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Accounting Policies of Sunraj Diamond Exports Ltd. Company

Mar 31, 2014

1. (a) BASIS OF PREPARATION OF FIANANCIAL STATEMENTS

The financial statements have been prepared in compliance with the mandatory Accounting Standards notified under the companies (Accounting Standards) Rules, 2006 (as amended) and generally accepted Accounting principles applicable in India (GAAP).

The financial statements are prepared under historical cost convention on accrual basis accordance with the requirements of the Companies Act, 1956.

(b) FOREIGN CURRENCY TRANSACTIONS

Foreign transactions that has been entered into by the Company during the year has been accounted as per the exchange rate prevailing as on the date of transaction.

Sales or Purchases accounted during the year are accounted at the rate of exchange as on the date of transaction. Subsequently, when the bills are settled, any gain or loss arising on such transactions are credited or debited to exchange rate fluctuation account.

Closing balances of the foreign parties as on the Balance Sheet date are accounted at the realizable value as on that date. The difference in the account is transferred to exchange rate fluctuation account.

(c) REVENUE RECOGNITION Sale of Goods:

Revenue from sale of goods is recognized when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods and is stated net of returns, trade discounts, claims etc.

(d) RELATED PARTY DISCLOSURES Companies in which Directors are interested

- Sunraj Investment & Finanace Pvt. Ltd.

- Gunial Investment & Finance Pvt. Ltd.

- K.D. Shah Investments Pvt. Ltd.

Management / Directors

- Sunil C. Gandhi

- Sunny S. Gandhi

- Nirav K. Shah

Shareholders

- Nirav K. Shah (HUF)

(g) CONTINGENT LIABILITIES:

The Company has a contingent liability of income tax of Rs 8,86,480 in respect for A.Y. 2002-2003.


Mar 31, 2013

1 .(a) BASIS OF PREPARATION OF FIANANCIAL STATEMENTS

The financial statements have been prepared in compliance with the mandatory Accounting Standards notified under the companies (Accounting Standards) Rules, 2006 (as amended) and generally accepted Accounting principles applicable in India (GAAP).

The financial statements are prepared under historical cost convention on accrual basis accordance with the requirements of the Companies Act, 1956.

(b) FOREIGN CURRENCY TRANSACTIONS

Foreign transactions that has been entered into by the Company during the year has been accounted as per the exchange rate prevailing as on the date of transaction.

Sales or Purchases accounted during the year are accounted at the rate of exchange as on the date of transaction. Subsequently, when the bills are settled, any gain or loss arising on such transactions are credited or debited to exchange rate fluctuation account.

Closing balances of the foreign parties as on the Balance Sheet date are accounted at the realizable value as on that date. The difference in the account is transferred to exchange rate fluctuation account.

(C) Revenue Recognition

Sale of Goods:

Revenue from sale of goods is recognized when risk and rewards of ownership of the products are passed on to the customers, which is generally on dispatch of goods and is stated net of returns, trade discounts, claims etc.

(c) RELATED PARTY DISCLOSURES Companies in which Directors are interested

-Sunraj Investment & Finance Pvt. Ltd.

- Gunial Investment & Finance Pvt. Ltd

- K.D. Shah Investments Pvt. Ltd.

Management / Directors

-Sunil C. Gandhi -SunnyS. Gandhi

- Nirav K. Shah

(e) DEFERRED TAXATION

Deferred Tax Liability fortheyearis Rs. 1,49,510/-

(f) PROPOSED DIVIDEND

The Company at its Board Meeting held on 29,h June, 2013 has proposed to declare dividend @ 10% on its paid up capital. The effect for the same has been provided in the accounts for the relevant year. As per Companies (Transfer of profits to Reserves) Rules, 1975,2.5% of the current years profit aftertax have been transferred to General Reserve Account.

(g) CONTINGENT LIABILITIES:

The company has a contingent liability of income tax of Rs. 8,86,480 in respect for A.Y. 20022003.

(h) MANAGERIAL REMUNERATION:

Managerial Remuneration U/s 198 of the Companies Act, 1956, to the Managing Director.


Mar 31, 2010

The financial statements are prepared under historical cost convention on accrual basis accordance with the requirements of the Companies Act, 1956.

(b) INVENTORIES

Items of inventory are valued on the basis given below:

(i) Raw Materials - At cost including incidental expenses incurred for its acquisitions.

(ii) Finished Goods - At cost or market value whichever is lower.

(c) DEPRECIATION

Depreciation is provided on Fixed Assets on Straight Line Basis in accordance with Schedule XIV of the Companies Act, 1956.

(d) FIXED ASSETS

All Fixed Assets are valued at cost less Depreciation.

(e) FOREIGN CURRENCY TRANSACTIONS

Foreign transactions that has been entered into by the Company during the year has been accounted as per the exchange rate prevailing as on the date of transaction.

Sales or Purchases accounted during the year are accounted at the rate of exchange as on the date of transaction. Subsequently, when the bills are settled, any gain or loss arising on such transactions are credited or debited to exchange rate fluctuation account.

Closing balances of the foreign parties as on the Balance Sheet date are accounted at the realizable value as on that date. The difference in the account is transferred to exchange rate fluctuation account.

However, the Company has not accounted the exchange rate gain in respect of dues outstanding as on Balance Sheet date of its debtor viz, Marvel Gems BVBA. The principal amount receivable from the debtor is doubtful to be received and hence the gain on valuation of the debtor is not accounted. The Company has followed the policy of substance over form to account the said gain as the principal amount is doubtful to be received then any gain arising on the same cannot be accounted.

(f) INVESTMENTS

Investments are stated at cost of acquisition. During the year, the Company has sold majority of the shares held by them as investment.

During the year F.Y. 2008-09, the Company had made a provision of diminishing in value of investment in case of script of V. B. Desai Financial Services Limited of Rs. 9,78,400 as per the Accounting Standard - 13 issued by the Institute of Chartered

Accountants of India as the market value of the script was much below the original purchase cost. During the year, F.Y. 2009-10, the said script was sold by the Company and it has incurred an actual loss of Rs. 9,51,808. Hence the provision for diminishing in value of investment in respect of the said script that was made last year is now reversed in the current year and actual loss on sale of said script is accounted in the books.





 
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