Accounting Policies of Sonell Clocks & Gifts Ltd. Company

Mar 31, 2012

I) The Accounts of the Company have been prepared under the historical cost convention in accordance with generally accepted accounting principles and the provisions of the Companies Act, 1956 and the applicable accounting standards issued by Institute of Chartered Accountants of India.

ii) Fixed Assets are accounted at original cost less depreciation. .

iii) Since there was no commercial production, No depreciation irprovided on the fixed assets consisting of Building, Plant & Machineries, Electric Installation and other assets at factory. No Impairment Loss is provided in the accounts.

iv) The Current Assets, Loans and Advances are stated at the value, which will be raised in the ordinary course of the Company's business.

v) Since the entire inventory are in the custody of the Company's Bankers, it is valued at cost as on that date on which it was taken over by the Company's Banker.

vi) Revenue / Income and cost / expenditure are generally accounted on accrual basis as and when they are earned or incurred.

vii) Previous year figures are regrouped and rearranged whenever necessary.

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Mar 31, 2010

I) The Accounts of the Company have been prepared under the historical cost convention in accordance with generally accepted accounting principles and the provisions of the Companies Act, 1956 and the applicable accounting standards issued by Institute of Chartered Accountants of India.

ii) Fixed Assets are accounted at original cost less depreciation.

iii) Since there was no commercial production, No depreciation is provided on the fixed assets consisting of Building, Plant & Machineries, Electric Installation and other assets at factory.

iv) The Current Assets, Loans and Advances are stated at the value, which will be raised in the ordinary course of the Company’s business.

v) Since the entire inventory are in the custody of the Company’s Bankers, it is valued at cost as on that date on which it was taken over by the Company’s Banker.

vi) Revenue / Income and cost / expenditure are generally accounted on accrual basis as and when they are earned or incurred.

vii) Previous year figures are regrouped and rearranged whenever necessary.

CONTINGENT LIABILITIES:

All the known liabilities are provided for in the accounts except the liabilities of Contingent nature which has been adequately disclosed in the accounts. Guarantees given to bank for Guarantees issued by bank is Rs. 28,50,636. The Guarantees issued are secured against the FDs with bank.