Accounting Policies of S Kumars Online Ltd. Company

Mar 31, 2015

The financial statements have been prepared on an accrual basis of accounting and in accordance with the generally accepted accounting principles in India, provisions of the Companies Act, 1956 (the Act) and comply in material aspects with the accounting standards notified under the Act read with the General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

2.1 Basis of Accounting:

The Financial Statements are prepared in accordance with the historical cost convention.

2.2 Use of estimates

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2.3 Fixed Assets

Fixed assets includes only tangible asssets and are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and financing cost of borrowed funds relating to acquisition of fixed assets up to the date of commissioning/commercial exploitation of assets.

2.4 Depreciation / Amortisation

Depreciation is provided on Straight Line Method (SLM) based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

2.5 Investments

An investment in the shares of subsidiary Companies in India is stated at cost.

2.6 Valuation of Inventories:

Trading goods are valued at cost or realizable value whichever is lower.

2.7 Foreign Exchange Fluctuations :

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. The realised gains and losses on foreign exchange transactions are recognised in the Profit and Loss account.

2.8 Revenue recognition:

Sales are recognised when goods are supplied in accordance with the terms of sale and are recorded net of trade discounts, rebates and sales tax. Income from services is accrued as per terms of relevant agreement.

Income and Expenditure are accounted on an accrual basis.

Interest income is recognised on a time proporation basis taking into account the amount outstanding and the applicable interest rate. Interest income is included unde rthe head "Other Income" in the statement of profit and loss.

2.9 Retirement Benefits:

I. Contribution to defined contribution schemes such as Provident Fund and Employer's Pension Scheme is charged to the Profit and Loss account.

ii. Provision for the employees' Gratuity is based on actuarial valuation carried out at the end of the year. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

2.10 Taxation :

Provision for current taxation is made in accordance with the relevant Income Tax provisions applicable. Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods is accounted for using the tax rates and laws that has been enacted as of the Balance Sheet date.

Deferred Tax Assets are recognized on unabsorbed depreciation and carried forward of losses based on virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can be realized.

2.11 Impairment of Assets:

The carrying amount of assets is reviewed periodically for any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

2.12 Borrowing Costs

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to the Profit & Loss Account.

2.13 Provisions for Contingencies:

A provision is recognised when:

I. The company has a present obligation as a result of a past event;

ii. It is probable that an outflow of resources embodying economic benefits which will be required to settle the obligation; and

iii. A reliable estimate can be made of the amount of the obligation

2.14 Segment Reporting

The Company prepares its segment information if any, in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

2.15 Earning per Share

In determining earnings per share, the Company considers the net profit/ (Loss) after tax and includes the post tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is weighted average number of shares outstanding during the period.

For the purpose of computing diluted earnings per share, the net profit /(Loss) attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential equity shares from exercise of options on un- issued share capital.

2.16 Preoperative expenses, pending allocation

Expenses incurred by the Company on the projects under implementation and have not yet commenced operations are considered as preoperative expenses to be capitalised / amortised upon commencement of operations by the said projects.

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Mar 31, 2014

The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The significant accounting policies are as follows:

2.1 Basis of Accounting:

The Financial Statements are prepared in accordance with the historical cost convention.

2.2 Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

2.3 Fixed Assets:

Fixed assets includes only tangible asssets and are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and financing cost of borrowed funds relating to acquisition of fixed assets up to the date of commissioning/commercial exploitation of assets.

2.4 Depreciation/Amortisation:

Depreciation on fixed assets is provided on straight-line method in accordance with the rates specified in Schedule XIV of the Companies Act, 1956.

2.5 Investments:

An investment in the shares of subsidiary Companies in India is stated at cost.

2.6 Valuation of Inventories:

Trading goods are valued at cost or realizable value whichever is lower.

2.7 Foreign Exchange Fluctuations:

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. The realised gains and losses on foreign exchange transactions are recognised in the Profit and Loss account.

2.8 Revenue recognition:

Sales are recognised when goods are supplied in accordance with the terms of sale and are recorded net of trade discounts, rebates and sales tax. Income from services is accrued as per terms of relevant agreement.

Income and Expenditure are accounted on an accrual basis.

Interest income is recognised on a time proporation basis taking into account the amount outstanding and the applicable interest rate. Interest income is included unde rthe head "Other Income" in the statement of profit and loss.

2.9 Retirement Benefits:

i. Contribution to defined contribution schemes such as Provident Fund and Employer''s Pension Scheme is charged to the Profit and Loss account.

ii. Provision for the employees'' Gratuity is based on actuarial valuation carried out at the end of the year. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

2.10 Taxation:

Provision for current taxation is made in accordance with the relevant Income Tax provisions applicable.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods is accounted for using the tax rates and laws that has been enacted as of the Balance Sheet date.

Deferred Tax Assets are recognized on unabsorbed depreciation and carried forward of losses based on virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can be realized.

2.11 Impairment of Assets:

The carrying amount of assets is reviewed periodically for any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

2.12 Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to the Profit & Loss Account.

2.13 Provisions for Contingencies:

A provision is recognised when:

i. The company has a present obligation as a result of a past event;

ii. It is probable that an outflow of resources embodying economic benefits which will be required to settle the obligation; and iii. A reliable estimate can be made of the amount of the obligation

2.14 Segment Reporting:

The Company prepares its segment information if any, in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

2.15 Earning per Share:

In determining earnings per share, the Company considers the net profit/ (Loss) after tax and includes the post tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is weighted average number of shares outstanding during the period.

For the purpose of computing diluted earnings per share, the net profit /(Loss) attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential equity shares from exercise of options on un- issued share capital.

2.16 Preoperative expenses, pending allocation:

Expenses incurred by the Company on the projects under implementation and have not yet commenced operations are considered as preoperative expenses to be capitalised / amortised upon commencement of operations by the said projects.

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Mar 31, 2013

The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The significant accounting policies are as follows:

1.1 Basis of Accounting:

The Financial Statements are prepared in accordance with the historical cost convention.

1.2 Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.3 Fixed Assets:

Fixed assets includes only tangible assets and are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and financing cost of borrowed funds relating to acquisition of fixed assets up to the date of commissioning/commercial exploitation of assets.

1.4 Depreciation/Amortization:

Depreciation on fixed assets is provided on straight-line method in accordance with the rates specified in Schedule XIV of the Companies Act, 1956.

1.5 Investments:

An investment in the shares of subsidiary Companies in India is stated at cost.

1.6 Valuation of Inventories:

Trading goods are valued at cost or realizable value whichever is lower.

1.7 Foreign Exchange Fluctuations:

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. The realized gains and losses on foreign exchange transactions are recognized in the Profit and Loss account.

1.8 Revenue recognition:

Sales are recognized when goods are supplied in accordance with the terms of sale and are recorded net of trade discounts, rebates and sales tax. Income from services is accrued as per terms of relevant agreement.

Income and Expenditure are accounted on an accrual basis.

Interest income is recognized on a time prop oration basis taking into account the amount outstanding and the applicable interest rate. Interest income is included under the head "Other Income" in the statement of profit and loss.

1.9 Retirement Benefits:

i. Contribution to defined contribution schemes such as Provident Fund and Employer''s Pension Scheme is charged to the Profit and Loss account.

ii. Provision for the employees'' Gratuity is based on actuarial valuation carried out at the end of the year. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

1.10 Taxation:

Provision for current taxation is made in accordance with the relevant Income Tax provisions applicable.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods is accounted for using the tax rates and laws that has been enacted as of the Balance Sheet date.

Deferred Tax Assets are recognized on unabsorbed depreciation and carried forward of losses based on virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can be realized.

1.11 Impairment of Assets:

The carrying amount of assets is reviewed periodically for any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

1.12 Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalized up to the date when such assets are ready for its intended use and other borrowing costs are charged to the Profit & Loss Account.

1.13 Provisions for Contingencies:

A provision is recognized when:

i. The company has a present obligation as a result of a past event;

ii. It is probable that an outflow of resources embodying economic benefits which will be required to settle the obligation; and

iii. A reliable estimate can be made of the amount of the obligation

1.14 Segment Reporting:

The Company prepares its segment information if any, in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

1.15 Earnings per Share:

In determining earnings per share, the Company considers the net profit/ (Loss) after tax and includes the post tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is weighted average number of shares outstanding during the period.

For the purpose of computing diluted earnings per share, the net profit /(Loss) attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential equity shares from exercise of options on un- issued share capital.

1.16 Preoperative expenses, pending allocation:

Expenses incurred by the Company on the projects under implementation and have not yet commenced operations are considered as preoperative expenses to be capitalized / amortized upon commencement of operations by the said projects.

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Mar 31, 2012

The financial statements are prepared to comply in all material aspects with the applicable accounting principles in India, the Accounting Standards issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 1956. The significant accounting policies are as follows:

1.1 Change in accounting policy:

The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principle followed of preparation of financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

1.2. Basis of Accounting:

The Financial Statements are prepared in accordance with the historical cost convention.

1.3 Use of estimates:

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) in India requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

1.4 Fixed Assets:

Fixed assets includes only tangible asssets and are stated at cost less accumulated depreciation. Cost of acquisition or construction is inclusive of freight, duties, taxes, incidental expenses and financing cost of borrowed funds relating to acquisition of fixed assets up to the date of commissioning/commercial exploitation of assets.

1.5 Depreciation / Amortisation:

Depreciation on fixed assets is provided on straight-line method in accordance with the rates specified in Schedule XIV of the Companies Act, 1956.

1.6 Investments:

An investment in the shares of subsidiary Companies in India is stated at cost.

1.7 Valuation of Inventories:

Trading goods are valued at cost or realizable value whichever is lower.

1.8 Foreign Exchange Fluctuations :

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. The realised gains and losses on foreign exchange" transactions are recognised in the Profit and Loss account.

1.9 Revenue recognition:

Sales are recognised when goods are supplied in accordance with the terms of sale and are recorded net of trade discounts, rebates and sales tax. Income from services is accrued as per terms of relevant agreement.

Income and Expenditure are accounted on an accrual basis.

Interest income is recognised on a time proporation basis taking into account the amount outstanding and the applicable interest rate. Interest income is included unde rthe head "Other Income" in the statement of profit and loss.

1.10 Retirement Benefits:

i. Contribution to defined contribution schemes such as Provident Fund and Employer's Pension Scheme is charged to the Profit and Loss account.

ii. Provision for the employees' Gratuity is based on actuarial valuation carried out at the end of the year. Actuarial gains or losses arising from such valuation are charged to revenue in the year in which they arise.

1.11 Taxation:

Provision for current taxation is made in accordance with the relevant Income Tax provisions applicable.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods is accounted for using the tax rates and laws that has been enacted as of the Balance Sheet date.

Deferred Tax Assets are recognized on unabsorbed depreciation and carried forward of losses based on virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can be realized.

1.12 Impairment of Assets:

The carrying amount of assets is reviewed periodically for any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount.

1.13 Borrowing Costs:

Interest and other costs in connection with the borrowing of the funds to the extent related / attributed to the acquisition / construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to the Profit & Loss Account.

1.14 Provisions for Contingencies:

A provision is recognised when:

i. The company has a present obligation as a result of a past event;

ii. It is probable that an outflow of resources embodying economic benefits which will be required to settle the obligation; and -

iii. A reliable estimate can be made of the amount of the obligation

1.15 Segment Reporting:

The Company prepares its segment information if any, in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole. '

1.16 Earning per Share:

In determining earnings per share, the Company considers the net profit/ (Loss) after tax and includes the post tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is weighted average number of shares outstanding during the period.

For the purpose of computing diluted earnings per share, the net profit /(Loss) attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential equity shares from exercise of options on un- issued share capital.

1.17 Preoperative expenses, pending allocation:

Expenses incurred by the Company on the projects under implementation and have not yet commenced operations are considered as preoperative expenses to be capitalised / amortised upon commencement of operations by the said projects.

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Mar 31, 2010

1. Basis of Accounting

The financial statements have been prepared on accrual basis, except wherever otherwise stated, under the historical cost convention, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards referred to in the Companies (Accounting Standards) Rules 2006 issued by the Central Government, in exercise of the powers conferred under sub section (1)(a) of Section 642 and the relevant provisions of the Companies Act, 1956.

2. Use of Estimates

The preparation of financial statements in conformity with the generally accepts accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could different from those estimates. Any revision to accounting estimates is recognized prospective) in the current and future periods.

3. Revenue Recognition Income

Income from online business, consultancy and other income are recognized or accrual basis. Claims/Appropriations/Adjustments in Franchisees and Strategy Business Associates (SBAs) accounts are recognized as and when the same an settled.

Expenses

Expenses are recognized on accrual basis.

4. Fixed Assets Fixed Assets are stated at cost less accumulated depreciation.

5. Depreciation

Depreciation on Fixed Assets has been provided on Straight Line Method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

6. Investments

Investments are carried at cost Unless otherwise stated, all the investments are of long-term nature. Diminution, other than temporary, in the long-term investment is provided in the Profit and Loss statement

7. Inventories

Inventory is carried at the lower of Cost or Net Realizable value. Adequate provision in the accounts is made in respect of obsolescence, wherever applicable in the inventory.

8. Foreign Currency Transactions

Transactions in foreign currency are accounted at the rate of exchange prevailing on the date of transaction. Current Assets and Liabilities denominated in foreign

currency are translated at the exchange rates prevailing at the Balance Sheet date and the fluctuations are charged to the revenue.

9. Retirement Benefits

Provision for Gratuity has been made in the accounts on the basis of actuarial valuation in respect of employees in service with the Company as per the recommendations of the Accounting Standard - 15, Employee Benefits, issued by the Institute of Chartered Accountants of India.

10. Segment Reporting Policy

The Company prepares its segment information if any, in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

11. Accounting for Taxes on Income

Provision for Current taxation is made in accordance with the relevant Income Tax provisions applicable. Deferred Taxation is calculated as stipulated in Accounting Standard - 22 issued by the Institute of Chartered Accountants of India.

12. Earnings per Share

In determining earnings per share, the Company considers the net profit/ (Loss) after tax and includes the post tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is weighted average number of shares outstanding during the period.

For the purpose of computing diluted earnings per share, the net profit /(Loss) attributable to equity shareholders and the weighted average number of shares outstanding are adjusted for the effects of all dilutive potential equity shares from exercise of options on un issued share capital.

13. Impairment of Assets

The carrying amounts of the Companys assets are reviewed at each Balance Sheet date. If any indication of impairment exists, an impairment loss is recognized to the extent of the excess of the carrying amount over the estimated accountable amount.

14 Contingent Liabilities and Provisions

Disputed liabilities and claims against the Company including claims raised by revenue and other statutory authorities pending in appeal /court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in Notes on Accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliably estimable, is recognized in accounts.

15. Preoperative expenses pending allocation

Expenses incurred by the Company on the projects under implementation and have not yet commenced operations are considered as preoperative expenses to be capitalised / amortised upon commencement of operations by the said projects.