Shree Ambeshwar Paper Mills Ltd. कंपली की लेखा नीति

Mar 31, 2010

1. Company follows the mercantile system of accounting and recognised Income and Expenditure on accrual basis and the financial statement are prepared under the historical cost convention.

2. INVENTORIES: Stores & Spares are valued at cost. In the year under consideration there is no stock of raw materials, finished go Work in progress & packing materials. The company has not changed the method of valuation as per requirments of AS-2.

3. FIXED ASSETS : All Fixed assets except those revalued in the past are stated at cost of acquisition less accumulated depreciation. All the Assets of the company have been sold during the year under consideration. The revaluation reserve outstanding has been reduced from the cost while calculating Profits/Loss.

4. REVENUE RECOGNITION : In the year under consideration the sales of asset is recorded in the respective assets A/c.

5. DEPRECIATION : Depreciation is calculated on fixed assets on Straight Line Basis at the rates as specified by schedule XIV of the Companies Act. 1956. The balance have been adjusted with the net cost on sale.

6. INVESTMENTS : Investments are valued at market value as confirmed by the Management. There are no investments in the Year under consideration '

7. GRATUITY : Liability in respect of gratuity to employee is covered under the Group Gratuity Scheme with the Life Insurance Corporation of India. Contribution made for paying fixed premium to Life Insurance Corporation of India is not paid. During the Previous years there being a labour unrest and the unit being closed, gratuity & leave encashment has been provided for in the year under consideration considering the order passed by the Tribunal.

8. Taxes on Income : The Company has unabsorbed Depreciation & Carried Forward Losses under Tax Laws. In absence of virtual certanity of sufficient future taxable income, net deferred tax assets has not been recognized by way of prudence in accordance with Accounting Standard (AS 22) -" Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.