Home  »  Company  »  Silver Oak (India)  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Silver Oak (India) Ltd. Company

Mar 31, 2015

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

These financial statements have been prepared to comply with Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under section 133 of the Companies Act, 2013 ("the Act") read with rule 7 to the Companies (Accounts) Rules, 2014, the provision of the Act ( to the extent notified ) and guidelines issued by the securities and Exchange Board of India (SEBI).

The accompanying financial statement have been prepared under the historical cost convention, going concern and on the accrual basis of accounting comply with the accounting standards issued by the Institute of Chartered Accountants of India to the extent applicable

1.2 ACCOUNTING ESTIMATES

The preparation of the financial statements in accordance with generally accepted accounting principles often requires that Company officials makes estimates & assumption that affect the reported amount of Assets & Liabilities and disclosure of contingent Assets and liabilities as on the date of financial statement & the reported amounts of revenue & expenses. During the reported period Company officials believes that the estimates used in the preparation of the financial statement are prudent & reasonable, actual results could differ from these estimates.

1.3 FIXED ASSETS

Land, Factory Building and Plant & Machinery are stated at re-valued amount less depreciation on cost of acquisition and other fixed assets are stated at cost less accumulated depreciation and impairment losses, if any. Direct costs are capitalized until such assets are ready for use.

1.4 DEPRECIATION

Depreciation on fixed assets has been provided on the Straight —lime method over the useful life of the assets as prescribed in Schedule II to the Companies Act, 2013. .Depreciation for assets Purchased / sold during a period is proportionately charged.

In the case of re-valued assets, depreciation has been charge on the original cost of asset.

1.5 INVENTORIES

Inventories which comprise raw materials , work-in-progress, finished goods, packing materials, stores and spares are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under.

* Raw material- cost includes direct expenses and is determined on the basis of weighted average method.

* Packing material- cost includes direct expenses and is determined on the basis of weighted average method.

* Work in progress —Includes cost of conversion and other costs incurred to bring the inventories in their present condition.

* Finished goods- cost includes raw material cost other overheads incurred to bring the goods to their present location and condition. Cost of finished goods also includes taxes, wherever applicable.

1.6 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes sale of goods, service, adjusted for discount Interest Income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

1.7 TAXES ON INCOME

Tax expenses comprises of Current tax and deferred tax. Current Tax Provision, if any, has been made on the basis of reliefs and deduction available under the Income- Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the Balance Sheet date. The deferred tax assets is recognised and carried forward only to the extent that there is a reasonable certainty that the assets can be realised in future. However, where there is unabsorbed depreciation or carry forward losses under taxation laws, deferred tax assets are recognized only if there is virtual certainty of realisation of such assets. Deferred tax assets are reviewed as at each Balance Sheet date.

1.8 EMPLOYEE BENEFIT

* Short Term Employee Benefits

Short term employee benefits are recognized in the period during which the service have been rendered.

* Long Term Employee Benefits

(a) Provident Fund & Employees state Insurance Scheme :

As per the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 all eligible employees of the company are entitled to received benefits under the provident fund & family pension fund which is a defined contribution plan. These contributions are made to the fund administrated and managed by the Government of India. In addition ,some employees of the company are covered under Employees' State Insurance Act, 1948, which are also defined contribution schemes recognized and administrated by Government if India.

The Company's contributions to these schemes are recognized as expenses in profit and loss account during the period in which the employee renders the related service. The company has no further obligation under these plans beyond its monthly contribution.

(b) Gratuity.

The Company has provided for Gratuity in accordance with the AS-15 " Employee Benefits", the company has obtained group Gratuity Insurance Policy from LIC of I n d i a and Contribution are made to LIC's Recognized Group Gratuity Fund Scheme based on amount demanded by LIC of India to cover its Gratuity liability and making annual payment of the liability as calculated by them .

1.9. CONSISTENCY

These Financial statements have been prepared on basis consistent with previous years and accounting policies not specifically referred hereto are consistent with generally accepted accounting principles.

1.10. IMPAIRMENT OF ASSETS:

In accordance with the Accounting Standard (As-28 ) in " Impairment of Assets " issued by The Institute of Chartered accountants of India , during the year the company has reassessed its fixed assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realizable .

1.11. SEGMENTAL REPORTING:

Being the company having only one line of operation and in accordance with the provision of AS- 17, the company has only one reportable segments consisting of manufacturing business of IMFL business. Hence Segmental reports are not furnished.

1.12. BORROWING COST

Borrowing Costs directly attributed to acquisition of fixed assets are capitalized as a part of the cost of assets up to the date asset is put to use. if any Other Borrowing Costs are charged to the profit and loss account in the year in which they incurred.

1.13. PROVISION AND CONTINGENT LIABILITIES

* Contingent Liabilities are not recognised and are disclosed in notes.

* Provisions involving substantial degree of estimation in measurement are recognized when the present obligation resulting from past events gives rise to probability of outflow of resources embodying economic benefits on settlement.

1.14. CASH AND CASHS EQUIVALENTS

Cash and cash equivalents comprise cash ,bank balance & fixed deposit with banks, which original maturity period of less than 12 months.


Mar 31, 2014

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statement have been prepared under the historical cost convention, going concern and on the accrual basis of accounting in accordance with the provisions of the Companies Act, 1956 & comply with the accounting standards issued by the Institute of Chartered Accountants of India to the extent applicable.

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

1.2 ACCOUNTING ESTIMATES

The preparation of the financial statements in accordance with generally accepted accounting principles often requires that Company officials makes estimates & assumption that affect the reported amount of Assets & Liabilities and disclosure of contingent Assets and liabilities as on the date of financial statement & the reported amounts of revenue & expenses. During the reported period Company officials believes that the estimates used in the preparation of the financial statement are prudent & reasonable, actual results could differ from these estimates.

1.3 FIXED ASSETS

Land, Factory Building and Plant & Machinery are stated at revalued amount less depreciation on cost of acquisition and other fixed assets are stated at cost less accumulated depreciation and impairment losses, if any

1.4 DEPRECIATION

Depreciation on fixed assets have been provided on straight-line method and on prorata basis at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

In the case of revalued assets, depreciation has been charge on the original cost of asset.

1.5 INVENTORIES

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of thevarious items of inventory is computed as under.

- Raw material- cost includes direct expenses and is determined on the basis of weighted average method.

- Packing material- cost includes direct expenses and is determined on the basis of weighted average method.

- Work in progress –Includes cost of conversion and other costs incurred to bring the inventories in their present condition.

- Finished goods- cost includes raw material cost other overheads incurred to bring the goods to their present location and condition. Cost of finished goods also includes taxes, wherever applicable.

1.6 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes sale of goods, service, adjusted for discount Interest Income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

1.7 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets/liability, on timing differences, being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.8 EMPLOYEE BENEFIT

- Short Term Employee Benefits

Short term employee benefits are recognized in the period during which the service have been rendered.

- Long Term Employee Benefits

(a) Provident Fund & Employees state Insurance Scheme :

As per the Employees'' Provident Fund and Miscellaneous Provisions Act, 1952 all eligible employees of the company are entitled to received benefits under the provident fund & family pension fund which is a defined contribution plan. These contributions are made to the fund administrated and managed by the Government of India. In addition ,some employees of the company are covered under Employees'' State Insurance Act, 1948, which are also defined contribution schemes recognized and administrated by Government if India.

The Company''s contributions to these schemes are recognized as expenses in profit and loss account during the period in which the employee renders the related service. The company has no further obligation under these plans beyond its monthly contribution.

(b) Gratuity.

The Company has provided for Gratuity in accordance with the AS-15 " Employee Benefits", the company has obtained group Gratuity Insurance Policy from LIC of India and Contribution are made to LIC''s Recognized Group Gratuity Fund Scheme based on amount demanded by LIC of India to cover its Gratuity liability and making annual payment of the liability as calculated by them .

1.9. CONSISTENCY

These Financial statements have been prepared on basis consistent with previous years and accounting policies not specifically referred hereto are consistent with generally accepted accounting principles.

1.10. IMPAIRMENT OF ASSETS:

In accordance with the Accounting Standard (As-28 ) in " Impairment of Assets " issued by The Institute of Chartered accountants of India , during the year the company has reassessed its fixed assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realizable .

1.11. SEGMENTAL REPORTING:

Being the company having only one line of operation and in accordance with the provision of AS- 17, the company has only one reportable segments consisting of manufacturing business of IMFL business. Hence Segmental reports are not furnished.

1.12. INVESTMENTS

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investments and are carried at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

1.13. BORROWING COST

Borrowing Costs directly attributed to acquisition of fixed assets are capitalized as a part of the cost of assets up to the date asset is put to use. if any Other Borrowing Costs are charged to the profit and loss account in the year in which they incurred.

1.14. PROVISION AND CONTINGENT LIABILITIES

- Contingent Liabilities are not recognised and are disclosed in notes.

- Provisions involving substantial degree of estimation in measurement are recognized when the present obligation resulting from past events gives rise to probability of outflow of resources embodying economic benefits on settlement.

2.3 Terms/rights attached to equity shares

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

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Term loans are secured by hypothecation of vehicles comprised of :

[1] Loan of 447500/- taken from HDFC Bank Ltd.during the financial year 2011-12 and carries interest @ 13.11% on reducing balance .The loan repayable in 48 equal monthly installments of Rs. 11900/- along with interest from the date of loan. Last installment is due in December, 2015.

[2] Loan of 1250000/- taken from Bank of Maharashtra during the financial year 2012-13 and carries interest @ 10.55% on reducing balance . The loan repayable in 84 equal monthly installments of Rs. 21500/- along with interest from the date of loan. Last installment is due in October 2020.

The Company has provided for Gratuity in accordance with the AS-15 " Employee Benefits",the company has obtained group Gratuity Insurance Policy from LIC of India and Contribution are made to LIC''s Recognised Group Gratuity Fund Scheme based on amount demanded by LIC of India to cover its Gratuity liability and making annual payment of the liability as calculated by them .

Contribution are made to Government Provident fund, ESIC whch cover regular employee of the company. While both the employees and the company make predetermined contibution to the provdent fund and ESIC as per the provision of said act.


Mar 31, 2013

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statement have been prepared under the historical cost convention, going concern and on the accrual basis of accounting in accordance with the provisions of the Companies Act, 1956 & comply with the accounting standards issued by the Institute of Chartered Accountants of India to the extent applicable.

All assets and liabilities h ave been classified as current or non''current as per the criteria set out in the Revised Schedule VI to Companies Act, 1956.

1.2 ACCOUNTING ESTIMATES

The preparation of the financial statements in accordance with generally accepted accounting principles often requires that Company officials makes estimates & assumption that affect the reported amount of Assets & Liabilities and disclosure of contingent Assets and liabilities as on the date of financial statement & the reported amounts of revenue & expenses. During the reported period Company officials believes that the estimates used in the preparation of the financial statement are prudent & reasonable, actual results could differ from these estimates.

1.3 FIXED ASSETS

Land, Factory Building and Plant & Machinery are stated at revalued amount less depreciation on cost of acquisition and other fixed assets are stated at cost less accumulated depreciation and impairment losses, if any

1.4 DEPRECIATION

Depreciation on fixed assets have been provided on straight-line method and on prorata basis at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

In the case of revalued assets, depreciation has been charge on the original cost of asset.

1.5 INVENTORIES

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under.

Raw material- cost includes direct expenses and is determined on the basis of weighted average method.

Packing material- cost includes direct expenses and is determined on the basis of weighted average method.

Work in progress -Includes cost of conversion and other costs incurred to bring the inventories in their present condition.

Finished goods- cost includes raw material cost other overheads incurred to bring the goods to their present location and condition. Cost of finished goods also includes taxes, wherever applicable.

1.6 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes sale of goods, service, adjusted for discount Interest Income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

1.7 TAXES ON INCOME

Current tax is determined a» the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets/liability, on timing differences, being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.8 EMPLOYEE BENEFIT

Short Term Employee Benefits

Short term employee benefits are recognized in the period during which the service have been rendered.

Long Term Employee Benefits

(a) Provident Fund & Employees state Insurance Scheme :

As per the Employees'' Provident Fund and Miscellaneous Provisions Act, 1952 all eligible employees of the company are entitled to received benefits under the provident fund & family pension fund which is a defined co tribution plan. These contributions are made to the fund administrated and managed by the Government of India. In addition ,some employees of the company are covered under Employees'' State Insurance Act, 1948, which are also defined contribution schemes recognized and administrated by Government if India.

The Company''s contributions to these schemes are recognized as expenses in profit and loss account during the period in which the employee renders the related service. The company has no further obligation under these plans beyond its monthly contribution.

(b) Gratuity.

The Company has provided for Gratuity in accordance with the AS-15 " Employee Benefits", the company has obtained group Gratuity Insurance Policy from LIC of India and Contribution are made to LIC''s Recognized Group Gratuity Fund Scheme based on amount demanded by LIC of India to cover its Gratuity liability and making annual payment of the liability as calculated by them .

1.9. CONSISTENCY

These Financial statements have been prepared on basis consistent with previous years and accounting policies not specifically referred hereto are consistent with generally accepted accounting principles.

1.10. IMPAIRMENT OF ASSETS:

In accordance with the Accounting Standard (As-28) in" Impairment of Assets " issued by The Institute of Chartered accountants of India , during the year the company has reassessed its fixed assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realizable .

1.11. SEGMENTAL REPORTING:

Being the company having only one line of operation and in accordance with the provision of AS-17, the company has only one reportable segments consisting of manufacturing business of IMFL business. Hence Segmental reports are not furnished.

1.12. INVESTMENTS

Investments that are intended to be held for more than a year, from the date of acquisition, are classified as long term investments and are carried at cost. Provision for diminution in the value of long term investments is made only if such a decline is other than temporary.

1.13. BORROWING COST

Borrowing Costs directly attributed to acquisition of fixed assets are capitalized as a part of the cost of assets up to the date asset is put to use. if any Other Borrowing Costs are charged to the profit and loss account in the year in which they incurred.

1.14. PROVISION AND CONTINGENT LIABILITIES

Contingent Liabilities are not recognised and are disclosed in notes.

Provisions involving substantial degree of estimation in measurement are recognized when the present obligation resulting from past events gives rise to probability of outflow of resources embodying economic benefits on settlement.


Mar 31, 2012

1.1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The accompanying financial statement have been prepared under the historical cost convention, going concern and on the accrual basis of accounting in accordance with the provisions of the Companies Act, 1956 & comply with the accounting standards issued by the Institute of Chartered Accountants of India to the extent applicable.

1.2 ACCOUNTING ESTIMATES

The preparation of the financial statements in accordance with generally accepted accounting principles often requires that Company officials makes estimates & assumption that affect the reported amount of Assets & Liabilities and disclosure of contingent Assets and liabilities as on the date of financial statement & the reported amounts of revenue & expenses. During the reported period Company officials believes that the estimates used in the preparation of the financial statement are prudent & reasonable, actual results could differ from these estimates.

1.3 FIXED ASSETS

Land, Factory Building and Plant & Machinery are stated at revalued amount less depreciation on cost of acquisition and other fixed assets are stated at cost less accumulated depreciation and impairment losses', if any.

1.4 DEPRECIATION

Depreciation on fixed assets have been provided on straight-line method and on prorata basis at the rates and in the manner prescribed under Schedule XIV of the Companies Act, 1956.

In Case of revalued assets, depreciation has been charge on the original cost of that asset.

1.5 INVENTORIES

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of the various items of inventory is computed as under.

- Raw material cost includes direct expenses and is determined on the basis of weighted average method.

- Work in Progress includes cost of conversion and other costs incurred in brining the inventories to their present condition.

- In case of finished goods cost includes raw material cost and other overheads incurred to bring the goods to their present location and condition.

1.6 REVENUE RECOGNITION

Revenue is recognized only when it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operation includes sale of goods, service etc. Interest Income is recognized on time proportion basis taking into account the amount outstanding and rate applicable.

1.7 TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the period. Deferred tax is recognised, subject to the consideration of prudence in respect of deferred tax assets/ liability, on timing differences, being the differences between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

1.8 RETIREMENT BENEFITS

Company has provided Retirement benefits in form ofProvident Fund & Gratuity etc. to its all employees which is a defined contribution plan. These contributions are made to the fund administrated and managed by Government of India

1.9. Consistency:

These Financial statements have been prepared on basis consistent with previous years and accounting policies not specifically referred hereto are consistent with generally accepted accounting principles.

1.10. IMPAIRMENT OF ASSETS:

In accordance with the Accounting Standard (As-28) in " Impairment of Assets " issued by The Institute of Chartered accountants of India, during the year the company has reassessed its fixed assets and is of the view that no further impairment / reversal is considered to be necessary in view of its expected realizable ,

1.11. SEGMENTAL REPORTING:

The company has indentified " Indian made foreign Liquor as the only primary business segment and in accordance with the provision of AS-17,.Hence Segmental reports are not furnished.

1.12. INTANGIBLE ASSETS

Intangible assets are recognized on the basis of recognition criteria as set out in Accounting Standard (As) -26 'Intangible Assets' issued by the Institute of Chartered Accountants of India


Mar 31, 2010

1. Basis of preparation of Accounts : The accounts nave been prepared in accordance with historical cost convention, applicable accounting standard issued by the Institute of Chartered Accountant of India and relevant provisions of the companies Act 1956. following accrual method of accounting except for Gratuity which is being accounted for on payment basis.

2. Fixed Assets:

(a) Land, Factory Building and Plant & Machinery are stated at the revalued amount less depreciation on cost of acquisiton.

(b) Other assets are recorded at cost of acquisition less accumulated depreciation.

3. Investments: Long Term investment are valued at cost. Provision for diminution in the value of long term investment is made, only if such decline is other than temporary in value in the opinion of the management

4. Depreciation:

(a) Depredation is provided using the Straight Line Method at the rates specified in schedule XIV of the Companies Act, 1956.

(b) Depreciation on additions during the year is provided on pro-rata basis from the date of addition.

(c) In case of revalued assets, depreciation has been charged on the original cost of that assets.

5 Inventories: Inventories are valued as under and taken as certified by the management.

Raw Material At cost

Finished Goods At cost or net realization value which ever is less

Work-in-Process At estimated cost at percentage of completion

The company has adopted FIFO method

6. (a) Revenue Recognition: Sales of Goods are recognised as of the date of dispatch. Sales figures are net of rebate, discount, claims etc

(b) Income from investment will be accounted for on accruals basis.

7. Deferred tax is recognized on timing differences being the difference between taxable income and accounting income that originated in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets & liabilities have been computed on the timing difference applying the enacted tax rates.

8. Goods in transit indicates goods with appropriate authority.

9. Intangible assets: Intangible assets are recognized on the basis of recognition criteria as set out in Accounting Standard (AS) - 26 Intangible Assets issued by the institute of Chartered Accountants of India.

10. Impairment of Assets: In accordance with the account statement (AS-28) in "Improvement of Assets" issued by ICAL During the year the Company reassessed its fixed assets and is of the view that no impairment / reversal is considered to be necessary in view of its value realizable.

11. Consistency :These financial statement have been prepared in the basis of consistent with previous years and accounting policies not specifically referred here to are consistent with generally accepted accounting principal.

 
Subscribe now to get personal finance updates in your inbox!