Accounting Policies of Bombay Swadeshi Stores Ltd. Company

Mar 31, 2014

A. Basis of Accounting: The Financial Statements are prepared under historical cost conventions, on accrual basis of accounting and in accordance with the applicable mandatory Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act, 1956.

B. Use of Estimates: The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period they materialise.

C. Fixed Assets

i. Tangible Fixed Assets are recorded at cost inclusive of Inward Freight, Duties, Taxes and Incidental Expenses related to acquisition of the Assets. Leasehold Premises are carried forward at cost. In case final settlement of bills with contractors is pending, but the asset is complete and ready for use, capitalisation is done on estimation basis subject to necessary adjustments , including those arising out of settlement of arbitration / court cases , in the year of final settlement.

ii. Depreciation: Depreciation on Tangible Fixed Assets has been provided on the written down value method at the rates specified in Schedule XIV of the Companies Act. No Depreciation has been provided on Leasehold Premises.

iii. Impairment: Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount.

iv. Intangible Assets: Goodwill has been amortized over 20 years & Software has been amortised over a period of 60 months.

D. Investments

i. Long term Investments are recorded in the books at cost inclusive of all expenses incidental to acquisition thereof. Long term investments are stated at cost, provision for decline in value, other than temporary is made to recognize such decline.

ii. Current Investments are valued at lower of cost or market value/net asset value.

E. Inventories: Stock in trade - Merchandise is valued at cost or net realizable value whichever is lower. Cost includes direct expenses such as freight, taxes etc. Stock is valued on first-in-first-out basis.

F. Cash & Cash Equivalents for purpose of Cash Flow: Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

G. Sales

i. Export sales in foreign currency are accounted at the exchange rate prevailing on the date of the Bill of Lading.

ii. Counter Sales in foreign exchange are converted in to Indian Rupees at the exchange rate ruling on the date of the transactions.

H. Employees Benefits:

i. Defined Contribution Plan

Employees Benefits in the Provident Fund , Family Pension Fund and ESIC which are defined contribution schemes, are charged to the Profit and Loss Account of the year when contribution accrue.

ii. Defined Benefit Plan

Annual Contribution towards Gratuity Liability is funded with the Life Insurance Corporation of India in accordance with their Gratuity scheme and is absorbed in the accounts. The Company does not retain any obligation to pay further amounts if insurer does not pay all future employee benefits so the plan is not treated as defined benefit plan.

No provision is made for encashment of un-availed leave payable on retirement of employees.

I. Taxation:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period computed in accordance with relevant provisions of Income Tax, 1961.

Deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

J. Contingent Liabilities: Contingent Liabilities are not provided for, till the same are crystallised.

K. Traveling Agency Business:

i. Commission and discount on airlines tickets is accounted on basis of completion of fortnightly sales.

ii. In case of cancellation of tickets, the commission and discount refundable is accounted only on final acceptance by the airlines.

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Mar 31, 2013

A. Basis of Accounting: The Financial Statements are prepared under historical cost conventions, on accrual basis of accounting and in accordance with the applicable mandatory Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act, 1956.

B. Use of Estimates: The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period they materialise.

C. Fixed Assets

i. Tangible Fixed Assets are recorded at cost inclusive of Inward Freight, Duties, Taxes and Incidental Expenses related to acquisition of the Assets. Leasehold Premises are carried forward at cost.

ii. Depreciation: Depreciation on Tangible Fixed Assets has been provided on the written down value method at the rates specified in Schedule XIV of the Companies Act. No Depreciation has been provided on Leasehold Premises.

iii. Impairment: Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount.

iv. Intangible Assets: Goodwill has been amortized over 20 years & Software has been amortised over a period of 60 months.

D. investments

i. Long term Investments are recorded in the books at cost inclusive of all expenses incidental to acquisition thereof. Long term Investments are stated at cost, provision for decline in value, other than temporary is made to recognize such decline.

ii. Current Investments are valued at lower of cost or market value/net asset value.

E. inventories: Stock in trade - Merchandise is valued at cost or net realizable value whichever is lower. Cost includes direct expenses such as freight, taxes etc. Stock is valued on first-in-first-out basis.

F. Cash & Cash Equivalents for purpose of Cash Flow: Cash comprises Cash on Hand and demand deposits with banks. Cash Equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

G. Sales

i. Export sales in foreign currency are accounted at the exchange rate prevailing on the date of the Bill of Lading.

ii. Counter sales in foreign exchange are converted in to Indian Rupees at the exchange rate ruling on the date of the transactions.

H. Employees Benefits:

i. Defined Contribution Plan

Employees Benefits in the Provident Fund , Family Pension Fund and ESIC which are defined contribution schemes, are charged to the Profit and Loss Account of the year when contribution accrue.

ii. Defined Benefit Plan

Annual Contribution towards Gratuity Liability is funded with the Life Insurance Corporation of India in accordance with their Gratuity scheme and is absorbed in the accounts. The Company does not retain any obligation to pay further amounts if insurer does not pay all future employee benefits so the plan is not treated as defined benefit plan.

No provision is made for encashment of un-availed leave payable on retirement of employees.

I. Taxation:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period computed in accordance with relevant provisions of Income Tax,1961.

Deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

J. Contingent Liabilities: Contingent Liabilities are not provided for, till the same are crystallised.

K. Traveling Agency Business:

i. Commission and discount on airlines tickets is accounted on basis of completion of fortnightly sales.

ii. In case of cancellation of tickets, the commission and discount refundable is accounted only on final acceptance - by the airlines.

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Mar 31, 2012

A. Basis of Accounting: The Financial Statements are prepared under historical cost conventions, on accrual basis of accounting and in accordance with the applicable mandatory Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act, 1956.

B. Use of Estimates'. The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period they materialise.

C. Fixed Assets

i. Tangible Fixed Assets are recorded at cost inclusive of Inward Freight, Duties, Taxes and Incidental Expenses related to acquisition of the Assets. Leasehold Premises are carried forward at cost.

ii. Depreciation: Depreciation on Tangible Fixed Assets has been provided on the written down value method at the rates specified in Schedule XIV of the Companies Act, 1956, except in case of leasehold building, which is amortised over the period of lease. No Depreciation has been provided on Leasehold Premises.

iii. Impairment: Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount.

iv. Intangible Assets: Goodwill has been amortized over 20 years & Software has been amortised over a period of 60 months.

D. Investments

i. Long term Investments are recorded in the books at cost inclusive of all expenses incidental to acquisition thereof. Long term Investments are stated at cost, provision for decline in value, other than temporary is made to recognize such decline.

ii. Current Investments are valued at lower of cost or market value/net asset value.

E. Inventories: Stock in trade - Merchandise is valued at cost or net realizable value whichever is lower. Cost includes direct expenses such as freight, taxes etc. Stock is valued on first-in-first-out basis.

F. Cash & Cash Equivalents for purpose of Cash Flow: Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances (with an original maturity of three months or less from the date of acquisition), highly liquid investments that are readily convertible into known amounts of cash and which are subject to insignificant risk of changes in value.

G. Sales

i. Gross Sales of merchandise includes value added tax wherever applicable.

ii. Export sales in foreign currency are accounted at the exchange rate prevailing on the date of the Bill of Lading.

iii. Sales in foreign exchange are converted in to Indian Rupees at the exchange rate ruling on the date of the transactions.

H. Employees Benefits:

i. Defined Contribution Plan

Employees Benefits in the Provident Fund , Family Pension Fund and ESIC which are defined contribution schemes, are charged to the Profit and Loss Account of the year when contribution accrue.

ii. Defined Benefit Plan

Annual Contribution towards Gratuity Liability is funded with the Life Insurance Corporation of India in accordance with their Gratuity Scheme and is absorbed in the accounts. The Company does not retain any obligation to pay further amounts if insurer does not pay all future employee benefits so the plan is not treated as defined benefit plan.

No provision is made for encashment of un-availed leave payable on retirement of employees.

I. Taxation:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period computed in accordance with relevant provisions of Income Tax Act,1961.

Deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

J. Contingent Liabilities: Contingent Liabilities are not provided for, till the same are crystallised.

K. Traveling Agency Business:

i. Commission and discount on airlines tickets is accounted on basis of completion of fortnightly sales.

ii. In case of cancellation of tickets, the commission and discount refundable is accounted only on final acceptance by the airlines.

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Mar 31, 2010

A. Basis of Accounting: The Financial Statements are prepared under historical cost conventions, on accrual basis of accounting and in accordance with the applicable mandatory Accounting Standards as notified by the Companies (Accounting Standards) Rules 2006 and the relevant provisions of the Companies Act, 1956.

B. USE OF ESTIMATES: The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statements and notes thereto. Differences between actual results and estimates are recognised in the period they materialise.

C. Fixed Assets: Fixed Assets are recorded at Cost inclusive of Inward Freight, Duties, Taxes and Incidental Expenses related to acquisition of the Assets. Leasehold Premises are carried forward at cost.

D. Depreciation: Depreciation on Fixed Assets has been provided on the written down value method at the rates specified in Schedule XIV of the Companies Act, 1956, except in case of leasehold building, which is amortized over the period of lease. No Depreciation has been provided on Leasehold Premises.

E. Impairment: Impairment loss, if any, is provided to the extent, the carrying amount of assets exceeds their recoverable amount.

F. Intangible Assets: Goodwill has been amortized over 20 years

G. Investments: Long term Investments are recorded in the books at cost inclusive of all expenses incidental to acquisition thereof. Long term Investments are stated at cost, provision for decline in value, other than temporary is made to recognize such decline. Current Investments are valued at lower of cost or market value/net asset value.

H. Inventories: Stock in trade is valued at cost or net realizable value whichever is lower. Cost includes direct expenses such as freight, taxes etc. Stock is valued on first-in-first-out basis.

I. Sales:

I) Sales includes sales of goods & merchandise and includes value added tax wherever applicable.

II) Export sales in foreign currency are accounted at the exchange rate prevailing on the date of the Bill of Lading.

III) Sales in foreign currencies are converted in to Indian Rupees at the exchange rate ruling on the date of the transactions.

J. Employees Benefits:

i Defined Contribution Plan

Employees Benefits in the Provident Fund , Family Pension Fund and ESIC which are defined contribution schemes, are charged to the Profit and Loss Account of the year when contribution accrue.

ii Defined Benefit Plan

Annual Contribution towards Gratuity Liability is funded with the Life Insurance Corporation of India in accordance with their Gratuity scheme and is absorbed in the accounts. The Company does not retain any obligation to pay further amounts if insurer does not pay all future employee benefits so the plan is not treated as defined benefit plan.

iii No provision is made for encashment of unavailed leave payable on retirement of employees.

K. Taxation:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period computed in accordance with relevant provisions of Income Tax,1961.

Deferred tax assets are recognised only to the extent there is reasonable certainty of realisation in future.

L. Contingent Liabilities: Contingent Liabilities are not provided for, till the same are crystallised.

M. Traveling Agency Business:

i) Commission and discount on airlines tickets is accounted on basis of completion of fortnightly sales.

ii) In case of cancellation of tickets, the commission and discount refundable is accounted only on final acceptai by the airlines.