Accounting Policies of Satiate Agri Ltd. Company

Mar 31, 2025

2.4 Significant Accounting Policies:

a) Property, Plant and Equipment

Recognition and measurement

Items of property, plant and equipment, other than Freehold Land, are measured at cost
less accumulated depreciation and any accumulated impairment losses. Freehold land is
carried at cost and is not depreciated.

The cost of an item of property, plant and equipment comprises its purchase price,
including import duties and non-refundable purchase taxes, after deducting trade
discounts and rebates, any directly attributable costs of bringing the asset to its working
condition for its intended use and estimated costs of dismantling and removing the item
and restoring the item and restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives,
then they are accounted for as separate items (major components) of property, plant and
equipment.

Any gain or loss on derecognition of an item of property, plant and equipment is included
in profit or loss when the item is derecognized.

Subsequent expenditure

Subsequent costs are included in the assets carrying amount or recognized as a separate
asset, as appropriate only if it is probable that the future economic benefits associated
with the item will flow to the Company and that the cost of the item can be reliably
measured. The carrying amount of any component accounted for as a separate asset is
derecognized when replaced. All other repair and maintenance are charged to profit and
loss during the reporting period in which they are incurred.

Depreciation

Depreciation on Property Plant and Equipment is provided on Written down Method
(WDV) using the rates arrived at based on the useful lives of the respective assets
prescribed in Schedule II to the Companies Act, 2013. Depreciation on amounts of
additions to fixed assets during the year or on its disposal/ demolition/ destruction of
property plant and equipment during the year is provided on a pro-rata basis as per
Schedule II. As per Note 7 to the Schedule II to the Companies Act, 2013, the carrying
amount of the fixed assets as on 1st April, 2015 has been depreciated over the remaining
useful life of the asset after retaining the residual value. Wherever the remaining useful
life of the asset is NIL as per Schedule II, the carrying amount as on 1st April, 2015 is
recognized in the opening balance of retained earnings. Depreciation methods, useful
lives and residual values are reviewed at each reporting date and adjusted if appropriate.

b) Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other
interest and borrowing costs are charged to revenue.

c) Impairment of non-financial assets

An impairment loss is recognized whenever the carrying value of an asset or a cash¬
generating unit exceeds its recoverable amount. The recoverable amount of an asset or a
cash-generating unit is the higher of its fair value less costs of disposal and its value in
use. An impairment loss, if any, is recognized in the Statement of Profit and Loss in the
period in which the impairment takes place. The impairment loss is allocated first to
reduce the carrying amount of any goodwill (if any) allocated to the cash generating unit
and then to the other assets of the unit, pro rata based on the carrying amount of each
asset in the unit.

d) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and
a financial liability or equity instrument of another entity. Financial instruments also
include derivative contracts such as foreign currency foreign exchange forward contracts,
futures and currency options.

Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial
assets not recorded at fair value through profit or loss, transaction costs that are
attributable to the acquisition of the financial asset. Purchases or sales of financial assets
that require delivery of assets within a time frame established by regulation or convention
in the market place (regular way trades) are recognized on the trade date, i.e., the date
that the Company commits to purchase or sell the asset.

Subsequent measurement

For the purpose of subsequent measurement, financial assets are classified in four
categories:

• Debt instruments at amortized cost,

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair value through profit
(FVTPL)

• Equity instruments measured at fair value through other comprehensive income
(FVTOCI) except unquoted shares.

on the basis of its business model for managing the financial assets and the contractual
cash flow characteristics of the financial asset.

Equity investments

All equity investments within the scope of Ind-AS 109 are measured at fair value. Equity
instruments which are held for trading are classified as FVTPL. For all other equity
instruments, the Company decides to classify the same either as FVTOCI or FVTPL. The
Company makes such elections on an instrument-by-instrument basis. The classification
is made on initial recognition and is irrevocable. If the Company decides to classify an
equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding
dividends, are recognized in the Other Comprehensive Income (OCI). There is no
recycling of the amounts from OCI to profit and loss, even on sale of investment.
However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with
all changes recognized in the profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or a part of a group of
similar financial assets) is primarily derecognized (i.e., removed from the Company’s
balance sheet) when:

The contractual rights to receive cash flows from the financial asset have expired, or The
Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party
under a ‘pass-through’ arrangement; and either (a) the Company has transferred
substantially all the risks and rewards of the asset, or (b) the Company has neither
transferred nor retained substantially all the risks and rewards of the asset, but has
transferred control of the asset. When the Company has transferred its rights to receive
cash flows from an asset or has entered into a pass-through arrangement, it evaluates if
and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor
transferred control of the asset, the Company continues to recognize the transferred asset
to the extent of the Company’s continuing involvement. In that case, the Company also
recognizes an associated liability. The transferred asset and the associated liability are
measured on a basis that reflects the rights and obligations that the Company has
retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum
amount of consideration that the Company could be required to repay.

Impairment of financial assets

The Company assess on a forward-looking basis the Expected Credit Losses (ECL)
associated with its financial assets that are debt instruments and are carried at amortized
cost. The impairment methodology applied depends on whether there has been a
significant increase in credit risk.

For trade receivables, the Company applies a simplified approach. It recognizes
impairment loss allowance based on lifetime ECLs at each reporting date, right from its
initial recognition. Trade receivables are tested for impairment on a specific basis after
considering the sanctioned credit limits, security deposit collected etc. and expectations
about future cash flows.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate. Such liabilities, including
derivatives that are liabilities, shall be subsequently measured at fair value.

All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable and incremental transaction cost.

Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included as finance costs in the statement of profit and loss.

The Company’s financial liabilities include trade and other payables, loans and
borrowings including bank overdrafts, financial guarantee contracts and derivative
financial instruments.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged
or cancelled or expires. When an existing financial liability is replaced by another from
the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as the derecognition
of the original liability and the recognition of a new liability. The difference in the
respective carrying amounts is recognized in the statement of profit or loss.

Loans and borrowing

After initial recognition, interest-bearing loans and borrowings are subsequently
measured at amortized cost using the EIR method. Gains and losses are recognized in
Statement of Profit and Loss when the liabilities are derecognized as well as through the
EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included as finance costs in the Statement of Profit and Loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require
specified payments to be made to reimburse the holder for a loss it incurs because the
specified debtor fails to make a payment when due in accordance with the terms of a debt
instrument. Financial guarantee contracts are recognized initially as a liability at fair
value, adjusted for transaction costs that are directly attributable to the issuance of the
guarantee. Subsequently, the liability is measured at the higher of the amount of loss
allowance determined as per impairment requirements of Ind-AS 109 and the amount
recognized less cumulative amortization.

Where guarantees in relation to loans or other payables of subsidiaries are provided for
no compensation, the fair values are accounted for as contributions and recognized as
fees receivable under “other financial assets” or as a part of the cost of the investment,
depending on the contractual terms.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the
balance sheet if there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, or to realize the assets and settle
the liabilities simultaneously.

e) Inventories

Inventories are valued at lower cost and net realizable value. Net realizable value is the
estimated selling price in the ordinary course of business, less estimated costs of
completion and the estimated costs necessary to make the sale.

Raw materials, packing materials and stores: Costs include cost of purchase and other
costs incurred in bringing each product to its present location and condition.

Finished goods and work in progress: In the case of manufactured inventories and work
in progress, cost includes all costs of purchases, an appropriate share of production
overheads based on normal operating capacity and other costs incurred in bringing each
product to its present location and condition

If payment for inventory is deferred beyond normal credit terms, then the cost is
determined by discounting the future cash flows at an interest rate determined with
reference to market rates. The difference between the total cost and the deemed cost is
recognized as interest expense over the period of financing under the effective interest
method.

f) Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet includes cash at bank and on hand,
deposits held at call with financial institutions, other short term highly liquid investments,
with original maturities less than three months which are readily convertible into cash
and which are subject to insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents cash and short¬
term deposits as defined above is net of outstanding bank overdrafts as they are
considered an integral part of the Company’s cash management.

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Mar 31, 2024

2.4 Significant Accounting Policies:

a) Property, Plant and Equipment

Recognition and measurement

Items of property, plant and equipment, other than Freehold Land, are measured at cost less
accumulated depreciation and any accumulated impairment losses. Freehold land is carried at
cost and is not depreciated.

The cost of an item of property, plant and equipment comprises its purchase price, including
import duties and non-refundable purchase taxes, after deducting trade discounts and rebates,
any directly attributable costs of bringing the asset to its working condition for its intended
use and estimated costs of dismantling and removing the item and restoring the item and
restoring the site on which it is located.

If significant parts of an item of property, plant and equipment have different useful lives,
then they are accounted for as separate items (major components) of property, plant and
equipment.

Any gain or loss on derecognition of an item of property, plant and equipment is included in
profit or loss when the item is derecognized.

Subsequent costs are included in the assets carrying amount or recognized as a separate asset,
as appropriate only if it is probable that the future economic benefits associated with the item
will flow to the Company and that the cost of the item can be reliably measured. The carrying
amount of any component accounted for as a separate asset is derecognized when replaced.
All other repair and maintenance are charged to profit and loss during the reporting period in
which they are incurred.

Depreciation

Depreciation on Property Plant and Equipment is provided on Written down Method (WDV)
using the rates arrived at based on the useful lives of the respective assets prescribed in
Schedule II to the Companies Act, 2013. Depreciation on amounts of additions to fixed assets
during the year or on its disposal/ demolition/ destruction of property plant and equipment
during the year is provided on pro-rata basis as per Schedule II. As per Note 7 to the Schedule
II to the Companies Act, 2013, the carrying amount of the fixed assets as on 1st April, 2015
has been depreciated over the remaining useful life of the asset after retaining the residual
value. Wherever the remaining useful life of the asset is NIL as per Schedule II, the carrying
amount as on 1st April, 2015 is recognized in the opening balance of retained earnings.
Depreciation methods, useful lives and residual values are reviewed at each reporting date
and adjusted if appropriate.

b) Borrowing Costs

Interest and other borrowing costs attributable to qualifying assets are capitalized. Other
interest and borrowing costs are charged to revenue.

c) Impairment of non-financial assets

An impairment loss is recognized whenever the carrying value of an asset or a cash¬
generating unit exceeds its recoverable amount. Recoverable amount of an asset or a cash¬
generating unit is the higher of its fair value less costs of disposal and its value in use. An
impairment loss, if any, is recognized in the Statement of Profit and Loss in the period in
which the impairment takes place. The impairment loss is allocated first to reduce the
carrying amount of any goodwill (if any) allocated to the cash generating unit and then to the
other assets of the unit, pro rata based on the carrying amount of each asset in the unit.

d) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a
financial liability or equity instrument of another entity. Financial instruments also include
derivative contracts such as foreign currency foreign exchange forward contracts, futures and
currency options.

Financial assets

Initial recognition and measurement

All financial assets are recognized initially at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss, transaction costs that are attributable to the
acquisition of the financial asset. Purchases or sales of financial assets that require delivery of
assets within a time frame established by regulation or convention in the market place
(regular way trades) are recognized on the trade date, i.e., the date that the Company commits
to purchase or sell the asset.

For the purpose of subsequent measurement, financial assets are classified in four categories:

• Debt instruments at amortized cost,

• Debt instruments at fair value through other comprehensive income (FVTOCI)

• Debt instruments, derivatives and equity instruments at fair value through profit
(FVTPL)

• Equity instruments measured at fair value through other comprehensive income
(FVTOCI) except unquoted shares.

on the basis of its business model for managing the financial assets and the contractual cash
flow characteristics of the financial asset.

Equity investments

All equity investments within the scope of Ind-AS 109 are measured at fair value. Equity
instruments which are held for trading are classified as at FVTPL. For all other equity
instruments, the Company decides to classify the same either as at FVTOCI or FVTPL. The
Company makes such election on an instrument-by-instrument basis. The classification is
made on initial recognition and is irrevocable. If the Company decides to classify an equity
instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends,
are recognized in the Other Comprehensive Income (OCI). There is no recycling of the
amounts from OCI to profit and loss, even on sale of investment. However, the Company
may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all
changes recognized in the profit and loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or a part of a group of
similar financial assets) is primarily derecognized (i.e., removed from the Company’s balance
sheet) when:

The contractual rights to receive cash flows from the financial asset have expired, or The
Company has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under
a ‘pass-through’ arrangement; and either (a) the Company has transferred substantially all the
risks and rewards of the asset, or (b) the Company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has
entered into a pass-through arrangement, it evaluates if and to what extent it has retained the
risks and rewards of ownership. When it has neither transferred nor retained substantially all
of the risks and rewards of the asset, nor transferred control of the asset, the Company
continues to recognize the transferred asset to the extent of the Company’s continuing
involvement. In that case, the Company also recognizes an associated liability. The
transferred asset and the associated liability are measured on a basis that reflects the rights
and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is
measured at the lower of the original carrying amount of the asset and the maximum amount
of consideration that the Company could be required to repay.

The Company assess on a forward-looking basis the Expected Credit Losses (ECL)
associated with its financial assets that are debt instruments and are carried at amortized cost.
The impairment methodology applied depends on whether there has been a significant
increase in credit risk.

For trade receivables, the Company applies a simplified approach. It recognizes impairment
loss allowance based on lifetime ECLs at each reporting date, right from its initial
recognition. Trade receivables are tested for impairment on a specific basis after considering
the sanctioned credit limits, security deposit collected etc. and expectations about future cash
flows.

Financial liabilities

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value
through profit or loss, loans and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate. Such liabilities, including
derivatives that are liabilities, shall be subsequently measured at fair value.

All financial liabilities are recognized initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable and incremental transaction cost.

Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included as
finance costs in the statement of profit and loss.

The Company’s financial liabilities include trade and other payables, loans and borrowings
including bank overdrafts, financial guarantee contracts and derivative financial instruments.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or
cancelled or expires. When an existing financial liability is replaced by another from the same
lender on substantially different terms, or the terms of an existing liability are substantially
modified, such an exchange or modification is treated as the derecognition of the original
liability and the recognition of a new liability. The difference in the respective carrying
amounts is recognized in the statement of profit or loss.

Loans and borrowing

After initial recognition, interest-bearing loans and borrowings are subsequently measured at
amortized cost using the EIR method. Gains and losses are recognized in Statement of Profit
and Loss when the liabilities are derecognized as well as through the EIR amortization
process.

Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included as
finance costs in the Statement of Profit and Loss.

Financial guarantee contracts issued by the Company are those contracts that require
specified payments to be made to reimburse the holder for a loss it incurs because the
specified debtor fails to make a payment when due in accordance with the terms of a debt
instrument. Financial guarantee contracts are recognized initially as a liability at fair value,
adjusted for transaction costs that are directly attributable to the issuance of the guarantee.
Subsequently, the liability is measured at the higher of the amount of loss allowance
determined as per impairment requirements of Ind-AS 109 and the amount recognized less
cumulative amortization.

Where guarantees in relation to loans or other payables of subsidiaries are provided for no
compensation, the fair values are accounted for as contributions and recognized as fees
receivable under “other financial assets” or as a part of the cost of the investment, depending
on the contractual terms.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the
balance sheet if there is a currently enforceable legal right to offset the recognized amounts
and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities
simultaneously.

e) Inventories

Inventories are valued at lower of cost and net realizable value. Net realizable value is the
estimated selling price in the ordinary course of business, less estimated costs of completion
and the estimated costs necessary to make the sale.

Raw materials, packing materials and stores: Costs includes cost of purchase and other costs
incurred in bringing each product to its present location and condition.

Finished goods and work in progress: In the case of manufactured inventories and work in
progress, cost includes all costs of purchases, an appropriate share of production overheads
based on normal operating capacity and other costs incurred in bringing each product to its
present location and condition

If payment for inventory is deferred beyond normal credit terms, then the cost is determined
by discounting the future cash flows at an interest rate determined with reference to market
rates. The difference between the total cost and the deemed cost is recognized as interest
expense over the period of financing under the effective interest method.

f) Cash and Cash Equivalents

Cash and cash equivalents in the balance sheet includes cash at bank and on hand, deposits
held at call with financial institutions, other short term highly liquid investments, with
original maturities less than three months which are readily convertible into cash and which
are subject to insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents cash and short-term
deposits as defined above is net of outstanding bank overdrafts as they are considered an
integral part of the Company’s cash management.

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Mar 31, 2014

I. Corporate Information :-

Shaba Chemicals Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the trading in Chemicals & other Business and other commodities. The company caters to domestic markets only.

ii. Basic of Accounting

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rule, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an actual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statement are consistent with those of the previous year

During the year ended 31.03.2014 the revised schedule VI notified under the Indian companies act, 1956 has become applicable to the company for preparation and presentation of its financial statement. the adoption of revised schedule VI does not impact recognition and mejorment principals followed for preparation of financial statement however, it has significant impact on presentation and disclosure made in the financial statements. The previous year figure have also been reclassified accordingly.

iii. Revenue Recognition

1. Company is a trading Company, during the finanicial year it has excuted trade in various commodities .

3. other income has been recognised on Accrual basis.

iv. Fixed Assets

There is no any Fixed Assets in the company.

v. Depreciation

1. Depreciation on Fixed Assets Depreciation on Fixed Assets, Excluding Assets on lease is provided in accordance with Section 205 (2) (b) of the Companies Act, 1956 as amended from time to time.

2. Depreciation is provided on pro-rate basis from the day on which assets have been put to use or upto the day on which the assets have been disposed off, as the case may be.

vi. Investments/Stock in Trade

1. Investments are valued at cost.

2. Stock in trade is valued at cost or Realizable value whichever is lower on an individual scrip basis.

3. Stock in trade of the scrip''s have been maintained on the basis of first in first out method.

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Mar 31, 2013

I. Corporate Information:- Shaba Chemicals Limited (the company) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on two stock exchanges in India. The company is engaged in the trading in Chemicals & other Business and other commodities. The company caters to domestic markets only.

ii. Basic of Accounting:- The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rule, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an actual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statement are consistent with those of the previous year

During the year ended 31.03.2013 the revised schedule VI notified under the Indian companies act, 1956 has become applicable to the company for preparation and presentation of its financial statement. the adoption of revised schedule VI does not impact recognition and measurement principals followed for preparation of financial statement however, it has significant impact on presentation and disclosure made in the financial statements. The previous year figure has also been reclassified accordingly.

iii. Revenue Recognition :- 1. Company is a trading Company, during the financial year it has executed trade in various commodities. 2. Other income has been recognized on Accrual basis.

iv. Fixed Assets:- There is no any Fixed Assets in the company.

v. Depreciation:- 1. Depreciation on Fixed Assets :- Depreciation on Fixed Assets, Excluding Assets on lease is provided in accordance with Section 205 (2) (b) of the Companies Act, 1956 as amended from time to time. 2. Depreciation is provided on pro-rate basis from the day on which assets have been put to use or up to the day on which the assets have been disposed off, as the case may be.

vi. Investments/Stock in Trade:- 1. Investments are valued at cost.

2. Stock in trade is valued at cost or Realizable value whichever is lower on basis.

3. Stock in trade of the scraps has been maintained on the basis of first in first out method.

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Mar 31, 2011

A) SYSTEM OF ACCOUNTING:

The financial statement are prepared under the historical cost convention in accordance with applicable Accounting Standards and relevant presentational requirements of the Companies Act, 1956 and on an accrual concept unless specifically stated otherwise.

b) SALES

During the year company has traded in Commodities and figure of sales are total profit figure of jobbing and cost of sales are total figure of loss on jobbing, resulting to that it does not show whole figure of sale & purchase. It show only net figure of sales and purchases as per the guidelines of the Institute of Chartered Accountant of India.

c) SUNDRY CREDITORS, LOANS & ADVAVCES:

Companies' management periodically verify the outstanding balance of sundry creditors, loans, advances, etc. and on the basis of such verification management determines whether the aid outstanding are good, bad or doubtful and accordingly same are written off or written in the accounts.

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Mar 31, 2010

A) SYSTEM OF ACCOUNTING:

The financial statement are prepared under the historical cost convention in accordance with applicable Accounting Standards and relevant presentational requirements of the Companies Act, 1956 and on an accrual concept unless specifically stated otherwise.

b) SALES

During the year company has traded in Commodities and figure of sales are total profit figure of jobbing and cost of sales are total figure of loss on jobbing, resulting to that it does not show whole figure of sale & purchase. It show only net figure of sales and purchases as per the guidelines of the Institute of Chartered Accountant of India.

c) SUNDRY CREDITORS, LOANS & ADVAVCES:

Companies management periodically verify the outstanding balance of sundry creditors, loans, advances, etc. and on the basis of such verification management determines whether the aid outstanding are good, bad or doubtful and accordingly same- are written off or written in the accounts.

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Mar 31, 2009

A) SYSTEM OF ACCOUNTING:

The financial statement are prepared under the historical cost convention in accordance with applicable Accounting Standards and relevant presentational requirements of the Companies Act, 1956 and on an accrual concept unless specifically stated otherwise.

b) SALES

During the year company has traded in Commodities and figure of sales are total profit figure of jobbing and cost of sales are total figure of loss on jobbing, resulting to that it does not show whole figure of sale & purchase. It show only net figure of sales and purchases as per the guidelines of the Institute of Chartered Accountant of India.

c) SUNDRY CREDITORS, LOANS & ADVAVCES:

Companies management periodically verify the outstanding balance of sundry creditors, loans, advances, etc. and on the basis of such verification management determines whether the aid outstanding are good, bad or doubtful and accordingly same are written off or written in the accounts.