Accounting Policies of SVC Resources Ltd. Company

Mar 31, 2015

(a) Basis of preparation

These financial statements have been prepared in accordance with the Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

(b) Use of estimates

The preparation of financial statements requires the management of the Company to make estimates and assumptions that affect the reported balances of assets and liabilities and disclosures relating to the contingent liabilities as at the date of the financial statements and reported amounts of income and expense during the year. Examples of such estimates include provisions for doubtful receivables, employee benefits, provision for income taxes, accounting for contract costs expected to be incurred, the useful lives of depreciable fixed assets and provision for impairment. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognised in the period in which the results are known / materialise.

The Company Law Board, vide its order dated April 4, 2014 had removed the management of the Company and asked to conduct an Extra Ordinary General Meeting (EGOM) to appoint new management.

The old management did not handover any records i.e. books of accounts, statutory records, minute books, bank statements, user id and log-in passwords, subsidiary details, bank account of subsidiary, trade licenses of subsidiary, etc to the new management.

In the meanwhile, the Company had filed Company Petition No. 10 of 2014 with Company Law Board, Delhi for handover of records from old management to new management. The matter was decided on June 4, 2015 in favour of the new management. However, the handover of records has not happened to date.

In view of the above, the Company neither has records of itself nor its subsidiary in Sharjah (UAE). Hence, the Company is unable to prepare consolidated accounts.

As such, the Company has prepared the financial statements on the basis of information and records that were available. On recovery of additional information and records, the necessary effect will be given in accounts.

The Company has already filed a complaint against the old management with the Economic Offences Wing (EOW) and is in the process of filing the same before Serious Fraud Investigation Office (SFIO).

(c) Going concern

As per Annual Reports available, the Company has incurred cash losses for two consecutive years.

The Company is currently not carrying out any operations and entangled in legal matters.

This may affect the going concern assumption. However, the Company and its New Management is positive of turning the Company around by resolving the legal hurdles and resuming operations thereafter.

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Mar 31, 2014

(a) Basis of preparation

The Company Law Board, vide its order dated 4th April, 2014 had removed the management of the Company and asked to conduct an Extra Ordinary General Meeting (EGOM) to appoint new management.

The old management did not handover any records i.e. books of accounts, statutory records, minute books, bank statements, user id and log-in passwords, subsidiary details, bank account of subsidiary, trade licenses of subsidiary, etc to the new management.

In the meanwhile, the Company had filed Company Petition No. 10 of 2014 with Company Law Board, Delhi for handover of records from old management to new management. The matter was decided on June 4th, 2015 in favour of the new management. However, the handover of records has not happened to date.

In view of the above, the Company neither has records of itself nor its subsidiary in Sharjah (UAE). Hence, the Company is unable to prepare consolidated accounts.

As such, the Company has prepared the financial statements on the basis of information and records that were available. On recovery of additional information and records, the necessary effect will be given in accounts.

The Company has written off balances of some unsecured loans, which stood in previous years balance sheet, wherein the Company Law Board, Delhi has declared them non- genuine.

The Washery plant at Jabalpur does not exist in its location and is being written off.

The Company has written off cash balance, balances of some advances given and some sundry debtors.

The Company has also written back investment made in Sharjah subsidiary.

The Company has already filed a complaint against the old management with the Economic Offences Wing (EOW) and is in the process of filing the same before Serious Fraud Investigation Office (SFIO).

(b) Use of estimates

The preparation of financial statements requires management to make judgements, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

(c) Going Concern

As per Annual Reports available, the Company has incurred cash losses for two consecutive years.

The Company is currently not carrying out any operations and entangled in legal matters. This may affect the going concern assumption. However, the Company and its New Management is positive of turning the Company around by resolving the legal hurdles and resuming operations thereafter.

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Mar 31, 2013

1. Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2. Expenses & income considered payable and receivable respectively are accounted for on actual basis.

3. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequate and not in excess of the amount reasonably necessary.

4. Professional Directors have not furnished any details regarding transactions entered into at Sharjah/Dubai/Ghana/Armania/Iran. The amounts are prepared on the basis of information available with the management. Debit and credit balances are not verifiable and unreconciled. The accounts are prepared on the basis of information and material available. On recovery of additional information and/or books of the necessary effect will be given in accounts.

FIXED ASSETS & Capital WIP

5. a) Fixed assets are capitalized at cost inclusive of all incidental expenses related thereon of Textile Division.

b) The assets under construction in relation to mining division are recorded at cost inclusive of incidental expenses & reflected as Capital WIP.

During the year assets have been written off as professional directors have misappropriated and no further details are available.

TURNOVER

7. Turnover is stated after adjusting rebates and discounts and excluding Sales Tax, if any.

DEPRECIATION

8. The company does not own any fixed assets except land hence provision of providing depreciation does not arise.

INVENTORIES

9. Inventories of Work-in-Progress, Raw Materials, Stores & Spares and Finished Goods are valued at cost and the same is done on FIFO basis. Stock of Shares is valued at cost.

INVESTMENTS

10. Investments are valued at cost.

11. In case of investment is subsidiary details are available only upto 30.09.2011 where the profit from operations was shown at 4.44 cr. For the subsequent period however no accounts have been produced as the concerned Directors are evading presenting the data before the Board.

In absence of any details debit & credit balances appearing in Dubai division which are subject to verification and unable to comment upon the profit and loss caused. It is also apprehended that the said directors might have misappropriated the assets which matter is under investigation.

CONTINGENT LIABILITIES

12. Contingent liabilities: Nil

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Mar 31, 2012

1. Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2. Expenses & income considered payable and receivable respectively are accounted for on actual basis.

3. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequate and not in excess of the amount reasonably necessary.

FIXED ASSETS & Capital WIP

4. a) Fixed assets are capitalized at cost inclusive of all incidental expenses related thereon of Textile Division.

b) The assets under construction in relation to mining division are recorded at cost inclusive of incidental expenses & reflected as Capital WIP.

TURNOVER

5. Turnover is stated after adjusting rebates and discounts and excluding Sales Tax, if any.

DEPRECIATION

6. Depreciation on Fixed Assets has been provided for on diminishing balance method at rates specified in Schedule XIV of the Companies Act 1956. Depreciation on Assets purchased/sold during the year has been provided for on pro-rata basis.

INVENTORIES

7. Inventories of Work-in-Progress, Raw Materials, Stores & Spares and Finished Goods are valued at cost and the same is done on FIFO basis. Stock of Shares is valued at cost.

INVESTMENTS

8. Investments are valued at cost.

CONTINGENT LIABILITIES

9. Contingent liabilities: Nil

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Mar 31, 2011

General

1. Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2. Expenses & income considered payable and receivable respectively are accounted for on actual basis.

3. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequate and not in excess of the amount reasonably necessary.

FIXED ASSETS & Capital WIP

4. a) Fixed assets are capitalized at cost inclusive of all incidental expenses related thereon of Textile Division. b) The assets under construction in relation to mining division are recorded at cost inclusive of incidental expenses & reflected as Capital WIP.

TURNOVER

5. Turnover is stated after adjusting rebates and discounts and excluding Sales Tax, if any.

DEPRECIATION

6. Depreciation on Fixed Assets has been provided for on diminishing balance method at rates specified in Schedule XIV of the Companies Act 1956. Depreciation on Assets purchased/sold during the year has been provided for on pro-rata basis.

INVENTORIES

7. Inventories of Work-in-Progress, Raw Materials, Stores & Spares and Finished Goods are valued at cost and the same is done on FIFO basis. Stock of Shares is valued at cost.

INVESTMENTS

8. Investments are valued at cost.

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Mar 31, 2010

1. Accounting Policies not specifically referred to otherwise are in consonance with generally accepted accounting principles.

2. Expenses & income considered payable and receivable respectively are accounted for on actual basis.

3. In the opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated if realized in the ordinary course of business. The provisions of all known liabilities are adequ; and not in excess of the amount reasonably necessary.

FIXED ASSETS & CAPITAL WIP

4. a) Fixed assets are capitalized at cost inclusive of all incidental expenses related thereon of Textile Division.

b) The assets under construction in relation to mining division are recorded at cost inclusive of incidental expenses & reflected as Capital WIP.

TURNOVER

5. Turnover is stated after adjusting rebates and discounts and excluding Sales Tax, if any.

DEPRECIATION

6. Depreciation on Fixed Assets has been provided for on diminishing balance method at rates specified in Schedule XIV of the Companies Act 1956. Depreciation on Assets purchased/sold during the yea: has been provided for on pro rata basis.

INVENTORIES

7. Inventories of Work-in-Progress, Raw Materials, Stores & Spares and Finished Goods are valued at cost and the same is done on FIFO basis. Stock of Shares is valued at cost.

INVESTMENTS

8. Investments are valued at cost.