Saumya Limited manufactures and sells various paper products & related machinery and equipment. (i) On 1 st June, 2024, Saumya Limited sold a…

Saumya Limited manufactures and sells various paper products & related machinery and equipment. (i) On 1 st June, 2024, Saumya Limited sold a machinery for 42,02,230 to a new customer. To get into a long-term relationship with the customer, the terms of sales include after sales service to be provided free of cost for the next four years after the initial warranty period of 1 year. In general practice, the Company sells the after-sales service contract separately which is purchased by the customer after the initial warranty period of 1 year at 7,41,570. (ii) Saumya Limited had 5,000 packets of computer paper inventory as on 31 st March, 2025 recorded at a carrying amount of 340 per packet. The market price as on 31 st March, 2025 was 280 per packet at which these packets could be sold. Saumya Limited had a firm sales contract with Javin Limited to sell 2,760 packets at 380 per packet, which cannot be settled net. Estimated incremental selling cost was 20 per packet. (iii) Saumya Ltd. bought 100 acres of land on 30 th June, 2024 for growing bamboo to be used for paper production. On 1 st October, 2024, Saumya Limited purchased 10 dogs for the security of the aforesaid land. (iv) Saumya Limited acquired software for its internal use costing - 3,20,000. The amount paid for the software was - 1,00,000 immediately and - 2,20,000 in one year's time. It also incurred purchase tax of 24,000, entry tax of 10% (recoverable later from tax department) and legal fees of 42,000. The cost of capital of the company is 10%. (v) Saumya Ltd. obtained a term loan of 50 lakhs from Wood Cooperative Bank in 2018-2019 and paid 1% as loan processing fees and commitment charges. In May 2024, Saumya Ltd. availed fresh loan of 30 Lakhs from Iron Cooperative Bank to pay off the old loan taken from Wood Cooperative Bank. The Company paid - 20,000 as prepayment premium to Wood Cooperative Bank to clear the old term loan and paid 1% as processing fees to Iron Cooperative Bank for the new term loan. (vi) Saumya Ltd. purchased a building in Chandigarh on 1 st September, 2023 for its administrative purposes and disclosed it as Property, Plant and Equipment in the financial statements of 2023-2024. Due to some policy changes of the government, it relocated its office to Delhi in April 2024. On 1 st May 2024, Saumya Ltd. leased out the building to Ms. Lessee.