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Accounting Policies of Solid Containers Ltd. Company

Mar 31, 2014

(i) Basis of preparation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principle in India (Indian GAAP). The company has prepared these financial statements to comply in all material respect with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provision of the Companies Act, 1956 read with General Circular 8/2014 dated 4 April 2014, issued by the Ministry of Corporate Affairs. The financial statements have been prepared on an accrual basis and under the historical cost convention (except for revaluation of land). The accounting policies adopted in the preparation of financial statement are consistent with those of previous year.

(ii) Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from these estimates. The difference between the actual results and estimates are recognized in the period in which the results are known/materialised.

(iii) Tangible Fixed Assets

Fixed Assets are stated at original cost of acquisition/installation net off less accumulated depreciation except land which is carried at revalued cost including lease premium. The cost of fixed assets includes taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets including financial expenses incurred during pre-operative and trial runs period.

(iv) Depreciation tangible assets

a) Depreciation on tangible fixed assets is provided on straight line method at the rates specified in Schedule XIV to the Companies Act, 1956.

b) Premium on Leasehold Improvements are amortized over the period of Lease.

(v) Impairment of Tangible Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and value in use determined by the present value of estimated future cash flows. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired.

(vi) Revenue Recognition

Income and Expenditure are accounted on accrual basis.

(vii) Retirement Benefits

a) Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

b) Post employment and other long term benefits are recognised as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the Statement of Profit and Loss.

(viii) Accounting for Taxes on Income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

(ix) Operating Leases

Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under operating leases are recognized as an expense on accrual basis in accordance with the respective lease agreements.

(x) Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti-dilutive.

(xi) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes forming part of the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.


Mar 31, 2013

(i) Basis of preparation

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention (except revaluation of the land) on an accrual basis and comply in all material aspects with accounting standards under section 211 (3C), Companies (Accounting Standards) Rules, 2006, the provisions of Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI).

(ii) Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from these estimates. The difference between the actual results and estimates are recognized in the period in which the results are known / materialized.

(iii) Tangible Fixed Assets

Fixed Assets are stated at original cost of acquisition / installation net off less accumulated depreciation except land which is carried at revalued cost including lease premium. The cost of fixed assets includes taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets including financial expenses incurred during pre-operative and trial runs period.

(iv) Depreciation

Depreciation is provided as per the Straight Line Method at the rates and in the manner specified in the Schedule XIV to the Companies Act, 1956.

(v) Impairment of Tangible Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and value in use determined by the present value of estimated future cash flows. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired.

(vi) Inventories

a) Inventories are valued at lower of cost or estimated net realizable value.

b) The basis of determining cost of inventories are as follows:

i) Stock of Raw materials, Stores and Spares : Cost on FIFO basis

ii) Finished goods / Goods in process : Includes an appropriate share of

manufacturing, other overheads and depreciation

c) Excise duty is added in the Closing Inventory of Finished Goods.

(vii) Retirement Benefits

a) Short term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

b) Post employment and other long term benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the Statement of Profit and Loss.

(viii) Accounting for Taxes on Income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

(ix) Operating Leases

Lease of assets under which all the risk and rewards of ownership are effectively retained by the less or are classified as operating leases. Lease payments under operating leases are recognized as an expense on accrual basis in accordance with the respective lease agreements.

(x) Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti-dilutive.

(xi) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes forming part of the financial statements. Contingent assets are neither recognized nor disclosed in the financial statements.


Mar 31, 2012

1. Corporate Information

Solid Containers Limited is a Company incorporated under the Companies Act, 1956.Operations of the Company have been suspended since September 1998 and the Company has been suffering losses.

2. Significant Accounting Policies:

(i) Basis of preparation

The financial statements are prepared in accordance with the Indian Generally Accepted Accounting Principles ("GAAP") under the historical cost convention (except revaluation of the land) on an accrual basis and comply in all material aspects with accounting standards under section 211(3C), Companies (Accounting Standards) Rules, 2006, the provisions of Companies Act, 1956 and guidelines issued by the Securities and Exchange Board of India (SEBI).

(ii) Use of Estimates

The preparation of financial statements requires the management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as of the date of financial statements and the reported amount of revenue and expenses of the year. Actual results could differ from these estimates. The difference between the actual results and estimates are recognized in the period in which the results are known / materialised.

(iii) Tangible Fixed Assets

Fixed Assets are stated at.original cost of acquisition / installation net off less accumulated depreciation except land which is carried at cost including lease premium. The cost of fixed assets includes taxes, duties, freight and other incidental expenses related to the acquisition and installation of the respective assets including financial expenses incurred during pre- operative and trial runs period. -

(iv) Depreciation

Depreciation is provided as per the Straight Line Method at the rates and in the manner specified in the Schedule XIV to the Companies Act, 1956.

(v) Impairment of Tangible Assets

If the carrying amount of fixed assets exceeds the recoverable amount on the reporting date, the carrying amount is reduced to the recoverable amount. The recoverable amount is measured as the higher of the net selling price and value in use determined by the present value of estimated future cash flows. An impairment loss is charged to the statement of profit and loss in the year in which an asset is identified as impaired.

(v) Inventories

a) Inventories are valued at lower of cost or estimated net realizable value.

b) The basis of determining cost of inventories are as follows:

i) Stock of Raw materials, Stores and Spares : Cost on FIFO basis

ii) Finished goods/ Goods in process : Includes an appropriate share of manufacturing, other overheads and depreciation

c) Excise duty is added in the Closing Inventory of Finished Goods.

(vi) Retirement Benefits

a) Short term employee benefits are recognised as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

b) Post employment and other long term benefits are recognised as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the Statement of Profit and Loss.

(vii) Accounting for Taxes on Income

a) Current tax is determined as the amount of tax payable in respect of taxable income for the year.

b) Deferred tax is recognised, subject to the consideration of prudence, on timing differences, being the difference between taxable income and accounting income that originates in one period and are capable of reversal in one or more subsequent periods and measured using relevant enacted tax rates.

(viii) Operating Leases

Lease of assets under which all the risk and rewards of ownership are effectively retained by the lessor are classified as operating leases. Lease payments under operating leases are recognized as an expense on accrual basis in accordance with the respective lease agreements.

(ix) Earnings per share

Basic earnings per share is computed and disclosed using the weighted average number of common shares outstanding during the year. Dilutive earnings per share is computed and disclosed using the weighted average number of common and dilutive common equivalent shares outstanding during the year, except when the results would be anti-dilutive.

(x) Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes forming part of the financial statements. Contingent assets are neither recognised nor disclosed in the financial statements.

c. Terms / right attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. All issued shares rank pari-passu and have same voting rights per share. The company declares and pays dividend in Indian Rupees. The final dividend proposed by the Board of Directors is subject to the approval Of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

d. Terms / right attached to Redeemable Cumulative Preference Shares

(i) 8,000,000 (5,000,000) 12% Redeemable Cumulative Preference shares of Rs. 10/- each fully paid up (alloted on 19 August 1999) are redeemable at any time after the expiry of three years from the date of allotment with prior approval of the financial institutions or even before three years from the date of allotment provided that the Company settles its dues with the financial institutions.These shares are yet to be redeemed by the company. ;

(ii) 6,000,000 (6,000,000) 9% Redeemable Cumulative Preference shares of Rs. 10/- each fully paid up (alloted on 12 September 2002) are redeemable at any time after the expiry of three years from the date of allotment with prior approval of the financial institutions or even before three years from the date of allotment provided that-the Company settles its dues with the financial institutions.These shares are yet to be redeemed by the company


Mar 31, 2010

A. System of Accounting:

i. These accounts have been prepared under the historical cost except the revaluation of the land.

ii. The company follows accrual system of accounting and recognizes income and expenditure on accrual basis except those with significant uncertainties.

b. Fixed Assets:

Fixed Assets are stated at cost less depreciation. Cost comprises of cost of acquisition, construction, erection, all direct expenses, expenses incidental to implementation of project including financial expenses incurred during pre-operative and trial runs period.

c. Depreciation:

Depreciation is provided as per the Straight Line Method at the rates and in the manner specified in the Schedule XIV to the Companies Act, 1956.

d. Inventories:

i. Inventories are valued at cost or net realizable value.

ii. The basis of determining cost of inventories are as follows:

a) Stock of Raw materials, Stores and Spares : Cost on FIFO basis

b) Finished goods/ Goods in process : Includes an appropriate share of manufacturing, other overheads and depreciation.

e. Retirement Benefits:

i. Short term employee benefits are recognised as an expense at the undiscounted amount in the Profit and Loss account of the year in which the related service is rendered.

ii. Post employment and other long term benefits are recognised as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the Profit and Loss account.

f. Accounting for Taxes on Income

Tax liability of the company is estimated considering the provisions of the Income Tax Act, 1961. Deferred tax is recognized subject to the consideration of prudence, on timing differences in respect of differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

g. Operating Leases:

Lease on assets under which all the risk and rewards of ownership are effectively retained by the lessor are classified as operating (ease. Lease payments under operating leases are recognized as expenses on accrual basis in accordance with the respective lease agreements.

 
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