Accounting Policies of Sumeru Industries Ltd. Company

Mar 31, 2015

1) Basis of Preparation of Financial Statements:-

The financial statements have been prepared to comply in ail material respects with applicable Accounting Standards issued by the Institute of Chartered Accountants of India. The financial statements have been prepared under the historical cost convention on an accrual basis of accounting, in accordance with applicable mandatory accounting standards prescribed under the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013.

2) Use of Estimates:-

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3) Revenue Recognition:-

Sales of products and services (net of service tax) are recognized when significant risks and rewards of ownership of products are passed on to customers or when the service has been provided. Dividend income is recognized when the right to receive dividend is established.

4) Inventories:-

Finished goods inventories are stated at lower of cost and net realizable value, as certified by the management.

5) Fixed Assets:-

Fixed assets are stated at the cost of acquisition less accumulated depreciation and impairment losses, if any. Cost of fixed assets comprises purchase price, duties, levies and any directly attributable cost of bringing the asset to its working condition for the intended use. Borrowing costs related to the acquisition or construction of the qualifying assets for the period up to the completion of their acquisition or construction is capitalized.

6) Depreciation/Amortization:-

Pursuant to the enactment of the Companies Act, 2013 (the Act), the Company has, effective from 1 April, 2014,reassessed the useful life of its fixed assets and has computed depreciation with reference to the useful life of assets as recommended in Schedule II to the Act.

7) Investments:-

Investments that are readily realizable and intended to be held for not more than a yea rare classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

8) Provision, Contingent Liabilities and Contingent Assets: -

Provisions comprise liabilities of uncertain timing or amount. Provisions are recognized when there is a present obligation as a result of past events and it is probabie that there will be an outflow of resources.

Contingent liabilities are disclosed by way of Notes to Accounts. Contingent assets are not recognized in the financial statements.

9) Taxation:-

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits. Minimum Alternate Tax (MAT) Credit is recognized as assets only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the profit and loss account and shown as MAT credit entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT.

Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

10) Segmentreporting:- Identification of segments:

The Company's operating businesses are organized and managed according to the nature of products and predominant source of the risk for the Company is business product, therefore business segment has been considered as primary segment. The analysis of geographical segments is based on the areas in which the Company operates.

Segment policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

11) Earning per share:-

Basic earnings per share are calculated by diving the net profit or loss for the period attributable to equity shareholders after deducting preference dividends and attributable taxes by the weighted average number ot equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.

12) Impairment:-

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 assets' net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. For the purpose of accounting of impairment, due consideration is given to revaluation reserve, if any. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful lives.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

13) Borrowing costs:-

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

14) Leases

Leases, where the lessor retains substantially all the risks and rewards incidental to the ownership are classified as operating leases. Operating lease payments are recognized as an expense in Profit and Loss account on Straight Line basis over the lease term.

15) Employee benefits:-

Retirement benefits in the form of Provident Fund contributed to Statutory Provident Fund is a defined contribution scheme and the payments are charged to the Profit and Loss Account of the year when the payments to the respective funds are due. Superannuation Fund and Employees'State Insurance Corporation (ESIC) are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the year when the contri butions to the respective funds are due.

The company does not have gratuity Liability.

16) Foreign Currency Transactions: -

Transactions in foreign currencies 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.

17) Project Development Expenses Pending Adjustment

Expenditure incurred during development and preliminary stages of the Company's new projects are carried forward. However, if any project is abandoned, the expenditure relevant to such project is written off through the natural heads of expenses in the year in which it is so abandoned.

18) Other Accounting Policies:-

These are consistent with the generally accepted accounting practices. Accounting standards which are not applicable are not reported.

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Mar 31, 2013

1) Basis of preparations of financial statements;-

The financial statements have been prepared to comply in all material respects with applicable Accounting standards'' issued by the institute of Chartered Accountants of India The financial statements have been prepared under the historical cost convention on an accrual basis of accounting in accordance with applicable mandatory accounting standards prescribed under the companies (Accounting standards) Rules 2006 and the relevant provisions of the companies Act,1956.

2) Use of Estimates:-

The preparation of financial statements in conformity with generally accepted accounting principles Requires managements to make estimates and assumptions that affect the repeated amounts of assets and liability and the disclosure of contingent liability as at the date of the financial statements and reported amounts of revenues and expresses during the reporting period Actual results could differ from these estimates Any revision to according estimates is recognized prospectively in current and future periods.

3) Revenue Recognition:-

Sales of products and services (net of service tax ) are recognized when significant risks and rewards of ownership of products are passed on to customers or when the service has been provided income is recognized when the right to receive divided is established.

6) Depreciation/Amortization:-

Depreciation on assets is provided on the straight line method at the rates manner prescribed in schedule XIV to the companies Act,1956 which management considers as being representative of useful economic lives of such assets.

7) Investments;-

Investments that are readily realizable and interred to be held for not than a year are classified as current investments All other investments are classified as long term investments current carried at lower of cost and fair value long term investments are carried at cost However proven for diminution in value is made to recognize a decline other than temporary in the value of the investments.

8) Provision contingent Liabilities contingent Assets.

Provisions comprise liabilities of uncertain timing or amount provisions are recognized when there is a present obligations as a result of past events and it is probable that there will be on outflow of resources.

Contingent liabilities are disclosed by way of Notes to Accounts

Contingent assets are not recognized in the financial statements.

9) Taxation;-

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income -tax Act,19561 Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Minimum Alternate Tax (MAT) Credit is recognized as assets only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period in the year in which MAT credit note issued by the institute of shown as MAT credit entitlement The company reviews the same at each balance sheet date and writes down the carrying amount of MAT.

Credit Entitlement to the extent there is no longer convincing evidence to the effect that company will pay normal income tax during the specified period.

10) Segment reporting;-

Identification of segments

The company''s operating business are organized and managed according to the nature of products and predominates source of the risk for the company is business product therefore business segment has been considered as primary segment the analysis of geographical segments is based on the areas in which the

11) Earnings per share;-

For the purpose of calculating diluted per share the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares if any.

12) Impairment;-

The carrying amounts of sets are reviewed at each balances sheet date if there is any indication of impairment based on internal/external factors An impairment loss is recognized where the carrying amount of an assets revelation reserve if any after impairment depreciation is provided on the revised carrying amount of the assets over its remaining useful lives.

13) Borrowing costs;-

Borrowing costs directly attributable to the acquisition construction or production of an assets that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets All other borrowing costs are expensed in the period they occur. Borrowing costs consist of internet and other costs that an entity incurs in connection with the borrowing of funds.

14) Leases;- N.A

15) employee BENEFITS;-

RETIREMENT BENEFITS IN THE FROM OF PROVIDENT fund contributed to statutory provident fund is a defined contribution scheme and the payments are charged to the profit and loss Account of the year when the payments to the respective funds are due. There are no obligations for contribution payable to provided Fund Authorities.,

Superannuation fund and Employees state Insurance corporation (ESIC) are defined contribution schemes and the contributions to the respective funds are due there are no other obligations for the contributions payable to the respective funds.

17) Project Development Expenses pending Adjustment

Expenditure incurred during development and preliminary stages of the company''s new projects are carried forward However if any project is abandoned the expenditure relevant to such project is written off through the natural heads of expenses in the year in which it is o abandoned.

18) Other Accounting policies;-

These are consistent with the generally accepted accounting practices ACCOUNTING STANDARDS WHICH ARE NOT APPLICABLE ARE NOT REPORTED.

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Mar 31, 2011

1) Basis of Preparation of Financial Statements:-

The financial statements have been prepared to comply in ail material respects with applicable Accounting Star issued by the Institute of Chartered Accountants of India. The financial statements have been prepared und historical cost convention on an accrual basis of accounting, in accordance with applicable mandatory accounting standards prescribed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions Companies Act, 1956.

2) Use of Estimates:-

The preparation of financial statements in conformity with generally accepted accounting principles re management to make estimates and assumptions that affect the reported amounts of assets and liabilities are disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenue expenses during the reporting period. Actual results could differ from these estimates. Any revision to accord estimates is recognized prospectively in current and future periods.

3) Revenue Recognition:-

Sales of products and services (net of service tax) are recognized when significant risks and rewards of own* or products are passed on to customers or when the service has been provided. Dividend income is recognized when the right to receive dividend is established. Interest income is recognized on the time proportion method.

4) Inventories:-

Finished goods inventories are stated at lower of cost and net realizable value, as certified by the management

5) Fixed Assets:-

Fixed assets are stated it the cost of acquisition less accumulated depreciation and impairment losses if any of fixed assets comprises purchase price, duties, levies and any directly attributable cost of bringing the as its working condition for the intended use. Borrowing costs related to the acquisition or construction of the quall assets for the period up to the completion of their acquisition or construction is capitalized.

6) Depreciation/Amortization: -

Depreciation on assets is provided on the straight line method at the rates and in the manner prescribes Schedule XIV to the Companies Act, 1956, which management considers as being representative of useful decor lives of such assets.

7) Investments:-

Investments that are readily realizable and intended to be held for not more than a year are classified as a investments. All other investments are classified as long-term investments. Current investments are carried lower of cost and fair value. Long-term investments are carried at cost. However, provision for diminution in is made to recognize a decline other than temporary in the value of the investments.

8) Provision, Contingent Liabilities and Contingent Assets:-

Provisions comprise liabilities of uncertain timing or amount. Provisions are recognized when there is a pr obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent liabilities are disclosed by way of Notes to Accounts. Contingent assets are not recognized in the financial statements.

9) Taxation: -

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to setoff current tax assets against current tax liabilities and taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, ail deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

Minimum Alternate Tax (MAT) Credit is recognized as an assets only when and to the extent theres convincing evidence that the company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained 'n Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the profit and loss account and shown as MAT credit entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

10) Segment reporting:- Identification of segments:

The Company's operating businesses are organized and managed according to the nature of products and predominant source of the risk for the Company is business product, therefore business segment has; been considered as primary segment. The analysis of geographical segments is based on the areas in which the Company operates.

Segment policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

11) Earning per shares- Basic earnings per share are calculated by diving the net profit or loss for the period attributable to equity shareholders after deducting preference dividends and attributable taxes by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.

12) Impairment:-

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 assets' net selling price and value in use In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. For the purpose of accounting of impairment, due consideration is given to revaluation reserve, if any. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful lives. A previously recognized impairment loss is increased or reversed depending on changes in circumstances However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

13) Borrowing costs:-

Borrowing costs directly to the acquisition, construction or production of an asset that necessary Takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed In the period they occur. Borrowing costs consist interest and other costs that an entity incurs in connection with the borrowing of funds.

14) Leases:- N.A.

15) Employee benefits:-

Retirement benefits in the form of Provident Fund contributed to Statutory Provident Fund is a defined contribute. Scheme and the Payments are charged to the Profit and Loss Account of the year when the to the respects funds are due. There are no obligations for contribution payable to Provident Fund Authorities. Superannuation Fund and Employees state Insurance Corporation (ESIC) are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the year when the contribute to the respected funds are due. There are no other obligations for the contribution payable to the respective funds. The company does not have gratuity Liability.

16) Foreign Currency Transactions:- N.A.

17) Project Development Expenses Pending Adjustment

Expenditure incurred during development and preliminary stages of the Company's new projects are carried forward. However, if any project is abandoned, the expenditure relevant to such Project is written off though the natural heads of expenses in the year in which it is so abandoned.

18) Other Accounting Policies:- These are consistent with the generally accepted accounting practices. Accounting standards which are in applicable are not reports.

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Mar 31, 2010

1) Basis of Preparation of Financial Statements:-

The financial statements have been prepared to comply in all material respects with applicable Accounting Standards issued by the Institute of Chartered Accountants of India. The financial statements have been prepared under the historical cost convention on an accrual basis of accounting, in accordance with applicable mandatory accounting standards prescribed under the Companies (Accounting Standards) Rules, 2006 and the relevant provisions of the Companies Act, 1956.

2) Use of Estimates:-

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively in current and future periods.

3) Revenue Recognition:-

Sales of products and services (net of service tax) are recognized when significant risks and rewards of ownership of products are passed on to customers or when the service has been provided.

Dividend income is recognized when the right to receive dividend is established.

Interest income is recognized on the time proportion method.

4) Inventories:-

Finished goods inventories are stated at lower of cost and net realizable value, as certified by the management.

5) Fixed Assets:-

Fixed assets are stated at the cost of acquisition less accumulated depreciation and impairment losses, if any. Cost of fixed assets comprises purchase price, duties, levies and any directly attributable cost of bringing the asset to its working condition for the intended use. Borrowing costs related to the acquisition or construction of the qualifying assets for the period up to the completion of their acquisition or construction is capitalized.

6) Depreciation/Amortization:-

Depreciation on assets is provided on the straight line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956, which management considers as being representative of useful economic lives of such assets.

7) Investments:-

Investments that are readily realizable and intended to be held for not more than a year are classified as current investments. All other investments are classified as long-term investments. Current investments are carried at lower of cost and fair value. Long-term investments are carried at cost. However, provision for diminution in value is made to recognize a decline other than temporary in the value of the investments.

8) Provision, Contingent Liabilities and Contingent Assets:-

Provisions comprise liabilities of uncertain timing or amount. Provisions 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 disclosed by way of Notes to Accounts.

Contingent assets are not recognized in the financial statements.

9) Taxation:-

Tax expense comprises of current and deferred tax. Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income-tax Act, 1961. Deferred income taxes reflect the impact of current year timing differences between taxable income and accounting income for the year and reversal of timing differences of earlier years.

Deferred tax is measured based on the tax rates and the tax laws enacted or substantively enacted at the balance sheet date. Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to the taxes on income levied by same governing taxation laws. Deferred tax assets are recognized only to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized. In situations where the company has unabsorbed depreciation or carry forward tax losses, all deferred tax assets are recognized only if there is virtual certainty supported by convincing evidence that they can be realized against future taxable profits.

Minimum Alternate Tax (MAT) Credit is recognized as an assets only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which MAT credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the profit and loss account and shown as MAT credit entitlement. The company reviews the same at each balance sheet date and writes down the carrying amount of MAT.

Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

10) Segment reporting:- Identification of segments:

The Companys operating businesses are organized and managed according to the nature of products and predominant source of the risk for the Company is business product, therefore business segment has been considered as primary segment. The analysis of geographical segments is based on the areas in which the Company operates.

Segment policies:

The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

11) Earning per share:-

Basic earnings per share are calculated by diving the net profit or loss for the period attributable to equity shareholders after deducting preference dividends and attributable taxes by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earning per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.

12) Impairment:-

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 assets net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value at the weighted average cost of capital. For the purpose of accounting of impairment, due consideration is given to revaluation reserve, if any. After impairment, depreciation is provided on the revised carrying amount of the assets over its remaining useful lives.

A previously recognized impairment loss is increased or reversed depending on changes in circumstances. However the carrying value after reversal is not increased beyond the carrying value that would have prevailed by charging usual depreciation if there was no impairment.

13) Borrowing costs:-

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

14) Leases:- N.A.

15) Employee benefits:-

Retirement benefits in the form of Provident Fund contributed to Statutory Provident Fund is a defined contribution scheme and the payments are charged to the Profit and Loss Account of the year when the payments to the respective funds are due. There are no obligations for contribution payable to Provident Fund Authorities.

Superannuation Fund and Employees State Insurance Corporation (ESIC) are defined contribution schemes and the contributions are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due. There are no other obligations for the contribution payable to the respective funds.

The company does not have gratuity Liability.

16) Foreign Currency Transactions:- N.A.

17) Project Development Expenses Pending Adjustment

Expenditure incurred during development and preliminary stages of the Companys new projects are carried forward. However, if any project is abandoned, the expenditure relevant to such project is written off through the natural heads of expenses in the year in which it is so abandoned.

18) Other Accounting Policies:-

These are consistent with the generally accepted accounting practices.