Accounting Policies of Crew B.O.S Products Ltd. Company

Mar 31, 2013

1.1 Basis of Preparation

The Financial Statements are prepared on accrual basis under the historical cost convention in accordance with applicable Accounting Standards issued by The Institute of Chartered Accountants of India and relevant presentational requirements of the Companies Act, 1956.

All assets and liabilities have been classified as current or non-current, wherever applicable as per the operating cycle of the Company as per the guidance as set out in the Revised Schedule VI to the Companies Act, 1956

1.2 Revenue Recognition

Sales are recognized upon the transfer of significant risks and rewards of ownership to the customers.

Cost of samples developed and supplied is recognized on accrual basis net of recoveries.

The Company adequately hedges its inherent Foreign Currency Exposures. There are also adequate measures implemented by the Company to assess and mitigate the exchange rates fluctuation risks timely and efficiently. Effects of Exchange Difference on Derivative transactions are booked at the time of cancellation and/or maturity of the contract.

Duty Drawback Income on deemed export on purchases of goods made by 100% Export Oriented Unit (EOU) as per provisions of chapter 8 of Foreign Trade Policy are recognized in the year in which the income is received. Debit and credit balances of the parties which are outstanding for more than three years without having any transaction during these years in that account are written off/written back and accounted for as income or expense as the case may be.

1.3 Borrowing Costs

The borrowing costs on funds other than those directly attributable to the acquisition of a qualifying asset i.e. assets that necessarily takes a substantial period of time to get ready for its intended use, are charged to revenue in the period in which they are incurred.

The borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of that asset.

1.4 Fixed Assets

Fixed Assets are stated at actual cost of acquisition inclusive of taxes, duties, freight and other incidental expenses including interest related to acquisition, net of Grants.

Intangible assets are recognized at cost which comprises of purchases price (including taxes and duties, if any) and any directly attributable expenditure on making the assets ready for their intended use.

Fixed assets are reviewed for impairment on each balance sheet date, in accordance with the accounting standard AS 28 issued by The Institute of Chartered Accountants of India.

1.5 Depreciation

Depreciation on fixed assets used in Fashion Accessories Business is provided on WDV Method & Depreciation on fixed assets used in Leather Business being Leather Finishing & Processing units is provided on SLM Method at the rates and in the manner as prescribed in Schedule XIV of the Companies Act, 1956.

Intangible Assets: Technical recipes and formulas is being amortized on a straight line method over the estimated useful lives of ten years as decided by the company and depreciation on Computer software is charged as per rates prescribed under Companies Act.

All assets costing '' 5,000 or below are depreciated in full by way of a one time depreciation charge.

Leasehold improvements are amortized over the period of lease, including the optional period of lease.

1.6 Inventories

a. Raw materials are valued at weighted average cost.

b. Semi finished goods are valued at cost up to estimated stage of process.

c. Finished Goods are valued at lower of cost and net realizable value.

1.7 Foreign Exchange Transactions

Transactions in foreign currencies are recorded at the rate prevailing on the date of the transactions. Monetary items are translated at the exchange rates prevailing at the end of the year and the gain/loss arising on such translation is credited /charged to the profit and loss account.

1.8 Retirement Benefits

The Company''s contribution to defined contribution schemes such as provident fund and family pension fund are charged to the profit and loss account as incurred. The Company also provides gratuity benefit to the employees, which is funded through a LIC group gratuity scheme. The Liability at the year-end for the same is determined by an actuarial valuation done at year-end and shortfall/surplus over the amount contributed to the scheme is charged off to the profit and loss account. Provision for Leave Encashment is made on accrual basis and charged to profit and loss account.

1.9 Prior Period and Extra Ordinary items

Prior period and Extra Ordinary items having material impact on the financial affairs of the Company are disclosed separately.

1.10 Investments

i) Quoted Investments:

Quoted Investments are carried at lower of cost and fair value. Fair value in the case of quoted investments refer to the market value of the investments arrived at on the basis of last traded prices as at the year end.

ii) Unquoted Investments:

Unquoted Investments are carried at cost.

1.11 Taxation Current Tax

Provision for current tax is computed on the basis of tax payable on estimated taxable income and fringe benefit computed in accordance with the applicable provisions of Income Tax Act 1961, after considering the benefit available under the said Act.

Deferred Tax

In accordance with Accounting Standard -22 "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred Tax Assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the asset can be realized in future.

1.12 Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved and are disclosed separately based on the discussions with the management.

1.13 Earning Per Share

Earning per share is calculated in accordance with the procedure laid out in the relevant Accounting Standard (AS20) issued by the Institute of Chartered Accountants of India.

Warrants issued are considered as capital for the purpose of computing diluted earning per share.

1.14 Segment Accounting Policies:

i) Identification of Segment

For management purposes, the Company is organized in three major operating divisions - Fashion Accessories, footwear & Leather. These divisions include manufacturing, domestic as well as overseas activities. These divisions are the basis on which the Company reports its primary segment information.

ii) Segment Assets and Liabilities

All Segments assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist primarily of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment liabilities all operating liabilities and consist primarily of creditors and accrued liabilities. Segment assets and liabilities do not include investments, miscellaneous expenditure, and current income tax and deferred tax.

iii) Inter Segment Transfers

Segment revenues and segment results include transfers between business segments. Inter segment sales to leather are accounted for at cost of production. These transfers are eliminated on consolidation.

iv) Segment revenues and expenses

Joint expenses are allocated to business segments on a reasonable basis. All other revenues and expenses are directly attributable to the segments. They do not include interest income and interest expenses

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Mar 31, 2012

1.1 Basis of Preparation

The Financial Statements are prepared on accrual basis under the historical cost convention in accordance with applicable Accounting Standards issued by The Institute of Chartered Accountants of India and relevant presentational requirements of the Companies Act, 1956.

Presentation and disclosure in Financial Statements

During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act, 1956 has become applicable to the Company for preparation and presentation of financial statements. The adoption of new Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

Operating Cycle

As per the revised Schedule VI, 'An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

For the company there is generally no clearly identifiable normal operating cycle and hence the normal operating cycle for the company is assumed to have duration of 12 months.

1.2 Revenue Recognition

Sales are recognized upon the transfer of significant risks and rewards of ownership to the customers.

Cost of samples developed and supplied is recognized on accrual basis net of recoveries.

The Company adequately hedges its inherent Foreign Currency Exposures. There are also adequate measures implemented by the Company to assess and mitigate the exchange rates fluctuation risks timely and efficiently. Effects of Exchange Difference on Derivative transactions are booked at the time of cancellation and/or maturity of the contract.

Duty Drawback Income on deemed export on purchases of goods made by 100% Export Oriented Unit (EOU) as per provisions of chapter 8 of Foreign Trade Policy are recognized in the year in which the income is received.

Debit and credit balances of the parties which are outstanding for more than three years without having any transaction during these years in that account are written off/written back and accounted for as income or expense as the case may be.

1.3 Borrowing Costs

The borrowing costs on funds other than those directly attributable to the acquisition of a qualifying asset i.e. assets that necessarily takes a substantial period of time to get ready for its intended use, are charged to revenue in the period in which they are incurred.

The borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of that asset.

1.4 Fixed Assets

Fixed Assets are stated at actual cost of acquisition inclusive of taxes, duties, freight and other incidental expenses including interest related to acquisition, net of Grants.

Intangible assets are recognized at cost which comprises of purchases price (including taxes and duties, if any) and any directly attributable expenditure on making the assets ready for their intended use.

Fixed assets are reviewed for impairment on each balance sheet date, in accordance with the accounting standard AS 28 issued by The Institute of Chartered Accountants of India.

1.5 Depreciation

Depreciation on fixed assets used in Fashion Accessories Business is provided on WDV Method & Depreciation on fixed assets used in Leather Business being Leather Finishing & Processing units is provided on SLM Method at the rates and in the manner as prescribed in Schedule XIV of the Companies Act, 1956.

Intangible Assets: Technical recipes and formulas is being amortized on a straight line method over the estimated useful lives of ten years as decided by the company and depreciation on Computer software is charged as per rates prescribed under Companies Act.

All assets costing Rs 5,000 or below are depreciated in full by way of a one time depreciation charge.

Leasehold improvements are amortized over the period of lease, including the optional period of lease.

1.6 Inventories

a. Raw materials are valued at weighted average cost.

b. Semi finished goods are valued at cost up to estimated stage of process.

c. Finished Goods are valued at lower of cost and net realizable value.

1.7 Foreign Exchange Transactions

Transactions in foreign currencies are recorded at the rate prevailing on the date of the transactions. Monetary items are translated at the exchange rates prevailing at the end of the year and the gain/loss arising on such translation is credited /charged to the profit and loss account.

1.8 Retirement Benefits

The Company's contribution to defined contribution schemes such as provident fund and family pension fund are charged to the profit and loss account as incurred. The Company also provides gratuity benefit to the employees, which is funded through a LIC group gratuity scheme. The Liability at the year-end for the same is determined by an actuarial valuation done at year-end and shortfall/ surplus over the amount contributed to the scheme is charged off to the profit and loss account. Provision for Leave Encashment is made on accrual basis and charged to profit and loss account.

1.9 Prior Period and Extra Ordinary items

Prior period and Extra Ordinary items having material impact on the financial affairs of the Company are disclosed separately.

1.10 Investments

i) Quoted Investments:

Quoted Investments are carried at lower of cost and fair value. Fair value in the case of quoted investments refer to the market value of the investments arrived at on the basis of last traded prices as at the year end.

ii) Unquoted Investments:

Unquoted Investments are carried at cost.

1.11 Taxation Current Tax

Provision for current tax is computed on the basis of tax payable on estimated taxable income and fringe benefit computed in accordance with the applicable provisions of Income Tax Act 1961, after considering the benefit available under the said Act.

Deferred Tax

In accordance with Accounting Standard -22 "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred Tax Assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the asset can be realized in future.

1.12 Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the matter involved

1.13 Earning Per Share

Earning per share is calculated in accordance with the procedure laid out in the relevant Accounting Standard (AS20) issued by the Institute of Chartered Accountants of India.

Warrants issued are considered as capital for the purpose of computing diluted earning per share.

1.14 Segment Accounting Policies:

i) Identification of Segment

For management purposes, the Company is organized in three major operating divisions - Fashion Accessories, footwear & Leather. These divisions include manufacturing, domestic as well as overseas activities. These divisions are the basis on which the Company reports its primary segment information.

ii) Segment Assets and Liabilities

All Segments assets and liabilities are directly attributable to the segment. Segment assets include all operating assets used by the segment and consist primarily of fixed assets, inventories, sundry debtors, loans and advances and operating cash and bank balances. Segment liabilities all operating liabilities and consist primarily of creditors and accrued liabilities. Segment assets and liabilities do not include investments, miscellaneous expenditure, and current income tax and deferred tax.

iii) inter Segment Transfers

Segment revenues and segment results include transfers between business segments. inter segment sales to leather are accounted for at cost of production. These transfers are eliminated on consolidation.

iv) Segment revenues and expenses

Joint expenses are allocated to business segments on a reasonable basis. All other revenues and expenses are directly attributable to the segments. They do not include interest income and interest expenses

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Mar 31, 2011

1. Basis of Accounting

The Financial Statements are prepared on accrual basis under the historical cost convention in accordance with applicable Accounting Standards issued by The Institute of Chartered Accountants of India and relevant presentational requirements of the Companies Act, 1956.

2. Revenue Recognition

Sales are recognized upon the transfer of significant risks and rewards of ownership to the customers.

Cost of samples developed and supplied is recognized on accrual basis net of recoveries.

The Company adequately hedges its inherent Foreign Currency Exposures. There are also adequate measures implemented by the Company to assess and mitigate the exchange rates fluctuation risks timely and efficiently. Effects of Exchange Difference on Derivative transactions are booked at the time of cancellation and/or maturity of the contract.

Duty Drawback Income on deemed export on purchases of goods made by 100% Export Oriented Unit (EOU) as per provisions of chapter 8 of Foreign Trade Policy are recognized in the year in which the income is received.

3. Borrowing Costs

The borrowing costs on funds other than those directly attributable to the acquisition of a qualifying asset i.e. assets that necessarily takes a substantial period of time to get ready for its intended use, are charged to revenue in the period in which they are incurred.

The borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of that asset.

4. Fixed Assets

Fixed Assets are stated at actual cost of acquisition inclusive of taxes, duties, freight and other incidental expenses including interest related to acquisition, net of Grants.

Intangible assets are recognized at cost which comprises of purchases price (including taxes and duties, if any) and any directly attributable expenditure on making the assets ready for their intended use.

Fixed assets are reviewed for impairment on each balance sheet date, in accordance with the accounting standard AS 28 issued by The Institute of Chartered Accountants of India.

5. Depreciation

Depreciation on fixed assets used in Fashion Accessories Business is provided on WDV Method & Depreciation on fixed assets used in Leather Business being Leather Finishing & Processing units is provided on SLM Method at the rates and in the manner as prescribed in Schedule XIV of the Companies Act, 1956.

Intangible Assets: Technical recipes and formulas is being amortized on a straight line method over the estimated useful lives of ten years as decided by the company and depreciation on Computer software is charged as per rates prescribed under Companies Act.

All assets costing Rs 5,000 or below are depreciated in full by way of a one time depreciation charge.

Leasehold improvements are amortized over the period of lease, including the optional period of lease.

6. Inventories

a. Raw materials are valued at weighted average cost.

b. Semi finished goods are valued at cost up to estimated stage of process.

c. Finished Goods are valued at lower of cost and net realizable value.

7. Foreign Exchange Transactions

Transactions in foreign currencies are recorded at the rate prevailing on the date of the transactions. Monetary items are translated at the exchange rates prevailing at the end of the year and the gain/loss arising on such translation is credited / charged to the Profit and loss account.

8. Retirement Benefits

The Company's contribution to defend contribution schemes such as provident fund and family pension fund are charged to the Profit and loss account as incurred. The Company also provides gratuity benefit to the employees, which is funded through a LIC group gratuity scheme. The Liability at the year-end for the same is determined by an actuarial valuation done at year-end and short all/surplus over the amount contributed to the scheme is charged of to the Profit and loss account. Provision for Leave Encashment is made on accrual basis and charged to Profit and loss account.

9. Prior Period items

Income and expenses which arise in the current year as a result of errors or omissions in the preparation of financial statements of one or more prior periods are shown as prior periods adjustments.

10. Investments

i) Quoted Investments:

Quoted Investments are carried at lower of cost and fair value. Fair value in the case of quoted investments refer to the market value of the investments arrived at on the basis of last traded prices as at the year end.

ii) Unquoted Investments:

Unquoted Investments are carried at cost.

11. Taxation

Current Tax

Provision for current tax is computed on the basis of tax payable on estimated taxable income and fringe benefit computed in accordance with the applicable provisions of Income Tax Act 1961, after considering the benefit available under the said Act.

Deferred Tax

In accordance with Accounting Standard -22 "Accounting for Taxes on Income", issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax Profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred Tax Assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the asset can be realized in future.

12. Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the mater involved

13. Earning Per Share

Earning per share is calculated in accordance with the procedure laid out in the relevant Accounting Standard (AS20) issued by the Institute of Chartered Accountants of India.

Warrants issued are considered as capital for the purpose of computing diluted earning per share.

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Mar 31, 2010

1. Basis of Accounting

The Financial Statements are prepared on accrual basis under the historical cost convention in accordance with applicable Accounting Standards issued by The Insttiute of Chartered Accountants of India and relevant presentational requirements of the Companies Act, 1956.

2. Revenue Recognition

Sales are recognized upon the transfer of significant risks and rewards of ownership to the customers.

Cost of samples developed and supplied is recognized on accrual basis net of recoveries.

The Company adequately hedges its inherent Foreign Currency Exposures. There are also adequate measures implemented by the Company to assess and mitigate the exchange rates fluctuation risks timely and efficiently.

Effects of Exchange Difference on Derivative transactions are booked at the time of cancellation and/or maturity of the contract.

Duty Drawback Income on deemed export on purchases of goods made by 100% Export Oriented Unit (EOU) as per provisions of chapter 8 of foreign trade policy are recognized in the year in which the income is received.

3. Borrowing Costs

The borrowing costs on funds other than those directly atributable to the acquisition of a qualifying asset i.e. assets that necessarily takes a substantial period of time to get ready for its intended use, are charged to revenue in the period in which they are incurred.

The borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets are capitalized as part of the cost of that asset.

4. Fixed Assets

Fixed Assets are stated at actual cost of acquisition inclusive of taxes, duties, freight and other incidental expenses including interest related to acquisition, net of Grants.

Intangible assets are recognized at cost which comprises of purchases price (including taxes and duties, if any) and any directly atributable expenditure on making the assets ready for their intended use.

Fixed assets are reviewed for impairment on each balance sheet date, in accordance with the accounting standard AS 28 issued by The Institute of Chartered Accountants of India.

5. Depreciation

Depreciation on fixed assets used in Fashion Accessories Business is provided on WDV Method & Depreciation on fixed assets used in Leather Business being Leather Finishing & Processing units is provided on SLM Method at the rates and in the manner as prescribed in Schedule XIV of the Companies Act, 1956.

Intangible Assets: Technical recipes and formulas is being amortized on a straight line method over the estimated useful lives of ten years as decided by the company and depreciation on Computer software is charged as per rates prescribed under Companies Act.

All assets costing Rs 5,000 or below are depreciated in full by way of a one time depreciation charge.

Leasehold improvements are amortized over the period of lease, including the optional period of lease.

6. Inventories

a. Raw materials are valued at weighted average cost.

b. Semi finished goods are valued at cost up to estimated stage of process.

c. finished Goods are valued at lower of cost and net realizable value.

7. Foreign Exchange Transactions

Transactions in foreign currencies are recorded at the rate prevailing on the date of the transactions. Monetary items are translated at the exchange rates prevailing at the end of the year and the gain/loss arising on such translation is credited / charged to the profit and loss account.

8. Retirement Benefits

The Companys contribution to defined contribution schemes such as provident fund and family pension fund are charged to the profit and loss account as incurred. The Company also provides gratuity benefit to the employees, which is funded through a LIC group gratuity scheme. The Liability at the year-end for the same is determined by an actuarial valuation done at year-end and shortall/surplus over the amount contributed to the scheme is charged of to the profit and loss account. Provision for Leave Encashment is made on accrual basis and charged to profit and loss account.

9. Prior Period items

Income and expenses which arise in the current year as a result of errors or omissions in the preparation of financial statements of one or more prior periods are shown as prior periods Adjustments.

10. Investments

i) Quoted Investments:

Quoted Investments are carried at lower of cost and fair value. fair value in the case of quoted investments refer to the market value of the investments arrived at on the basis of last traded prices as at the year end.

ii) Unquoted Investments:

Unquoted Investments are carried at cost.

11. Taxation

Current Tax

Provision for current tax is computed on the basis of tax payable on estimated taxable income and fringe benefit computed in accordance with the applicable provisions of Income Tax Act 1961, after considering the benefit available under the said Act.

Deferred Tax

In accordance with Accounting Standard-22 "Accountng for Taxes on Income", issued by the Institute of Chartered Accountants of India, the deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date.

Deferred Tax Assets arising from temporary timing differences are recognized to the extent there is reasonable certainty that the asset can be realized in future.

12. Contingent Liabilities

Contingent liabilities are disclosed after a careful evaluation of the facts and legal aspects of the mater involved

13. Earning Per Share

Earning per share is calculated in accordance with the procedure laid out in the relevant Accounting Standard (AS20) issued by the Institute of Chartered Accountants of India.

warrants issued are considered as capital for the purpose of computing diluted earning per share.