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Accounting Policies of Shukra Jewellery Ltd. Company

Mar 31, 2014

1.1 Basis of preparation of financial statements :-

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 by Companies (Accounting Standards] Rules, 2006, the provisions of the Companies Act, 2013 (to the extent notified] and Companies Act, 1956 (to the extent applicable] and guidelines issued by the Securities and Exchange Board of India (SEBI]. 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 the financial statements are in conformity with GAAP requires management to make estimates and assumptions that affect the reported balances of assets and liabilities disclosures relating to contingent liability as at the date of financial statements and reported amounts of income and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in notes to the financial statement.

1.3 Revenue Recognition :-

In appropriate circumstances, revenue is recognized when the significant risks and rewards of ownership of the goods are transferred to the customers and no significant uncertainty as to determination or realization exists. Expenses and Income considered payable and receivable respectively are accounting for on accrual basis except retirement benefits which cannot be determined with certainty during the year.

Revenue in case of jewellery business is derived from sale of Gems and Jewellery items and Revenue in case of Real Estate Business in derived from Sale of Bunglow. Further the sale is booked only when the member/buyer will deposit the total sale value of apartment as per terms of allotment/ booking and when possession is handed over and sale deed is executed.

1.4 Fixed Assets :-

Fixed assets are stated at their original cost of acquisition including taxes freight and other incidental expenses related to acquisition and installation of the concerned assets less depreciation till date and impairment if any.

1.5 Depreciation :-

Depreciation on Fixed Assets has been provided on written down value method till the end of financial year, on the wdv of Fixed Assets as per the rates mentioned below, as determined appropriate by the management and are in accordance with provisions of Schedule XIV of the Companies Act, 1956 except for the assets of daman site no depreciation has been charged as no manufacturing has been undertaken during the year. Further, in case of addition, depreciation has been provided on pro-rata basis commencing from the date on which the asset is commissioned.

Particulars Rates of Depreciation Rates specified in

Charged schedule XIV

Office Building 6% 5%

Air conditioner 14% 13.91%

1.6 Investments :-

Investments are either classified as current or long term investments based on Management''s intension at the time of purchase. Long term Investments are stated at their cost. Current investments are carried at the lower of cost and fair value of each investment individually.

1.7 Inventories :-

Inventories are valued as under:-

Polished Diamonds : Valued at cost or realizable value whichever is less.

Gold : Valued at cost or realizable value whichever is less.

1.8 Provision for Current and deferred Tax:-

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The deferred tax for timing differences between the book and tax profits for the year is accounted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in future. Deferred tax asset arising from carried forward business loss and unabsorbed depreciation is recognized only when there is virtual certainty supporting by convincing evidence that this will be realized in future. Deferred tax assets are reviewed for the appropriateness of their respective carrying values at each reporting date.

1.9 Foreign Currency Transactions:-

Foreign currency transactions are accounted on the rates prevailing on the date of transactions. Balances in the form of current assets and current liabilities in Foreign Currency, outstanding on the date of balance sheet are accounted at the rates of exchange prevailing on the date of balance sheet. The gain or losses resulting from such translations are included in the statement of profit and loss.

1.10 Retirement Benefits :-

No liabilities towards retirement benefits are accounted in accordance with AS -15.

1.11 Impairment of Assets:-

An asset is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the statement of profit and loss in the year in which an asset is determined as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount. However, the management has not assessed the impairment loss on the assets of the company.

1.12 Provisions. Contingent Liabilities and Contingent Assets:-

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.13 Earnings per share:-

Earnings per ordinary share have been calculated by dividing the profit/ (loss] for the year attributable to equity shareholders of the parent company by the weighted average number of ordinary shares in issue during the year.

Diluted earnings per share have been calculated by dividing the net profit/ (loss] attributable to ordinary equity shareholders by the diluted weighted average number of ordinary shares outstanding during the year.

1.14 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.

The company has only one class of shares referred to as equity shares having a par value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share.

Board of Directors of the company has not proposed any dividend for the current reporting period.


Mar 31, 2013

1.1 Basis of preparation of financial statements :-

These financial statements are prepared in accordance with Indian Generally Accepted Ac- counting Principles (GAAP) under the historical cost convention on the Accrual basis. Ac- counting Policies not specifically referred to otherwise be consistent and in consonance with generally accepted accounting principles.

1.2 Use of estimates:-

The preparation of the financial statements are in conformity with GAAP requires manage- ment to make estimates and assumptions that affect the reported balances of assets and liabilities disclosures relating to contingent liability as at the date of financial statements and reported amounts of income and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the Management becomes aware of the changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in notes to the financial statement.

1.3 Revenue Recognition :-

Revenue is primarily derived from sale of Gems and Jewellery items. In appropriate cir- cumstances, revenue is recognized when the significant risks and rewards of ownership of the goods are transferred to the customers and no significant uncertainty as to determina- tion or realization exists. Expenses and Income considered payable and receivable respec- tively are accounting for on accrual basis except retirement benefits which cannot be de- termined with certainty during the year.

1.4 Fixed Assets :-

Fixed assets are stated at their original cost of acquisition including taxes freight and other incidental expenses related to acquisition and installation of the concerned assets less de- preciation till date and impairment if any.

Depreciation on Fixed Assets has been provided on written down value method till the end of financial year, on the wdv of Fixed Assets as per the rates mentioned below, as deter- mined appropriate by the management and are in accordance with provisions of Schedule XIV of the Companies Act, 1956 except for the assets of daman site no depreciation has been charged as no manufacturing has been undertaken during the year. Further, in case of addition, depreciation has been provided on pro-rata basis commencing from the date on which the asset is commissioned.

1.6 Investments:-

Investments are either classified as current or long term investments based on Manage- ment''s intension at the time of purchase. Long term Investments are stated at their cost. Current investments are carried at the lower of cost and fair value of each investment indi- vidually.

1.7 Inventories:-

Inventories are valued as under- Polished Diamonds : Valued at cost or realizable value whichever is less. Gold : Valued at cost or realizable value whichever is less.

1.8 Provision for Current and deferred Tax:-

Provision for current tax is made on the basis of estimated taxable income for the current accounting year in accordance with the Income Tax Act, 1961.

The deferred tax for timing differences between the book and tax profits for the year is ac- counted for, using the tax rates and laws that have been substantively enacted as of the balance sheet date. Deferred tax assets arising from timing differences are recognized to the extent there is reasonable certainty that these would be realized in future. Deferred tax asset arising from carried forward business loss and unabsorbed depreciation is recog- nized only when there is virtual certainty supporting by convincing evidence that this will be realized in future. Deferred tax assets are reviewed for the appropriateness of their respec- tive carrying values at each reporting date.

In the Current Year Differed Tax Asset balance is reversed by Rs. 10,753,600/- due to wrong creation of Differed Tax Assets in the earlier years. Calculation of the same is given herewith under-

1.9 Foreign Currency Transactions:-

Foreign currency transactions are accounted on the rates prevailing on the date of transac- tions. Balances in the form of current assets and current liabilities in Foreign Currency, out- standing on the date of balance sheet are accounted at the rates of exchange prevailing on the date of balance sheet. The gain or losses resulting from such translations are included in the statement of profit and loss.

1.10 Retirement Benefits:-

No liabilities towards retirement benefits are accounted in accordance with AS -15.

1.11 Impairment of Assets:-

An asset is impaired when the carrying cost of assets exceeds its recoverable value. An im- pairment loss is charged to the statement of profit and loss in the year in which an asset is determined as impaired. The impairment loss recognized in prior accounting period is re- versed if there has been a change in the estimate of recoverable amount. However, the management has not assessed the impairment loss on the assets of the company.

1.12 Provisions. Contingent Liabilities and Contingent Assets:-

A provision is recognized if, as a result of a past event, the Company has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best es- timate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

1.13 Earnings per share:-

Eamings per ordinary share have been calculated by dividing the profit/ (loss) for the year attributable to equity shareholders of the parent company by the weighted average number of ordinary shares in issue during the year.

Diluted earnings per share have been calculated by dividing the net profit/ (loss) attributa- ble to ordinary equity shareholders by the diluted weighted average number of ordinary shares outstanding during the year.

1.14 Cash Flow Statement:-

Cash flows are reported using the indirect method, whereby profit / (loss) before extraordi- nary 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 op- erating, investing and financing activities of the Company are segregated based on the available information.


Mar 31, 2011

1. Basis of Accounting

The financial statement are prepared under the historical cost convention on accrual basis.

2. Fixed Assets

All fixed assets are valued at cost less depreciation.

3. Depreciation

Depreciation on fixed assets is provided in written down value method in accordance with the schedule XIV of the Companies Act 1956.

4. Inventories

(i) Polished Diamonds : Valued at Cost or realizable value

(ii) Gold Valued at Cost or realizable value

5. Revenue Recognition

In appropriate circumstance, revenue is recognised when no significant uncertainty as to determination or realization exists.

6. IMPAIRMENT OF ASSETS:

An assets is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an Assets is defined as impaired. The impairment loss recognized in prior accounting Period is reversed if there has been a change in the estimate of recoverable amount.


Mar 31, 2010

1. Basis of Accounting

The financial statement are prepared under the historical cost convention on accrual basis.

2. Fixed Assets

All fixed assets are valued at cost less depreciation.

3. Depreciation

Depreciation on fixed assets is provided in written down value method in accordance with the schedule XIV of the Companies Act 1956.

4. Inventories

(i) Polished Diamonds : Valued at Cost or realizable value

(ii) Gold : Valued at Cost or realizable value

5. Revenue Recognition

In appropriate circumstance, revenue is recognised when no significant uncertainty as to determination or realization exists.

6. IMPAIRMENT OF ASSETS;

An assets is impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Profit & Loss Account in the year in which an Assets is defined as impaired. The impairment loss recognized in prior accounting Period is reversed if there has been a change in the estimate of recoverable amount.

The Accounting Policies not referred to otherwise are consistent with accepted accounting principles

 
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