Sweatamber Steel Ltd. कंपली की लेखा नीति

Mar 31, 2012

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

- The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

- Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles.

B. FIXED ASSETS

- Fixed Assets are valued at cost less depreciation.

C. DEPRECIATION

- In respect of all assets depreciation is not provided as there was no manufacturing activity during the current financial year.

D. INVENTORY

- Closing Stock is taken as certified by the Management. The same is valued at cost or Net Realizable Value whichever is less.

E. RETIREMENT BENEFITS

- As certified by the management, the company has no liability under the Provident Fund & Super Annuation Fund Act as the said acts do not apply to the company.

- It is explained to us that the company does not provide for any leave encashment and any liability arising thereon shall be paid and dealt with in the books of accounts at the actual time of payment.

F. REVENUE RECOGNITION

- Revenue is recognized when it is earned and no significant uncertainty exists as to its realization or collection.

G. INVESTMENTS

- Long Investments are carried at cost less provision for permanent diminution if any in the value of such investment.

H. BORROWING COSTS

- Borrowing cost to the acquisition or construction of qualifying asset, as defined accounting standard 16 on "Burrowing Cost" are capitalized as part of the cost of such assets upto the date when the assets is ready for its intended use. Other borrowing costs are expensed as incurred.

I. CONTINGENT LIABILITIES

- According to the information and explanations given to us, There is as an disputed matter pending before the High court in respect of Income tax which amounts to Rs. 29.00 Lacs (Appx.) as at 31st March, 2012 and all known and estimated liabilities have been provided for in the books of accounts.

J. APPLICABILITY OF AS-22

- The Company has not provided depreciation on assets as per books of accounts which differs from depreciation under the income tax Act,1961, however deferred tax assets has not been recognized on the depreciation in term of AS-22, as there is no reasonable/ virtual certainty that the assets will be realize in future.

K. FOREIGN CURRENCY TRANSACTIONS

- There are no such foreign currency transactions during the year.

L. C I F VALUE OF IMPORT RAW MATERIALS

- NIL

M. EXPENDITURE IN FOREIGN CURRENCY

- NIL

N. EARNING PER SHARE

- The Earning per Share (AS-20) has been computed as under :

a) Profit after tax (1020404)

b) No. of Equity Share 40,25,000 shares

c) Nominal value of share 10 per share

d) EPS (0.25)

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Mar 31, 2011

A. BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956.

Accounting policies not specifically referred to otherwise are consistent and in consonance with the generally accepted accounting principles.

B. FIXED ASSETS

Fixed Assets are valued at Cost.

C. DEPRECIATION

- In respect of all assets depreciation is not provided as there was no manufacturing activity during the current financial year.

D. INVENTORY

Closing Stock is maintained at Cost Or Market Price whichever is Lower.

E. RETIREMENT BENEFITS

As certified by the management, the company has no liability under the Provident Fund & Super Annotation Fund Act as the said acts do not apply to the company.

It is explained to us that the company does not provide for any leave encashment and any liability arising thereon shall be paid and dealt with in the books of accounts at the actual time of payment.

F. REVENUE RECOGNITION

Income is accounted inclusive of taxes.

G. BORROWING COSTS

Borrowing costs are charged to the Profit and Loss A/c in the year in which they are incurred.

H. CONTINGENT LIABILITIES

As certified by the Management, there is no contingent liability on the company and all known and estimated liabilities have been provided for in the books of accounts.

I. APPLICABILITY OF AS-22

- The Company has not provided depreciation on assets as per books of accounts which differs from depreciation under the Income Tax Act, 1961, however deferred tax assets has not been recognized on the depreciation in terms of AS-22, as there is no reasonable / virtual certainty that the assets will be realized in future.

J. FOREIGN CURRENCY TRANSACTIONS

There are no such foreign currency transactions during the year. K. C I F VALUE OF IMPORT RAW MATERIALS

NIL

K. EXPENDITURE IN FOREIGN CURRENCY

NIL

L. MANAGERIAL REMUNERATION

NIL

M. EARNING PER SHARE

The Earning per Share (AS-20) has been computed as under :

a) Profit after tax Rs.(817483.50)

b) No. of Equity Share 4025000 shares

c) Nominal value of share Rs.10 per share d) EPS Nil