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Accounting Policies of Shree Ajit Pulp & Paper Ltd. Company

Mar 31, 2015

A) Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013 ("the 2013Act") /CompaniesAct, 1956 ("the 1956Act"), as applicable. The financial statements have been prepared on accrual basis under the historical cost convention. The accounting policies adopted in the preparation of the financial statements are consistent with those followed in the previous year.

b) Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known/materialise.

c) Inventories

Inventories are valued at the lower of cost (on weighted average basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

d) Depreciation and amortization (Refer note 11.3)

Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation on tangible fixed assets has been provided on the straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013.

Leasehold land is amortised over the duration of the lease.

Intangible assets are amortised over their estimated useful life.

The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation period is revised to reflect the changed pattern, if any.

e) Revenue recognition

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the dispatch of goods to customers.

Sales include excise duty but exclude sales tax and value added tax.

Income from electricity units generated by windmills is accounted as income from wind mills at landed cost and has been shown as such in the Statement of Profit and Loss.

f) Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

g) Fixed Assets (Tangible/Intangible)

Fixed assets are carried at cost less accumulated depreciation / amortisation and impairment losses, if any. The cost of fixed assets comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, other incidental expenses and interest on borrowings attributable to acquisition of qualifying fixed assets up to the date the asset is ready for its i ntended use.

h) Foreign currency transactions and translations

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on the date of the transaction or at rates that closely approximate the rate at the date of the transaction.

Foreign currency monetary items of the Company, outstanding at the balance sheet date are restated at the year-end rates. Non-monetary items of the Company are carried at historical cost.

Exchange differences arising on settlement/ restatement of short-term foreign currency monetary assets and liabilities of the Company are recognised as income or expense in the Statement of Profit and Loss.

i) Investments

Long-term investments are carried individually at costless provision for diminution, other than temporary, in the value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost of investments include acquisition charges such as brokerage, fees and duties.

j) Employee benefits

Employee benefits include provident fund, employee state insurance scheme, gratuity and compensated absences.

Defined contribution plans

The Company's contribution to provident fund and employee state insurance scheme are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plans

For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using the Projected Unit Credit method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in the Statement of Profit and Loss in the period in which they occur. Past service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Sheet represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost.

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service. These benefits include compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(i) in case of accumulated compensated absences, when employees render the services that increase their entitlement of future compensated absences; and

(ii) in case of non-accumulating compensated absences, when the absences occur.

Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation as at the balance sheet date.

k) Borrowing costs

Borrowing costs include interest, and amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset are is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

l) Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit / loss amounts are evaluated regularly by the executive Management in deciding howto allocate resources and in assessing performance.

Under the primary segment there are two reportable segments viz., Paper and Power generation by Windmills. These were identified considering the nature of the products, the different risks and return.

The Company caters mainly to the needs of the domestic market and thus there are no reportable geographical segments.

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on reasonable basis have been included under"unallocated revenue / expenses / assets / liabilities".

m) Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance with the applicable tax rates and the provisions of the Income Tax Act, 1961 and other applicable tax laws.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is highly probable that future economic benefit associated with it will flow to the Company.

Deferred tax is recognised on timing differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of items other than unabsorbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised.

However, if there are unabsorbed depreciation and carryforward of losses and items relating to capital losses, deferred tax assets are recognised only if there is virtual certainty supported by convincing evidence that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

Current and deferred tax relating to items directly recognised in reserves are recognised in reserves and not in the Statement of Profit and Loss.

n) Impairment of assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

o) Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made. Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.




Mar 31, 2014

A) Basis of accounting and preparation of financial statements

The financial statements of the Company have been prepared In accordance with the Generally Accepted Accounting Principles in India (Indian GAAP) to comply with the Accounting Standards notified under Section 211(3U) ol I ho Companies Act, 1956 ("the 1956 Act") (which continue to bo applicable in respect of Section 133 of the Companies Acl, 2013 ("the 2013 Act") in terms of General Circular 15/2013 dated 13"' September, 2013 oftho Ministry of Corporate Affairs) and the relevant provisions of the 1956 Act/ 2013 Act, as applicable, The financial statements have boon prepared on accrual basis under the historical cost convention. The accounting policies adopted in the prep am lion of the financial statements are consistent with those followed in the previous year.

b) Use of Estimates

The preparation of the financial statements in conformity wi Hi Indian GAAP requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (Including contingent liabilities) and the reported income and expenses during the year. The Management believes that the estimates used in preparation of Hie financial statements are prudent and reasonable. Future results could differ due to these estimates and the differoncoa between the actual results and the estimates are recognised in the periods in which Hie results are known/malerialiso.

c) Inventories

Inventories are valued at the lower of cost (on FIFO basis) and the net realisable value after providing for obsolescence and other losses, where considered necessary. Cost includes all charges in bringing the goods to the point of sale. Work-in-progress and finished goods include appropriate proportion of overheads and, where applicable, excise duty.

d) Depreciation and amortization

Depreciation has been provided on the straight-line method as per the rates prescribed in Schedule XIV to the Companies Act, 1956 except in respect of the following categories of assets, in whose case the life of the assets has boon assessed as under:

Cellular handsets - 4 years Waste paper godown - 5 years Assets costing less than 5,000 each are fully depreciated in the year of capitalization.

Cost of leasehold land including premium is amortized over the primary period of lease, intangible assets are amortised over their estimated useful life.

The estimated useful life of the intangible assets and the amortisation period are reviewed at the end of each financial year and the amortisation method is revised to reflect the changed pattern.

e) Revenue recognition

Sales are recognised, net of returns and trade discounts, on transfer of significant risks and rewards of ownership to the buyer, which generally coincides with the dispatch of goods to customers. Sales include excise duty but exclude sales tax and value added tax.

Income from electricity units generated by windmills is accounted as income from wind mills at landed cost and has been shown as such in the Statement of Profit and Loss.

f) Other income

Interest income is accounted on accrual basis. Dividend income is accounted for when the right to receive it is established.

g) Fixed Assets (Tangible / Intangible) .

Fixed assets are carried at cost less accumulated depreciation / amortisation and impairment losses, II any, The coal of fixed assets comprises ils purchase price nel of any trade discounts and rebates, any Import duties unit olho r Iumuii {oilier than those subsequently recoverable from the tax authorities), any directly attributable oxpoi H.lllum on milking the asset ready for ils intended use, other incidental expenses and interest on borrowings attributable to acquis Ilian of qualifying fixed assets up to the date the asset is ready for Ils intended use.

h) Foreign currency transactions and translations

Transactions in foreign currencies entered into by the Company are accounted at the exchange rates prevailing on llio dale of the transaction or at rates that closely approximate the rale at the date of the transaction.

Foreign currency monetary items of the Company, outstanding at the balance shoot dale are restated at the yeani-oi u.f rates. Non-monelary items of the Company are carried at historical cost.

Exchange differences arising on settlement / restatement of short-term foreign currency monetary assets and lie bullion of the Company are recognised as income nr expense in the Statement of Profit and Loss.

i) Investments

Long-term investments are carried individually at cost loss provision for diminution, oilier than temporary, in (he value of such investments. Current investments are carried individually, at the lower of cost and fair value. Cost oflnveslmonls includes acquisition charges such as brokerage, foes and duties.

j) Employee benefits

Employee benefits include provident fund,employee slate insurance scheme, gratuity and compensated absence)!-), Defined contribution plans

The Company's contribution to provident fund and employee state insurance scheme are considered ns defined contribution plans and are charged as an expense based on lire amount of contribution required to be made and when services are rendered by the employees.

Defined benefit plans

For defined benefit plans in the form of gratuity, the cost of providing benefits is determined using I he Projected Unit : Credit method, with actuarial valuations being carried oul at each balance sheet date. Actuarial gains and losses aro recognised in the Statement of Profit and Loss in the period in which they occur. Pas! service cost is recognised immediately to the extent that the benefits are already vested and otherwise is amortised on a straight-line basis ovor the average period until the benefits become vested. The retirement benefit obligation recognised in the Balance Shod represents the present value of the defined benefit obligation as adjusted for unrecognised past service cost.

Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised during the year when the employees render the service, These benefits include compensated absences which are expected to occur within twelve months after the end of the period in which the employee renders the related service.

The cost of short-term compensated absences is accounted as under:

(i) in case of accumulated compensated absences, when employees renderthe services that increase their entitlement of future compensated absences; and

(ii) in case of non-accumulating compensated absences, when the absences occur.

Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related service are recognised as a liability at the present value of the defined benefit obligation : as at the balance sheet date."

k) Borrowing costs

Borrowing costs include interest, and amortisation of ancillary costs incurred. Costs in connection with the borrowing of funds to the extent not directly related to the acquisition of qualifying assets are charged to the Statement of Profit and Loss over the tenure of the loan. Borrowing costs, allocated to and utilised for qualifying assets, pertaining to the period from commencement of activities relating to construction / development of the qualifying asset upto the date of capitalisation of such asset are is added to the cost of the assets. Capitalisation of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted.

l) Segment reporting

The Company idealities primary segments based on the dominant source, nature of risks and returns and the Inlornnl organisation and management structure, The operating sogmonts are llio segments for which separate (Innnclnl information is available and for will'd) operating profit/toss amounts are ovaluate(regularly.eil regularly by the exoa.il I vo Management in deciding how to allocate resources and in assessing performance,

Under the primary segment there am two reportable segments viz., Paper and Power generation by Windmills. Those were identified considering the nature of the products, the different risks and return.

The Company caters mainly to the needs of the domestic markcl and thus them are no reportable geographical . segments. *

The accounting policies adopted for segment reporting am in lino with the accounting policies of llio Company. Sogmenl revenue, segment expenses, segment assets and segment liabilities have boon Identified to segments on llio basis of their relationship to the operating activities of the segment,

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to socjmonls on reasonable basis have been included under "unallocated revenue / expenses / assets / liabilities".

m) Taxes on income

Current tax is the amount of tax payable on the taxable income for the year as determined in accordance will) the provisions of the Income Tax Act, 1961.

Minimum Alternate Tax (MAT) paid in accordance with the lax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there Is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset. In the Balance Sheet when it is highly probable that future economic benefit associated with it will Now to the Company.

Deferred tax is recognised on liming differences, being the differences between the taxable income and the accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deterred lax liabilities are recognised for all timing differences. Deferred tax assets are recognised for timing differences of iloms other than unabosrbed depreciation and carry forward losses only to the extent that reasonable certainty exists that sufficient future taxable income will be available against which these can be realised. However, if there are unabsorbed depreciation and carryforward oflosses, deferred tax assets are recognised only if there is virtual certainly that there will be sufficient future taxable income available to realise the assets. Deferred tax assets and liabilities are offset it such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. Deferred tax assets are reviewed at each balance sheet date for their realisability.

n) Impairment of assets

The carrying values of assets / cash generating units at each balance sheet date are reviewed for impairment. If any indication of impairment exists, the recoverable amount of such assets is estimated and impairment is recognised, if the carrying amount of these assets exceeds their recoverable amount. The recoverable amount is the greater of the net selling price and their value in use. Value in use is arrived at by discounting the future cash flows to their present value based on an appropriate discount factor. When there is indication that an impairment loss recognised for an asset in earlier accounting periods no longer exists or may have decreased, such reversal of impairment loss is recognised in the Statement of Profit and Loss, except in case of revalued assets.

o) Provisions and contingencies

A provision is recognised when the Company has a present obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation in respect of which a reliable estimate can be made Provisions (excluding retirement benefits) are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date and adjusted to reflect the current best estimates. Contingent liabilities are disclosed in the Notes. Contingent assets are not recognised in the financial statements.


Mar 31, 2013

(a) Basis of Accounting

The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the Generally Accepted Accounting Principles, Accounting Standards notified under Section 211 (3C) of the Companies Act, 1956 and the relevant provisions thereof.

(b) Use of Estimates

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the result are known / materialized.

(c) Fixed Assets

Fixed Assets are stated at cost, net off recoverable taxes, less accumulated depreciation. All costs, including financing costs till commencement of commercial production are capitalized.

(d) Depreciation

Depreciation on fixed assets is provided on the Straight Line Method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956 except on cellular handsets and waste paper godown. Depreciation provided on the same @ 25% and @ 20 % on SLM basis respectively.

All individual items of fixed assets, where actual cost does not exceed Rs.50007- have been written off entirely in the year of acquisition.

Depreciation on fixed assets added/disposed off during the year is provided on pro-rata basis with respect to date of acquisition/ disposal. Cost of leasehold land including premium is amortized over the primary period of lease.

(e) Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is any indication of impairment based on internal/external factors. An impairment loss is recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre tax discount rate that reflects current market assessments of the time value of money and risk specific to the asset. After impairment, depreciation is provided on the revised carrying amount of the asset over its remaining useful life.

(f) Investments

Investments are stated at cost. Long term investments are carried at cost less provision for diminution other than temporary, if any, in value of such investments.

(g) Inventories

Finished stock is valued at the lower of cost or net realisable value. Finished goods include cost of raw material, labour, cost of conversion and other cost incurred in bringing inventories to their present location and condition. Cost of Finished Goods includes excise duty. Work in process is valued at cost.

Raw materials, fuel, packing materials, goods in transit and stores & spares are valued at landed cost or net realizable value which ever is less.

Cost of inventories is computed on FIFO basis. (h) Revenue Recognition

Revenue from sales of goods is recognized when significant risks and reward of ownership of goods have been passed to the buyer, which ordinarily coincide with the dispatch of goods to customer. Revenue recorded at invoice value, net off returns and discounts.

Income from electricity units generated by windmill is accounted as income from wind mill at landed cost and has been shown as such in the Profit and Loss account.

Interest income is recognized on time proportion basis.

Dividend Income is recognized when the right to receive is established.

(i) Foreign Currency Transactions

Transactions in foreign currencies are recorded at the exchange rate prevailing on the date of transaction. Foreign currency monetary assets & liabilities are restated at year end exchange rates. Exchange differences arising on the settlement of foreign currency monetary items or on reporting Company''s foreign currency monetary items at rates different from those at which they were initially recorded during the year or reported in the financial statement, are recognized as income or expenses in the year in which they arise. Non monetary foreign currency items are carried at the rate prevailing on the date of the transaction.

(j) Provision, Contingent Liabilities and Contingent Assets

A provision is recognized when the company has a present obligation as a result of a past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are not discounted to its present value and determined based on best estimate required to settle the obligation at the Balance Sheet date.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

A disclosure of contingent liability is made when there is possible obligation or present obligation that may, but probably will not, require an outflow of resources. Where there is possible obligation or present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made.

Contingent Assets are neither recognized nor disclosed.

(k) Taxation

Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

Deferred tax for timing difference between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty evidence that these assets can be realized in future.

(I) Borrowing Cost

Borrowing costs that are directly attributable to the acquisition or construction of Qualifying Assets, which take substantial period of time to get ready for its intended use, are capitalized until the time all substantial activities necessary to prepare such assets for their intended use are complete. Other Borrowing costs are recognized as an expense in the year in which they are incurred.

(m) Segment Reporting

The Company identify business segment as the primary segment as per AS-17. Under the primary segment there are two reportable segments viz., Paper and Power generation by Windmills. These were identified considering the nature of the products, the different risks and return. The Company caters mainly to the needs of the domestic market and thus there are no reportable geographical segments.


Mar 31, 2011

(a) Basis of Accounting

The Financial Statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company. The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

(b) Fixed Assets

Fixed Assets are stated at cost, net off CENVAT, less accumulated depreciation. All costs, including financing costs till commencement of commercial production are capitalized.

(c) Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized for liabilities that can be measured only by using substantial degree of estimation, if

a) The company has a present obligation as a result of past event.

b) The probable outflow of resources is expected to settle the obligation, and

c) The amount of the obligation can be reliably estimated

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent Liability is disclosed in the case of;

a) A present obligation arising from a past event, when it is not probable that an outflow of resource will be required to settle the obligation.

b) A possible obligation, unless the probability of outflow of resource is remote. Contingent Assets are neither recognized nor disclosed.

Provision, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

(d) Impairment of Assets

Impairment is recognized to the extent that the recoverable amount of an asset is less than its carrying amount and is charged to the Profit and Loss account as prescribed by The Institute of Chartered Accountants of India in Accounting Standard 28 "Impairment of Assets".

(e) Depreciation

Depreciation on Fixed Assets is provided on the Straight Line Method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956 except on cellular handsets. Company has calculated depreciation on cellular handsets @ 25 X on SLM basis from current year. Depreciation on additions to assets during the year is provided on pro-rata basis.

(f) Investments

Investments are stated at cost. Provision is made to recognize diminution, other than temporary, in carrying amount of long term investments.

(g) Inventories

Finished and Semi-Finished stock is valued at the lower of cost or net realisable value. The cost of finished goods is determined on consistent basis, accepting the average direct and indirect expenses related to the production during the year. Raw materials, goods in transit and stores & spares are valued at landed cost or net realizable value which ever is less. The cost is determined on FIFO basis.

(h) Sales

Revenue from sales of goods are recognize upon passage of title to the customer which generally co inside with the delivery. Sales represent the amount receivables for goods sold including the value of Excise Duty, Sales Tax, Gujarat value added tax, and Transit Insurance Charges wherever applicable.

Income from Wind Mill

Income from electricity units generated by windmill is accounted as income from Wind Mill and has been shown as such in the Profit and Loss account.

(i) Foreign Currency Transactions

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. At the year-end, monetary items denominated in foreign currency are reported using the rate of exchange prevailing on the last day of year. Exchange difference arising on realization / payment of foreign exchange is accounted to the Profit & Loss Account in the year of realization/ payment.

(j) Amortization of Miscellaneous Expenditure

Preliminary and Share Issue Expenses are being written off in the year in which it is incurred as per the Accounting Standard 26 "Intangible Assets" issued by the Institute of Chartered Accountants of India.

Expenditure on leasehold land having period of 20 years has been written off over a period of 20 years.

(k) Provision for Gratuity and Leave Encashment

a) Company has created provision for Gratuity on the basis of actuary report which taking into account inter alia the provisions of Payment of Gratuity Act, the number of completed years of service as on Balance Sheet date.

b) Liability for leave encashment has been determined and accountanted for based on the number of days of en-cashable leave to the credit of each employee as on the balance sheet date, treating it as short term employees' benefit.

(I) Taxation

Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

Deferred tax for timing difference between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets are recognized to the extent there is convincing evidence that these assets can be realised in future.

(m) Segment Reporting '

The Company identify business segment as the primary segment as per AS-17. Under the primary segment there are two reportable segments viz., Paper and Power generation by Windmill. These were identified considering the nature of the products, the different risks and return.

The Company caters mainly to the needs of the domestic market and thus there are no reportable geographical segments.

(n) Use of Estimates

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the result are known / materialized.








Mar 31, 2010

(a) Basis of Accounting

The Financial Statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company The Company generally follows mercantile system of accounting and recognizes significant items of income and expenditure on accrual basis.

(b) Fixed Assets

Fixed Assets are stated at cost, net off CENVAT, less accumulated depreciation All costs, including financing costs till commencement of commercial production are capitalized

(c) Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized for liabilities that can be measured only by using substantial degree of estimation, if

a) The company has a present obligation as a result of past event.

b) The probable outflow of resources is expected to settle the obligation, and

c) The amount of the obligation can be reliably estimated

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent Liability is disclosed in the case of ;

i) A present obligation arising from a past event, when it is not probable that an outflow of resource will be required to settle the obligation

n) A possible obligation, unless the probability of outflow of resource is remote. Contingent Assets are neither recognized nor disclosed. Provision. Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date.

(d) Impairment of Assets

Impairment is recognized to the extent that the recoverable amount of an asset is less than its carrying amount and is charged to the Profit and Loss account as prescribed by The Institute of Chartered Accountants of India in Accounting Standard 28 "Impairment of Assets". The impairment loss recognized in prior accounting period is reversed, if there has been a change in the estimate of recoverable amount.

(e) Depreciation

Depreciation on Fixed Assets is provided on the Straight Line Method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions to assets during the year is provided on pro-rata basis.

(f) Investments

Investments are stated at cost. Provision is made to recognize diminution, other than temporary, in carrying amount of long term investments.

(g) Inventories- Finished and Semi-Finished stock is valued at the lower of cost or net realisable value. The cost of finished goods is determined on consistent basis, accepting the average direct and indirect expenses related to the production during the year. Raw materials, goods in transit and stores & spares are valued at landed cost or net realizable value which ever is less. The cost is determined on FIFO basis.

(h) Sales

Revenue from sales of goods are recognize upon passage of title to the customer which generally co inside with the delivery Sales represent the amount receivables for goods sold including the value of Excise Duty Sales Tax, Gujarat value added tax, and Transit

Insurance Charges wherever applicable.

Income from Wind Mill

Income from electricity units generated by windmill is accounted as income from Wind Mill and has been shown as such in the Profit and Loss account.

(i) Foreign Currency Transactions

Transactions in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. At the year-end. monetary items denominated in foreign currency are reported using the rate of exchange prevailing on the last day of year. Exchange difference arising on realization / payment of foreign exchange is accounted to the Profit & Loss Account in the year of realization/ payment

(j) Amortization of Miscellaneous Expenditure

Preliminary and Share Issue Expenses are being written off in the year in which it is incurred as per the Accounting Standard 26 Intangible Assets" issued by the Institute of Chartered Accountants of India. Expenditure on leasehold land having period of 20 years has been written off over a period of 20 years.

(k) Provision for Gratuity and Leave Encashment

a) Company has created provision for Gratuity on the basis of actuary report which taking into account inter alia the provisions of Payment of Gratuity Act, the number of completed years of service as on Balance Sheet date.

b) Liability for leave encashment has been determined and accountanted for based on the number of days of en-cashable leave to the credit of each employee as on the balance sheet date, treating it as short term employees benefit.

(l) Taxation

Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961

Deferred tax for timing difference between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets are recognized to the extent there is convincing evidence that these assets can be realised in future.

(m) Segment Reporting

The Company identify business segment as the primary segment as per AS-17. Under the primary segment there are two reportable segments viz., Paper and Power generation by Windmill. These were identified considering the nature of the products, the different risks and return.

The Company caters mainly to the needs of the domestic market and thus there are no reportable geographical segments (n) Use of Estimates

The presentation of financial statements requires estimates and assumption to be made that affect the reported amount of assets and liabilities on the date of the financial statement and the reported amount of revenue and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the result are known / materialized


Mar 31, 2003

[a] Basis of Accounting

The Financial Statements have been prepared under historical cost convention in accordance with the generally accepted accounting principles and the provisions of the Companies Act, 1956, as adopted consistently by the Company. The Company generally follows mercantile system of accounting and recognises significant items of income and expenditure on accrual basis.

[b] Fixed Assets

Fixed Assets are stated at cost, net of CENVAT, less accumulated depreciation. All costs, including financing costs till commencement of commercial production are capitalised.

[c] Depreciation

Depreciation on Fixed Assets is provided on the Straight Line Method at the rates and in manner prescribed in Schedule XIV to the Companies Act, 1956. Depreciation on additions to assets during the year is provided on pro- rata basis.

The method of providing depreciation on items of fixed Assets below Rs.5,000/- up to the last year was on pro-rata basis with respect to the date of the respective item put to use. During the year such item has been totally written of in the year it is put to use. This has resulted in higher Depreciation of Rs.32,010/- and profit for the year is lower by the same amount.

[d] Investments

Investments are stated at cost.

[e] Inventories

Finished and Semi-Finished stock is valued at the lower of cost or net realisable value. The cost of finished goods is determined on consistent basis, accepting the average direct and indirect expenses related to the production during the year. Raw materials, goods in transit and stores & spares are valued at cost.

[f] Sales

Sales represent the amount of receivables for goods sold including the value of Excise Duty, Sales Tax and Transit Insurance Charges wherever applicable.

[g] Foreign Currency Transactions

Transaction in Foreign Currency are recorded at the exchange rate prevailing on the date of transaction. At the year-end, monetary items denominated in foreign currency are reported using the rate of exchange prevailing on the last day of year. Exchange difference arising on realization / payment of foreign exchange are accounted to the Profit & Loss Account in the year of realization/ payment.

[h] Amortisation of Miscellaneous Expenditure

Preliminary and Share Issue Expenses are being amortised over a period of 10 years. The Deferred Revenue Expenditures are being amortised over a period of sixty months commencing from August 97, being the month of commencement of the commercial production.

[i] Provision for Gratuity and Leave Encasement

Provision for Gratuity and Leave Encasement has been made.

[j] Taxation

Provision for current tax is made in the accounts on the basis of estimated tax liability as per the applicable provisions of the Income Tax Act, 1961.

Deferred tax for timing difference between tax profits and book profits is accounted for using the tax rates and laws that have been enacted or substantially enacted as of the balance sheet date. Deferred tax assets are recognized to the extent there is reasonable certainty that these assets can be realised in future.

 
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