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Accounting Policies of Sarda Papers Ltd. Company

Mar 31, 2015

1.1 Basis of Accounting

These financial statements have been prepared to comply with the Generally Accepted Accounting Principles in India (Indian GAAP), including the Accounting Standards notified under the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention.

1.2 Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.3 Fixed Assets and Depreciation

i) Fixed assets are stated at cost of acquisition /construction including any cost attributable to bringing the assets to their working condition, less accumulated depreciation.

ii) The Company provides depreciation on Straight Line Method in respect of assets based on their useful lives and in the manner set out in the Schedule II to the Companies Act, 2013. Depreciation on Computer Software is provided at 25% per annum.

1.4 Inventories

Inventories have been valued at lower of Cost or Net Realizable Value

1.5 Retirement Benefits:

Gratuity and Leave encashment are provided in the accounts on accrual basis.

1.6 Accounting for Taxes on Income

Provision for Current Taxation is computed in accordance with the relevant Income Tax Law applicable. Deferred Taxation is calculated as stipulated in Accounting Standard-22.

1.7 Revenue Recognition

Sales are recognized on dispatch of goods to customers and are recorded net of trade discount, rebates and Sales Tax but including Excise Duty.

1.8 Impairment of Assets

The carrying amounts of the Company's assets are reviewed at each Balance Sheet date. If any indication of impairment exists, an impairment loss is recognized to the extent of the excess of the carrying amount over the estimated accountable amount.

1.9 Contingent Liabilities and Provisions

Disputed Liabilities and claims against the Company including claims raised by the various revenue authorities (e.g. Income Tax, Excise etc.), pending in appeal /court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in the notes to accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliably estimable, is recognized in accounts.

The company has one class of equity shares having a par value of Rs 10 per share. Each holder of equity share is entitled to one vote per share The company has one class of preference shares having a par value of Rs 100 per share.

Tax rate considered for the above purpose is 30.90% (Previous year: 30.90%)

The Company's brought forward losses under the Income Tax Act, 1961, as on 1st April 2010 is Rs.1061.63 Lacs. On the aforesaid amount, the Company has decided to consider Deferred Tax Asset amounting to Rs. 328.04 Lacs(Gross) and has adjusted the Deferred tax Liability as appearing in the books to the extent of Rs.59.55 lacs.

Keeping in view the future sustainability of the Company, no provision has been made for deferred tax during the year, thereby maintaining the Net Deferred Tax Assets of the previous year amounting to Rs. 268.66 Lacs ,which was provided for in the accounts in earlier years.


Mar 31, 2014

1.1 Basis of Accounting

The Financial Statements have been prepared on accrual basis, except wherever otherwise stated, under the historical cost convention, and on the basis of going concern, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as referred to in the Companies (Accounting Standards) Rules 2006 issued by the Central Government in exercise of power conferred under sub-section (1) (a) of Section 642 and the relevant provisions of the Companies Act, 1956. Provision for bonus is accounted on payment basis. Interest received is consistently shown at net of interest paid. Interest on the delayed payments of debtors is recognized at the time of receipt of outstanding balance.

1.2 Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.3 Fixed Assets

Fixed assets are stated at cost including expenses related to acquisition and installation thereof as reduced by accumulated depreciation.

1.4 Depreciation

The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on Computer Software is provided at 25% per annum.

1.5 Inventories

Inventories have been valued at lower of Cost or Net Realisable Value

1.6 Retirement Benefits:

Gratuity and Leave encashment are provided in the accounts on accrual basis.

1.7 Accounting for Taxes on Income

Provision for Current Taxation is computed in accordance with the relevant Income Tax Law applicable. Deferred Taxation is calculated as stipulated in Accounting Standard-22.

1.8 Revenue Recognition

Sales are recognized on dispatch of goods to customers and are recorded net of trade discount, rebates and Sales Tax but including Excise Duty.

1.9 Impairment of Assets

The carrying amounts of the Company''s assets are reviewed at each Balance Sheet date. If any indication of impairment exists, an impairment loss is recognized to the extent of the excess of the carrying amount over the estimated accountable amount.

1.10 Contingent Liabilities and Provisions

Disputed Liabilities and claims against the Company including claims raised by the various revenue authorities (e.g. Income Tax, Excise etc ), pending in appeal /court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in the notes to accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliably estimable, is recognized in accounts.

The company has one class of equity shares having a par value of Rs 10 per share. Each holder of equity share is entitled to one vote per share The company has one class of preference shares having a par value of Rs 100 per share.

Tax rate considered for the above purpose is 30.90% (Previous year: 30.90%)

The Company''s brought forward losses under the Income Tax Act, 1961, as on 1st April 2010 is Rs. 1061.63 Lacs. On the aforesaid amount, the Company has decided to consider Deferred Tax Asset amounting to Rs. 328.04 Lacs(Gross) and has adjusted the Deferred tax Liability as appearing in the books to the extent of Rs. 59.55 lacs.

Keeping in view the future sustainability of the Company, no provision has been made for deferred tax during the year, thereby maintaining the Net Deferred Tax Assets of the previous year amounting to Rs. 268.66 Lacs .which was provided for in the accounts in earlier years.


Mar 31, 2013

1.1 Basis of Accounting

The Financial Statements have been prepared on accrual basis, except wherever otherwise stated, under the historical cost convention, and on the basis of going concern, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as referred to in the Companies (Accounting Standards) Rules 2006 issued by the Central Government in exercise of power conferred under sub-section (1) (a) of Section 642 and the relevant provisions of the Companies Act, 1956. Provision for bonus is accounted on payment basis. Interest received is consistently shown at net of interest paid. Interest on the delayed payments of debtors is recognized at the time of receipt of outstanding balance.

1.2 Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.3 Fixed Assets

Fixed assets are stated at cost including expenses related to acquisition and installation thereof as reduced by accumulated depreciation.

1.4 Depreciation

The Company provides depreciation on fixed assets on Straight Line Method ai the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on Computer Software is provided at 25% per annum.

1.5 Inventories

Inventories have been valued at lower of Cost or Net Realizable Value

1.6 Fernent Benefits:

Gratuity and Leave encashment are provided in the accounts on accrual basis.

1.7 Accounting for Taxes on Income

Provision for Current Taxation is computed in accordance with the relevant Income Tax Law applicable. Deferred Taxation is calculated as stipulated in Accounting Standard-22.

1.8 Revenue Recognition

Sales are recognized on dispatch of goods to customers and are recorded net of trade discount, rebates and Sales Tax but including Excise Duty.

1.9 Impairment of Assets

The carrying amounts of the Company''s assets are reviewed at each Balance Sheet dale. 11 any indication of impairment exists, an impairment loss is recognized to the extent of the excess of the carrying amount over the estimated accountable amount.

1.10 Contingent Liabilities and Provisions

Disputed Liabilities and claims against the Company including claims raised by the various revenue authorities (e.g. Income Tax, Excise etc.), pending in appeal /court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in the notes to accounts.

However, present obligation as a result of past evenly with possibility of outflow of resources, when reliably estimable, is recognized in accounts.

The company has one class of equity shares having a par value of Rs 10 per share, Each holder of equity share is entitled to one vote per share The company has one class of preference shares having a par value of Rs 100 per share.

The Company"s brought forward losses under the Income Tax Act, 1961, as on 1st April 2010 is Rs. 1061.63 Lacs. On the aforesaid amount, the Company has decided to consider Deferred Tax Asset amounting to Rs. 328.04 Lacs(Gross) and has adjusted the Deferred tax Liability as appearing in the books to the extent of Rs.59.55 lacs.

Keeping in view the future sustainability of the Company, no provision has been made for deferred tax during 1he year, thereby maintaining the Net Deferred Tax Assets of the previous year amounting to Rs. 268.66 Lacs .which was provided for in the accounts in earlier years.


Mar 31, 2012

1.1 Basis of Accounting

The Financial Statements have been prepared on accrual basis, except wherever otherwise stated, under the historical cost convention, and on the basis of going concern, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as referred to in the Companies (Accounting Standards) Rules 2006 issued by the Central Government in exercise of power conferred under sub-section (1) (a) of Section 642 and the relevant provisions of the Companies Act, 1956. Provision for bonus is accounted on payment basis. Interest received is consistently shown at net of interest paid. Interest on the delayed payments of debtors is recognized at the time of receipt of outstanding balance. (Refer Note No. 24 in the Notes to Accounts)

1.2 Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

1.3 Fixed Assets

Fixed assets are stated at cost including expenses related to acquisition and installation thereof as reduced by accumulated depreciation.

1.4 Depreciation

The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on Computer Software is provided at 25% per annum. (Refer Note No. 8 in the Notes to Accounts)

1.5 Inventories

Inventories have been valued at lower of Cost or Net Realisable Value

1.6 Retirement Benefits:

Gratuity and Leave encashment are provided in the accounts on accrual basis.

1.7 Accounting for Taxes on Income

Provision for Current Taxation is computed in accordance with the relevant Income Tax Law applicable. Deferred Taxation is calculated as stipulated in Accounting Standard-22. (Refer Note No. 9 in the Notes to Accounts)

1.8 Revenue Recognition

Sales are recognized on dispatch of goods to customers and are recorded net of trade discount, rebates and Sales Tax but including Excise Duty.

1.9 Contingent Liabilities and Provisions

Disputed Liabilities and claims against the Company including claims raised by the various revenue authorities (e.g. Income Tax, Excise etc), pending in appeal /court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in the notes to accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliably estimable, is recognized in accounts.

The Company's brought forward losses under the Income Tax Act, 1961, as on 1st April 2010 is Rs. 1061.63 Lacs. On the aforesaid amount, the Company has decided to consider Deferred Tax Asset amounting to Rs. 328.04 Lacs(Gross) and has adjusted the Deferred tax Liability as appearing in the books to the extent of Rs.59.55 lacs.

Keeping in view the future sustainability of the Company, no provision has been made for deferred tax during the year, thereby maintaining the Net Deferred Tax Assets of the previous year amounting to Rs. 268.66 Lacs .which was provided for in the accounts in earlier years.


Mar 31, 2011

1. Basis of Accounting

The Financial Statements have been prepared on accrual basis, except wherever otherwise stated, under the historical cost convention, and on the basis of going concern (Refer Note No. II.2 of this Schedule), in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as referred to in the Companies (Accounting Standards) Rules 2006 issued by the Central Government in exercise of power conferred under sub-section (1) (a) of Section 642 and the relevant provisions of the Companies Act, 1956. Provision for bonus is accounted on payment basis. Interest received is consistently shown at net of interest paid. Interest on the delayed payments of debtors is recognized at the time of receipt of outstanding balance.

2. Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

3. Fixed Assets

Fixed assets are stated at cost including expenses related to acquisition and installation thereof as reduced by accumulated depreciation.

4. Depreciation

(i) The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on Computer Software is provided at 25% per annum. Refer Note no. II 10 of this schedule.

(ii) Leasehold Land is amortised over the period of Lease.

5. Investments

Investments are of long term nature and are carried at cost.

6. Inventories

Inventories are valued as follows:

(i) Finished Goods At the lower of Cost or Net Realisable Value

(ii) Work-in-Progress At the lower of Cost or Net estimated Realisable Value

(iii) Raw Material, to At the lower of Cost or be consumed by the Net Realisable Value company & not meant for resale

(iv) Goods in Transit At Cost (Raw Material)

(v) Packing Material, At Cost Fuel, Oil, Stores & Spares (not meant for resale)

(vi) Wastage & Broke At Net Realisable Value Paper

7. Foreign Currency Transactions:

Transactions denominated in foreign currency are recorded at the rate of exchange in force at the time the transactions are effected.

All monetary assets and liabilities denominated in foreign currency are restated at the year end exchange rate. All non-monetary assets and liabilities are stated at the rates prevailing on the date of the transaction.

Gains / Losses arising out of fluctuations in the exchange rates are recognized as income / expense in the period in which they arise.

8. Retirement Benefits:

Gratuity and Leave encashment are provided in the accounts on accrual basis.

9. Accounting for Taxes on Income

Provision for Current Taxation is computed in accordance with the relevant Income Tax Law applicable. Deferred Taxation is calculated as stipulated in Accounting Standard-22. (Refer Note No. II. 15 of this Schedule)

10. Revenue Recognition

Sales are recognized on dispatch of goods to customers and are recorded net of trade discount, rebates and Sales Tax but including Excise Duty.

11. Impairment of Assets

The carrying amounts of the Company's assets are reviewed at each Balance Sheet date. If any indication of impairment exists, an impairment loss is recognized to the extent of the excess of the carrying amount over the estimated accountable amount.

12. Contingent Liabilities and Provisions

Disputed Liabilities and claims against the Company including claims raised by the various revenue authorities (e.g. Income Tax, Excise etc.), pending in appeal /court for which no reliable estimate can be made of the amount of the obligation or which are remotely poised for crystallization are not provided for in accounts but disclosed in the notes to accounts.

However, present obligation as a result of past event with possibility of outflow of resources, when reliably estimable, is recognized in accounts.


Mar 31, 2010

1. Basis of Accounting

The Financial Statements have been prepared on accrual basis, except wherever otherwise stated, under the historical cost convention, and on the basis of going concern (Refer Note No. 11.2 of this Schedule), in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards as referred to in the Companies (Accounting Standards) Rules 2006 issued by the Central Government in exercise of power conferred under sub-section (1) (a) of Section 642 and the relevant provisions of the Companies Act, 1956. Provision for bonus is accounted on payment basis. Interest received is consistently shown at net of interest paid. Interest on the delayed payments of debtors is recognized at the time of receipt of outstanding balance.

2. Use of Estimates

The preparation of financial statements in conformity with the generally accepted accounting principles requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent liabilities on the date of financial statements. Actual results could differ from those estimates. Any revision to accounting estimates is recognized prospectively in the current and future periods.

3. Fixed. Assets

Fixed assets are stated at cost including expenses related to acquisition and installation thereof as reduced by accumulated depreciation.

4. Depreciation

(i) The Company provides depreciation on fixed assets on Straight Line Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956. Depreciation on Plant and Machinery is considered by treating the same as a Continuous Process Plant. Depreciation on Computer Software is provided at 25% per annum.

(ii) Leasehold Land is amortised over the period of Lease.

5. Investments

Investments are of long term nature and are carried at cost.

6. Inventories

Inventories are valued as follows:

(i) Finished Goods : At the tower of Cost or Net Realisable Value

(ii) Work-in-Progress : At the lower of Cost or Net estimated Realisable Value

(iii) Raw Material, to be consumed : At the lower of Cost or Net Realisable Value by the company & not meant for resale

(iv) Goods in Transit (Raw Material) : At Cost

(v) Packing Material, Fuel, Oil, Stores & Spares (not meant for resale) : At Cost

(vi) Wastage & Broke Paper : At Net Realisable Value

 
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