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Accounting Policies of Swarnasarita Gems Ltd. Company

Mar 31, 2015

1. Basis of Preparation of Financial Statement

The financial statements are prepared on going concern assumption and under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles and provision of the Companies Act, 2013.

2. Use of Estimates:-

The preparation of financial statement requires the management of the Company to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statement of and reported amounts of income and expenses during the period. Examples of such estimate includes provision for doubtful debts, future obligation, employees retirement benefit plans, provision for income taxes, useful lives of fixed assets and intangible assets. Contingencies are recorded when it is probable that a liability will be incurred and the amount can be reasonably estimated. Actual results may differ from such estimates.

3. Fixed Assets:-

All fixed assets are valued at cost (including adjustment on revaluation) less accumulated depreciation. Cost of acquisition is inclusive of fright, duties and other incidental expenses incurred during construction period and exclusive of cenvat credit availed thereon.

4. Depreciation:-

Depreciation is systematically allocated over the useful life of an asset as specified in part C of schedule II of Companies Act, 2013.

5. Inventories:-

a. Finished Goods : -

i. Gold and Diamond Jewellery is valued at cost on weighted average method

ii. Other goods are valued at cost or net realizable value whichever is lower.

b. Raw Materials: -

i. Gold and other precious metal is valued at weighted average method

ii. Loose diamonds are valued at weighted average cost method

6. Provision for Current and Deferred Tax:-

Provision for current tax made after taking into consideration benefits admissible under the provisions of the Income-Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

7. Revenue Recognition:-

In appropriate circumstance, revenue is recognized when no significant uncertainty as to determination or realization exists. Turnover includes sale of goods net of VAT and sales tax.

8. Investment:-

Current Investment is valued at Cost or Market value whichever lower, computed category wise. Long Term Investment are stated at cost. Provision of diminution in the value of long term investment is made only if the such a decline is other than temporary.

9. Contingent Liability:-

These are disclosed by way of notes on the Balance Sheet date. Provision is made wherever applicable for those contingencies which are likely to materialize into liabilities after the year end till the finalization of accounts and have material effect on the position stated in Balance Sheet.

10. Impairment:-

At each Balance Sheet date, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of assets net selling price and value in use. In assessing value in use, the estimated future cash flow expected from the continuing use of the assets and from its disposal is discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and risks specific to the assets. Reversal of impairment loss is recognized immediately as income in the Profit and Loss Statement

11. Earning Per Share:-

The earning considered in ascertaining EPS comprise the Net Profit after Tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.

12. Gold Loan:

(i) Transactions of purchase of gold under Gold Loan Scheme of the banks where the final rate of gold is settled on the subsequent date to the date of transactions are normally recorded at the prevailing rate of gold and exchange rate on the date of transaction as per performa invoice provided by the suppliers of the gold.

(ii) Difference arise in the value of purchases as compared to the value as per performa invoice on the date of settlement of transaction is transferred to the purchase cost as plus or minus as the case may be.

(iii) Monetary item of gold loan denominated in foreign currency at the year end are translated at the year end rate of exchange of the foreign currency and the year end rate of gold on the London Metal Exchange as certified by the seller bank of the gold and difference so arrived is taken to the cost of purchase of goods.

13. Foreign Currency Transactions:-

(i) Transactions in foreign currencies are normally recorded at the average exchange rate prevailing during the period of transaction.

(ii) Monetary item denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates except where there is no virtual certainty of recovery of export proceeds, and those covered by forward exchange contracts are translated at the average rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference having been recognized over the life of the contract.

(iii) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.




Mar 31, 2014

1. Basis of Preparation of Financial Statement :-

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles and provision of the Companies Act, 1956 as adopted consistently by the Company.

2. Use of Estimates:-

The preparation of financial statement requires the management of the Company to make estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statement of and reported amounts of income and expenses during the period. Examples of such estimate includes provision for doubtful debts, future obligation, employees retirement benefit plans, provision for income taxes, useful lives of fixed assets and intangible assets. Contingencies are recorded when it is probable that a liability will be incurred and the amount can be reasonably estimated. Actual results may differ from such estimates.

3. Fixed Assets:-

All fixed assets are valued at cost (including adjustment on revaluation) less accumulated depreciation. Cost of acquisition is inclusive of freight, duties and other incidental expenses incurred during construction period and exclusive of cenvat credit availed thereon.

4. Depreciation:-

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the rate specified in the Schedule XIV of the Companies Act, 1956 on pro-rata basis.

5. Inventories:-

a. Finished Goods : -

i. Gold and Diamond Jewellery is valued at cost on weighted average method

ii. Other goods are valued at cost or net realizable value whichever is lower. b. Raw Materials: -

i. Gold and other precious metal is valued at weighted average method

ii. Loose diamonds are valued at weighted average cost method

6. Provision for Current and Deferred Tax:-

Provision for current tax made after taking into consideration benefits admissible under the provisions of the Income-Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

7. Revenue Recognition:-

In appropriate circumstance, revenue is recognized when no significant uncertainty as to determination or realisation exists. Turnover includes sale of goods net of VAT and sales tax.

8. Investment:-

Current Investment is valued at Cost or Market value whichever lower, computed category wise. Long Term Investment are stated at cost. Provision of diminution in the value of long term investment is made only if the such a decline is other than temporary.

9. Contingent Liability:-

These are disclosed by way of notes on the Balance Sheet date. Provision is made wherever applicable for those contingen- cies which are likely to materialise into liabilities after the year end till the finalization of accounts and have material effect on the position stated in Balance Sheet.

10. Impairment:-

At each Balance Sheet date, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of assets net selling price and value in use. In assessing value in use, the estimated future cash fow expected from the continuing use of the assets and from its disposal is discounted to their present value using a pre-tax discount rate that refects the current market as- sessments of time value of money and risks Specific to the assets. Reversal of impairment loss is recognized immediately as income in the Profit and Loss Statement.

11. Earning Per Share:-

The earning considered in ascertaining EPS comprise the Net Profit after Tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.


Mar 31, 2013

1. Basis of Preparation of Financial Statement :-

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles and provision of the Companies Act, 1956 as adopted consistently by the Company.

2. Use of Estimates:-

The preparation of financial statement requires the management of the Company to make estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statement of and reported amounts of income and expenses during the period..Examples of such estimate includes provision for doubtful debts, future obligation, employees retirement benefit plans, provision for income taxes, useful lives of fixed assets and intangible assets. Contingencies are recorded when it is probable that a liability will be incurred and the amount can be reasonably estimated. Actual results" may differ from such estimates.

3. Fixed Assets:-

All fixed assets are valued at cost (including adjustment on revaluation) less accumulated depreciation. Cost of acquisition is inclusive of fright, duties and other incidental expenses incurred during construction period and exclusive of cenvat credit availed thereon.

4. Depreciation:-

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the rate specified in the Schedule XIV of the Companies Act, 1956 on pro-rata basis.

5. Inventories:-

a. Finished Goods : -

i. Gold and Diamond Jewellery is valued at cost on weighted average method ii. Other goods are valued at cost or net realizable value whichever is lower.

b. Raw Materials: -

i. Gold and other precious metal is valued at weighted average method ii. Loose diamonds are valued at weighted average cost method

6. Provision for Current and Deferred Taxi- Provision for current tax made, after taking into consideration benefits admissible under the provisions of the Income-Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheet date. Deferred tax asset is recognized and carried forward only to the extent that there is virtual certainty that the asset will be realized in future.

7. Revenue Recognition:-

In appropriate circumstance, revenue is recognized when no significant uncertainty as to determination or realisation exists. Turnover includes sale of goods net of VAT and sales tax.

8. Investment- Current Investment is valued at Cost or Market value whichever lower, computed category wise. Long Term Investment are stated at cost. Provision of diminution in the value of long term investment is made only if the such a decline is other than temporary.

9. Contingent Liability:-

These are disclosed by way of notes on the Balance Sheet date. Provision is made wherever applicable for those contingencies which are likely to materialise into liabilities after the year end till the finalization of accounts and have material effect on the position stated in Balance Sheet.

10. Impairment:-

At each Balance Sheet date, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the Assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of assets net selling price and value in use. In assessing value in use, the estimated future cash flow expected from the continuing use of the assets and from its disposal is discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and .risks specific to the assets. Reversal of impairment loss is recognized immediately as income in the Profit and Loss Statement.

11. Earning Per Share:-

The earning considered in ascertaining EPS comprise .the Net Profit after Tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.


Mar 31, 2012

1. Basis of Preparation of Financial Statement

The financial statements are prepared under the historical cost convention on accrual basis in accordance with the generally accepted accounting principles and provision of the Companies Act, 1956 as adopted consistently by the Company.

2. Use of Estimates: -

The preparation of financial statement requires the management of the Company to make estimates and assumptions to be made that affect the reported amount of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statement of and reported amounts of income and expensesduring the period. Examples of such estimate includes provision for doubtful debts, future obligation, employees retirement benefit plans, provision forincometaxes.usefullivesoffixedassetsandintangibleassets.Contingenciesare recorded when it is probable that a liability will be incurred and the amount can be reasonably estimated. Actual results may differ from such estimates.

3. Fixed Assets

All fixed assets are valued at cost (including adjustment on revaluation) less accumulated depreciation. Cost of acquisition is inclusive of freight, duties and other incidental expenses incurred during construction period and exclusive of cenvat credit availed thereon.

4. Depreciation:-

Depreciation on Fixed Assets is provided on Straight Line Method in accordance with the rate specified in the Schedule XIV of the Companies Act, 1956 on pro-rata basis.

5. Inventories:-

a. Finished Goods : -

i. Gold and Diamond Jewellery is valued at cost on weighted average method

ii. Other goods are valued at cost or net realizable value whichever is lower.

b. Raw Materials: -

i. Gold and other precious metal is valued at weighted average method

ii. Loose diamonds are valued at weighted average cost on FIFO basis

6. Foreign Currency Transactions:-

(i) Transactions in foreign currencies are normally recorded at the average exchange rate prevailing during the period of transaction.

(ii) Monetary item denominated in foreign currencies at the year end and not covered by forward exchange contracts are translated at year end rates and those covered by forward exchange contracts are translated at the average rate ruling at the date of transaction as increased or decreased by the proportionate difference between the forward rate and exchange rate on the date of transaction, such difference having been recognized over the life of the contract.

(iii) Any income or expenses on account of exchange difference either on settlement or on translation is recognized in the Statement of Profit and Loss.

7. Provision for Current and Deferred Tax:-

Provision for current tax made after taking into consideration benefits admissible under the provisions of the Income-Tax Act, 1961. Deferred tax resulting from "timing difference" between taxable and accounting income is accounted for using the tax rates and laws that are enacted or substantively enacted as on the balance sheetdate. Deferred tax asset is recognized and carried forward only to extent that there is virtual certainty that the asset will be realized in future.

8. Revenue Recognition:-

In appropriate circumstance, revenue is recognized when no significant uncertainty as to determination or realisation exists. Turnover includes sale of goods net of VAT and sales tax.

9. Investment-

Current Investment is valued at cost or Market value whichever lower, computed category wise.

10. Contingent Liability

These are disclosed by way of notes on the Balance Sheet date. Provision is made wherever applicable for those contingencies which are likely to materialise into liabilities after the year end till the finalization of accounts and have material effect on the position stated in Balance Sheet.

11. Impairment:-

At each Balance Sheet date, the Company reviews the carrying amounts of its assets to determine whether there is any indication that those assets suffered an impairment loss. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of impairment loss. Recoverable amount is the higher of assets net selling price and value in use. In assessing value in use, the estimated future cash flow expected from the continuing use of the assets and from its disposal is discounted to their present value using a pre-tax discount rate that reflects the current market assessments of time value of money and risks specific to the assets. Reversal of impairment loss is recognized immediately as income in the Statement of Profit and Loss.

12. Earning Per Share:-

The earning considered in ascertaining EPS comprise the Net Profit after Tax. The number of shares used in computing basic EPS is the weighted average number of shares outstanding during the year.


Mar 31, 2011

I) The financial accounts are prepared under the historical cost convention on a going concern basis.

The accounting policies not specifically mentioned are consistent with generally accepted accounting principles. ii) All items of income and expenditure are accounted for on accrual basis. iii) Fixed Assets Fixed Assets are stated at cost (including adjustments on revaluation) less accumulated depreciation.

Cost of acquisition is inclusive of freight, duties and other incidental expenses incurred during construction period and exclusive of cenvat credit availed thereon.

iv)Depreciation

The depreciation on fixed assets has been provided on Straight Line Method on Pro rata basis at the rates specified in Schedule XIV of the Companies Act, 1956.

v) Foreign Currency Transactions

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

b) Foreign currency transactions remaining unsettled till the finalisation of accounts of the year are translated at contracted rates, when covered by forward exchange contracts and at year end rates,in all other cases.

vi) Investments Investments are stated at cost.

vii) Stock

a) Closing stock of Finished Goods is stated at lower of the cost or net realisable value on FIFO Basis

b) Raw Materials are valued at Cost on FIFO Basis

c) Rough Rejection is valued at net realisable value

d) Stores items purchased during the year are treated as consumed. viii)Sales tax VAT collected by the Company is not treated as part of its income.

ix) Contingent Liability

Contingent Liability, if any, are generally not provided for in the accounts and is shown separately as a note to the accounts.

x) Impairment of assets

The carrying amount of asets is reviewed at each balance sheet date for any indication of impairment based on internal & external factors. An impairment loss is recognised wherever the carrying amount of an asset exceeds its recoverable amount and is charged to the Profit & Loss account in the year of identification as an impaired asset. The impairment loss recognised in prior accounting periods is reversed if there is a change in the estimate of recoverable amount.

xi) Taxation

a) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income tax Act, 1961 and considering assessment orders and decisions of appellate authorities in Company's case.

xi) Taxation

b) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date.


Mar 31, 2010

I) The financial accounts are prepared under the historical cost convention on a going concern basis.

The accounting policies not specifically mentioned are consistent with generally accepted accounting principles.

ii) All items of income and expenditure are accounted for on accrual basis.

iii) Fixed Assets Fixed Assets are stated at cost (including adjustments on revaluation) less accumulated depreciation. Cost of acquisition is inclusive of freight, duties and other incidental expenses incurred during construction period and exclusive of cenvat credit availed thereon.

iv) Depreciation The depreciation on fixed assets has been provided on Straight Line Method on Pro rata basis at the rates specified in Schedule XIV of the Companies Act, 1956.

v) Foreign Currency Transactions

a) Transactions denominated in foreign currencies are normally recorded at the exchange rate prevailing at the time of the transaction.

b) Foreign currency transactions remaining unsettled till the finalisation of accounts of the year are translated at contracted rates, when covered by forward exchange contracts and at year end rates, in all other cases.

vi) Investments

Investments are stated at cost.

vii) Stock

a) Closing stock of Finished Goods is stated at lower of the cost or net realisable value on FIFO Basis

b) Raw Materials are valued at Cost on FIFO Basis

c) Rough Rejection is valued at net realisable value

d) Stores items purchased during the year are treated as consumed.

viii) Sales tax

VAT collected by the Company is not treated as part of its income.

ix) Contingent Liability

Contingent Liability, if any, are generally not provided for in the accounts and is shown separately as a note to the accounts.

x) There are no Dues to Micro & Small Enterprises as at 31.03.2010. This information as required to be disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 has been determined on the basis of information available with the company.

xi) Taxation

a) Provision for current Tax is made and retained in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income tax Act, 1961 and considering assessment orders and decisions of appellate authorities in Companys case.

b) Deferred tax for timing differences between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

 
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