Accounting Policies of Skypak Service Specialist Ltd. Company

Mar 31, 2015

I) Basis of Accounting

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments, which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed by the Companies (Accounting Standards) Rules, 2006, the provisions of the Companies Act, 2013 (to the extent notified), the Companies Act, 1956 (to the extent applicable), and guidelines issued by SEBI. There are no material departures from prescribed accounting standards in the adoption of these standards.

ii) Use of estimates

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference, if any, between the actual results and estimates is recognized in the year in which the results are known/materialized.

iii) Revenue

Revenue from sale of services is recognized upon completion of sale or rendering of services where there does not exist significant uncertainty about its ultimate realization.

iv) Fixed Assets

Fixed assets are stated at cost, less accumulated depreciation and impairment, if any. Direct costs are capitalized until fixed assets are ready for use. Capital work-in-progress comprises the cost of fixed assets that are not yet ready for their intended use at the reporting date. Intangible assets are recorded at the consideration paid for acquisition of such assets and are carried at cost less accumulated amortization and impairment.

vi) Investments

Long Term investments are stated at cost. Cost includes incidental expenses of acquisition. Decline in value of investment other than of temporary nature is recognized in statement of Profit and Loss.

vii) Borrowing costs

Borrowing costs are charged to the Statement of Profit and loss, there is no borrowing costs attributable to the acquisition and construction of the Qualifying Assets.

viii) Depreciation and Amortization

Fixed assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, commissioning / erection expenses etc., up to the date the asset is put to use.

Depreciation on fixed assets is provided on the straight-line method over the useful lives of assets estimated by the Management. Depreciation for assets purchased / sold during a period is proportionately charged. Individual low cost assets (acquired for Rs.5,000/- or less) are depreciated in the year of acquisition. Intangible assets are amortized over their respective individual estimated useful lives on a straight- line basis, commencing from the date the asset is available to the Company for its use.

ix) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and if such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the Statement of Profit and Loss. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

x) Employees' Benefits Defined Contribution Plan:

The Company's Provident Fund Scheme and Employee State Insurance Scheme are defined contribution plans. The contributions paid / payable during the year are recognized in the Profit and Loss Account during the period in which the employee renders the related service.

Defined Benefit Plans:

The Company's gratuity scheme is a defined benefit plan. The Company's net obligation in respect of the gratuity benefit is calculated by estimating the amount of future benefit that the employees have earned in return for their service in the current and prior periods, that benefit is discounted to determine its present value.

The present value of the obligation under such benefit plans is determined on the basis of actuarial valuation using the Projected Unit Credit Method which recognizes each period of service that give rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at present values of estimated future cash flows.

Short Term Employee Benefits - Compensated Absences:

The company does not have a policy of providing for encashment of accumulated leave.

Accounting policy for recognizing actuarial gains / losses:

Actuarial gains and losses are recognized immediately in the profit and loss account.

xi) Taxes on Income:

Current tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized in respect of all timing differences.

Deferred tax assets are recognized when considered prudent.

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Mar 31, 2012

I) Basis of Accounting

The financial statements have been prepared under historical cost conventions in according with the generally accepted accounting principles and in compliance with the Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 as the Companies (Accounting Standards) Rules, 2006, and in accordance with the other relevant provisions of the Companies Act, 1956.

The financial statements for the year ended March 31, 2012 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year''s classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

ii) Use of estimates

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the reported amount of assets and liabilities on the date of financial statements and the reported amount of revenues and expenses during the reporting period. Difference, if any, between the actual results and estimates is recognized in the year in which the results are known/materialized.

iii) Revenue

Revenue from sale of services is recognized upon completion of sale or rendering of services where there does not exist significant uncertainty about its ultimate realization.

iv) Fixed Assets

Fixed assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, commissioning / erection expenses etc., up to the date the asset is put to use.

Depreciation on fixed assets is provided on the straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

All fixed assets individually costing less than Rs. 5,000/- are fully depreciated in the year of installation.

vi) Investments

Long Term investments are stated at cost. Cost includes incidental expenses of acquisition. Decline in value of investment other than of temporary nature is recognized in statement of Profit and Loss.

vii) Borrowing costs

Borrowing costs are charged to the Statement of Profit and loss, there is no borrowing costs attributable to the acquisition and construction of the Qualifying Assets.

viii) Depreciation and Amortization

Fixed assets are stated at cost of acquisition inclusive of duties, taxes, incidental expenses, commissioning / erection expenses etc., up to the date the asset is put to use.

Depreciation on fixed assets is provided on the straight line method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

All fixed assets individually costing less than Rs. 5,000/- are fully depreciated in the year of installation.

ix) Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. The company assesses at each Balance Sheet date whether there is any indication that any asset may be impaired and if such indication exists, the carrying value of such asset is reduced to its recoverable amount and a provision is made for such impairment loss in the Statement of Profit and Loss. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

x) Employees'' Benefits Defined Contribution Plan:

The Company''s Provident Fund Scheme and Employee State Insurance Scheme are defined contribution plans. The contributions paid / payable during the year are recognized in the Profit and Loss Account during the period in which the employee renders the related service.

The Company''s gratuity scheme is a defined benefit plan. The Company''s net obligation in respect of the gratuity benefit is calculated by estimating the amount of future benefit that the employees have earned in return for their service in the current and prior periods, that benefit is discounted to determine its present value.

The present value of the obligation under such benefit plans is determined on the basis of actuarial valuation using the Projected Unit Credit Method which recognizes each period of service that give rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at present values of estimated future cash flows.

Short Term Employee Benefits - Compensated Absences:

The company does not have a policy of providing for encashment of accumulated leave.

Accounting policy for recognizing actuarial gains / losses:

Actuarial gains and losses are recognized immediately in the profit and loss account.

xi) Taxes on Income:

Current tax is determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized in respect of all timing differences.

Deferred tax assets are recognized when considered prudent.

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Mar 31, 2011

1.1. Basis of Accounting:

These financial statements are prepared under the historical cost convention on an accrual basis except where otherwise stated, in accordance with normally accepted accounting principles, provisions of the Companies Act, 1956 and applicable accounting standards issued by the Institute of Chartered Accountants of India.

1.2. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. Cost comprises of duties, taxes, incidental expenses, commissioning / erection expenses etc., incurred up to the date the asset is put to use.

1.3. Depreciation:

Depreciation is provided on straight-line basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

All fixed assets individually costing less than Rs.5,000/- are fully depreciated in the year of installation.

1.4 Impairment of Assets:

An asset is treated as impaired when the carrying amount exceeds its recoverable value. An impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.5 Revenue Recognition:

Revenue is recognized on pick up of consignment for delivery.

1.6. Investments:

Long Term Investments are stated at cost less amount written off, where there is a permanent diminution

in its value. Current Investments are stated at lower of cost and fair value.

Gain or loss arising from sale or disposal of such investment is accounted at the time of actual sale or disposal.

1.7. Foreign Currency Transactions:

Foreign currency transactions are recorded at the rates of exchange prevailing on the dates of transactions and assets and liabilities, if any denominated in foreign currency, are restated at the year- end exchange rates. Exchange differences, if any arising on foreign currency transactions or restatement of assets and liabilities are recognized as income or expense in the Profit & Loss Account.

1.8. Employee Retirement Benefits:

Defined Contribution Plan:

The Company's Provident Fund Scheme and Employee State Insurance Scheme are defined contribution plans. The contributions paid / payable during the year are recognized in the Profit and Loss Account during the period in which the employee renders the related service.

Defined Benefit Plans:

The Company's gratuity scheme is a defined benefit plan. The Company's net obligation in respect of the gratuity benefit is calculated by estimating the amount of future benefit that the employees have earned in return for their service in the current and prior periods, that benefit is discounted to determine its present value.

The present value of the obligation under such benefit plans is determined on the basis of actuarial valuation using the Projected Unit Credit Method which recognizes each period of service that give rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at present values of estimated future cash flows. The discounted rates used for determining the present value are based on the market yields on Government Securities as at the balance sheet date.

Short Term Employee Benefits - Compensated Absences:

The Company does not have any policy for payment of leave encashment.

Accounting policy for recognizing actuarial gains / losses:

Actuarial gains and losses are recognized immediately in the profit and loss account.

As per actual valuation report for the current financial year, company has reversed excess provision of gratuity of Rs. 22,11,370/- and same has been credited to income Account.

1.9. Taxes on Income:

Deferred tax, on timing differences, being the difference between taxable incomes and accounting income that originate in one period not being provided in view of the substantial amount of carried forward loss and uncertainty of future profit for reversal.

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Mar 31, 2010

1.1. Basis of Accounting:

These financial statements are prepared under the historical cost convention on an accrual basis except where otherwise stated, in accordance with normally accepted accounting principles, provisions of the Companies Act, 1956 and applicable accounting standards issued by the Institute of Chartered Accountants of India.

1.2. Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. Cost comprises of duties, taxes, incidental expenses, commissioning / erection expenses etc., incurred up to the date the asset is put to use.

1.3. Depreciation:

Depreciation is provided on straight-line basis at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956. All fixed assets individually costing less than Rs. 5,000/- are fully depreciated in the year of installation.

1.4 Impairment of Assets:

An asset is treated as impaired when the carrying amount exceeds its recoverable value. An impairment loss is charged to the Profit & Loss account in the year in which an asset is identified as impaired. The impairment loss recognized in the prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.5 Revenue Recognition:

Revenue is recognized on pick up of consignment for delivery.

1.6. Investments:

Long Term Investments are stated at cost less amount written off, where there is a permanent diminution in its value. Current Investments are stated at lower of cost and fair value. Gain or loss arising from sale or disposal of such investment is accounted at the time of actual sale or disposal.

1.7. Foreign Currency Transactions:

Foreign currency transactions are recorded at the rates of exchange prevailing on the dates of transactions and assets and liabilities, if any denominated in foreign currency, are restated at the year-end exchange rates. Exchange differences, if any arising on foreign currency transactions or restatement of assets and liabilities are recognized as income or expense in the Profit & Loss Account.

1.8. Employee Retirement Benefits: Defined Contribution Plan:

The Company's Provident Fund Scheme and Employee State Insurance Scheme are defined contribution plans. The contributions paid / payable during the year are recognized in the Profit and Loss Account during the period in which the employee renders the related service.

Defined Benefit Plans:

The Company's gratuity scheme is a defined benefit plan. The Company's net obligation in respect of the gratuity benefit is calculated by estimating the amount of future benefit that the employees have earned in return for their service in the current and prior periods, that benefit is discounted to determine its present value.

The present value of the obligation under such benefit plans is determined on the basis of actuarial valuation using the Projected Unit Credit Method which recognizes each period of service that give rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at present values of estimated future cash flows. The discounted rates used for determining the present value are based on the market yields on Government Securities as at the balance sheet date.

Short Term Employee Benefits - Compensated Absences:

The Company does not have any policy for payment of leave encashment.

Accounting policy for recognizing actuarial gains / losses:

Actuarial gains and losses are recognized immediately in the profit and loss account.

As per actual valuation report for the current financial year, company has reversed excess provision of gratuity of Rs. 50,56,747/- and same has been credited to income Account.

1.9. Taxes on Income:

Deferred tax, on timing differences, being the difference between taxable incomes and accounting income that originate in one period not being provided in view of the substantial amount of carried forward loss and uncertainty of future profit for reversal.