Accounting Policies of Sharda Ispat Ltd. Company

Mar 31, 2014

1.1 General:

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

1.2 The method of Accounting :

The Company maintains its accounts on accrual basis, unless otherwise stated.

1.3 Fixed Assets:

Fixed assets are stated at cost less depreciation. Interest on borrowings used during the period of construction is added to the cost of fixed assets. Cost includes purchase price, freight cost, installation cost and finance cost.

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 will be recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the asset''s net selling price and the present value in use. In assessing value in use, the estimated future cash flows are discounted to the presented value by using weighted average cost of capital. A previously recognized impaired loss is further provided or reversed depending on changing circumstances.

1.4 Depreciation:

Depreciation has been provided on straight line basis as under

a) At the rates as prescribed in Schedule XIV of the Companies Act, 1956.

b) For addition/deletion/sales, depreciation has been charged at the applicable rates on prorate basis.

1.5 Inventory Valuation:

Raw material, stores and spares are valued at cost. Manufactured goods are valued at lower of costand net realisable value.

1.6 Revenue Recognition:

The Company generally follows mercantile system of accounting Sales are inclusive of excise duty and net of Sales Tax and discounts.

Liability of Sales Tax / Service Tax has been taken as per returns including Fresh/ Revised return submitted. The demands, if any, on Completion of assessment / Vat audit, are accounted for on accrual basis.

1.7 Investments:

Long term investments are stated at cost Current Investments are stated at cost or fair value whichever is lower. Wherever applicable, provision is made when there is a permanent fall in the value of investment.

1.8 Retirement Benefits etc.:

a) The Company makes regular contribution to provident fund and charge it to the profit & loss account.

b) The liabilities of Gratuity is on basis of actuarial valuation carried out by an independent actuary using projected unit credit method.

c) The Liability of Leave encashment is on the estimation basis.

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Mar 31, 2013

1.1. General:

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

1.2. The method of Accounting :

The Company maintains its accounts on accrual basis, unless otherwise stated.

1.3. Fixed Assets:

Fixed assets are stated at cost less depreciation. Interest on borrowings used during the period of construction is added to the cost of fixed assets. Cost includes purchase price, freight cost, installation cost and finance cost. 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 will be recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater ofthe asset''s net selling price and the present value in use. In assessing value in use, the estimated future cash flows are discounted to the presented value by using weighted average cost of capital. A previously recognized impaired loss is future provided or reversed depending on changing in circumstances.

1.4. Depreciation:

Depreciation has been provided on straight line basis as under :-

a) At the rates as prescribed in Schedule XIV ofthe Companies Act, 1956.

b) For addition/deletion/sales, depreciation has been charged at the applicable rates on prorata basis.

1.5. Inventory Valuation:

Raw material .stores and spares are valued at cost. Manufactured goods are valued at lower of cost and net realisable value.

1.6. Revenue Recognition:

The Company generally follows mercantile system of accounting (Sales are inclusive of excise duty and net of Sales Tax and discounts).

Liability of Sales Tax / Service Tax has been taken as per returns including Fresh/ Revised return submitted. The demands, if any, on Completion of assessment/ Vat audit, are accounted for on accrual basis.

1.7. Investments:

Long term investments are stated at cost Current Investments are stated at cost or fair value whichever is lower. Wherever applicable, provision is made when there is a permanent fall in the value of investment.

1.8. Retirement Benefits etc.:

a) The Company makes regular contribution to provident fund and charge it to the profit & loss account.

b) The liabilities of gratuity is on basis of actuarial valuation carried out by an independent autuary using projected unit credit method.

c) The Liability of Leave encashment is on the estimation basis.

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Mar 31, 2012

1.1. General:

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

1.2. The method of Accounting:

The Company maintains its accounts on accrual basis, unless otherwise stated.

1.3. Fixed Assets:

Fixed assets are stated at cost less depreciation. Interest on borrowings used during the period of construction is added to the cost of fixed assets. Cost includes purchase price, freight cost, installation cost and finance cost.

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 will be recognized wherever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is greater of the asset's net selling price and the present value in use. In assessing value in use, the estimated future cash flows are discounted to the presented value by using weighted average cost of capital. A previously recognized impaired loss is future provided or reversed depending on changing in circumstances.

1.4. Depreciation;

Depreciation has been provided on straight line basis as under :-

a) At the rates as prescribed in Schedule XIV of the Companies Act.1956.

b) For addition/deletion/sales, depreciation has been charged at the applicable rates on prorata basis.

1.5. Inventory Valuation:

Raw material .stores and spares are valued at cost. Manufactured goods are valued at lower of cost and net realisable value.

1.6. Revenue Recognition:

The Company generally follows mercantile system of accounting and recognizes revenue as per AS - 9 on Revenue Recognition. Sales are inclusive of excise duty and net of Sales Tax and discounts.

Liability of Sales Tax/Service Tax has been taken as per returns including Fresh/Revised return submitted. The demands, if any, on Completion of assessment/Vat audit, are accounted for on accrual basis.

1.7. Investments:

Long term investments are stated at cost Current Investments are stated at cost or fair value whichever is lower. Wherever applicable, provision is made when there is a permanent fall in the value of investment.

1.8. Retirement Benefits etc.:

a) The Company makes regular contribution to provident fund and charge it to the profit & loss account.

b) The liabilities of Gratuity and unveiled leave are estimated at the year end and have been charged to the profit & loss account.

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Mar 31, 2011

1. General:

a) These accounts are pre Dared on historical cost basis and on the accounting principles of the going :concern.

b) Accounting policies net specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

2. The method of Accounting :

The Company maintain s its accounts on accrual basis, unless other wise; e stated.

3. Fixed Assets:

Fixed assets are state i at cost less depreciation. Interest on followings used - during the period of cc instruction is added to the cost of fixed assets. Cost includes purchase price, freight :cost, installation cost and finance cost.

4. Depreciation:

Depreciation has been provided on straight line basis as under :-

a) At the rates as prescript ad in Schedule XIV of the Companies Act,l956

b) For addition/deletion/ sales, depreciation has been charged at the applicable rates on prorate basis.

5. Inventory Valuation:

Raw material ,stores and spares are valued at cost. Manufactured goods are valued at lower of cost and net realisable value.

6. Sales Tax/ Service Tax :

Liability of Sales Tax / Service Tax has been taken as per returns including ' Fresh Revised vise Return submitted. The demands, if any, 6r completion of assessment/Vat Audit, are accounted for on accrua1 basis.

7. Sales:

Sales are inclusive of excise Duty and net of Sales Tax and discounts.

8. Retirement Benefits etc.:

The Company makes regular contribution to provident fund and charge it to the profit & loss account

b) The liabilities of Gratuity and unveiled leave are estimated at the year end and have been c large d to the profit & loss account.

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Mar 31, 2010

1. General:

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

2. The method of Accounting:

The Company maintains its accounts on accrual basis, unless otherwise stated.

3. Fixed Assets:

Fixed assets are stated at cost less depreciation. Interest on borrowings used during the period of construction is added to the cost of Fixed assets. Cost includes purchase price, freight cost, installation cost and finance cost.

4. Depreciation:

Depreciation has been provided on straight line basis as under :-

a) At the rates as prescribed in Schedule XIV of the Companies Act,1956.

b) For addition/deletion/sales, depreciation has been charged at the applicable rates on pro-rata basis.

5. Inventory Valuation:

Raw material ,stores and spares are valued at cost. Manufactured goods are valued at lower of cost and net realisable value.

6. Sales Tax/ Service Tax :

Liability of Sales Tax /Service Tax has been taken as per returns including Fresh / Revised returns submitted. The demands, if any, on completion of assessment/Vat Audits, are accounted for on accrual basis.

7. Sales:

Sales are inclusive of Excise Duty and net of Sales Tax and discounts.

8. Retirement Benefits etc.:

a) The Company makes regular contribution to provident fund and charge it to the profit & loss account.

b) The liabilities of Gratuity and unavailed leave are estimated at the year end and have been charged to the profit & loss account.

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Mar 31, 2009

1. General:

a) These accounts are prepared on historical cost basis and on the accounting principles of the going concern.

b) Accounting Policies not specifically referred to otherwise, are consistent and in consonance with generally accepted accounting principles.

2. The Method of Accounting:

The company maintains its accounts on accrual basis, unless otherwise stated.

3. Fixed Assets:

Fixed Assets are stated at cost less depreciation except part of Plant & Machinery which is stated at revaluation price less depreciation. Interest on borrowings used during the period of construction is added to the cost of Fixed Assets. Cost includes purchase price, freight cost, installation cost and finance cost.

4. Depreciation:

Depreciation has been provided on straight line basis as under :-

a. Till 31 st March 1993:

i) On the fixed assets acquired upto 7.4.87 (Ramnavami 1987) at the rates corresponding to the rates applicable under Income Tax Rules in the force at the time of acquisition / purchase / installation of assets pursuant to the Circular No. 1 /86 dated 21.5.1986 issued by the Department of Company Affairs in accordance with the provisions of Section 205(2) (b) of the Companies Act, 1956.

ii) On the fixed assets acquired after 7.4.87, at the rates as prescribed in Schedule XIV of the Companies Act, 1956.

b. After 31 st March, 1993:

On all the fixed assets at the new rates as amended by the Notification No. GSR 756(e) dated 16.12.1993 read with Circular No. 14 dated 20.12.1993 issued by the Department of Company Affairs.

c. For addition / deletion / sales, depreciation has been charged at the applicable rates on pro-rata basis.

5. Inventory Valuation:

Raw Material, Stores and Spares are valued at cost. Iron Goods and Manufactured Goods are valued at lower of cost and net realisable value.

6. Sales Tax/Service Tax:

Liability of Sales Tax/Service Tax has been taken as per returns including Fresh / Revised Submitted. The demands, if any, on completion of assessmentA/at Audits, are accounted for on accrual basis.

7. Sales:

Sales are inclusive of Excise Duty and net of Sales Tax and Discounts.

8. Intra and Inter Unit Transfers:

Intra and Inter Unit transfers of goods for Sale and Captive consumption being raw material and others are shown as contra items in the Profit & Loss Account to reflect the true economic value of the Unit. Any unrealized profit on unsold stock is ignored while valuing inventories. The accounting treatment has no impact on the Profit of the Company.

9. Retirement Benefits etc:

a] The Company makes regular contribution to Provident Fund and charge it to the Profit & Loss Account.

b] The liabilities of Gratuity and unavailed Leave are estimated at the year end and have been charged to the Profit & Loss Account.