Home  »  Company  »  Sharad Fibres &  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Sharad Fibres & Yarn Processors Ltd. Company

Mar 31, 2014

A) SYSTEM OF ACCOUNTING:

The accounts of the company are prepared under the historical convention using accrual method of accounting. There has been no change in the method of accounting as compared to preceding previous year.

Since, it is not possible to ascertain with reasonable accuracy the quantum to be provided in respect of expenditure under any head of account when the amount in any voucher is less than RS. 300/- whether prepaid or outstanding the same is to be continued to be accounted on cash basis.

B) FIXED ASSETS & DEPRECIATION:

i) Fixed assets are stated at cost of acquisition. ii) Depreciation is provided.

a) On straight-line method at the rates prescribed in Schedule XIV vide GSR No.756 (E) dated 16.12.93 of the Companies Act, 1956.

b) In respect of additions to and deletions from the Fixed Assets on pro-data basis with reference to number of completed months.

C) INVENTORIES:

i) Closing Stock of Raw Materials is valued at cost.

ii) The closing stock of Finished Goods is valued at Estimated Cost i.e. selling price less 10%.

iii) The inventories have been physically verified, valued and certified by the management.

D) RETIREMENT BENEFITS :

i) Company''s contributions of provident fund paid / payable during the year are charged to the Profit and Loss Account.

ii) Compensation payable to employees retired is charged out in full in the year in which such expenditure is incurred.

iii) No provision has been made in the books of accounts of the Company on account of retirement benefits of the employees, in accordance with the AS-15 issued by the ICAI, as the same is made on cash basis and shall be provided in the books of the company as and when paid.

E) ACCOUNTING FOR FOREIGN CURRENCY:

i) Initial Recognition -

Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of transaction.

ii) Conversion -

At the year end, monetary items denominated in foreign currencies, other than those covered by forward contracts, are converted into rupee equivalents at the year end exchange rates.

All exchange differences arising on settlement and/or conversion on foreign currency transaction are included in the Profit and Loss Account. Exchange Differences in forward contract is recognized as required by AS-11.

F) REVENUE RECOGNITION:

Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the customers. Sales are net of trade discounts and sales tax.

G) TAXATION:

(i) Provision for current Tax is made with reference to taxable income computed for the accounting period, for which the financial statements are prepared by the tax rates as applicable.

(ii) No deferred Tax Assets are created in the books of the company as in the opinion of the management, they are not reasonably certain that there will be sufficient future income to recover such Deferred Tax Assets.

H) SEGMENT REPORTING:

As per the provisions of Accounting Standard 17 on "SEGMENT REPORTING" issued by the Institute of Chartered Accountants of India, the Standard is applicable to the company.

Further, a business segment or geographical segment is a reportable segment if (a) revenue from sales to external customers and from transactions with other segments exceed 10% of total revenues (external and internal) of all segments; or (b) segment result, whether profit or loss is 10% or more of (i) combined result of all segments in profit or (ii) combined result of all segments in loss whichever is greater in absolute amount; or (c) segment assets are 10% or more of all the assets of all the segments.

However, the company does not fall into any of the above stated criteria and hence the company does not qualify as reportable geographical segment and thus no segment reporting is provided.

I) TRADE PAYABLES

Unpaid amount due as on 31.03.2014, to Micro, Small and Medium enterprise suppliers on account of principal amount together with the interest thereon under the Micro, Small and Medium enterprise Development Act, 2006 could not be ascertained by the company in the absence of information relating to the status of the suppliers and has not disclosed in the Financial Statements.

J) EARNING PER SHARE:

Earning per share is calculated on Basis Earning per Share Method i.e. by dividing the net profit for the period attributed to equity shareholders by the weighted average number of equity share outstanding during the period.


Mar 31, 2011

A) SYSTEM OF ACCOUNTING:

The accounts of the company are prepared under the historical convention using accrual method of accounting. There has been no change in the method of accounting as compared to preceding previous year.

However since it is not possible to ascertain with reasonable accuracy the quantum to be provided in respect of expenditure under any head of account when the amount in any voucher is less than RS. 300/- whether prepaid or outstanding the same is to be continued to be accounted on cash basis.

B) FIXED ASSETS & DEPRECIATION:

i) Fixed assets are stated at cost of acquisition. ii) Depreciation is provided.

a) On straight-line method at the rates prescribed in Schedule XIV vide GSR No.756 (E) dated 16.12.93 of the Companies Act, 1956.

b) In respect of additions to and deletions from the Fixed Assets on pro-data basis with reference to number of completed months.

C) INVENTORIES:

i) The closing stock of Finished Goods is valued at Cost.

ii) Packing Materials and Oil & Lubricants are consumed during the year against the job charges.

iii) The inventories have been physically verified, valued and certified by the management.

D) RETIREMENT BENEFITS :

i) Company's contributions of provident fund paid / payable during the year are charged to the Profit and Loss Account.

ii) Compensation payable to employees retired is charged out in full in the year in which such expenditure is incurred.

E) ACCOUNTING FOR FOREIGN CURRENCY:

i) Initial Recognition -

Transactions denominated in foreign currencies are recorded at the Exchange rates prevailing on the date of transaction.

ii) Conversion -

At the year end, monetary items denominated in foreign currencies, other than those covered by forward contracts, are converted into rupee equivalents at the year end exchange rates.

iii) Exchange Differences -

All exchange differences arising on settlement and/or conversion on foreign currency transaction are included in the Profit and Loss Account. Exchange Differences in forward contract is recognized as required by AS-11.

F) CONTINGENT LIABILITIES:

Contingent Liabilities are disclosed after a careful evaluation of the facts and legal accept of the matter involved.

i) Contingent liability in respect of penal dues/damages for delay in payments of statutory dues like PF, profession Tax, Excise Duty, etc and delayed payment charges on account of overdue payment to creditors, amount is not ascertainable.

ii) In respect of capital expenditure for construction of building premises and purchases of machineries.

iii) In respect of Appeal filed by Central Excise Department, Mumbai before the Supreme Court amounting to Rs. 17604797/-. The Central Excise department has filed further complaint in this regard before the court of Honorable Chief Judicial Magistrate, at Silvassa, case is being protested suitably.

iv) In respect of demand raised by Income Tax Officer for A.Y. 1997-98 Rs. 7223446/- the company has received order dated 30.01.2011 wherein the demand is reduced to Rs.2,26,940/- and the department has filed case before High Court against the order of ITAT.

v) In respect of demand raised by Income Tax officer for A.Y. 1998-99 Rs. 4530496/-. The company has preferred an appeal against the said order.

vi) a) Outstanding guarantees furnished by banks to Government authority of Rs. 10,00,000/-.

b) An appeal filed by the Company before the Commissioner of Central Excise (Appeal) the order on the same has been passed by in favour of the Company against demand of Rs.3,61,537/- (already paid) plus Rs.16,32,382/- (already paid) and imposed penalty of Rs.3,61,537/- and ; Rs. 1,00,000/- and interest thereon. However the Excise Department has filed appeal before the CEGAT (case No 103/adj/2001 ADC dated 31.10.2001). The case is being defended by the company.

c) The Appeal being case No OIO No. 71/JC/Vapi/Dem/2004 filed by the company before the Commissioner of Central Excise (Appeals), Vapi filed against the order of Jt. Commissioner Central Excise and the Commissioner (Appeals) has passed order reducing the penalty to Rs. 10,000/- and demand of Rs.93,163/- subject to verification of certain documents. The case is under settlement.

d) The Appeal being case No OIO No. 82/JC/Vapi/Dem/2004 filed by the Company before the Commissioner of Central Excise (Appeals), Vapi filed against the order of Jt. Commissioner Central Excise (Appeals) , Vapi and the Commissioner (Appeals) has passed the order reducing the demand to Rs.22,944 Rs.14,405 Rs.5,519/- and penalty Rs.42,868/- The case is under settlement.

e) Recrona Synthetics Limited has filed case against the Company before the High Court, Mumbai for a claim of Rs.4,49,38,266/- and interest thereon Rs.2,99,41,821/- and other claims of Rs.32,,87,546/-. However the same is being suitably defended by the company.

In all above cases the company has not accepted liability and also contested by the company. Directors have decided not make provision for the same. Cenvat benefits is accounted on accrual basis on purchase of material and appropriated against payment of Excise Duty on clearance of finished goods.

g) TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate in one year and are capable of reversal in one or more subsequent year.

h) SEGMENT REPORTING

Segment has been identified in line with the AS - 17, taking into account the organization structure as well as the differing risks and returns. The business segment is disclosed as primary segment.


Mar 31, 2008

A) SYSTEM OF ACCOUNTING:

The accounts of the company are prepared under the historical convention using accrual method of accounting. There has been no change in the method of accounting as compared to preceding previous year.

However since it is not possible to ascertain with reasonable accuracy the quantum to be provided in respect of expenditure under any head of account when the amount in any voucher is less than RS. 300/- whether prepaid or outstanding the same is to be continued to be accounted on cash basis.

B) FIXED ASSETS & DEPRECIATION:

i) Fixed assets are stated at cost of acquisition.

ii) Depreciation is provided.

a) On straight-line method at the rates prescribed in Schedule XIV vide GSR No.756 (E) dated 16.12.93 of the Companies Act, 1956.

b) In respect of additions to and deletions from the Fixed Assets on pro-data basis with reference to number of completed months.

C) INVENTORIES:

i) There are no closing stock of Raw Materials , Traded Goods and Spares.

However the closing stock of Raw Materials and Trading Goods were valued at Cost.

ii) Packing Materials and Oil & Lubricants are consumed during the year against the job charges.

iii) The inventories have been physically verified, valued and certified by the management.

D) RETIREMENT BENEFITS :

i) Company's contributions of provident fund paid / payable during the year are charged to the Profit and Loss Account.

ii) Compensation payable to employees retired is charged out in full in the year in which such expenditure is incurred.

E) SALES:

There are no Sales during the year.

6) CONTINGENT LIABILITIES:

Contingent Liabilities are disclosed after a careful evaluation of the facts and legal accept of the matter involved.

Contingent Liabilities not provided for :-

i) Contingent liability in respect of penal dues/damages for delay in payments of statutory dues like PF, profession Tax, Excise Duty, etc and delayed payment charges on account of overdue payment to creditors, amount is not ascertainable.

ii) In respect of capital expenditure for construction of building premises and purchases of machineries.

iii) In respect of Appeal filed by Central Excise Department, Mumbai before the Supreme Court amounting to Rs.17604797/-. The Central Excise department have filed further complaint in this regard before the court of Honorable Chief Judicial Magistrate, at Silvassa, case is being protested suitably.

iv) In respect of demand raised by Income Tax Officer for A.Y. 1997-98 Rs.7223446/- the company has received order dated 30.01.2008 wherein the demand is reduced to Rs.2,26,940/- and the department has filed case before High Court against the order of ITAT.

v) In respect of demand raised by Income Tax officer for A.Y. 1998-99 Rs.4530496/-. The company has preferred an appeal against the said order.

vi) Outstanding guarantees furnished by banks to Government authority of Rs.10,00,000/-.

vii) A ) M/s. Loknath Packaging Pvt. Ltd. has filed claim for amount of Rs.3,35,100/- with interest @ 29% before silvassa court. The case is being protested suitably.

b) M/s. Silvassa Cement Products Pvt. Ltd. has filed claim for amount of Rs. 98,170/- with interest @ 24% before silvassa court.

c) Mr. Gopal Ram Hanuman Prasad has filed claim for amount of Rs. 4,86,182/- with interest 24% before Silvassa court.

d) An appeal filed by the Company before the Commissioner of Central Excise (Appeal) the order on the same has been passed by in favor of the Company against demand of Rs.3,61,537/- (already paid) plus Rs. 16,32,382/- (already paid) and imposed penalty of Rs.3,61,537/- and Rs. 1,00,000/- and interest thereon. However the Excise Department has filed appeal before the CEGAT ( case No 103/adj/2001 ADC dated 31.10.2001). The case is being defended by the company.

e) The Appeal being case No OIO No. 71/JC/Vapi/Dem/2004 filed by the company before the Commissioner of Central Excise (Appeals), Vapi filed against the order of Jt.Commissioner Central Excise and the Commissioner (Appeals) has passed order reducing the penalty to Rs. 10,000/- and demand of Rs.93,163/- subject to verification of certain documents. The case is under settlement.

f) The Appeal being case No OIO No. 82/JC/Vapi/Dem/2004 filed by the Company before the Commissioner of Central Excise (Appeals), Vapi filed against the order of Jt. Commissioner Central Excise (Appeals) , Vapi and the Commissioner (Appeals) has passed the order reducing the demand to Rs.22,944 Rs.14,405 Rs.5,519/- and penalty Rs.42,868/- The case is under settlement.

g) The GIICL has filed a civil suit against the Company for recovery of Loan of Rs.1,47,39,160/- with interest granted to one of its group concerns viz. Dalmia Dye-Chem Industries Ltd. in whose favor the company has given corporate guarantee. The case is being suitably defended

h) M/s. Modipon Ltd has filed a case before the Silvassa Court against the company for recovery of Rs.5,53,825/- with interest @ 18% p.a. However the same is being suitably defended by the company.

i) Mr. Sureshchandra Ram Sakha has filed a case against the Company in the Labour Court at Silvassa for a claim of Rs.3,80,706/-. However the same is being suitably defended by the company.

j) Recron Synthetics Limited has filed case against the Company before the High Court, Mumbai for a claim of Rs.4,49,38,266/- and interest thereon Rs.2,99,41,821/- and other claims of Rs.32,,87,546/-. However the same is being suitably defended by the company.

In all above cases the company has not accepted liability and also contested by the company. Directors have decided not make provision for the same.

F)CENVAT

Cenvet benefits is accounted on accrual basis on purchase of material and appropriated against payment of Excise Duty on clearance of finished goods.

G) TAXES ON INCOME

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred Tax is recognized, on timing differences, being the difference between taxable incomes and accounting income that originate I one year and are capable of reversal in one or more subsequent year.

H) SEGMENT REPORTING -

Segment has been identified in line with the AS - 17, taking into account the organization structure as well as the differing risks and returns. The business segment is disclosed as primary segment.

I) IMPAIRMENT LOSS

Impairment loss is provided to the extent the earring amounts of assets exceed their recoverable amounts. Recoverable amount is higher of an assets net selling price and its value in use. Value in use is the present value of estimated future cash flow expected to arise from the continuing use of the asset and from its disposal at the end of its useful life. Net selling price is the amount obtainable from the sale of the asset in an arm length transaction between knowledgeable, willing parties, less the cost of disposal.

 
Subscribe now to get personal finance updates in your inbox!