Mar 31, 2014
1) BASIS OF ACCOUNTING:
The financial statement has been prepared and presented under
historical cost convention on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
("GAAP") and comply with the mandatory accounting standards
("AS") issued by the Institute of Chartered Accountants of India to
the extent applicable and with the relevant provisions of the Companies
Act, 1956.
2) USE OF ESTIMATES:
The preparation of financial statement in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosure of contingent
liabilities on the date of financial statement and reported amount of
revenues and expenses for the year. Actual results could differ from
the estimate. Difference between actual results and estimates are
recognized in the period in which results are known / materialized.
Any revision to an accounting estimate is recognized prospectively in
the year of revision.
3) REVENUE RECOGNITION:
Revenue from sale of goods is recognized when significant risk and
rewards in respect of ownership of products are transferred to
customers. Sales are accounted on dispatches of goods at CIF value.
4) VALUATION OF INVENTORIES:
a) Raw Materials are valued at net realizable price or cost price
whichever is less, on FIFO basis.
b) Work-in-process and Finished stocks are valued at raw material cost
plus labour cost and direct expenses relating to production. Cost also
includes applicable overheads.
c) Stores, Spares and Consumables are valued at cost on FIFO basis.
d) Master Pieces are valued at Estimated Market Price, where cost could
not be determined.
e) Trade samples are valued at cost on FIFO Basis.
f) Cost of inventory comprises all cost of purchase, cost of conversion
and other cost in bringing the inventory to their present location and
condition.
5) FIXED ASSETS & CAPITAL WORK IN PROCESS:
a) Assets are carried at cost of acquisition or construction less
accumulated depreciation. The cost of fixed asset includes non
refundable taxes, duties, freight and other incidental expenses related
to the acquisition and installation of respective assets.
b) Capital Work-in-progress include cost of fixed assets that are not
yet ready for the intended use and advances paid towards the
acquisition of fixed assets outstanding at each Balance Sheet date.
6) DEPRECIATION
a) Depreciation is provided on Written Down Value Method at the rates
and in the manner specified in Schedule XIV of the Companies Act, 1956
b) Depreciation is calculated on a pro rata basis from the date of
acquired / installed till the date the assets are sold or disposed.
c) Individual assets costing less than Rs. 5,000/- are depreciated in
full in the year of acquisition.
7) FOREIGN CURRENCY TRANSACTION:
a) Foreign exchange transactions are recorded using the exchange rates
prevailing on the dates of the respective transaction. Exchange
difference arising on foreign exchange transactions settled during the
year is recognized in the profit and loss account.
b) Monetary assets and liabilities denominated in foreign currencies as
at balance sheet date are translated at year- end rates. The resultant
exchange difference is recognized in the profit and loss account.
c) Non monetary assets and liabilities denominated in foreign
currencies are carried at cost.
d) In respect of transactions covered by forward exchange contracts,
the difference between the year end rate and rate of the date of
contract is recognized as exchange difference and the premium paid on
forward contract is recognized over the life of contract
8) EMPLOYEE BENEFIT:
a) Contributions to defined contribution schemes such as Provident Fund
are charged to the Profit and Loss account as incurred.
b) Gratuity and leave encashment are defined benefits which are charged
to the Profit and Loss account based on valuations, as at the balance
sheet date, made by independent actuaries.
c) Short term employee benefits are recognized as an expense at the
undiscounted amount in profit and loss account of the year in which the
related service is rendered.
9) INVESTMENT:
Long term Investments are carried at cost less any permanent diminution
in the value.
10) TAXATION :
Tax expenses is the aggregate of current tax and deferred tax charged
or credited in the statement of profit and loss for the period.
Current Tax
The current charge for income tax is not arised due to business loss to
the company.
Deferred Tax
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written- down or written up
to reflect the amount that is reasonably or virtually certain, as the
case may be, to be realized.
11) IMPAIRMENT OF ASSETS
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the assets belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at the balance sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
12) PROVISIONS AND CONTINGENT LIABILITIES
The company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and reliable estimates can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Contingent assets are neither
recognized nor disclosed.
Mar 31, 2013
1) BASIS OF ACCOUNTING:
The financial statement has been prepared and presented under
historical cost convention on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
("GAAP") and comply with the mandatory accounting standards ("AS")
issued by the Institute of Chartered Accountants of India to the extent
applicable and with the relevant provisions of the Companies Act, 1956.
2) USE OF ESTIMATES:
The preparation of financial statement in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosure of contingent
liabilities on the date of financial statement and reported amount of
revenues and expenses for the year. Actual results could differ from
the estimate. Difference between actual results and estimates are
recognized in the period in which results are known / materialized. Any
revision to an accounting estimate is recognized prospectively in the
year of revision.
3) REVENUE RECOGNITION:
Revenue from sale of goods is recognized when significant risk and
rewards in respect of ownership of products are transferred to
customers. Sales are accounted on dispatches of goods at CIF value.
4) VALUATION OF INVENTORIES:
a) Raw Materials are valued at net realizable price or cost price
whichever is less, on FIFO basis.
b) Work-in-process and Finished stocks are valued at raw material cost
plus labour cost and direct expenses relating to production. Cost also
includes applicable overheads.
c) Stores, Spares and Consumables are valued at cost on FIFO basis.
d) Master Pieces are valued at Estimated Market Price, where cost could
not be determined.
e) Trade samples are valued at cost on FIFO Basis.
f) Cost of inventory comprises all cost of purchase, cost of conversion
and other cost in bringing the inventory to their present location and
condition.
5) FIXED ASSETS & CAPITAL WORK IN PROCESS:
a) Assets are carried at cost of acquisition or construction less
accumulated depreciation. The cost of fixed asset includes non
refundable taxes, duties, freight and other incidental expenses related
to the acquisition and installation of respective assets.
b) Capital Work-in-progress include cost of fixed assets that are not
yet ready for the intended use and advances paid towards the
acquisition of fixed assets outstanding at each Balance Sheet date.
6) DEPRECIATION
a) Depreciation is provided on Written Down Value Method at the rates
and in the manner specified in Schedule XIV of the Companies Act, 1956
b) Depreciation is calculated on a pro rata basis from the date of
acquired / installed till the date the assets are sold or disposed.
c) Individual assets costing less than Rs. 5,000/- are depreciated in
full in the year of acquisition.
7) FOREIGN CURRENCY TRANSACTION:
a) Foreign exchange transactions are recorded using the exchange rates
prevailing on the dates of the respective transaction. Exchange
difference arising on foreign exchange transactions settled during the
year is recognized in the profit and loss account.
b) Monetary assets and liabilities denominated in foreign currencies as
at balance sheet date are translated at year- end rates. The resultant
exchange difference is recognized in the profit and loss account.
c) Non monetary assets and liabilities denominated in foreign
currencies are carried at cost.
d) In respect of transactions covered by forward exchange contracts,
the difference between the year end rate and rate of the date of
contract is recognized as exchange difference and the premium paid on
forward contract is recognized over the life of contract
8) EMPLOYEE BENEFIT:
a) Contributions to defined contribution schemes such as Provident Fund
are charged to the Profit and Loss account as incurred.
b) Gratuity and leave encashment are defined benefits which are charged
to the Profit and Loss account based on valuations, as at the balance
sheet date, made by independent actuaries.
c) Short term employee benefits are recognized as an expense at the
undiscounted amount in profit and loss account of the year in which the
related service is rendered.
9) INVESTMENT:
Long term Investments are carried at cost less any permanent diminution
in the value.
10) TAXATION :
Tax expenses is the aggregate of current tax and deferred tax charged
or credited in the statement of profit and loss for the period.
Current Tax
The current charge for income tax is not arised due to business loss to
the company.
Deferred Tax
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written-down or written up
to reflect the amount that is reasonably or virtually certain, as the
case may be, to be realized.
11) IMPAIRMENT OF ASSETS
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the assets belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at the balance sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
12) PROVISIONS AND CONTINGENT LIABILITIES
The company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and reliable estimates can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Contingent assets are neither
recognized nor disclosed.
Mar 31, 2010
We have audited the attached Balance Sheet of S.B. & T INTERNATIONAL
LIMITED (" the Company") as at 31st March, 2010, the Profit & Loss
Account and the Cash Flow Statement1) BASIS OF ACCOUNTING:
The financial statement has been prepared and presented under
historical cost convention on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
("GAAP") and comply with the mandatory accounting standards ("AS")
issued by the Institute of Chartered Accountants of India to the extent
applicable and with the relevant provisions of the Companies Act, 1956.
2) USE OF ESTIMATES:
The preparation of financial statement in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosure of contingent
liabilities on the date of financial statement and reported amount of
revenues and expenses for the year. Actual results could differ from
the estimate. Difference between actual results and estimates are
recognized in the period in which results are known / materialized. Any
revision to an accounting estimate is recognized prospectively in the
year of revision.
3) REVENUE RECOGNITION:
Revenue from sale of goods is recognized when significant risk and
rewards in respect of ownership of products are transferred to
customers. Sales are accounted on dispatches of goods at CIF value.
4) VALUATION OF INVENTORIES:
a) Raw Materials are valued at net realizable price or cost price
whichever is less, on FIFO basis.
b) Work-in-process and Finished stocks are valued at raw material cost
plus labour cost and direct expenses relating to production. Cost also
includes applicable overheads.
c) Stores, Spares and Consumables are valued at cost on FIFO basis.
d) Master Pieces are valued at Estimated Market Price, where cost could
not be determined.
e) Trade samples are valued at cost on FIFO Basis.
f) Cost of inventory comprises all cost of purchase, cost of conversion
and other cost in bringing the inventory to their present location and
condition.
5) FIXED ASSETS & CAPITAL WORK IN PROCESS:
a) Assets are carried at cost of acquisition or construction less
accumulated depreciation. The cost of fixed asset includes non
refundable taxes, duties, freight and other incidental expenses related
to the acquisition and installation of respective assets.
b) Capital Work-in-progress include cost of fixed assets that are not
yet ready for the intended use and advances paid towards the
acquisition of fixed assets outstanding at each Balance Sheet date.
6) DEPRECIATION
a) Depreciation is provided on Written Down Value Method at the rates
and in the manner specified in Schedule XIV of the Companies Act, 1956
b) Depreciation is calculated on a pro rata basis from the date of
acquired / installed till the date the assets are sold or disposed.
c) Individual assets costing less than Rs. 5,000/- are depreciated in
full in the year of acquisition.
7) FOREIGN CURRENCY TRANSACTION:
a) Foreign exchange transactions are recorded using the exchange rates
prevailing on the dates of the respective transaction. Exchange
difference arising on foreign exchange transactions settled during the
year is recognized in the profit and loss account.
b) Monetary assets and liabilities denominated in foreign currencies as
at balance sheet date are translated at year-end rates. The resultant
exchange difference is recognized in the profit and loss account.
c) Non monetary assets and liabilities denominated in foreign
currencies are carried at cost.
d) In respect of transactions covered by forward exchange contracts,
the difference between the year end rate and rate of the date of
contract is recognized as exchange difference and the premium paid on
forward contract is recognized over the life of contract
8) employee benefit:
a) Contributions to defined contribution schemes such as Provident Fund
are charged to the Profit and Loss account as incurred.
b) Gratuity and leave encashment are defined benefits which are charged
to the Profit and Loss account based on valuations, as at the balance
sheet date, made by independent actuaries.
c) Short term employee benefits are recognized as an expense at the
undiscounted amount in profit and loss account of the year in which the
related service is rendered.
9) INVESTMENT:
Long term Investments are carried at cost less any permanent diminution
in the value.
10) TAXATION:
Tax expenses is the aggregate of current tax and deferred tax charged
or credited in the statement of profit and loss for the period.
Current Tax
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company.
Deferred Tax
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written-down or written up
to reflect the amount that is reasonably or virtually certain, as the
case may be, to be realized.
11) IMPAIRMENT OF ASSETS
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the assets belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at the balance sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
12) PROVISIONS AND CONTINGENT LIABILITIES
The company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and reliable estimates can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Contingent assets are neither
recognized nor disclosed.
Mar 31, 2009
1) BASIS OF ACCOUNTING:
The financial statement has been prepared and presented under
historical cost convention on the accrual basis of accounting in
accordance with the accounting principles generally accepted in India
("GAAP") and comply with the mandatory accounting standards ("AS")
issued by the Institute of Chartered Accountants of India to the extent
applicable and with the relevant provisions of the Companies Act, 1956.
2) USE OF ESTIMATES:
The preparation of financial statement in conformity with GAAP requires
management to make estimates and assumptions that affect the reported
amount of assets and liabilities and disclosure of contingent
liabilities on the date of financial statement and reported amount of
revenues and expenses for the year. Actual results could differ from
the estimate. Difference between actual results and estimates are
recognized in the period in which results are known / materialized. Any
revision to an accounting estimate is recognized prospectively in the
year of revision.
3) REVENUE RECOGNITION:
Revenue from sale of goods is recognized when significant risk and
rewards in respect of ownership of products are transferred to
customers. Sales are accounted on dispatches of goods at CIF value.
4) VALUATION OF INVENTORIES:
a) Raw Materials are valued at net realizable price or cost price
whichever is less, on FIFO basis.
b) Work-in-process and Finished stocks are valued at raw material cost
plus labour cost and direct expenses relating to production. Cost also
includes applicable overheads.
c) Stores, Spares and Consumables are valued at cost on FIFO basis.
d) Master Pieces are valued at Estimated Market Price, where cost could
not be determined.
e) Trade samples are valued at cost on FIFO Basis.
f) Cost of inventory comprises all cost of purchase, cost of conversion
and other cost in bringing the inventory to their present location and
condition.
5) FIXED ASSETS & CAPITAL WORK IN PROCESS:
a) Assets are carried at cost of acquisition or construction less
accumulated depreciation. The cost of fixed asset includes non
refundable taxes, duties, freight and other incidental expenses related
to the acquisition and installation of respective assets.
b) Capital Work-in-progress include cost of fixed assets that are not
yet ready for the intended use and advances paid towards the
acquisition of fixed assets outstanding at each Balance Sheet date.
6) DEPRECIATION
a) Depreciation is provided on Written Down Value Method at the rates
and in the manner specified in Schedule XIV of the Companies Act, 1956
b) Depreciation is calculated on a pro rata basis from the date of
acquired / installed till the date the assets are sold or disposed.
c) Individual assets costing less than Rs. 5,000/- are depreciated in
full in the year of acquisition.
7) FOREIGN CURRENCY TRANSACTION:
a) Foreign exchange transactions are recorded using the exchange rates
prevailing on the dates of the respective transaction. Exchange
difference arising on foreign exchange transactions settled during the
year is recognized in the profit and loss account.
b) Monetary assets and liabilities denominated in foreign currencies as
at balance sheet date are translated at year- end rates. The resultant
exchange difference is recognized in the profit and loss account.
c) Non monetary assets and liabilities denominated in foreign
currencies are carried at cost.
d) In respect of transactions covered by forward exchange contracts,
the difference between the year end rate and rate of the date of
contract is recognized as exchange difference and the premium paid on
forward contract is recognized over the life of contract.
8) EMPLOYEE BENEFIT:
a) Contributions to defined contribution schemes such as Provident Fund
are charged to the Profit and Loss account as incurred.
b) Gratuity and leave encashment are defined benefits which are charged
to the Profit and Loss account based on valuations, as at the balance
sheet date, made by independent actuaries.
c) Short term employee benefits are recognized as an expense at the
undiscounted amount in profit and loss account of the year in which the
related service is rendered.
9) INVESTMENT:
Long term Investments are carried at cost less any permanent diminution
in the value.
10) TAXATION:
Tax expenses is the aggregate of current tax and deferred tax charged
or credited in the statement of profit and loss for the period.
Current Tax
The current charge for income tax is calculated in accordance with the
relevant tax regulations applicable to the company.
Deferred Tax
Deferred tax charge or credit reflects the tax effects of timing
differences between accounting income and taxable income for the
period. The deferred tax charge or credit and the corresponding
deferred tax liabilities or assets are recognized using the tax rates
that have been enacted or substantively enacted by the balance sheet
date. Deferred tax assets are recognized only to the extent there is
reasonable certainty that the assets can be realized in future;
however, where there is unabsorbed depreciation or carry forward of
losses, deferred tax assets are recognized only if there is virtual
certainty of realization of such assets. Deferred tax assets are
reviewed at each balance sheet date and is written-down or written up
to reflect the amount that is reasonably or virtually certain, as the
case may be, to be realized.
11) IMPAIRMENT OF ASSETS
The company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the company estimates the recoverable amount of the assets. If
such recoverable amount of the assets or the recoverable amount of the
cash generating unit to which the assets belongs is less than its
carrying amount, the carrying amount is reduced to its recoverable
amount. The reduction is treated as an impairment loss and is
recognized in the profit and loss account. If at the balance sheet date
there is an indication that if a previously assessed impairment loss no
longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciated
historical cost.
12) PROVISIONS AND CONTINGENT LIABILITIES
The company creates a provision when there is a present obligation as a
result of past events that probably requires an outflow of resources
and reliable estimates can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is possible
obligation or a present obligation that may, but probably will not,
require an outflow of resources. Contingent assets are neither
recognized nor disclosed.