Accounting Policies of Thapar Ispat Ltd. Company

Jun 30, 2012

(a) Accounting Convention:

The account are prepared on accrual basis under the historical cost convention in accordance with the Accounting Standards referred to in sub section (3C) of section 211 of the Companies Act, 1956 and other relevant provisions of the said act.

(b) Method of Accounting :

All income and expenditure items are recognised on accrual basis.

(c) Sales :

The revenue from sale of goods is recognised in respect of transactions wherever property in the goods is transferred for a consideration.

(d) Fixed Assets :

All fixed assets are stated at historical cost less depreciation.

(e) Depreciation :

Depreciation is provided on straight line method in accordance with and in the manner specified in the Schedule XIV of the Companies Act, 1956. That no depreciation has been provided by the company since 12,09.2004 on assets which has been leased out.

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Jun 30, 2010

(a) ACCOUNTING CONVENTIONS

The financial statements have been prepared under the historical Cost Convention on accrual basis in accordance with applicable Accounting Standards and relevant disclosure requirements of the Companies Act, 1956.

(b) FIXED ASSETS

Fixed Assets have been stated at cost of acquisition inclusive of inward freight, duties, taxes, project & preoperative expenses and incidental expenses relating to acquisition less depreciation up to date.

(c) DEPRECIATION

Depreciation has been provided on fixed assets on the straight line method at the rates and in the manner provided for in Schedule -XIV to the Companies Act, 1956 except on the assets given on lease.

(d) INVENTORIES

The basis of valuation for different categories of inventory are as follows :

Raw Materials & Stores & Spares : At Cost Finished Goods : At lower of cost or market value

(q) FOREIGN CURRENCY TRANSACTIONS

Sales

i) There is no export sales during the year.

Debtors

ii) Debtors in respect of Exports Sales are converted at the rate applicable on the date of sale.

(f) MISCELLANEOUS EXPENDITURE

Preliminary Expenses, Capital Issue Expenses included under the head Miscellaneous Expenditure are being amortised equally over a period of ten years.