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Accounting Policies of Sindhu Trade Links Ltd. Company

Mar 31, 2014

1. Basic of Preparation

The financial statements are prepared under the historical cost convention and the requirements of the Companies Act, 1956.

2. Use of estimates

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provisions for doubtful debts, employee retirement benefit plans, provision for income taxes and the useful lives of fixed assets.

3. Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition.

4. Impairment of Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the selling price and the value in the determined by the present value of estimated future cash flows.

5. Depreciation as per Companies Act 1956

Depreciation is being provided on written down value method as per the rates provided in schedule VI to the Companies Act, 1956.

6. Investments

Long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments are stated at the lower of cost and fair value. Diminution in value of current investment is taken to Profit & Loss A/c.

7. Inventories

Inventories are carried out at cost or market value whichever is lower.

8. Revenue Recognition

a) Income is recognised on accrual basis.

b) Penal interest is recognised as income on realisation.

c) Dividend income is accounted on an accrual basis when the company''s right to receive the dividend is established.

9. Taxes on Income

Tax expense comprises of current and deferred taxes. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred Income Taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred Income Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If the Company has unabsorbed depreciation or carry forward tax losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits.

At each Balance Sheet date the Company re-assesses unrecognized deferred tax assets, if any. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes down the carrying amount of a deferred tax assets to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax assets can be realized.

10. Segment Reporting

The segments of the company have been identified in line with the Accounting Standard on segment reporting (AS-17) taking into account the organization structure as well the differential risks and returns of these segments.

The company''s reportable operating segments consist of the following business groups:

a) Finance Operations

b) Oil and Lubricants

c) Transportation

Segment Revenue, Results and Capital Employed include the respective amounts identifiable to each of the segments. Other unallocable expenditure/assets/liabilities includes expenses/assets/liabilities which are not directly identifiable to any business segment.

11. None of the employees of the company was in receipt of remuneration exceeding Rs. 5,00,000/- per month where employed for part of the year or Rs. 60,00,000/- p.a. where employed throughout the year.

12. In accordance with the Accounting standard (AS-22) relating to Accounting for Taxes on Income, provision for differed tax Assets has been created for Rs.49,05,491/-and the amount has been credited to Profit & Loss Appropriation Account.


Mar 31, 2013

1. Basic of Preparation

The financial statements are prepared under the historical cost convention and the requirements of the companies Act, 1956.

2. Use of estimates

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year. Example of such estimates include provisions for doubtful debts, employee retirement benefit plans, provision for income taxes and the useful lives of fixed assets.

3. Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition.

4. Impairment of Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the selling price and the value in the determined by the present value of estimated future cash flows.

5. Depreciation as per Companies Act 1956

Depreciation is being provided on written down value method as per the rates provided in schedule VI to the Companies Act, 1956.

6. Investments

Long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments are stated at the lower of cost and fair value. Diminution in value of current investment is taken to Profit & Loss A/c

7. Inventories

Inventories are carried out at cost or market value whichever is lower

8. Revenue Recognition

a) Income is recognised on accrual basis.

b) Penal interest is recognised as income on realisation.

c) Dividend income is accounted on an accrual basis when the company''s right to receive the dividend is established.

9. Taxes on Income

Tax expense comprises of current and deferred taxes. Current Income Tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Deferred Income Taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred Income Tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the Balance Sheet date. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. If the Company has unabsorbed depreciation or carry forward tax losses, deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that such deferred tax assets can be realized against future taxable profits.

At each Balance Sheet date the Company re-assesses unrecognized deferred tax assets, if any. It recognizes unrecognized deferred tax assets to the extent that it has become reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which such deferred tax assets can be realized.

The carrying amount of deferred tax assets are reviewed at each balance sheet date. The company writes down the carrying amount of a deferred tax assets to the extent that it is no longer reasonably certain or virtually certain, as the case may be, that sufficient future taxable income will be available against which deferred tax assets can be realized.

10. Segment Reporting

The segments of the company have been identified in line with the Accounting Standard on segment reporting (AS-17) taking into account the organization structure as well the differential risks and returns of these segments. The company''s reportable operating segments consist of the following business groups:

a) Media Operations

b) Finance Operations

c) Oil and Lubricants

d) Transportation

Segment Revenue, Results and Capital Employed include the respective amounts identifiable to each of the segments. Other unallocable expenditure/assets/liabilities includes expenses/assets/liabilities which are not directly identifiable to any business segment.

11. None of the employees of the company was in receipt of remuneration exceeding Rs. 5,00,000/- per month where employed for part of the year or Rs. 60,00,000/- p.a. where employed throughout the year.

12. In accordance with the Accounting standard (AS-22) relating to Accounting for Taxes on Income, provision for deffered tax Assets has been created for Rs. 20,28,778 and the amount has been credited to Profit & Loss Appropriation Account.


Mar 31, 2010

1. Basis of Preparation

The financial statements are prepared under the historical cost convention and the requirements of the companies Act, 1956.

2. Use of estimates

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expenses during the year Example of such estimates include provisions for doubtful debts, employee retirement benefit plans, provision for income taxes and the useful lives of fixed assets.

3. Fixed Assets

Fixed Assets are stated at cost, less accumulated depreciation. Costs include all expenses incurred to bring the assets to its present location and condition.

4. Depreciation as per Companies Act 1956

Depreciation is being provided on written down value method as per the rates provided in schedule VI to the Companies Act, 1956.

5. Investments

Long-term investments are stated at cost, less provision for other than temporary diminution in value. Current investments are stated at the lower of cost and fair value.

6. Revenue Recognition

a) Interest income is recognised on accrual basis except in case of non-performing assets where it is recognised upon realisation as per RBl Guidelines.

b) Penal interest is recognised as income on realisation.

c) Dividend income is accounted on an accrual basis when the company's right to receive the dividend is established.

7. Taxes on Income

Current tax is determined as the amount of tax payable in respect of estimated taxable income for the year.

Deferred tax is recognized, subject to the consideration of prudence in respect of deferred tax assets, on timing differences, being the difference between taxable income and accounting income that originate in the period and are capable of reversal in one or subsequent periods.

8. Segment Reporting

As per Accounting Standards Interpretation (ASI) 20. where an enterprise which has neither more than one business segment nor more than one geographical segment then those enterprises is not required to disclose segment information as per Accounting Standard (AS- 17). segment reporting.Segment reporting is not applicable to the company.