Shamken Spinners Ltd. కంపెనీ అకౌంటింగ్ విధానాలు

1) GENERAL

Except where otherwise stated, the Financial Statements are prepared under the historical cost convention in accordance with the generally accepted accounting principles and provisions of the Companies Act, 1956 and the same has been adopted consistently by the Company.

2) FIXED ASSETS

Fixed Assets are stated at cost of acquisition less accumulated depreciation. All direct costs including finance cost incurred in relation to acquisition of fixed assets capitalized till assets are ready to be put to use. However there is no addition to fixed assets during the year.

3) INVENTORIES

Due to closure of the plant there is no change in the value of inventories as compared to previous year.

4) DEPRECIATION

Depreciation has been provided on the Basis of Straight Line Method in accordance of the rates specified under schedule XIV to the companies act, 1956 (as amended).

5) REVENUE RECOGNITION

The operations of the Company were suspended, so no commercial activities were carried out during the year under review.

6) RETIREMENT BENEFITS

The unit is closed. There are no workers or staff except some security guards and some administrative employees. The provident fund and

E.S.I.C. wherever applicable is charged to Profit & Loss Account. The gratuity is paid in full to the workers and staff who have left the employment. The Gratuity have not been valued on actuarial valuation method, therefore whether any liabilities on this account is still remained unprovided, is not known and provisions for any liabilities if existed during the year is not provided.

7) IMPAIRMENT

The company has suspended its entire operation since last two years. The impairment factor in plant & machinery and other assets has arises, the impairment losses have been taken place, but the management is unable to quantify such losses hence impairment losses are not charged to profit & loss account and value of the assets are not adjusted with this factor.

8) TAXES & DUTIES

Since no commercial activities were carried out there is no payment of excise during the year.

9) TAXATION

No Provision of Income Tax is made due to losses incurred by the company.

10) GOING CONCERN

The company has suspended its entire commercial operations since last two years hence the status of the company ceased to be as of going concern. The operations are suspended due to non availability of funds and recurring losses in the operations.

11) OTS

The Company, during the year under review has made one time settlement of the dues related to ING Vysya Bank towards Loan, which has been deducted from accumulated losses.