1 Corporate Information

Shreyans Industries Limited (the Company) is a public company incorporated under the provisions of the Companies Act, 1956 on 11th June, 1979. The name of the company at its incorporation was Shreyans Paper Mills Ltd. and subsequently changed to Shreyans Industries Limited on 20th October 1992. The company is engaged in manufacturing of Writing and Printing Paper.

Significant Accounting Policies and Notes on Accounts

2 Significant Accounting Policies

(a) Basis of Preparation of Financial Statements

The financial statements are prepared in accordance with generally accepted accounting principles under the historical cost convention on accrual basis in accordance with the applicable accounting standards prescribed under section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rule 2014.

(b) Use of Estimates

The preparation of financial statements, in conformity with the generally accepted accounting principles, require estimates and assumptions to be made that affect the reported amount of assets and liabilities as of 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.

(c) Revenue Recognition

(i) Sales

Revenue from sale of goods is recognized;

(a) When all the significant risks and rewards of ownership transferred to the buyer and the company retains no effective control of the goods transferred to a degree usually associated with ownership; and

(b) No significant uncertainty exists regarding the amount of the consideration that will be derived from the sale of goods.

(ii) Export Incentives:

Revenue in respect of export incentives is recognized on post export basis.

(iii) Interest :

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

(iv) Dividend

Dividend Income from investment is recognized when the right to receive payment is established.

(v) Insurance and Other Claims

Revenue in respect of claims is recognized when no significant uncertainty exists with regard to the amount to be realized and the ultimate collection thereof.

(d) Employees Benefits

(i) Short Term Employees Benefits

Short Term Employees Benefits are recognized as an expense on an undiscounted basis in the statement of profit and loss of the year in which the related service is rendered.

(ii) Post Employment Benefits

i) Defined Contribution Plans

a) Provident Fund:

The Employer''''s Contribution to provident fund is made in accordance with the provisions of the Employee''''s Provident Fund and Miscellaneous Provisions Act, 1952 and is recognized as an expense in the statement of profit and loss.

ii) Defined Benefit Plans

a) Gratuity:

The Group Gratuity Cash Accumulation Scheme , managed by Life Insurance Corporation of India is a defined benefit plan. The liability for gratuity is provided on the basis of actuarial valuation carried out by an independent actuary as at the Balance Sheet date. The present value of the company''''s obligation is determined on the basis of actuarial valuation at the year end, using the projected unit credit method and the fair value of plan assets is reduced from the gross obligations under the gratuity scheme to recognize the obligation on a net basis.

b) Leave Encashment:

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognized as a liability at the present value of the defined benefit obligation at the Balance Sheet date, determined on actuarial valuation basis using Projected Unit Credit Method. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government Securities as at the Balance Sheet date.

iii) The actuarial gain/loss is recognized in the statement of profit and loss in the period in which they occur.

(e) Fixed Assets (Tangible Assets)

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

(ii) Cost of fixed assets comprises its purchase price and any attributable expenditure (direct and indirect) for bringing the assets to its working condition for its intended use.

(iii) Expenditure incurred on renovation/modernization of the existing fixed assets is added to the book value of these assets where such renovation/modernization increases the future benefit from them beyond their previously assessed standard of performance.

(f) Intangible Assets

Intangible assets are stated at cost less accumulated amount of amortization.

(g) Depreciation

i) Depreciation on tangible fixed assets is provided on Straight Line Method on the basis of useful lives of such assets specified in Schedule II to the Companies Act, 2013.

ii) Assets costing F 5,000/- or less acquired during the year are depreciated at 100%.

iii) The Intangible fixed assets acquired prior to 1st April 2014 are amortized over the revised useful life of the assets based on the indicative useful life of the assets mandated by Schedule II to the Companies Act, 2013.

(h) Amortization

Intangible asset are amortized on straight line method. These assets are amortized over their estimated useful life.

(i) Investments

Long term Investments are carried at cost less provision, if any, for decline in the value of such investments, which is other than temporary. Current investments are carried at lower of cost and fair value.

(j) Inventories

Inventories are valued at cost or net realizable value, whichever is lower. The cost in respect of items of inventory is computed as under:

- In case of raw materials at FIFO basis plus direct expenses.

- In case of stores and spares at weighted average cost plus direct expenses.

- In case of work-in-progress at raw material cost plus conversion cost depending upon the stage of completion.

- In case of finished goods at raw material cost plus conversion cost, packing cost, excise duty and other overheads incurred to bring the goods to their present condition and location.


Cenvat credit on excise duty/service tax paid on inputs, capital assets and input services is taken in accordance with the Cenvat Credit Rules, 2004.

(l) Government grants and subsidies

Government grants available to the company are recognized when there is a reasonable assurance of compliance with the conditions attached to such grants and where benefits in respect thereof have been earned and it is reasonably certain that the ultimate collection will be made.

Government subsidy in the nature of promoter''''s contribution is credited to capital reserve.

Government subsidy related to specific fixed assets is deducted from the gross value of the assets concerned.

(m) Borrowing Costs

Borrowing costs that are directly attributable to acquisition or construction of a qualifying asset are capitalized as a part of cost of such asset. Qualifying asset is one that takes substantial period of time to get ready for its intended use. All other borrowing costs are recognized as expenditure in the period in which these are incurred.

(n) Lease

The assets acquired on lease wherein a significant portion of risks and rewards of ownership of an asset is retained by the lessor are classified as operating leases. Lease rentals paid for such leases are recognized as an expense on systematic basis over the terms of lease.

(o) Foreign Currency Transactions

(a) Transactions in foreign currency are recorded on initial recognition in the reporting currency, by applying to the foreign currency amount the exchange rate between the reporting currency and the foreign currency at the date of transaction except in case of export invoices which are recorded at a rate notified by the Customs department for invoice purpose which approximates the actual rate as at the date of transaction. Exchange difference arising on realization of export sale is recognized as income or expense in the period in which they arise.

b) At each balance sheet date foreign currency monetary items are reported at closing rates. Exchange differences arising on settlement of monetary items or on reporting the same at closing rate as at balance sheet date are recognized as income or expense.

c) The premium or discount arising at the inception of a forward contract which is not intended for trading or speculation purpose is amortised as expense or income over the life of the contract. Exchange difference on such forward contracts is recognized in the statement of profit or loss in the reporting period in which the exchange rates change. Any profit or loss arising on cancellation or renewal of a forward contract is recognised as income or as expense for the period.

(p) Accounting for Taxes on Income

Provision for taxation for the year comprises of current tax and deferred tax. Current tax is amount of Income-tax determined to be payable in accordance with the provisions of Income tax Act 1961. Deferred tax is the tax effect of timing difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

(q) 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 exists, 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 account.

(r) Earnings per Share

Basic earnings per share is calculated 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.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

(s) Provision and Contingent Liabilities

(i) Provision is recognised (for liabilities that can be measured by using substantial degree of estimate) when:

(a) the company has a present obligation as a result of a past event;

(b) a probable outflow of resources embodying economic benefits is expected to settle the obligation ; and

(c) the amount of the obligation can be reliably estimated.

(ii) Contingent liability is disclosed in case there is:

(a) i. Possible obligation that arises from past events and existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the enterprise ; or

ii. A reliable estimate of the amount of the obligation cannot be made.

(b) A present obligation arising from past events but is not recognized :

i. When it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or

ii. A reliable estimate of the amount of the obligation cannot be made.

(t) Cash flow statement

The cash flow statement has been made in accordance with the Accounting Standard (AS) - 3 on “Cash Flow Statements” prescribed in Companies (Accounts) Rules, 2014.

CIN: U67190WB2003PTC096617. Trading in Commodities is done through our Group Company Dynamic Commodities Pvt. Ltd. The company is also engaged in Proprietory Trading apart from Client Business.

Disclaimer: There is no guarantee of profits or no exceptions from losses. The investment advice provided are solely the personal views of the research team. You are advised to rely on your own judgment while making investment / Trading decisions. Past performance is not an indicator of future returns. Investment is subject to market risks. You should read and understand the Risk Disclosure Documents before trading/Investing.

Disclosure: We, Dynamic Equities Private Limited are also engaged in Proprietory Trading apart from Client Business. In case of any complaints/grievances, clients may write to us at

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