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Accounting Policies of Sun Source (India) Ltd. Company

Mar 31, 2015

1 Basis of Accounting

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles [GAAP] comprising the mandatory Accounting Standards as specified under the section 133 of the Companies Act, 2013 read with Rule 7 of Companies (Accounts) Rules, 2014 and other accounting pronouncements of the Instituted Chartered Accountants of India.

2 Use of Estimates

The preparation of the financial statements is in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised, in the periods in. which the results are known / materialised.

3 Change in Accounting Policy

Any change in the Accounting Policy, which has a material effect in the current period, is disclosed The amount by which any item in the financial statements is affected by such change is also disclosed.

4 Fixed Assets

Tangible Fixed Assets are stated at cost of acquisition and any subsequent improvements thereto, including taxes, duties, freight and other incidental expenses related to its acquisition and installation.

5 Deprecation

Tangible Assets

Tangible assets, other than lease hold land, are depredated on a pro-rata basis based oh. the Written Down Value method over the estimated useful lives of the assets specified in Schedule II to the Companies Act, 2013,

Lease hold Land

The Lease hold land is amortised over the period of lease.

6 Investments

Long Term Investments are valued at Cost, Current investments are valued at lower of cost or market value.

7 Revenue Recognition

Revenue is recognised on the transfer of significant risks and rewards of ownership to the buyer, for a consideration. Income from interest is recognized on accrual basis.

8 Extraordinary and Exceptional items

Income or expenses that arise from events or transactions that are clearly distinct fromthe ordinary activities of the Company are classified as extraordinary items Specific. disclosure of such events / transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

Income or Expense from ordinary activities of the Company of such size, nature or incidence that, its disclosure improves an understanding of the performance' of the Company are classified as an exception item and accordingly disclosed in the notes to accounts.

9 Borrowing Costs

Borrowing costs include interest, commitment charges, amortization of ancillary costs, finance charges in respect of assets acquired on finance lease and exchange differences arising from foreign currency borrowing, to the extent they are regarded as an adjustment to interest costs.

Borrowing' costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized / inventorised as part of cost of such asset till such time the asset is ready for' its intended use or sale. A qualifying, asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged as an expense in the period in which they are incurred,

10 Taxes on Income

Tax on Income for the Current Period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the income Tax Act, 1961.

Deferred tax is recognised on timing differences between the accounting income and taxable income for the year and quantified by the tax rates and laws enacted or substantially enacted as at the Balance Sheet date.

Deferred tax assets are recognised and carried forward to the extent that there, is reasonable certainty that sufficient future taxable income will be available against which such deferred assets can be realised.

11 Provisions and contingent liabilities,

A provision is recognised when

a. the Company has a present obligation as a. result of past events

b. it is probable that an outflow of resources will be required to settle the obligation

c. the amount of the obligation can be reliably estimated.

Provisions (excluding retirement benefits.) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Contingent liability is disclosed in case of

a. a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation,

b. a present obligation arising from past events, when no reliable estimate is possible,

c. a possible obligation arising from past events where the probability of outflow of resources is not remote.

12 Commitments

Commitments are future liabilities for contractual expenditure. Commitments are classified and disclosed as follows;

a. Estimated amount of contracts remaining to be executed on capital account and not provide for

b. Other non-cancellable commitments, if any, to the extent they are considered material arid relevant in the opinon of management.

13 Impairment of Assets

The amount of impairment loss is recognised and charged to Profit and Loss Statement when the carrying amount of asset exceeds its recoverable amount at the Balance Sheet date. Recoverable amount is determined at higher of net selling price and value in use. if at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.


Mar 31, 2014

1 Basis of Accounting

The Company maintains its accounts on accrual basis following the historical cost convention in accordance with Generally Accepted Accounting Principles [GAAP] comprising the mandatory Accounting Standards issued under the Companies (Accounting Standards) Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956.

2 Use of Estimates

The preparation of the financial statements is in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognized in the periods in which the results are known / materialized.

3 Change in Accounting Policy

Any change in the Accounting Policy, which has a material effect in the current period, is disclosed. The amount by which any item in the financial statements is affected by such change is also disclosed.

4 Fixed Assets

Tangible Fixed Assets are stated at cost of acquisition and any subsequent improvements thereto, including taxes, duties, freight and other incidental expenses related to its acquisition and installation.

5 Depreciation

Tangible Assets:

Depreciation on Fixed assets has been provided on Written Down Method at the rates and in the manner prescribed in Schedule XIV to Companies Act, 1956.

Lease hold Land

The Lease hold land is amortized over the period of lease.

6 Investments

Long Term Investments are valued at Cost. Current Investments are valued at lower of cost or market value.

7 Revenue Recognition

Revenue is recognized on the transfer of significant risks and rewards of ownership to the buyer, for a consideration. Income from interest is recognized on accrual basis.

8 Extraordinary and Exceptional items

Income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of the Company are classified as extraordinary items. Specific disclosure of such events / transactions is made in the financial statements. Similarly, any external event beyond the control of the Company, significantly impacting income or expense, is also treated as extraordinary item and disclosed as such.

Income or Expense from ordinary activities of the Company of such size, nature or incidence that its disclosure improves an understanding of the performance of the Company are classified as an exception item and accordingly disclosed in the notes to accounts.

9 Borrowing Costs

Borrowing costs include interest, commitment charges, amortization of ancillary costs, finance charges in respect of assets acquired on finance lease and exchange differences arising from foreign currency borrowing, to the extent they are regarded as an adjustment to interest costs.

Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalized / inventoried as part of cost of such asset till such time the asset is ready for its intended use or sale. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. All other borrowing costs are charged as an expense in the period in which they are incurred.

10 Taxes on Income

Tax on Income for the Current Period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences between the accounting income and taxable income for the year and quantified by the tax rates and laws enacted or substantially enacted as at the Balance Sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred assets can be realized.

11 Provisions and contingent liabilities.

A provision is recognized when

a. the Company has a present obligation as a result of past events

b. it is probable that an outflow of resources will be required to settle the obligation

c. the amount of the obligation can be reliably estimated.

Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Contingent liability is disclosed in case of

a. a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation.

b. a present obligation arising from past events, when no reliable estimate is possible.

c. a possible obligation arising from past events where the probability of outflow of resources is not remote.

12 Commitments

Commitments are future liabilities for contractual expenditure. Commitments are classified and disclosed as follows;

a. Estimated amount of contracts remaining to be executed on capital account and not provide for

b. Other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.

13 Impairment of Assets

The amount of impairment loss is recognized and charged to Profit and Loss Statement when the carrying amount of asset exceeds its recoverable amount at the Balance Sheet date. Recoverable amount is determined at higher of net selling price and value in use. If at the Balance Sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.


Mar 31, 2010

1. The accounts are prepared on accrual Basis on historical cost convention, except otherwise stated. The Basis of accounts is a Going Concern Concept.

2. Revenue Recognition:

(a) Sales are recognized on actual delivery & billing,

(b) Income from interest is recognized on accrual basis.

3. Preliminary Expenses:

In view of no commercial operations, preliminary & Public issue expenses are not written off.

4. Stock - In - Trade: Stock - in - Trade of hardware & finished goods is valued at cost of purchase.

5. Investments: All investments are considered Long Term & no permanent diminution in their values is estimated. Hence, they are valued at cost of Acquisition.

6. Contigent Liabilities:

(a) Gujarat Electricity Board has filed a suit against the company for recovery of electricity dues, penalty etc, for approx. Rs.3 lacs for which no provision is made. The company expects that the same shall be scrapped as the demand is unreasonable. No provision ismade for the same.

 
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