Accounting Policies of Source Industries (India) Ltd. Company

Mar 31, 2024

1 Significant Accounting Policies

1.1 Basis of preparation of financial statements

These Financial statements have been prepared in accordance Indian Accounting Standards (Ind
As) according to the notification issued by the Ministry of Corporate Affairs under section 133 of
the Companies Act, 2013 (''the act'') read with rule 3 of the Companies (Indian Accounting Standards)
Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

1.2 Use of Accounting Estimates

The preparation of financial statements requires estimates and assumptions to be made that affect
the reported amount of assets and liabilities on the date of financial Statements, the reported
amount of revenues and expenses during the reported period and disclosure of contingent liabilities.
Management believes that the estimates used in the preparation of financial statements are prudent
and reasonable. Actual results could differ from these estimates. Any revision to accounting
estimates is recognised prospectively in the current and future periods.

1.3 Revenue recognition

Revenue is recognized only when it can be reliably measured and it is reasonable to expect
ultimate collection.

Interest Income is recognised on an accrual basis.

1.4 Property, plant and equipment & Capital work-in-progress

Property, plant and equipment are measured at cost less accumulated depreciation and impairment
losses, if any. Cost includes expenditures directly attributable to the acquisition of the asset.

Capital work-in-progress comprises the cost of the fixed assets that are not yet ready for their
intended use at the balance sheet date.

1.5 Depreciation and Goodwill

Depreciation is provided on the straight-line method as per the useful life prescribed in Schedule
II to the Companies Act, 2013.

The useful lives of assets are periodically reviewed and re-determined and the unamortised
depreciable amount is charged over the remaining useful life of such assets. Assets costing Rs.
5,000/-and below are depreciated over a period of one year.

1.6 Foreign Currency Transactions

The company translates all foreign currency transactions at Exchange Rates prevailing on the

date of transactions. Exchange rate differences resulting from foreign exchange transactions settled
during the year are recognized as income or expenses in the period in which they arise.

Monetary current assets and monetary current liabilities that are denominated in foreign currency
are translated at the exchange rate prevalent at the date of the balance sheet. The resulting
difference is also recorded in the income or expenses.

1.7 Taxes on Income

Income tax comprises current income tax and deferred tax. Income tax expense is recognized in
the statement of profit and loss except to the extent it relates to items directly recognized in equity
or in other comprehensive income.

a) Current income tax: Current income tax for the current and prior periods are measured at the
amount expected to be recovered from or paid to the taxation authorities based on the taxable
income for the period. The tax rates and tax laws used to compute the current tax amount are
those that are enacted or substantively enacted by the reporting date and applicable for the period.
The Company off sets current tax assets and current tax liabilities, where it has a legally enforceable
right to set off the recognized amounts and where it intends either to settle on a net basis or to
realize the asset and liability simultaneously.

b) Deferred tax: Deferred tax asset and liabilities are measured at the tax rates that are expected
to apply to the period when the asset / liability is realized, based on tax rates (and tax laws) that
have been enacted or substantively enacted at the balance sheet date. Deferred Tax assets are
recognized and carried forward only to the extent that there is a reasonable certainty that sufficient
future taxable income will be available against which such deferred tax assets can be realized.

1.8 Earning Per Share (EPS)

In determining earnings per share, the company considers the net profit after tax expense. The
number of shares used in computing basic earnings per share is the weighted average shares
used in outstanding during the period.

1.9 Investments

Long term unquoted investments are stated at cost & all other investments are carried at lower of
cost or fair value.

1.10 Impairment of non-financial assets

The Company assess at each reporting date whether there is any indication that the carrying
amount from non financial assets may not be recoverable. If any such indication exists, then the
asset''s recoverable amount is estimated and an impairment loss is recognised if the carrying
amount of an asset or Cash generating unit (CGU) exceeds its estimated recoverable amount in
the statement of profit and loss.

Goodwill is tested annually for impairment. For the purpose of impairment testing, goodwill arising
from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit
from the synergies of the combination.

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Mar 31, 2015

1.1 Basis of Accounting:

The Financial Statements are prepared under historical cost convention on an accrual basis, except as stated otherwise and are in accordance with the requirements of the Companies Act, 2013.

1.2 Use of Estimates:

The preparation of financial statements, in confirmity with the generally accepted accounting principles, require estimate and assumption to be made that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results materialize.

1.3 Inventories:

The raw materials, stores and spares, packing material, consumables and finished goods are valued at cost or net realizable value whichever is lower.

1.4 Recognition of Income and Expenditure:

Items of Incomes and Expenditure are recognised on accrual basis.

1.5 Foreign Exchange:

Foreign currency transactions are recorded at the rates prevailing on the date of the transactions. Monetary assets and liabilities in foreign currency are translated at year end rate or at the rates of exchange fixed under contractual arrangements. Exchange differences arising on settlement of transactions and translation of monetary items are recognized as income or expense.

1.6 Investments:

Long term Investments are stated at cost. Provision, if any, is made for permanent diminution in the value of Investments.

1.7 Retirement Benefits for Employees:

Company does not have any employees within the purview of PF /Gratuity.

1.8 Prior Period and Extraordinary items;

Income and Expenditure pertaining to prior period as well as extraordinary items wherever material are disclosed separately.

1.9 State investment subsidy:

State investment subsidy is shown under Capital Reserve.

1.10 Earning per Share:

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares in to equity shares.

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Mar 31, 2014

1.1 Basis of Accounting:

The Financial Statements are prepared under historical cost convention on an accrual basis, except as stated otherwise and are in accordance with the requirements of the Companies Act, 1956.

1.2 Use of Estimates:

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimate and assumption to be made that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results materialize.

1.3 Inventories:

The raw materials, stores and spares, packing material, consumables and finished goods are valued at cost or net realizable value whichever is lower.

1.4 Recogniotion of Income and Expenditure:

Items of Incomes and Expenditure are recognised on accrual basis.

1.5 Foreign Exchange:

Foreign currency transactions are recorded at the rates prevailing on the date of the transactions. Monetary assets and liabilities in foreign currency are translated at year end rate or at the rates of exchange fixed under contractual arrangements. Exchange differences arising on settlement of transactions and translation of monetary items are recognized as income or expense.

1.6 Investments:

Long term Investments are stated at cost. Provision, if any, is made for permanent diminution in the value of Investments.

1.7 Retirement Benefits for Employees:

Company does not have any employees within the purview of PF /Gratuity.

1.8 Prior Period and Extraordinary items;

Income and Expenditure pertaining to prior period as well as extraordinary items wherever material are disclosed separately.

1.9 State investment subsidy:

State investment subsidy is shown under Capital Reserve.

1.10 Earning per Share:

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholder by the weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares in to equity shares.

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Mar 31, 2013

1.1 Basis of Accounting:

The Financial Statements are prepared under historical cost convention on an accrual basis, except as stated otherwise and are in accordance with the requirements of the Companies Act, 1956.

1.2 Use of Estimates:

The preparation of fnancial statements, in conformity with the generally accepted accounting principles, require estimate and assumption to be made that affect the reported amount of assets and liabilities as on the date of the fnancial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results materialize.

1.3 Inventories:

The raw materials, stores and spares, packing material, consumables and fnished goods are valued at cost or net realizable value whichever is lower.

1.4 Recogniotion of Income and Expenditure:

Items of Incomes and Expenditure are recognised on accrual basis.

1.5 Foreign Exchange:

Foreign currency transactions are recorded at the rates prevailing on the date of the transactions. Monetary assets and liabilities in foreign currency are translated at year end rate or at the rates of exchange fxed under contractual arrangements. Exchange differences arising on settlement of transactions and translation of monetary items are recognized as income or expense.

1.6 Investments:

Long term Investments are stated at cost. Provision, if any, is made for permanent diminution in the value of Investments.

1.7 Retirement Benefts for Employees:

Company does not have any employees within the purview of PF /Gratuity.

1.8 Prior Period and Extraordinary items;

Income and Expenditure pertaining to prior period as well as extraordinary items wherever material are disclosed separately.

1.9 State investment subsidy:

State investment subsidy is shown under Capital Reserve.

1.10 Earning per Share:

Basic earning per share is computed by dividing the net proft or loss for the period attributable to equity shareholder by the weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares in to equity shares.

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Mar 31, 2012

1.1 Basis of Accounting:

The Financial Statements are prepared under historical cost convention on an accrual basis, except as stated otherwise and are in accordance with the requirements of the Companies Act, 1956.

1.2 Use of Estimates:

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimate and assumption to be made that affect the reported amount of assets and liabilities as on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results materialize.

1.3 Fixed Assets:

Fixed Assets are valued at cost of acquisition inclusive of Inward Freight, Duties, Taxes and Incidental and trail run expenses. Exchange Fluctuation on conversion of Outstanding Foreign currency Loans for acquisition of Fixed Assets are adjusted to the Cost of Assets.

1.4 Depreciation:

Depreciation on fixed assets is provided on Straight Line Method at the rates specified from time to time in schedule XIV to the Companies Act, 1956.

1.5 Inventories:

The raw materials, stores and spares, packing material, consumables and finished goods are valued at cost or net realizable value whichever is lower.

1.6 Sales:

Sales have been accounted net of Excise Duty and discount and purchases have been accounted net of discounts.

1.7 Foreign Exchange:

Foreign currency transactions are recorded at the rates prevailing on the date of the transactions. Monetary assets and liabilities in foreign currency are translated at year end rate or at the rates of exchange fixed under contractual arrangements. Exchange differences arising on settlement of transactions and translation of monetary items are recognized as income or expense.

1.8 Investments:

Long term Investments are stated at cost. Provision, if any, is made for permanent diminution in the value of Investments.

1.9 Retirement Benefits for Employees:

Company does not have any employees within the purview of PF /Gratuity.

1.10 Prior Period and Extraordinary items;

Income and Expenditure pertaining to prior period as well as extraordinary items wherever material are disclosed separately.

1.11 State investment subsidy:

State investment subsidy is shown under Capital Reserve.

1.12 Earning per Share:

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity shareholder by the weighted average number of equity shares outstanding during the period. Diluted earning per share is computed by taking into account the aggregate of the weighted average number of equity shares outstanding during the period and the weighted average number of equity shares which would be issued on conversion of all the dilutive potential equity shares in to equity shares.

1.13 Impairment of Assets:

At each balance sheet date, an assessment is made whether any indication exists that an asset has been impaired. If any such indication exist, an impairment loss i.e. the amount by which the carrying amount of an asset exceeds its recoverable amount, is provided in the books of accounts.

1.14 Segment Reporting:

Segments are identified having regard to the dominant source and nature of risks and returns and the internal organization and management structure. Revenues, Expenses and Assets and Liabilities, which relates to the enterprise as a whole and are not attributable to segments, are included under "Un-allocable Corporate Expenses/Revenues and Assets/Liabilities".

1.15 Taxes on Income:

Income tax liability for the year is calculated in accordance with the relevant tax laws and regulations applicable to the company.

Deferred Tax is recognized, Subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets on unabsorbed Depreciation and carry forward of losses are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realise such assets.

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Mar 31, 2010

1. Basis of Accounting:

The Financial Statements are prepared under historical cost convention on an accrual basis, except as stated otherwise and are in accordance with the requirements of the Companies Act, 1956.

2. Fixed Assets:

Fixed Assets are valued at cost of acquisition inclusive of Inward Freight, Duties, Taxes and Incidental and trail run expenses relating to acquisition. Exchange Fluctuation on conversion of Outstanding Foreign currency Loans for acquisition of Fixed Assets are adjusted to the Cost of Assets.

3. Depreciation:

Depreciation on fixed assets is provided on straight line Method at the rates specified from time to time in schedule XIV to the Companies Act, 1956.

4. Inventories:

The raw materials, stores and spares, packing material, consumables and finished goods are valued at cost or net realizable value whichever is lower.

5. Sales:

Sales have been accounted net of Excise Duty and discount and purchases have been accounted net of discounts.

6. Foreign Exchange:

Foreign currency transactions are recorded at the rates prevailing on the date of the transactions. Monetary assets and liabilities in foreign currency are translated at year end rate or at the rates of exchange fixed under contractual arrangements. Exchange differences arising on settlement of transactions and translation of monetary items are recognized as income or expense.

7. Retirement Benefits for Employees:

Company does not have any employees.

8. Prior Period and Extraordinary items;

Income and Expenditure pertaining to prior period as well as extraordinary items wherever material are disclosed separately.

9. State investment subsidy:

State investment subsidy is shown under Capital Reserve.

10. Segment Reporting:

Segments are identified having regard to the dominant source and nature of risks and returns and the internal organization and management structure. Revenues, Expenses and Assets and Liabilities, which relate to the enterprise as a whole and are not attributable to segments, are included under "Un-allocable Corporate Expenses/Revenues and Assets/Liabilities".

11. Taxes on Income: Deferred Tax is recognized,

Subject to the consideration of prudence, on timing differences, being the difference between taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets on unabsorbed Depreciation and carry forward of losses are not recognized unless there is virtual certainty that there will be sufficient future taxable income available to realise such assets.