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Accounting Policies of Sangal Papers Ltd. Company

Mar 31, 2015

1) Basis of Preparation of Financial Statements:

(i) The financial statements are prepared on the historical cost convention basis (except for certain fixed assets which have been revalued) in accordance with the generally accepted accounting principles.

(ii) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

2) Use of Estimates:

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes there to. Differences between actual and estimates are recognized in the period in which the results are known/materialized.

3) Valuation of Inventories:

- Inventories are valued at the lower of the cost and estimated net realisable value. The basis of determining of cost for various categories of in ventories are as follows:

- Raw Material, Chemicals, Fuels, Store & Spares and packing Material. On weighted Average/FIFO basis.

- Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their present location and conditions.

4) Sales:

Sales are inclusive of Excise Duty.

5) Excise Duty:

Excise Duty has been accounted for on the basis of payment made in respect of goods cleared Amount of Excise Duty deducted from sale in relatable to the sale made during the year. Amount of Cenvat Credits in respect of material consumed is deducted from cost of material.

6) Fixed Assets:

(i) Fixed Assets are stated at cost. Cost includes installation charges and expenditure during construction period wherever applicable.

(ii) All pre-operative expenditure accumulated as capital work in progress and is allocated to the relevant fixed assets on a pro-rata basis.

7) Depreciation:

Depreciation on fixed assets has been provided on straight line method (SLM). Depreciation is provied based on useful life of the assets as prescribed in Schedule II to the Companies Act, 2013.

8) Foreign Currency Transactions: -

Foreign Currency transactions are accounted at the exchange rates prevailing on the date of transactions. Foreign Currency assets and current liabilities outstanding at the Balance Sheet date are translated at the exchange rate prevailing on that date and the resultant gain or loss is recognized in the Statement of Profit & Loss. In cases where they relate to the acquisition / construction of fixed assets, they are adjusted to the carrying cost of fixed assets.

9) Employee retirement benefit :

i) Retirement benefit in the form of provident fund and super an nation /pension schemes whether in pursuance of any law or otherwise is accounted on accrual basis and charged to the Statement of profit & loss of the year.

ii) The provision for gratuity has been made on the basis of formula prescribed for the payment of gratuity act, 1972.

10) Borrowing cost

Borrowing cost directs attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets, up to the date of assets is put to use. Other borrowing costs are charged to the statement of profit and loss in which they are incurred.

11) TAX ON INCOME:

(a) Current Tax

Provision for Income Tax is determined in, accordance with the provision of Income Tax Act, 1961

(b) Deferred Tax

Deferred Tax is recognised on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period (s).

12) Provision. Contingent Liabilities and Contingent Assets:

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized not disclosed in the financial statement.

13) Printing & Stationery, Postage & Telephone are accounted on cash basis.


Mar 31, 2014

1) Basis of Preparation of Financial Statements:

(i) The financial statements are prepared on the historical cost convention basis (except forcertain fixed assets which have been revalued) in accordance with thegenerally accepted ! accounting principles.

(ii) The Company generally follows mercantile system of accounting and recognises significant ;items of income and expenditure on accrual basis.

2) Use of Estimates:

The preparation of financial statements requires management to make certain estimates and [assumptions that affect the amount reported in the financial statement and notes there to. Differences !between actual and estimates are recognized in the period in which the results are known/materialized.

3) Valuation of Inventories:

- Inventories are valued at the lower of the cost and estimated net realisable value. The |basis of determining of cost for various categories of inventories areas follows: - Raw Material, Chemicals, Fuels, Store & Spares and packing Material. On weighted !

Average/FIFO basis.

- Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and |

other costs in bringing the inventories to their present location and conditions''. [

4) Sales: Sales are inclusive of Excise Duty.

5) Excise Duty:

Excise Duty has been accounted for on the basis of payment made in respect of goods cleared Amount of Excise Duty deducted from sale in relatable to the sale madeduring the year. Amount of Cenvat Credits in respect of material consumed isdeductedfrom costof material.

6) Fixed Assets:

(i) Fixed Assets are stated at cost. Cost includes installation charges and expenditure during construction period wherever applicable.

(ii) All pre-operative expenditure accumulated as capital work in progress and is allocated to the relevant fixed assets on a pro-rata basis.

7) Depreciation:

Depreciation on fixed assets has been provided on straight line method at the rates as > prescribed in Schedule XIV of the Companies Act, 1956 on monthly pro-rata basis.

8) Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An Impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

9) Government Grants:

Value of Government grants related to specific Fixed assets are adjusted with the fixed assets.

10) Foreign Currency Transactions:

Foreign Currency transactions are accounted at the exchange rates prevailing on the date of transactions. Foreign Currency assets and current liabilitiesoutstanding at the Balance Sheet date are 1 translated at the exchange rate prevailing on that date and the resultant gain or loss is recognized In the |Statement of Profit & Loss. In cases where they relate to theacquisition / construction of fixed assets,they are adjusted to the carrying cost of fixed assets.

11) Exployee retirement benefit:

(i) Retirement benefit in the form of provident fund and superannuation/pension schemes whether in pursuance of any law or otherwise is accounted on accrual basis and charged to the Statement of profit & loss of the year.

(ii) The provision for gratuity has been made on the basis of formula prescribed for the payment of gratuity act 1972.

12) Borrowing Cost:

Borrowing cost directs attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets, up to the date of assets is put to use. Other borrowing costs are charged to the statement of profit and loss in which they are incurred.

13) TAX ON INCOME:

(a) CurrentTax

Provision for Income Tax is determined in, accordance with the provision of Income TaxAct, 1961

(b) Deferred Tax

Deferred Tax is recognised on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal In one or more subsequent period (s).

14) Provision, Contingent Liabiiities and Contingent Assets:

Provision involving substantial degree of estimation In measurement are recognized when there Is a present obligation as a result of past events and it Is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized notdisclosed in the financial statement.

15) Printing & Stionery, Postage & Telephone are accounted on cash basis:

The company has only equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. In the event of liquidation of the company, the holders of shares shall be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. The amount distributed will be in proportion to the number of equity shares held by the shareholders.

Term Loan from Axis Bank is secured by way of equitable mortgage of land & building and hypothecation of Plant & Machinery and personal guarantee by Directors of the Company. From Axis Bank (for term loan of Rs. 108480000)

At the rate of 3.25% above base rate. Present effective rate is 13.25% p.a. (Previous year 13.25% p.a.). Repayble in 96 Monthly installment of Rs. 11,30,000 each starting from July 2007. From Axis Bank (forterm loan of Rs. 9420000)

At the rate of 3.25% above base rate. Present effective rate is 13.25% p.a. (Previous year 13.25% p.a.). Repayble in 60 Monthly installment of Rs. 1,57,000 each starting from July 2011. From Axis Bank (forterm loan of Rs. 13500000)

At the rate of 3.25% above base rate Present effective rate is 13.25% p.a. (Previous year 13.25% p.a.) Repayable in 60 Monthly installments of Rs. 2,25,000 each starting from April 2013

Vehicle Loan is secured by hypothecation of respective vehicles and guaranteed by Deirectors of the Company. From State Bank of India (forterm loan of Rs. 1000000)

At the Present effective rate is 12% p.a. (Previous year 12% p.a.) Repayable in 60 monthly EMI of Rs. 21,867 each starting from May 2011. From Axis Bank (forterm loan of Rs. 1500000)

At the Present effective rate is 10.70% p.a. (Previous year NIL) Repayable in 36 monthly EMI of Rs. 48.898 each starting from Jan 2013. From Axis Bank (forterm loan of Rs. 3500000)

At the Present effective rate is 8.86% p.a. (Priviousyear Nil) Repayable in 60 monthly EMI of Rs. 71886 each

Working Capital Loans from Axis Bank is secured by way of Stock of Raw Material, Stores & spares, work in process, finished goods, semi finished goods, bills and Book Debts of the Company and personal guarantee by Directors of the Company.


Mar 31, 2013

1) Basis of Preparation of Financial Statements:

(i) The financial statements are prepared on the historical cost convention basis (except for certain fixed assets which have been revalued) in accordance with the generally accepted accounting principles.

(ii) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

2) Use of Estimates:

The preparation of financial statements requires management to make certain estimates and assumptions that affect the amount reported in the financial statement and notes there to. Differences between actual and estimates are recognized in the period in which the results are known/materialized.

3) Valuation of Inventories:

- Inventories are valued at the lower of the cost and estimated net realisable value. The basis of determining of cost for various categories of inventories are as follows:

- Raw Material, Chemicals, Fuels, Store & Spares and packing Material. On weighted Average/FIFO basis.

- Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their present location and conditions.

4) Sales:

Sales are inclusive of Excise Duty.

5) Excise Duty:

Excise Duty has been accounted for on the basis of payment made In respect of goods cleared Amount of Excise Duty deducted from sale in relatable to the sale made during the year. Amount of Cenvat Credits in respect of material consumed is deducted from cost of material.

6) Fixed Assets:

(i) Fixed Assets are stated at cost. Cost includes installation charges and expenditure during construction period wherever applicable.

(ii) All pre-operative expenditure accumulated as capital work in progress and is allocated to the relevantfixed assets on a pro-rata basis.

7) Depreciation:

Depreciation on fixed assets has been provided on straight line method at the rates as prescribed in Schedule XI Vof the Companies Act, 1956 on monthly pro-rata basis.

8) Impairment of Assets:

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

9) Government Grants:

Value of Government grants related to specific Fixed assets are adjusted with the fixed assets.

10) Foreign Currency Transactions:

Foreign Currency transactions are accounted at the exchange rates prevailing on the date of transactions. Foreign Currency assets and current liabilities outstanding at the Balance Sheet date are translated at the exchange rate prevailing on that date and the resultant gain or loss Is recognized in the Statement of Profit & Loss. In cases where they relate to the acquisition / construction of fixed assets, they are adjusted to the carrying cost of fixed assets.

11) Exployee retirement benefit:

(i) Retirement benefit in the form of provident fund and superannuation/pension schemes whether in pursuance of any law or otherwise is accounted on accrual basis and charged to the Statement of profit & loss of the year.

(ii) The provision for gratuity has been made on the basis of formula prescribed for the payment of gratuity act 1972.

12) Borrowing Cost:

Borrowing cost directs attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets, up to the date of assets is put to use. Other borrowing costs are charged to the statement of profit and loss in which they are incurred.

13) TAX ON INCOME:

(a) CurrentTax

Provision for Income Tax is determined In, accordance with the provision of Income Tax Act, 1961

(b) Deferred Tax

Deferred Tax Is recognised on timing differences being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent period (s).

14) Provision, Contingent Liabilities and Contingent Assets:

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized not disclosed in the financial statement.


Mar 31, 2012

1) Basis of Preparation of Financial Statements:

(i) The financial statements are prepared on the historical cost convention basis (except for certain fixed assets which have been revalued) in accordance with the generally accepted accounting principles.

(ii) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

2) Use of Estimates :

The preparation of financial statements requires management ot make certain estimates and assumptions that affect the amount reported in the financial statement and notes therto. Differences between actual and estimates are recognized in the period in which the results are known/materialized.

3) Valuation of Inventories :

- Inventories are valued at the lower of the cost and estimated net realisable value. The bases of determining of cost for various categories of inventories are as follows:

- Raw Material. Chemicals, Fuels, Store & Spares and packing Material On weighted Average/FIFO basis,

- Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their present location and conditions,

4) Sales:

Sales are inclusive of Excise Duty.

5) Excise Duty:

Excise Duty has been accounted for on the basis of in payment made in respect of goods cteared as original also provision made for the goods lying in the bonded warehouses. Amount of Excise Duty deducted from sate rn re la table to the sale made during the year. Amount of Cenvai Credits in respect of material consumed is deducted from cost of material.

6) Fixed Assets:

(i) Fixed Assets are stated at cost. Cost includes Installation charges and expenditure during construction period wherever applicable.

(ii) All pre-operative expenditure accumulated as capital work in progress and is allocated to the relevant fixed assets on a pro-rata basis.

7) Depreciation:

Depreciation on fixed assets has been provided on straight line method at the rates as prescribed in Schedule XIV of the Companies Act. 1956 on monthly pro-rata basts.

8) Impairment of Assets :

An asset Is treated as impaired when the carrying cost of asset exceeds its recoverable value. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized 3n prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

9) Government Grants:

Value of Government grants related to specific Fixed assets are adjusted with the fixed assets.

10) Foreign Currency Transactions :

Foreign Currency transactions are accounted at the exchange rates prevailing on the date of transactions. Foreign Currency assets and current liabilities outstanding at the Balance Sheet date are translated at the exchange rate prevailing on that the and the resultant gain or loss is recognized in the Statement of Profit & Loss, In cases where they relate to the acquisition / construction of fixed assets, they are adjusted to the carrying cost of fixed assets.

11) Exployee retirement benefit:

(i) Retirement benefit in the form of provident fund and superannuation/pension schemes whether in pursuance of any law or otherwise is accounted on accrual basis and charged to the Statement of profit & loss of the year.

(ii) The provision for gratuity has been made on the basis of formula prescribed for the payment of gratuity and leave encashment provision has been made on encashment vatue of earned leave at the year end.

12) Borrowing Cost:

Borrowing cost directs attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets, up to the date of assets is put to use. Other borrowing costs are charged to the statement of profit and loss in which they are incurred.

13) TAX ON INCOME:

(a) Current Tax

Provision for Income Tax is determined in, accordance with the provision of Income Tax Act, 1961

(b) Deferred Tax

Deferred Tax is recognised on timing differences being the differences between taxable income and accounting fncome that originate in one period and are capable of reversal in one or more subsequent period (s).

14) Provision, Contingent Liabilities and Contingent Assets :

Provision involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources, Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized not disclosed in the financial statement.


Mar 31, 2010

1) Basis of Preparation of Financial Statements:

(i) The financial statements are prepared on the historical cost convention basis (except for certain fixed assets which have been revalued) in accordance with the generally accepted accounting principles.

(ii)The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

2) Valuation of Inventories:

(i) Inventories are valued at the lower of the cost and estimated net realisable value. The bases of determining of cost for various categories of inventories are as follows:

- Raw Material, Chemicals, Fuels, Store & Spares and packing Material. On weighted Average/FIFO basis.

- Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their present location and conditions.

3) Sales:

Sales are inclusive of Excise Duty.

4) Excise Duty:

Excise Duty has been accounted for on the basis of both payment made in respect of goods cleared as also provision made for the goods lying in the bonded warehouses. Amount of Excise Duty deducted from sale in relatable to the sale made during the year. Amount of Cenvat Credits in respect of material consumed is deducted from cost of material.

5) Fixed Assets:

(i) Fixed Assets are stated at cost. Cost includes installation charges and expenditure during construction period wherever applicable.

(ii) All pre-operative expenditure accumulated as capital work in progress and is allocated to the relevant fixed assets on a pro-rata basis.

6) Depreciation:

Depreciation on fixed assets has been provided on straight line method at the rates as prescribed in Schedule XIV of the Companies Act, 1956 on monthly pro-rata basis.

7) Employees Retirement Benefit:

(i) Retirement benefit in the form of provident fund and superannuation / pension schemes whether in pursuance of any law or otherwise is accounted on accural basis and charged to the profit & loss account of the year.

(ii) The provision for gratuity has been made on the basis of formula prescribed for the payment of gratuity and leave encashment provision has been made on encashment value of earned leave at the year end.

8) Borrowing Cost:

Borrowing cost directs attributable to the acquisition or construction of fixed assets are captalised as part of the cost of assets, up to the date of assets is put to use. Other borrowing costs are charged to the profit and loss account in which they are incurred.

9) TAX INCOME:

(a) Current Tax:

Provision for Income Tax is determined in, accordance with the provision of Income Tax Act, 1961,

(b) Deferred Tax:

Deferred Tax is recognised on timing differences being the differences between taxable Income and accounting Income that originate in one period and are capable of reversal in one or more subsequent period (s).


Mar 31, 2009

1) Basis of Preparation of Financial Statements :

(i) The financial statements are prepared on the historical cost convention basis (except for certain fixed assets which have been revalued) in accordance with the generally accepted accounting principles.

(ii) The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

2) Valuation of Inventories :

(i) Inventories are valued at the lower of the cost and estimated net realisable value. The bases of determining of cost for various categories of inventories are as follows : - Raw Material, Chemicals, Fuels, Store & Spares and Packing Material. On weighted Average /FIFO basis. - Finished Goods and Work in process includes Raw Material Cost, Cost of conversion and other costs in bringing the inventories to their present location and conditions.

3) Sales :

Sales are inclusive of Excise Duty.

4) Excise Duty :

Excise Duty has been accounted for on the basis of both payment made in respect of goods cleared as also provision made for the goods lying in the bonded warehouses. Amount of Excise Duty deducted from sale is relatable to the sale made during the year. Amount of Cenvat Credits in respect of material consumed is deducted from cost of material.

5) Fixed Assets :

(i Fixed Assets are stated at cost Cost includes installation charges and expenditure during construction period wherever applicable.

(ii) All pre-operative expenditure accumulated as capital work in progress and is allocated to the relevant fixed assets on pro-rata basis.

6) Depreciation :

Depreciation on fixed assets has been provided on straight line method at the rates as prescribed in Schedule XIV of the Companies Act, 1956 on monthly pro-rata basis.

7) Employees Retirement Benefit :

(i) Retirement benefit in the form of provident fund and superannuation / pension schemes whether in pursuance of any law or otherwise is accounted on accural basis and charged to the profit & loss account of the year.

(ii) The provision for gratuity has been made on the basis of formula prescribed for the payment of gratuity and leave encashment provision has been made on encashment value of earned leave at the year end.

8) Borrowing Cost :

Borrowing cost directly attributable to the acquisition or construction of fixed assets are capitalised as part of the cost of assets, up to the date of assets is put to use. Other borrowing cost are charged to the profit and loss account in which they are incurred.

9) TAX ON INCOME :

(a) Current Tax :

Provision for Income Tax is determined in, accordance with the provision of Income Tax Act, 1961.

(b) Deferred Tax :

Deferred Tax is recognised on timing differences being the differences between taxable Income and accounting Income that originate in one period and are capable of reversal in one or more subsequent period(s).

 
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