Benefit:

(a) Companys contribution to Provident fund / superannuation fund are charged to Profit & Loss Account.

(b) The Company has provided the gratuity liability on the basis of acturial Valuation.

(c) Provision for unutilised leave due to employees is not provided.

(k) Taxes on Income :

Provisions for current Income Tax and Fringe Benefit Tax is made, after considering exemptions, deductions and carried forward losses available under the Income Tax Act, 1961.

Due to carried forward losses as per the Income Tax Act 1961, the company has not made any provision for Deferred Tax Liability / Deferred Tax Asset in terms of Accounting Standard - 22, on accounting for taxes on Income.

(l) Borrowing Cost:

Borrowing cost attributable to the acquisition of qualifying fixed assets is capitalised as part of the cost of such assets till such assets are put to use. All other borrowing cost are charged to profit and loss account.

(m) Contingent Liabilities:

These are disclosed by way of notes to the Balance Sheet. Provision is made in the accounts in respect of those liabilities which are likely to materialise after the year end, till the f inalisation of accounts and have material effect on the position stated in the Balance Sheet.

(n) Amortization of Miscellaneous Expenditure:

Preliminary and Public Issue expenses are nil.

(o) Calls in Arrears:

Details of number of shares against the amount of call in arrears, are not provided by the company.

 
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