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Accounting Policies of SSK Lifestyles Ltd. Company

Mar 31, 2015

1. 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 the companies Act, 2013 have been followed in 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 III to the Companies Act, 2013.

2. Use of Estimates:

The preparation of financial statements requires estimates and assumptions to be made that affect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

3. Revenue Recognition:

Revenue from sale of goods is recognized when significant risks and rewards in respect of ownership of products are transferred to customers. Revenue from domestic sales of products is recognized on dispatch of products. Revenue from export sales is recognized on shipment of products. Revenue from products is stated inclusive of duties, taxes but exclusive of returns, and applicable trade discounts and allowances.

Interest income is recognized on time accrual basis, determined by the amount outstanding and the rate applicable.

4. Fixed Assets:

Fixed assets are recognized at cost of acquisition and installation less accumulated depreciation. The cost comprises purchase price, fright, duties, levies, borrowing cost and directly attributable cost of bringing the assets to their working condition for intended use. Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance or extend its estimated useful life.

5. Depreciation:

Depreciation on fixed assets is provided on Written down value method by using the lives of assets given in Schedule II of the Companies Act, 2013.

6. Valuation of Inventories:

Inventories are valued at the lower of cost and net realizable value except by products which is valued at estimated realizable value. In determining the cost of raw material, stores, spares, and other material the first in first out (FIFO) method is used. Finished goods and work in progress include material cost, labor and factory overheads and excise duty, if applicable.

7. Impairment of assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment loss is charged to the statement of profit & loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been change in the estimate of recoverable amount

8. Tax Expense:

Provision is made for tax on Income and as per the applicable provisions of Income Tax Act, 1961.

9. Foreign Exchange Transactions:

There are no foreign currency transactions during the period

10. Borrowing costs

Borrowing costs attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.






Mar 31, 2014

1.1 Accounting conventions

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The accounts are prepared on historical cost basis, as a going concern, in accordance with Generally Accepted Accounting Principles in India, provisions of the Companies Act, 1956 & Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006.

1.2 Use of estimates

The presentations of financial statements are in conformity with the Generally Accepted Accounting Principles which require estimates and assumptions to be made that affect the reportable amount of assets and liabilities on the date of financial statements and the reportable amount of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognised in the year in which the results are known / materialized.

1.3 Revenue recognition

Revenue is recognized based on the actual turnover taken place and other income earned by the company if any:

1.4 Fixed assets

Fixed assets are stated at cost of acquisition/purchase price inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc. up to the date the asset is ready for its intended use.

1.5.2 Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with reference to the date of addition disposal

1.5.3 Depreciation on assets costing up to 5,000/- is provided in full in the year of acquisition. But no such cases during this year.

1.6.0 Inventories

Inventories are valued at lower of cost and net realizable value except by products which is valued at estimated realizable value. In determining the cost of raw Material, stores, spares, and other material the first in first out (FIFO) method is used. Finished goods and work in progress include material cost, labour and factory overheads and excise duty, if applicable.

1.7.0 Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of profit & loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.8.0 Foreign currency transactions: The Company has not any foreign business and transactions.

1.9.0 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of assets. Qualifying Asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.10.0 Taxes on income:

1.10.1 Current year charge

Provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provisions of Income-tax Act, 1961. However, where the tax is computed in accordance with the provision of Section 115JB of the Income-tax Act, 1961, as Minimum Alternate Tax (MAT), it is charged off to the Profit & Loss Account of the relevant year.

1.10.2 Deferred tax: Due to technical problem the company has not provided any deferred tax :

1.11.0 Provisions, contingent liabilities and contingent assets

1.11.1 Provisions involving substantial degree of estimation in measurement are 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. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent, and disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

1.12.0 Cash flows are reported using the indirect method, whereby a profit before 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, financing and investing activities of the Company are segregated

1.13.0 AUDITOR''S REMUNERATION: The company has made provision for Audit Fees of Rs. 12,500/- 1.14.0 CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR): Nil 1.15.0 EARNINGS PER SHARE: Rs. -1.101

1.16.0 In the absence of virtual certainty that the sufficient further taxable income will be available against which deferred tax asset can be realized, the same has not been recognised in the books of accounts in line with Accounting Standard dealing with Accounting for Income Taxes''.

1.17.0 EMPLOYEES BENEFITS:

a. There are only 2 employees who are newly recruited. 1.18.0 INVESTMENT: Nil 1.19.0 RETIREMENT BENEFITS: Nil

Disclosure as required under Accounting Standard

1.20.0 RELATED PARTY DISCLOSURES:

The company has borrowed short term borrowings from the related parties whose details are given in the above paras. Other than that there are no any contracts or agreements with any related parties.

Related Party Disclosures for the year ended 31st March 2014 in accordance with Accounting Standard - 18 Issued by the institute of Chartered Accountant of India the company has not earned any revenues from the related parties;

1.20.1 Summary of transactions with related parties: During the year under review the company has taken an amount of Rs. 1,26,928/- from P. Arun Kumar, Rs. 4,77,127/- from P. Mastan Rao and Rs. 1,17,146/- from P. Srikanth (directors and relatives of the directors of the company) and the balances as on 31-3-2014 are Rs. 7,00,000/- from K. Ratnakara Rao, Rs. 5,61,558/- from P. Arun Kumar, Rs. 22,56.000/- from P. Mastan Rao and Rs. 4,44,697/- from P. Srikanth (directors and relatives of the directors of the company).

1.20.2 Managerial Remuneration: The Company is not paying any managerial remuneration since the company''s performance is very poor.

1.21.0 As per Accounting Standards referred to in section 211(3C), the company has to carry out the assessment of impairment of assets. However, the company has not carried out the physical verification of fixed assets as well as its impairment there of.

1.22.0 There is no additional provision for doubtful debts made for the year end 31.03.2014. The provision carried over from last year are related to debtors due for more than 365 days old.

1.23.0 No Amount has been written off from the sundry debtors which are considered no longer recoverable.

1.24.0 As regards the disclosure of particulars of amounts owed by the Company to small scale industrial undertakings that are required to be disclosed in the Balance sheet in pursuance of amendment to Schedule VI of the Companies Act, 1956 vide Notification No.GSR 129(E), dated 22-02-1999 issued by the Department of Company Affairs, the Company does not owed any amount to small scale industrial undertakings.


Mar 31, 2013

1.1 Accounting conventions

The Company follows the mercantile system of accounting and recognizes income and expenditure on accrual basis. The accounts are prepared on historical cost basis, as a going concern, in accordance with Generally Accepted Accounting Principles in India, provisions of the Companies Act, 1956 & Accounting Standards notified by the Central Government under the Companies (Accounting Standards) Rules, 2006.

1.2 Use of estimates

The presentations of financial statements are in conformity with the Generally Accepted Accounting Principles which require estimates and assumptions to be made that affect the reportable amount of assets and liabilities on the date of financial statements and the reportable amount of revenue and expenses during the reporting period. Differences between the actual results and estimates are recognised in the year in which the results are known / materialized.

1.3 Revenue recognition

Revenue is recognized based on the actual turnover taken place and other income earned by the company if any:

1.4 Fixed assets

Fixed assets are stated at cost of acquisition/purchase price inclusive of duties, taxes, incidental expenses, erection/commissioning expenses etc. up to the date the asset is ready for its intended use.

1.5.0 Depreciation

1.5.1 Depreciation on fixed assets is provided on Written Down value Method at the following rates specified in Schedule xiii of the Companies Act, 1956

Category Rate

Buildings 10%

Plant and Machiner y 13.91%

Furniture & Fixtures 18.10%

Electricity 13.91%

Office Equipment 18.10%

Computers 40.00%

1.5.2 Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with reference to the date of addition disposal

1.5.3 Depreciation on assets costing up to 5,000/- is provided in full in the year of acquisition. But no such cases during this year.

1.6.0 Impairment of assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of profit & loss in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.7.0 Foreign currency transactions: The Company has not any foreign business and transactions.

1.8.0 Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of assets. Qualifying Asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

1.9.0 Taxes on income:

1.9.1 Current year charge

Provision for taxation is ascertained on the basis of assessable profits computed in accordance with the provisions of Income-tax Act, 1961. However, where the tax is computed in accordance with the provision of Section 115JB of the Income-tax Act, 1961, as Minimum Alternate Tax (MAT), it is charged off to the Profit & Loss Account of the relevant year.

1.9.2 Deferred tax: Due to technical problem the company has not provided any deferred tax :

1.10.0 Provisions, contingent liabilities and contingent assets

1.10.1 Provisions involving substantial degree of estimation in measurement are 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. Liabilities which are material, and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent, and disclosed by way of notes to the accounts. Contingent Assets are neither recognized nor disclosed in the financial statement.

1.11.0 Cash flows are reported using the indirect method, whereby a profit before 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, financing and investing activities of the Company are segregated

1.12.0 Auditor''s remuneration: The company has made provision for Audit Fees of Rs. 22,500/- 1.13.0 Contingent liabilities and commitments (to the extent not provided for): Nil 1.14.0 Earnings per share: Rs. -0.845

1.15.0 In the absence of virtual certainty that the sufficient further taxable income will be available against which deferred tax asset can be realized, the same has not been recognised in the books of accounts in line with Accounting Standard dealing with Accounting for Income Taxes''.

1.16.0 Employees benefits:

a. There are only 4 employees who are new recruited.

1.17.0 Investment: Nil

1.18.0 Retirement benefits: Nil

industrial undertakings that are required to be disclosed in the Balance sheet in pursuance of amendment to Schedule VI of the Companies Act, 1956 vide Notification No.GSR 129(E), dated 22-02-1999 issued by the Department of Company Affairs, the Company does not owed any amount to small scale industrial undertakings.

Disclosure as required under Accounting Standard

1.19.0 Related party disclosures:

The company has borrowed short term borrowings from the related parties whose details are given in the above paras. Other than that there are no any contracts or agreements with any related parties.

Related Party Disclosures for the year ended 31st March 2013 in accordance with Accounting Standard - 18 Issued by the institute of Chartered Accountant of India the company has not earned any revenues from the related parties;

1.19.1 Summary of transactions with related parties: The company has taken an amount of Rs. 7,00,000/- from Mr. K. Ratnakar Rao, Rs. 3,00,000/- from P. Arun Kumar, Rs. 14,29,000/- from P. Mastan Rao and Rs. 4,03,824/- from Smt. P.V. Subbamma directors and relatives of the directors of the company during 2012-13 and the balances as on 31-3-2013 are Rs. 7,00,000/-, Rs. 4,34,630/-, Rs. 17,78,873/- and Rs. 7,90,824/- respectively.

1.19.2 Managerial Remuneration: The Company is not paying any managerial remuneration since the company''s performance is very poor.

1.20.0 As per Accounting Standards referred to in section 211(3C), the company has to carry out the assessment of impairment of assets. However, the company has not carried out the physical verification of fixed assets as well as its impairment there of.

1.21.0 There is no additional provision for doubtful debts made for the year end 31.03.2013. The provision carried over from last year are related to debtors due for more than 365 days old.

1.22.0 A total sum of Rs.15,771/- has been written off from the sundry debtors which are considered no longer recoverable.

1.23.0 As regards the disclosure of particulars of amounts owed by the Company to small scale industrial undertakings that are required to be disclosed in the Balance sheet in pursuance of amendment to Schedule VI of the Companies Act, 1956 vide Notification No.GSR 129(E), dated 22-02-1999 issued by the Department of Company Affairs, the Company does not owed any amount to small scale industrial undertakings


Mar 31, 2012

1. Basis of Preparation

The Financial statements have been prepared to comply with the Accounting Standards notified by Companies (Accounting Standards) Rules, 2006(as amended) and the relevant provisions of the companies Act, 1956. The financial statements have been prepared under the historical cost convention on accrual basis.

The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

During the year ended 30th June 2012, the revised schedule VI notified under the Companies act 1956 has become applicable to the company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements applicable for the current year.

2. Revenue Recognition

Income from sale of goods is recognized at the point of dispatch to customer except in the case of consignment agents where the revenue is recognized only after sale is effected by the consignment agent.

3. Fixed Assets

Fixed Assets are stated at cost of acquisition or construction. Cost comprises of the purchase price and other attributable expenses including cost of borrowing till the date of capitalization of the asset acquired/installed/commissioned.

All the expenditure incurred for establishing /setting up of new projects/substantial expansion of existing facilities /creation of new assets is capitalized. Such expenditure to be capitalized includes borrowing/finance costs, direct and indirect expenditure incurred on such assets up to the time they are completed. During the year company has disposed off land and building to clear IDBI and Canara Bank loans.

4. Depreciation

Depreciation on fixed assets has been provided on the written down method and at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956.

5. Investments

The company has not made any investments during the year and there are no any investments as on the Balance Sheet date.

6. Borrowing Costs

The company has not borrowed any funds from bank or financial institutions. The company has not paid any interest on the borrowings from the friends and relatives. But the company has made provision for interest on Sales Tax arrears as per the notice given by the Commercial Taxes Department.

7. Inventories

Items of Inventories are measured at lower of cost or realizable value after providing for obsolescence, if any. Cost comprises of cost of purchase, cost of conversion, and other costs incurred in bringing the inventories to the present location and condition.

8. Taxes on Income

a. Current Tax

The company has not made any provision for current tax provisions of the Income tax Act, 1961. since the company has incurred loss during the year and there are accumulated losses.

b. Deferred Tax

Deferred tax is recognized on timing difference between taxable income and accounting income that originate in one period and are capable of being reversed in the subsequent period/s, subject to the consideration of prudence.

9. Foreign Currency Transactions -Nil- 10. Provisions, Contingent Liabilities and Contingent Assets: The company has made provision for Sales

Tax arrears of Rs. 7,09,618/- and Interest on Sales Tax arrears of Rs. 40,32,280/-.

 
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