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Accounting Policies of Saral Mining Ltd. Company

Mar 31, 2014

ACCOUNTING CONVENTION

a. The Financial Statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentation requirements of the Companies Act, 1956.

b. Income/Expenditure is accounted on accrual basis.

FIXED ASSETS AND DEPRECIATION

a. Fixed Assets are stated at cost of acquisition less accumulated depreciation and is inclusive of freight, taxes, and incidental expenses relating to such acquisition.

b. Depreciation on Fixed Assets is provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of additions/deductions during the year depreciation is charged on pro-rata basis. Assets costing less than Rs. 5000/- each are fully depreciated in the year of acquisition.

IMPAIRMENT OF ASSETS: At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss Account to the extent the carrying amount exceeds recoverable amount.

INVENTORIES: Inventories are valued at lower of cost and net realizable value. In determining cost FIFO method is used.

MISCELLANEOUS EXPENDITURE: Preliminary expenses are written off over a period of five years.

INCOME TAXES: Tax expense comprises of 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.

Deferred tax is recognized, subject to consideration of prudence, on timing differences, representing the difference between the taxable income /(loss) and accounting income /(loss) that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

RETIREMENT BENEFITS: This act is not applicable to the company

SALES: Sales are accounted for on dispatch of goods to the Customers, net of Sales Tax.

EARNINGS PER SHARE: In accordance with the Accounting Standard 20 " Earnings per Share " issued by the Institute of Chartered Accountants of India , basic earnings per share is computed using the weighted average number of shares outstanding during the year.

PROVISIONS AND CONTINGENT LIABILITIES: Provisions are recognized when the Company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.


Mar 31, 2013

ACCOUNTING CONVENTION

a. The Financial Statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentation requirements of the Companies Act, 1956.

b. Income/Expenditure is accounted on accrual basis.

FIXED ASSETS AND DEPRECIATION

a. Fixed Assets are stated at cost of acquisition less accumulated depreciation and is inclusive of freight, taxes, and incidental expenses relating to such acquisition.

b. Depreciation on Fixed Assets is provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of additions/deductions during the year depreciation is charged on pro-rata basis. Assets costing less than Rs. 5000/- each are fully depreciated in the year of acquisition.

IMPAIRMENT OF ASSETS: At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss Account to the extent the carrying amount exceeds recoverable amount.

INVENTORIES: Inventories are valued at lower of cost and net realizable value. In determining cost FIFO method is used.

MISCELLANEOUS EXPENDITURE: Preliminary expenses are written off over a period of five years.

INCOME TAXES: Tax expense comprises of 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.

Deferred tax is recognized, subject to consideration of prudence, on timing differences, representing the difference between the taxable income /(loss) and accounting income /(loss) that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

RETIREMENT BENEFITS: This act is not applicable to the company

SALES: Sales are accounted for on dispatch of goods to the Customers, net of Sales Tax.

EARNINGS PER SHARE: In accordance with the Accounting Standard 20 " Earnings per Share " issued by the Institute of Chartered Accountants of India , basic earnings per share is computed using the weighted average number of shares outstanding during the year.

PROVISIONS AND CONTINGENT LIABILITIES: Provisions are recognized when the Company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.


Mar 31, 2012

ACCOUNTING CONVENTION

a. The Financial Statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentation requirements of the Companies Act, 1956.

b. Income/Expenditure is accounted on accrual basis.

FIXED ASSETS AND DEPRECIATION

a. Fixed Assets are stated at cost of acquisition less accumulated depreciation and is inclusive of freight, taxes, and incidental expenses relating to such acquisition.

b. Depreciation on Fixed Assets is provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of additions/deductions during the year depreciation is charged on pro-rata basis. Assets costing less than Rs. 5000/- each are fully depreciated in the year of acquisition.

IMPAIRMENT OF ASSETS: At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss Account to the extent the carrying amount exceeds recoverable amount.

INVENTORIES: Inventories are valued at lower of cost and net realizable value. In determining cost FIFO method is used.

MISCELLANEOUS EXPENDITURE: Preliminary expenses are written off over a period of five years.

INCOME TAXES: Tax expense comprises of 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.

Deferred tax is recognized, subject to consideration of prudence, on timing differences, representing the difference between the taxable income /(loss) and accounting income /(loss) that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

RETIREMENT BENEFITS: This act is not applicable to the company

SALES: Sales are accounted for on dispatch of goods to the Customers, net of Sales Tax.

EARNINGS PER SHARE: In accordance with the Accounting Standard 20 " Earnings per Share " issued by the Institute of Chartered Accountants of India , basic earnings per share is computed using the weighted average number of shares outstanding during the year.

PROVISIONS AND CONTINGENT LIABILITIES: Provisions are recognized when the Company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation. Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.


Mar 31, 2010

1. ACCOUNTING CONVENTION

a. The Financial Statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentation requirements of the Companies Act, 1956.

b. Income/Expenditure is accounted on accrual basis.

2. FIXED ASSETS AND DEPRECIATION

a. Fixed Assets are stated at cost of acquisition less accumulated depreciation and is inclusive of freight, taxes, and incidental expenses relating to such acquisition.

b. Depreciation on Fixed Assets is provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of additions/deductions during the year depreciation is charged on pro-rata basis. Assets costing less than Rs. 5000/- each are fully depreciated in the year of acquisition.

3. IMPAIRMENT OF ASSETS

At each balance sheet date, the Company assesses whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss Account to the extent the carrying amount exceeds recoverable amount .

4. INVENTORIES

Inventories are valued at lower of cost and net realizable value. In determining cost FIFO method is used.

5. MISCELLANEOUS EXPENDITURE

Preliminary expenses are written off over a period of ten years.

6. INCOME TAXES

Tax expense comprises of current and deferred tax.

Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act.

Deferred tax is recognized, subject to consideration of prudence, on timing differences, representing the difference between the taxable income /(loss) and accounting income /(loss) that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

7. RETIREMENT BENEFITS.

Liability in respect of retirement benefits is provided for and/or funded and charged to Profit & Loss as follows:

a. Provident/Family Pension Fund: As a percentage of Salary/Wages for eligible employees.

b. Liability in respect of gratuity to employees is provided on basis of 15 days salary last drawn for each completed year of service.

8. SALES

Sales are accounted for on dispatch of goods to the Customers, net of Sales Tax.

9. EARNINGS PER SHARE

In accordance with the Accounting Standard 20 " Earnings per Share " issued by the Institute of Chartered Accountants of India , basic earnings per share is computed using the weighted average number of shares outstanding during the year.

10. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized when the Company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.


Mar 31, 2009

1. ACCOUNTING CONVENTION

a. The Financial Statements are prepared under the historical cost convention in accordance with applicable accounting standards and relevant presentation requirements of the Companies Act, 1956.

b. Income/Expenditure is accounted on accrual basis.

2. FIXED ASSETS AND DEPRECIATION

a. Fixed Assets are stated at cost of acquisition less accumulated depreciation and is inclusive of freight, taxes, and incidental expenses relating to such acquisition.

b. Depreciation on Fixed Assets is provided on straight-line method at the rates prescribed in Schedule XIV of the Companies Act, 1956. In respect of additions/deductions during-the year depreciation is charged on pro-rata basis. Assets costing less than Rs. 5000/- each are fully depreciated in the year of acquisition.

3. IMPAIRMENT OF ASSETS

At each balance sheet date, the Company assesse whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount. If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recognized in the Profit & Loss Account to the extent the carrying amount exceeds recoverable amount.

4. INVENTORIES

Inventories are valued at lower of cost and net realizable value. In determining cost FIFO method is used.

5. MISCELLANEOUS EXPENDITURE

Preliminary expenses are written off over a period of ten years.

6. INCOME TAX

Current income tax and fringe benefit tax is measured at the amount expected to be paid to the tax authorities in accordance with the Income Tax Act.

Deferred tax is. recognized, subject to consideration of prudence, on timing differences, representing the difference between the taxable income /(loss) and accounting income /(loss) that originate in one period and are capable of reversal in one or more subsequent periods. Deferred Tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date.

7. RETIREMENT BENEFITS.

Liability in respect of retirement benefits is provided for and/or funded and charged to Profit & Loss as follows:

a. Provident/Family Pension Fund: As a percentage of Salary/Wages for eligible employees.

b. Liability in respect of gratuity to employees is provided on basis of 15 days salary last drawn for each completed year of service.

8. SALES

Sales are accounted for on dispatch of goods to the Customers, net of Sales Tax.

9. EARNINGS PER SHARE

In accordance with the Accounting Standard 20" Earnings per Share" issued by the Institute of Chartered Accountants of India , basic earnings per share is computed using the weighted average number of shares outstanding during the year.

10. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized when the Company has a legal and constructive obligation as a result of past event, for which it is probable that a cash outflow will be required and a reliable estimate can be made of the amount of the obligation.

Contingent Liabilities are disclosed when the Company has a possible obligation or a present obligation and it is probable that a cash outflow will not be required to settle the obligation.

 
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