Accounting Policies of Sirhind Steel Ltd. Company

Mar 31, 2014

(a) General

The accounts are prepared on historical cost basis. All income and expenditures are accounted for on accrual basis, except interest on loans where there is uncertainty of realization; income is accounted on receipt basis. The accounting policies not specifically referred to herein below are consistent with the generally accepted accounting practice.

(b) Revenue Recognition

(i) Dividend Income

Revenue is recognized when the shareholders'' or unit holders'' right to receive payment is established.

(ii) Interest income

Income is recognized on a time proportion basis taking into account the amount outstanding and the rate applicable.

(c) Fixed Assets and Depreciation

(i) Fixed assets are stated at cost, less depreciation.

(ii) Depreciation has been provided on written down value basis at the rates specified in Schedule XIV to the Companies Act, 1956. In respect of additions /disposals of the fixed assets during the year depreciation is provided on pro rata basis according to the period during which assets are put to use.

(iii) Where the actual cost of purchase of assets does not exceed Rs. 5000/- the depreciation is provided at 100%.

(d) Investments

(i) Current investments are carried at lower of Cost or Fair Value, computed category wise.

(ii) Long term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such a decline is other than of temporary nature.

(e) Employee Benefits

Short term employee benefits are recognized as an expense in the profit and loss account of the year in which the related services are rendered.

(f) Taxation

Provision for Current tax is computed as per total income returnable under the applicable laws taking into account available deductions and exemptions. Deferred tax is recognized for all timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

(g) Impairment of assets

Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company''s fixed assets. If any indication exists an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

(h) Provision and Contingent Liabilities

The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

(i) Earning per Share

Earning per share is calculated by dividing the profit attributable to the equity shareholder by weighted averages number of equity shares outstanding during the year.

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Mar 31, 2012

(a) General The accountes are prepared on historical cost basis.All income and expenditure are accounted

;for an accural basis, except interest on loans where there is uncertainly of realization , income is accounted on receipt basis. The accounting policies not specifically referred to herein below are consistent

with the generally accepted accounting practice.t

(b) Fixed Assets and Depreciation

(i) Fixed assets are stated at cost, less depreciation

(ii) Depreciation has been provided on written down value basis at the rates specified in Shedule XIV

to the Companies Act, 1956. In respect of additions /disposafs of the fixed assests during the year

depreciation is Provided onb pro rata basis according to the during which assets are put to use.

(iii) Where the actual cost ot purchase ot assets does not exceed r 5000/- the depreciation is provided at 100%

(c) Investments

(i) Current investments are carried a, lower of Cost or Fair Value, computed category wise

(ii) Long term investments are stated at cost, Provisions for diminuation in the value of long term investment is

is made only if such a decline is other than of temproary nature.

(d) Inventories inventories are valued at lower of cost or net realisable value Cost is arrived at on the first in first out basis.

(e) Sales Sales value is inclusive of Excise Duty and exclusive of VAT.

(f) Employee Benefits

(i) Defined Contribution Plans: The Company contributes on a defined contribution basis to Employee's Provident Fund & Pension Fund towards post employment benefits, all of which are administered by the respective Government Authorities, and has no further obligation beyond making its contribution, which is expensed in the year to which it pertains.

(ii) Defined Benefit Plans: The gratuity scheme is administered through the Life Insurance Corporation of India (LIC). The liability for the defined benefit plan of Gratuity is determined on the basis of actuarial valuation at the year end, which is calculated using projected unit credit method. Actuarial gains and fosses which comprise experience adjustment and the effect of changes in actuarial assumptions are recognised in the Profit and Loss Account.

(iii) Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services are rendered.

(g) Taxation Provision for Current tax is computed as per total income returnable under the applicable laws taking into account available deductions and exemptions. Deferred tax is recognised for all timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

(h) Impairment of assets Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the company's fixed assets. If any indication exists an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

(i) Provision and Contingent Liabilities The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

(j) Earning per Share Earning per share is calculated by dividing the profit attributable to the equity shareholder by weighted averages number of equity shares outstanding during the year.

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Mar 31, 2010

1. General . The accounts are prepared on historical cost basis. All income and expenses are accounted for on accrual basis, except interest on loans where there is uncertainty of realization, income is accounted on cash basis. The accounting polices not specifically referred to herein below are consistent with the generally accepted accounting practice.

2. Use of Estimates. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and reported amount 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. Fixed Assets .

a) Fixed assets are stated at cost, less depreciation.

b) Depreciation has been provided on written down value basis at the rates specified in Schedule XIV to the Companies Act, 1956. In respect of fixed assets acquired or sold during the year depreciation has been provided on pro rata basis.

4. Investments .

a) Current investments are carried at lower of Cost or Fair Value, computed category wise.

b) Long term investments are stated at cost. Provision for diminution in the value of long term investment is made only if such a decline is other than of temporary nature.

5. Inventories . Inventories are valued at lower of cost or net realisable value. Cost is arrived at on the first in first out basis.

6. Sales . Sales value is inclusive of Excise Duty and exclusive of VAT.

7. Employee Benefits .

a) Post employment benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined and discounted using the yield on Government bonds, as on balance sheet date.

b) Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

c) Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. The Estimated liability is discounted to the current value, using the yield on Government bonds, as on balance sheet date.

d) Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the Profit and Loss account.

8. Taxation . Provision for Current tax is computed as per total income returnable under the applicable laws taking into account available deductions and exemptions. Deferred tax recognised for all timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

9. Impairment of assets .

a) Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the companys fixed assets. If any indication exists an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

b) Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the assets no longer exist or have decreased.

10. Provision and Contingent Liabilities . The Company creates a provision when there is a present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent Assets are neither recognized nor disclosed in the financial statements.

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Mar 31, 2009

1. General. The accounts are prepared on historical cost basis. All income and expenses are accounted for on accrual basis, except interest on loans where there is uncertainty of realization, income is accounted on cash basis. The accounting polices not specifically referred to herein below are consistent with the generally accepted accounting practice.

2. Fixed Assets & Depreciation . Fixed assets are stated at cost, less depreciation. Depreciation has been provided on written down value basis at the rates specified in Schedule XIV to the Companies Act, 1956. In respect of fixed assets acquired or sold during the year depreciation has been provided on prorata basis.

3. Investments . Investments are long term and are stated at cost. Provision is made when permanent diminution in value has arisen.

4. Inventories. Inventories are valued at lower of cost or net realisable value. Cost is arrived at on the first in first out basis.

5. Sales . Sales value is inclusive of Excise Duty and exclusive of VAT.

6. Employee Benefits.

a) Post employment benefits are recognized as an expense in the profit and loss account for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable towards contributions. The present value is determined and discounted using the yield on Government bonds, as on balance sheet date.

b) Short term employee benefits are recognized as an expense at the undiscounted amount in the profit and loss account of the year in which the related services is rendered.

c) Other long-term employee benefits are recognized as an expense in the profit and loss account for the period in which the employee has rendered services. The Estimated liability is discounted to the current value, using the yield on Government bonds, as on balance sheet date.

d) Actuarial gains and losses in respect of post employment and other long-term benefits are charged to the Profit and Loss account.

7. Taxation . Provision for Current tax is computed as per total income returnable under the applicable laws taking into account available deductions and exemptions. Deferred tax recognised for all timing difference being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.