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Accounting Policies of Suryodaya Investment & Trading Ltd. Company

Mar 31, 2012

I. Basis of Preparation of Financial Statements :

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accrual basis. GAAP comprises Notified Accounting Standards prescribed by the Companies (Accounting Standard) Rules 2006 ''as amended'', the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEB1). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision of an existing accounting standard requires a change in the accounting policy hitherto in use.

ii Use of Estimate

The preparation of the financial statements in conformity with GAAP requires die management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets. The difference between the actual result and the estimates are recognized in the period in which results are known or materialized.

ii. Fixed Assets:

The fixed assets are stated at cost less accumulated depreciation and impairment loss if any.

iii. Depreciation:

Depreciation on fixed assets is provided on written down value method at the rates specified in Schedule XTV of the Companies Act, 1956.

iv. Investments:

The Long Term Investments are stated at cost, Cost is inclusive of brokerage, fees and duties. ''the decline in the value of the investments other than temporary is provided wherever considered necessary.

v. Earnings Per Share;

Earnings per share is computed by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of shares outstanding during the year.

vi. Taxation:

a) Income tax expense comprises current tax and deferred tax.

b) Deferred tax asset and liabilities are recognized for the future tax consequences of timing differences, subject to the consideration of prudence. Deferred tax assets and liabilities are measured using the tax rate enacted or substantively enacted by the balance sheet at the carrying of deferred tax asset / liability are reviewed at each balance sheet date.

c) Deferred tax asset arising mainly on account of brought forward losses & unabsorbed depreciation under tax laws are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

vii. Impairment of Assets

The Fixed Assets are reviewed for impairment at each Balance Sheet date. In case of arty such indication, the recoverable amount of these assets or group of assets is determined, and if such recoverable amount of the asset is less than it''s carrying amount, the impairment loss is recognized by writing down such assets to their recoverable amount. An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased

viii. Prior Period Items

Prior period expenses/income is accounted under the respective heads. Material items, if any, are disclosed separately under the respective head.

ix. Provisions & Contingent I, abilities

The company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

x. Other Accounting Policies

These are consistent with the generally accepted accounting practices.


Mar 31, 2010

I. Basis of Preparation of Financial Statemetns:

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention on the accrual basis. GAAP comprises Notified Accounting Standards prescribed by the Companies (Accounting Standard) Rules 2006 'as amended', the provisions of the Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision of an existing accounting standard requires a change in the accounting policy htherto in use.

i Use of Estimate

The preparation of the financial statements in conformity with GAAP requires the management to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to contingent assets and liabilities as at the date of the financial statements and reported amounts of income and expenses during the period. Examples of such estimates include provisions for doubtful debts, future obligations under employee retirement benefit plans, income taxes, post-sales customer support and the useful lives of fixed assets and intangible assets. The difference between the actual result and the estimates arc recognized in the period in which results are known or materialized.

ii. Fixed Assets:

The fixed assets are stated at cost less accumulated depreciation and impairment loss if any,

iii. Depreciation;

Depreciation on fixed assets is provided on written down value method at the rates specified in Schedule XIV of the Companies Act, 1956.

iv. Investments:

The long Term Investments are stated at cost, Cost is inclusive of brokerage, fees and duties. The decline in the market quotation of the investments other than temporary is provided wherever considered necessary.

v. Earnings Per Share :

Earnings per share is computed using the weighted average number of shares outstanding during the year.

vi. Taxation:

a) Income tax expense comprises current tax and deferred tax.

b) Deferred tax asset and liabilities are recognised for the future tax consequences of timing differences, subject to the consideration of prudence, Deferred tax assets and liabilities are measured using the tax rate enacted or substantively enacted by the balance sheet at the carrying of deferred tax asset / liability are reviewed at each balance sheet date.

c) Deferred tax asses arising maiuly on account of brought forward losses & unabsorbed depreciation under tax laws are recognized, only if there is a virtual certainty of its realization, supported by convincing evidence. Deferred tax assets on account of other timing differences are recognized only to the extent there is a reasonable certainty of its realization.

vii. Impairment of Assets

The Fixed Assets are reviewed for impairment at each Balance Sheet date. In case of any such indication, the recoverable amount of these assets or group of assets is determined, and if such recoverable amount of the asset is less than it's carrying amount the impairment loss is recognised by writing down such assets to their recoverable amount. An impairment loss is reversed if there is change in the recoverable amount and such loss either no longer exists or has decreased

viii. Prior Period Items

Prior period expenses/income is accounted under the respective heads. Material items, if any, are disclosed separately under the respective head.

ix. Provisions & Contingent Liabilities

The company creates a provision when there is a present obligation as a result of an obligating event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

x. Other Accounting Policies

These are consistent with the generally accepted accounting practices,

 
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