Simco Trading & Finance Co. Ltd. कंपली की लेखा नीति

Mar 31, 2010

1. Basis of Accounting

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

b) The Company generally follows mercantile system of accounting and recognises income and expenditure on accrual basis unless specifically stated otherwise.

2. Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

3. Income and Expenses

Income and expenses are accounted for on accrual basis. Dividends on Investments and Incentive on Mutual funds are recognized on receipt basis.

4. Fixed Assets

Fixed Assets are shown at cost of acquisition including incidental expenses related to such acquisition and installation as reduced by accumulated depreciation.

5 Depreciation

Depreciation on assets is provided on Written down Value method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

6. Investments

Long Term Investments are stated at cost. The said cost is adjusted for permanent diminution in the Investments where ever considered appropriate. Current Investments are valued at cost and adjusted for diminution wherever applicable.

7. Taxation

(i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability considering various reliefs and deductions available under the Income Tax Act. 1961.

(ii) Deferred Tax resulting from timing differences between book and taxable profits is accounted for using the tax rate and laws that have been enacted or substantially enacted as on the Balance Sheet date. Deferred Tax assets arising from the timing differences are recognised to the extent there is virtual certainty that sufficient future taxable income will be available against such assets.

8. Borrowing Costs

Borrowing cost attributable to acquisition and construction of assets are capitalised as a part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Accounts.

9. Earnings per Share

In determining earnings per share, the company considers the net profit after tax and includes the post tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share and also the weighted average number of Equity Shares, which have been subsequently allotted against share application money.

10. Impairment of Assets

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

11. Provisions and Contingent Liabilities

Provisions are recognised in the accounts in respect of present probable obligations, the amount of which can be reliably estimated.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company.

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Mar 31, 2009

1. Basis of Accounting

a) The Financial Statements have been prepared under historical cost Convention on going concern basis and in accordance with the provisions of the Companies Act, 1956 and comply with the Accounting Standards issued by the Institute of Chartered Accountants of India, to the extent applicable to the Company.

b) The Company generally follows mercantile system of accounting and recognises income and expenditure on accrual basis unless specifically stated otherwise.

2. Use of Estimates

The presentation of financial statements in conformity with the generally accepted accounting principles requires estimates and assumptions to be made that may affect the reported amount of assets and liabilities and disclosures relating to contingent liabilities as at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimated.

3. Income and Expenses

Income and expenses are accounted for on accrual basis. Dividends on Investments and Incentive on Mutual funds are recognized on receipt basis.

4. Fixed Assets

Fixed Assets are shown at cost of acquisition including incidental expenses related to such acquisition and installation as reduced by accumulated depreciation.

5. Depreciation

Depreciation on assets is provided on Written down Value method at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956.

6. Investments

Long Term Investments are stated at cost. The said cost is adjusted for permanent diminution in the Investments where ever considered appropriate. Current Investments are valued at cost and adjusted for diminution wherever applicable.

7. Taxation

(i) Provision for current tax is made and retained in the accounts on the basis of estimated tax liability considering various reliefs and deductions available under the Income Tax Act, 1961.

(ii) Deferred Tax resulting from timing differences between book and taxable profits is accounted for using the tax rate and laws that have been enacted or substantially enacted as on the Balance Sheet date. Deferred Tax assets arising from the timing differences are recognised to the extent there is virtual certainty that sufficient future taxable income will be available against such assets.

8. Borrowing Costs

Borrowing cost attributable to acquisition and construction of assets are capitalised as a part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are charged to Profit and Loss Accounts.

9. Earnings per Share

In determining earnings per share, the company considers the net profit after tax and includes the post tax effect of any extraordinary items. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the period. The number of shares used in computing diluted earnings per share comprises the weighted average shares considered for deriving basic earnings per share and also the weighted average number of Equity Shares, which have been subsequently allotted against share application money.

10. Impairment of Assets

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

11. Provisions and Contingent Liabilities

Provisions are recognised in the accounts in respect of present probable obligations, the amount of which can be reliably estimated.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence is confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company.