Accounting Policies of Sysco Industries Ltd. Company

Mar 31, 2016

Sysco Industries Limited was originally incorporate under provisions of the Companies Act, 1956 and subsequently upon intimation made for conversion into public limited by shares company under section 18 of Companies Act, 2013 and approval of Central Government signified in writing having been accorded thereto by the Registrar of Companies Gujarat, Gadara and Nagar Haveli vide SRN C75622134 dated Jan.22 of 2016 the name of company is change to Sysco Industries Limited. The company is engaged in the Manufacturing & Trading of Polyester /Coated Lacquered/Lamination film/imitation Jari Badla, etc.

The financial statement of the company have been prepared under the historical cost convention, in accordance with generally accepted accounting principles in India, and comply in all material respects with the mandatory accounting standards prescribed under section 133 of the act read with rule 7 of the companies (accounts) rule 2014 (as amended), and with the relevant provision of the act, pronouncements of the ICAI. The financial statement have been prepared on an accrual basis and going concern concept.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change In accounting policy explained below:-

The preparation of financial statements in conformity with India (Indian GAAP) require the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities, at the end of the reporting period. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainly about these assumptions and estimates could result in the outcomes requiring a material adjustment to the

The cost comprises purchase price, borrowing cost if capitalization criteria are met and directly attributable ^COStd°d^brtⁿd^{in9 then}. ^{asset to its w}orking condition for the intended use. Any trade discounts and rebates Subsequent expenditure related to an item of fixed asset is added to its book value if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses of an existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the profit and loss statement for the period during which such expanses

Depreciation on fixed assets is calculated on a Straight line basis. Depreciation is provided based on useful life of Investment which are readily realizable and intended to be held for not more than one year from the date on which^ such ^investments are made, are classified as Current investments. All other investments are

Revenue Is recognized to the Extent that is probable that the economic benefits will flow to the and the revenue can be reliably measured. The following specific recognition criteria must also

Revenue from sale of goods is recognized when all the significant risks and rewards of ownership of the goods have been passed to the buyers, usually on delivery of the goods.

Interest

Interest income is recognized on a time proportion basis taking in to the account, the amount outstanding and the applicable interest rate. Interest income is included under the head "Other Income" in Profit and Loss statement.

a. Income Taxes

Tax expenses comprises Current and deferred tax, Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the income tax Act, 1961 enacted in India.

Deferred income tax reflect the impact of timing difference between taxable income and accounting income, originating during the current year and reversal of timing differences for the earlier year.

Deferred tax liabilities are recognized for all taxable timing difference. Deferred tax assets are recognized for deductible timing difference only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred assets can be realized.

h. Earning per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to the equity share holder by the weighted average numbers of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares

i. Foreign Currency Transactions

(i) Transactions denominated In foreign currencies are recorded at the exchange rate prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

(ii) Monetary items denominated in foreign currencies at the year end are restated at year end rates.

(iii) Non monetary Foreign currency items are carried at cost.

(iv) Any income or expenses on account of exchange difference either on settlement or on translated is recognized in the Profit and Loss statement, except in case of Long term liabilities, Where they relate to acquisition of Fixed assets, in which case they are adjusted to the carrying cost of such assets.

i. Inventories

Items of inventories are measured at lower of the cost and net realizable value after providing for obsolescence, if any. Cost of inventories are comprises of cost of purchase, cost of freight inward and CHA expenses.

i. Employee Benefit

i) Provident Fund

Contribution made to provident fund are accounted on accrual basis.

ii) Gravity surat

Gratuity payable will be accounted as and when payments are made.