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Accounting Policies of Surya Industrial Corporation Ltd. Company

Mar 31, 2015

(a) Basis for Accounting

i) The financial statements are prepared under the historical cost convention on an accrual basis of accounting in accordance with the generally accepted Accounting principles, as per Section 211(3C) of the Companies Act, 1956 read with the General Circular 15/2013 dated 13th of September, 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013 and other Accounting Principles generally accepted in India.

ii) During the year the company has reclassified the previous year figures where ever found applicable.

(b) Revenue Recognition:

i) Revenue from sale of goods is recognized on transfer of ownership to the buyer. Sale of goods is recognized net of sales tax and value added tax.

ii) Revenue from services rendered is recognized on transfer of services to buyer.

(c) Investments:

Current Investment are stated at lower of cost or market value.

(d) Fixed Assets:

Fixed assets are stated at cost less accumulated depreciation. Cost of acquisition of fixed assets is inclusive of freight, duties, taxes and incidental expenses thereto.

(e) Provision for Current and Deferred Tax

i) Provision for current income tax has been made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961; however current tax liability is NIL due to past losses.

ii) Deferred Tax resulting from timing difference between taxable and accounting income has not been recognized due to uncertainty of profit in future.

(f) Contingent liabilities and commitments

Contingent liabilities and commitments have not been accounted for but have been disclosed by note if any.

(g) Excise Duty & Sales Tax

Excise Duty & Sales Tax liability was accounted for on the basis of Excise Duty & sales tax return filed by the company in the years where the company was in operation. Additional liabilities on finality of the assessment are being taken into account in the year of finalization. In the opinion of board of directors there was no such liability as on 31.03.2015.

(i) Earnings per Share:

The earning considered in ascertaining the company's earnings per share comprises net profit after tax. The number of shares used in computing basic earnings per share is the weighted average number of shares outstanding during the year.

(j) Gratuity:

No provision for gratuity has been made as no employee has put in qualifying period of service for entitlement of this benefit.

(k) Paid up amount on 30,02,100 forfeited Equity shares i.e. Rs. 1,50,10,500/- which have not been re-allotted have been shown under the head "Share Capital"


Mar 31, 2014

(a) Basis for Accounting

(I) 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.

(ii) During the year the company has reclassified the previous year figures whereever found applicable.

(b) Revenue Recognition

(I) Revenue from sale of goods is recognised on transfer of ownership to the buyer. Sale of goods is recognised net of sales tax and value added tax. However there are no such activity during the year.

(ii) Revenue from services rendered is recognised on transfer of services to buyer.

(c) Investments

Current Investment are stated at cost or market value whichever is less

(d) Provision for Current and Deferred Tax

(I) Provision for current income tax has been made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961., however current tax liability is NIL due to past losses.

(ii) Deferred Tax resulting from timing difference between taxable and accounting income and Deferred tax assets has not been recognised due to uncertainity of profit in future.

(e) Contingent liabilities and commitments

Contingent liabilities and commitments have not been accounted for but have been disclosed by note if any.

(f) Excise Duty & Sales Tax

Excise Duty & Sales Tax ability was accounted for on the basis of Excise Duty & sales tax return filed by the company in the years where the company was in operation. Additional liability on finality of the assess ment are being taken into account in the year of finalisation. In the opinion of board of directors there were no such liability as on 31.03.2014.

(g) Paid up amount on 3002100 forfeited Equity shares i.e. Rs.15010500/- which have not been re-allotted have been shown under the head "Share Capital"


Jun 30, 2013

(i) Revenue from sale of goods is recognised on transfer of ownership to the buyer. Sale of goods is recognised net of sales tax and value added tax. However there are no such activity during the year.

(ii) Revenue from services rendered is recognised on transfer of services to buyer.

(c) Fixed Assets

(i) Fixed Assets are stated at cost net of recoverable taxes less accumulated depreciation. All cost, including financing costs till commencement of commercial production attributable to fixed assets are capitalised.

(ii) The interest free security deposit paid to lessor of land Rs.3868200/- which had been shown under the head "Land" upto 30.06.2012 has been returned by lessors and they have paid compensation to company for Rs.2.30 crores on cancellation of lease of land.

(d) Depreciation and Amortisation

Depreciation on fixed assets has been provided using W.D.V. method at rates prescribed in Schedule XIV to the Companies Act, 1956

(e) Inventories

Inventories of the company have been valued as under -

(i) Finished goods/scrap : At market price

(ii) Work in progress : At estimated cost

(iii) Raw Material, stores, spares and consumable : At cost or market value whichever is less Cost of Inventories is generally ascertained on FIFO method taking into account cost of purchase and related overheads incurred in bringing them to their respective present location and condition. However there were no inventories as on 30.06.2013.

(f) Investments

(i) Long Term Investment are stated at cost minus provision for diminution other than temporary. However there are no such investment as at 30.06.2013.

(ii) Current Investment are stated at cost or market value whichever is less

(g) Employee Benefits

(i) Short term employee benefits are recognised as an expense in the profit and loss account of the year in which the related service is rendered.

(ii) There are no post employment and / or long term employee benefits or retirement benefit

(h) Provision for Current and Deferred Tax

(i) Provision for current income tax has been made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961., however current tax liability is NIL due to past losses.

(ii) Deferred Tax resulting from timing difference between taxable and accounting income and Deferred tax assets has not been recognised due to uncertainity of profit in future.

(i) Borrowing Costs

Borrowing costs are charged to profit and loss account. Amount paid to UPFC & PICUP under OTS over and above settled amount has been written off as interest paid to them.


Jun 30, 2012

(a) Basis for Accounting

(i) 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.

(ii) During the year, Revised schedule VI notified under the Companies Act, 1956 has become applicable to the company for preparation and presentation of its financial statements. The company has reclassified the previous year figures in accordance with the requirements applicable in the current year.

(b) Revenue Recognition

(i) Revenue from sale of goods is recognised on transfer of ownership to the buyer. Sale of goods is recognised net of sales tax and value added tax.

(ii) Revenue from services rendered is recognised on transfer of services to buyer.

(c) Fixed Assets

(i) Fixed Assets are stated at cost net of recoverable taxes less accumulated depreciation. All cost, including financing costs till commencement of commercial production attributable to fixed assets are capitalised.

(ii) The interest free security deposit paid to lessor of land Rs.3868200/- has been shown under the head "Land".

(d) Depreciation and Amortisation

Depreciation on fixed assets has been provided using W.D.V. method at rates prescribed in Schedule XIV to the Companies Act, 1956

(e) Inventories

Inventories of the company have been valued as under -

(i) Finished goods/scrap : At market price

(ii) Work in progress : At estimated cost

(iii) Raw Material, stores, spares and consumable : At cost or market value whichever is less

Cost of Inventories is generally ascertained on FIFO method taking into account cost of purchase and related overheads incurred in bringing them to their respective present location and condition.

(f) Investments

(i) Long Term Investment are stated at cost minus provision for diminution other than temporary

(ii) Current Investment are stated at cost or market value whichever is less

(g) Employee Benefits

(i) Short term employee benefits are recognised as an expense in the profit and loss account of the year in which the related service is rendered.

(ii) There are no post employment and / or long term employee benefits or retirement benefit

(h) Provision for Current and Deferred Tax

(i) Provision for current income tax has been made after taking into consideration benefits admissible under the provisions of the Income Tax Act, 1961., however current tax liability is NIL due to past losses.

(ii) Deferred Tax resulting from timing difference between taxable and accounting income and Deferred tax assets has not been recognised due to uncertainity of profit in future.

(i) Borrowing Costs

Borrowing costs are charged to profit and loss account

(j) Contingent liabilities and commitments

Contingent liabilities and commitments have not been accounted for but have been disclosed by note if any.

(k) Sales Tax

(i) Sales Tax liability was accounted for on the basis of sales tax return filed by the company in the years where the company was in operation. Additional liability on finality of the assessment are being taken into account in the year of finalisation.

(ii) With the amount of VAT purchase cost of material has been reduced.

(l) Paid up amount on 3002100 forfeited Equity shares i.e. Rs.15010500/- which have not been reallotted have been shown under the head "Share Capital".


Jun 30, 2011

A) Basis of accounting

The financial statements are prepared under historical cost convention, on a going concern basis and in accordance with the applicable accounting standards prescribed in the Companies (Accounting Standards) Rules, 2006 issued by the Central government, in consultation with the National Advisory Committee on Accounting Standards and relevant provisions of the Companies act, 1956 subject to the remark that Part of Plant & Machineries of tyre division have been sold resulting non-production of Automotive tyres and tubes in total but production on job work basis using balance of machineries is still going on. Besides this establishment of Lamination division is under active consideration. Considering realizable value of Land & Building which is more than liabilities of financial institutions directors are of the opinion that going concern basis is unaffected.

b) Revenue Recognition

All the items of cost/expenses and revenue/income have been accounted for on accrual basis, except insurance claims, which are accounted for on receipt basis in view of the uncertainty involved in ascertaining the final claim.

c) Fixed Assets and Depreciation

i) Fixed Assets have been stated at cost/revalued figures less depreciation on assets. Cost comprises the purchase price and any attributable cost of bringing the assets to working condition for its intended use including expenses and IDCP up to the date of commissioning of project. The fixed assets have been reduced by the modvat entitlement.

ii) The interest free security deposit paid to lesser of land Rs.3868200/- has been shown under the head "Land".

iii) The company has provided depreciation using WDV Method at rates prescribed by Schedule XIV to the Companies Act, 1956 on book values/WDV including increase due to revaluation. However additional depreciation for the year amounting to Rs.0.00 (Previous year Rs.6782.50) on increase in values of Fixed Assets due to revaluation has been transferred to profit & loss account from revaluation reserve created out of revaluation done on 30.09.1994. Revalued Portion on sold assets has been written off.

d) Inventories

Inventories of the company have been valued as under:

Finished Goods/Scrap At market price/Net realisable value whichever is less.

Raw Material At cost or market value whichever is less.

e) Investments

Long Term Investments have been valued at cost of acquisition after deducting provision, if any in cases where the fall in market value has been considered of permanent nature.

f) Sales Tax

i) Sales Tax liability was accounted for on the basis of sales tax return filed by the company in the years where the company was in operation. Additional liabilities on finality of the assessment are being taken into account in the year of finalisation.

ii) With the amount of VAT purchase cost of material has been reduced.

g) Excise Duty

Excise duty payable on finished goods and customs duty payable on raw materials, stores, spares and components are accounted for on clearance of goods from the factory premises/bonded warehouses, however there is no such activity during the year. h) Paid up amount on 3002100 forfeited Equity shares i.e. Rs. 15010500/- which have not been re-allotted have been shown under the head "Share Capital".

h) Contingent liabilities have not been accounted for

i) Taxes on Income

No Income Tax provision for the period has been made in the accounts due to losses incurred during the year. Deferred tax assets/liabilities has not been recognized considering the uncertainty of profits in future periods.

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