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Accounting Policies of Shyamkamal Investments Ltd. Company

Mar 31, 2016

(NOTE 19: SIGNIFICANT ACCOUNTING POLICIES & NOTES ON ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2016 SIGNIFICANT ACCOUNTING POLICIES A) Basis of Preparation of Financial Statement:

The Financial Statements have been prepared under the historical cost convention on accrual basis. The applicable Accounting Standards in India and the provisions of Companies Act. 2013 have been followed in the preparation of these financial statements. All assets and liabilities have classified as current or non-current as per the operating cycle criteria set out in the Revised Schedule III to the Companies Act, 2013.

B) Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working conditions for intended use.

C) Depreciation:

Depreciation on tangible Assets is provided on Straight Line Method over the useful life of the Assets as given in Schedule II to the Companies Act, 2013 or over the useful life of Assets, as estimated by the Management . Depreciation for Assets purchased or sold during the year is provided on pro rata basis. Intangible Assets, if any are amortized over their respective individual estimated useful life estimated by the management on Straight Line Method.

D) Inventories:

The Shares & Securities are valued at Cost or Market Price whichever is less.

E) Taxation:

i. Current Tax: Provision for current income tax, if any , is made on the income using the applicable tax rates and tax laws.

ii. Deferred Tax: Deferred tax arising on account of timing differences and which are capable of being reversal in one or more subsequent periods is recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred Tax Assets are not recognized unless there is virtual certainty with respect to the reversal of the same in future years.

iii. Minimum Alternate Tax (MAT) credit: MAT is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit become eligible to be recognized as an asset in accordance with the recommendation contained in the Guidance Note issue by the ICAI, the said asset is created by way of a credit to the Statement of Profit & Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to normal income tax during the specified period.

F) Investments:

Non-current Investments are stated at Cost Less Provision, if any, for diminution in value other than temporary.

G) Use of Estimate:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles that require estimates and assumption to be made that affect the reported amount of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenue and expenses during the reported year. Differences between actual results and estimates are recognized in the periods in which the results are known/materialize.

H) Provisions & Contingent Liability:

Provisions are recognized when the Company has a present obligation as a result of past events: it is more likely than not that an outflow of resources liability is disclosed when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

I) Earnings Per Share:

The earnings considered in ascertaining the Company''s EPS comprise of the Net Profit after Tax. After reducing dividend on Cumulative Preference Shares for the period (irrespective of whether declared, paid or not), as per Accounting Standard 20 on “Earnings Per Share”, issued by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity share is anti-dilutive.

J) Impairment of Assets:

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in accordance with Accounting standard-28 “Impairment of Assets'', for the amount by which the asset''s carrying amount exceeds its recoverable amount as on the carrying date. The recoverable amount is higher of the asset''s fair value less costs to sell vis-a-vis value in use. For the purpose of Impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

K) Revenue Recognition and Receivable:

Dividend from investments in shares are not recognized in the Statement of Profit & Loss until the right to receive payment is established. The right to receive dividend should be construed as right to receive as on balance sheet date and not till the date accounts are finalized, Interest accrue, in most circumstances, on the time basis determined by the amount outstanding and the rate applicable. Purchase & Sale of Shares is recognized in the books in the basis of contract note cum bill received from the broker at value after adjusting the brokerage and other charges by the broker.

C) Company has no outstanding liability to Micro, Small and Medium Enterprise as per the requirement of Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006.

D) The Company has no employees drawing remuneration of more than Rs.2400000/- p.a. If Employed throughout the year or Rs.200000/- p.m. if employed for part of the year

F) Related Party Disclosure:

There are no transactions with related parties during the year

G) The Company had advanced Interest free loan of Rs. 2,40,00,000 to M/s Sparkline Mercantile Co Pvt Ltd. During earlier years and outstanding balance at the end of year was Rs 2,36,05,000/-(Previous year Rs 2,40,00,000/-)

H) No Provision for tax has been made in view of loss incurred by the company and No Deferred Tax Asset is not recognized in respect of taxable loss incurred during the year , as there is no virtual certainly with respect to the reversal of the same on near future years.

I) Previous year''s figures have been regrouped / rearranged, wherever necessary to conform to the current year grouping.


Mar 31, 2015

A) Accounting Concepts:

The Company follows mercantile systems of accounting and recognizes income and expenses on accrual basis that are of significant nature.

These financial statements have been prepared to comply with the Generally/Accepted Accounting Principles in India(Indian GAAP), including the Accounting Standards notified under the relevant provisions of Companies Act,2013.

(b) Fixed Assets and Depreciation:

Fixed Assets:

Fixed assets are stated at cost net of tax duty credits availed, accumulated depreciation and impairment losses where applicable. Cost comprises purchase price and all direct/indirect cost incurred to bring the asses to its working condition for its intended use.

Depreciation:

Depreciation on fixed assets is provided under WDV method on the basis of useful life as prescribed in Schedule II to the Companies Act,2013 .

(c) Investment:

Non Current Investment are stated at Cost Less Provision for diminution in value other than temporary.

(d) Inventories:

Inventories of Shares & Securities are carried at lower of Cost or net realizable value.

(d) Cash Flow Statement:

Cash Flows are reported using the indirect method, whereby the net profit before tax is adjusted for the effects of transaction of non-cash nature and any deferrals or accruals of the past or future cash receipts or payments. The cash flows from regular revenue generating, investing & financial activities of the company are segregated.

(e) Revenue Recognition:

Dividend from investment in shares are not recognized in the statement of Profit & Loss until the right to receive payment is established. The right to receive dividend should be construed as right to receive by the balance sheet date and not till the date accounts are finalized. Interest accrues , in most circumstances, on the time basis determined by the amount outstanding and rate applicable. Purchase & Sale of shares is recognized in the books on the basis of contract note cum bill received from the broker at value after adjusting the brokerage charged by the broker.

(f) Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and differences between actual results and estimates are recognized in the period in which the results are known/materialize

(g) Earnings Per Share

The Company reports basic and diluted earnings per share in accordance with AS-20 "Earning Per Share" Basic earnings per share are computed by dividing the net profit or loss for the period by the weighted average number of equity share outstanding during the period. Diluted earnings per share is computed by diving the net profit or loss by the weighted average number of Equity Share outstanding during the period as adjusted for the effects of all dilutive potential equity shares.

(e) Provision, Contingent Liabilities and Contingent Assets:

Provision involving substantial degree of estimation in measurement is recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are not recognized but are disclosed in the notes. Contingent assets are neither recognized nor disclosed in the financial statement.

(f) Taxation:

Income-tax expenses comprises of Current Tax, and Deferred Tax charge or credit. Provision of Current Tax is made on the assessable income at the tax rate applicable to the relevant assessment year.

Deferred Tax is recognised, subject to the consideration of prudence, on timing differences, 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.

MAT is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit become eligible to be recognized as an assets in accordance with the recommendation contained in the Guidance Note issued by the ICAI the said assets is created by the way of a credit to the statement of Profit & Loss and is shown as MAT credit entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.


Mar 31, 2014

A) Basis of Preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention on accrual basis. The mandatory applicable Accounting Standards in India and the provisions of Companies Act, 1956 have been followed in the preparation of these financial statements.

All assets and liabilities have been classified as current or non-current as per the operating cycle criteria set out in the Revised Schedule VI to the Companies Act, 1956.

b) Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is inciusive of freight, duties, levies and any directiy attributable cost of bringing the assets to their working conditions for intended use.

c) Depreciation:

Depreciation on Fixed Assets is provided on W.D.V method at the rates prescribed under Schedule XIV of the Companies Act, 1956

d) Inventories:

The Shares & Securities are valued at Cost or Market Price whichever is less.

e) Taxation:

i) Current Tax: Provision for current income tax is made on the taxable income using the applicable tax rates and tax laws.

ii) Deferred Tax: Deferred tax arising on account of timing differences and which are capable of reversal in one or more subsequent periods is recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred Tax Assets are not recognized unless there is virtual certainty with respect to the reversal of the same in future years.

iii) Minimum Alternate Tax (MAT) credit: MAT is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the Guidance Note issued by the ICAI, the said asset is created by way of a credit to the Statement of Profit & Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

f) Investments:

Non-current Investments are stated at Cost Less Provision for diminution in value other than temporary.

g) Use of Estimate:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenue and expenses during the reported year. Differences between actual results and estimates are recognized in the periods in which the results are known/materialize.

h) Provisions & Contingent Liability:

Provisions are recognized when the Company has a present obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. A contingent liability is disclosed when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

i) Earnings Per Share:

The earnings considered in ascertaining the Company''s EPS comprise of the Net Profit after Tax, after reducing dividend on Cumulative Preference Shares for the period (irrespective of whether declared, paid or not), as per Accounting Standard 20 on "Earnings Per Share", issued by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.

j) Impairment of Assets:

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in accordance with Accounting Standard-28 "Impairment of Assets", for the amount by which the asset''s carrying amount exceeds its recoverable amount as on the carrying date. The recoverable amount is higher of the asset''s fair value less costs to sell vis-a-vis value in use. For the purpose of impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

k) Revenue Recognition and Receivables:

Dividend from investments in shares are not recognized in the Statement of Profit & Loss until the right to receive payment is established. The right to receive dividend should be construed as right to receive by the Balance sheet date and not till the date accounts are finalized. Interest accrues, in most circumstances, on the time basis determined by the amount outstanding and the rate applicable. Purchase & Sale of Shares is recognized in the books on the basis of contract note cum bill received from the broker at value after adjusting the brokerage charged by the broker.


Mar 31, 2013

A) Basis of Preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention on accrual basis. The mandatory applicable Accounting Standards in India and the provisions of Companies Act, 1956 have been followed in the preparation of these financial statements.

All assets and liabilities have been classified as current or non-current as per the operating cycle criteria set out in the Revised Schedule VI to the Companies Act, 1956.

b) Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is mchisive of freight, duties, levies and any directly attributable cost of bringing the assets to their working conditions for intended use.

c) Depreciation:

Depreciation on Fixed Assets is provided on W.D.V method at the rates prescribed under Schedule XIV of the Companies Act, 1956

d) Inventories:

The Shares & Securities are valued at Cost or Market Price whichever is less.

e) Taxation:

i) Current Tax: Provision for current income tax is made on the taxable income using the applicable tax rates and tax laws.

ii) Deferred Tax: Deferred tax arising on account of timing differences and which are capable of reversal in one or more subsequent periods is recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred Tax Assets are not recognized unless there is virtual certainty with respect to the reversal of the same in future years.

iii) Minimum Alternate Tax (MAT) credit: MAT is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the Guidance Note issued by the IC AI, the said asset is created by way of a credit to the Statement of Profit & Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will.

Non-current Investments are stated at Cost Less Provision for diminution in value other than temporary"

g) Use of Estimate:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenue and expenses during the reported year. Differences between actual results and estimates are recognized in the periods in which the results are known/ materialize.

h) Provisions & Contingent Liability:

Provisions are recognized when the Company has a present obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. A contingent liability is disclosed when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

i) Earnings Per Share:

The earnings considered in ascertaining the Company''s EPS comprise of the Net Profit after Tax, after reducing dividend on Cumulative Preference Shares for the period (irrespective of whether declared, paid jr not), as per Accounting Standard 20 on "Earnings Per Share", issued by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.

j) Impairment of Assets:

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in accordance with Accounting Standard-28 "Impairment of Assets", for the amount by which the asset''s carrying amount exceeds its recoverable amount as on the carrying date. The recoverable amount is higher of the asset''s fair value less costs to sell vis-a-vis value ir use. For the purpose of impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

k) evenue Recognition and Receivables:

Dividend from investments in shares are not recognized in the Statement of Profit & Loss until the right to receive payment is established. The right to receive dividend should be construed as right to receive by the Balance sheet date and not till the date accounts are finalized. Interest accrues, in most circumstances, on the time basis determined by the amount outstanding and the rate applicable. Interest on Income Tax Refund is accounted as & when refund is received and to the extent of Refund received in excess of receivable.


Mar 31, 2012

A) Basis of Preparation of Financial Statements:

The Financial Statements have been prepared under the historical cost convention on accrual basis. The mandatory applicable Accounting Standards in India and the provisions of Companies Act, 1956 have been followed in the preparation of these financial statements.

All assets and liabilities have been classified as current or non-current as per the operating cycle criteria set out in the Revised Schedule VI to the Companies Act, 1956.

b) Fixed Assets:

Fixed Assets are stated at cost of acquisition or construction less accumulated depreciation. Cost is. inclusive of freight, duties, levies and any directly attributable cost of bringing the assets to their working n conditions for intended use.

c) Depreciation:

Depreciation on Fixed Assets is provided on W.D.V method at the rates prescribed under Schedule XIV of the Companies Act, 1956 .

d) Inventories:

The Shares & Securities are valued at Cost or Market Price whichever is less.

e) Taxation:

i) Current Tax: Provision for current income tax is made on the taxable income using the applicable tax rates and tax laws..

ii) Deferred Tax: Deferred tax arising on account of timing differences and which are capable of reversal in one or more subsequent period^ is recognized using the tax rates and tax laws that have been enacted or substantively enacted. Deferred Tax Assets are not recognized unless there is virtual certainty with respect to the reversal of the same in. future years.

iii) Minimum Alternate Tax (MAT) credit: MAT is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in the Guidance Note issued by the ICAI, the said asset is created by way of a credit to the Statement of Profit & Loss and is shown as MAT Credit Entitlement. The Company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal income tax during the specified period.

f) Investments:

Non-current Investments are stated at Cost Less Provision for diminution in value other^h^'^lpqrary.

g) Use of Estimate:

The preparation of financial statements in conformity with Generally Accepted Accounting Principles require estimates and assumptions to be made that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities on the date of the financial statements and the reported amounts of revenue and expenses during the reported year. Differences between actual results and estimates are recognized in the periods in which the results are known/ materialize.

h) Provisions & Contingent Liability:

Provisions are recognized when the Company has a present obligation as a result of past events; it is more likely than not that an outflow of resources will be required to settle the obligation; and the amount has been reliably estimated. A contingent liability is disclosed when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources.

i) Earnings Per Share:

The earnings considered in ascertaining the Company's EPS comprise of the Net Profit after Tax, after reducing dividend on Cumulative Preference Shares for the period (irrespective of whether declared, paid or not), as per Accounting Standard 20 on "Earnings Per Share", issued by the Institute of Chartered Accountants of India. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the period. The diluted EPS is calculated on the same basis as basic EPS, after adjusting for the effects of potential dilutive equity shares unless the effect of the potential dilutive equity shares is anti-dilutive.

j) Impairment of Assets:

Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized in accordance with Accounting Standard-28 "Impairment of Assets", for the amount by which the asset's carrying amount exceeds its recoverable amount as on the carrying date. The recoverable amount is higher of the asset's fair value less costs to sell vis-a-vis value in use. For the purpose of impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

k) Revenue Recognition and Receivables:

Dividend from investments in shares are not recognized in ;he Statement of Profit & Loss until the right to receive payment is established. The right to receive dividend should be construed as right to receive by the Balance sheet date and not till the date accounts are finalized. Interest accrues, in most circumstances, on the-time basis determined by the amount outstanding and the rate applicable. Interest on Income Tax Refund is accounted as & when refund is received and to the extent of Refund received in excess of receivable.


Mar 31, 2009

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