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Accounting Policies of Alufluoride Ltd. Company

Mar 31, 2015

(a) Basis of Preparation:

The Financial statements are prepared on approval basis of accounting under historical cost convention in accordance with the generally accepted accounting principles in India, the relevant provisions of Companies Act, 2013, and comply in material aspects with the accounting standards notified their under.

(b) Use of Estimates:

The Preparation and presentation of financial statements requires estimates and assumptions that affect the reported amounts of assets, liabilities, (including contingent liabilities) revenues and expenses during the reporting period. Although such estimates and assumptions are made on a reasonable and prudent basis taking into account all available information, actual results could differ from the estimates and assumptions and such differences are recognized in the period in which the results are known / materialized.

(c) Fixed Assets:

i) To state assets at cost of acquisition inclusive of Inward Freight, Taxes and Incidental expenses related to acquisition but exclusive of taxes & duties for which credit is availed, Interest on Loans, during the period of construction, is added to the cost of Fixed Assets.

(d) Capitalization of Project:

To capitalize all related pre-operational and direct expenditure (including temporary facilities) during construction period. Direct financing cost, if any is also capitalized.

(e) Depreciation:

i) Depreciation is provided on Fixed Assets under the 'Straight line method' up to 95 % of the cost of the asset over their useful lives as per Schedule – II of the Companies Act 2013.

ii) To charge Depreciation on pro-rata basis on all additions/deletions and on the assets that are put to use.

(f) Prior period and Extra-ordinary Debits/Credits:

i) To consider Income and Expenditure over Rs. 5,000 only, in each case, pertaining to prior items arising, in the current period, because of errors and omissions, as prior period credit/ debits.

ii) To disclose separately extra-ordinary items which are material.

(g) Disclosure of other Income etc.:

i) To disclose items of Income and Expenditure at the net of payments and related collections, wherever they occur.

ii) To recognize interest income etc., upon receipt of confirmation from concerned agency.

(h) Amortization and Write Offs :

i) To amortize Preliminary Expenses and Public Issue Expenses, over a period of Ten Years, from the year of commencement of commercial production of plant.

ii) To write off Deferred Revenue Expenditure depending upon the nature and the expected period future benefits.

(i) Foreign Currency Transactions:

To initially record monetary items, of Foreign Currency in Rupees, by applying the Exchange Rate prevailing at the time of transaction. To recognize as expense or income the amount short or excess realized / incurred because of settlement / conversion by transferring to Exchange Rate Variation Account and in the period in which they arise.

(j) Sales & Purchases:

i) To disclose all sales at net of sales tax.

ii) To account for all purchases exclusive of taxes & duties for which credit is availed.

(k) Valuation of Inventories:

i) To value all raw materials, stores and spare parts, loose tools, packing materials, finished goods etc., at lower of cost or net realizable value.

ii) To determine cost on the basis of

Finished Goods – Weighted Average cost

Raw materials & Others – FIFO

iii) To account for all empties, scrap and waste upon realization.

(l) Valuation of Investments:

Current Investments are valued at lower of cost and fair value, and long-term investments at cost. Where applicable provision is made in case of other than temporary diminution in value of investments.

(m) Employee Benefits:

To recognize actuarial gains and losses on defined benefit plans during the year.

(n) Taxes on Income:

Provision for current tax is made for the amount of tax payable in respect of taxable income for the year under the Income Tax Act, 1961.

Deferred tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or subsequent periods, subject to consideration of prudence.

(o) No value is attributed to Silica which, in the opinion of the Management, is a process waste and has no guaranteed market value (net realizable value), except for the quantities which are being disposed off on as is where is basis to parties on irregular quantities and prices.

(p) Impairment of Assets:

The entire plant is considered as a cash-generating unit. As the recoverable amount of the Cash Generating Unit, being its value in use, is in excess of its carrying mount there is no impairment loss in terms of Account Standard 28 – Impairment of Assets.

(q) Leases:

Since the lease transaction of the company, are incidental to the company's main business of production of Aluminum Fluoride, specific disclosures as per Accounting Standard 19 on 'Leases' are not considered necessary

(r) The Company has re-classified previous year's to confirm to this year's classifications. However, the adoption of revised Schedule VI does not impact recognition, measurement, principles – presentation and disclosures.

(s) Derivative Instruments: Derivative contracts entered into by the company for hedging of foreign currency fluctuation risks on certain firm commitments & forecasted transactions, or otherwise outstanding as on the year end are marked to market. Changes in values thereof and on closed contracts are recognized in the Statement of Profit & Loss based on the principles of prudence as enunciated in Accounting Standard -1 (AS-1) "Disclosure of Accounting Policies".


Mar 31, 2014

It is the Policy of the Company -

(a) Basis of Preparation:

The Financial statements are prepared on approval basis of accounting under historical cost convention in accordance with the generally accepted accounting principles in India, the relevant provisions of Companies Act, 1956, and comply in material aspects with the accounting standards notified their under.

(b) Use of Estimates:

The Preparation and presentation of financial statements requires estimates and assumptions that affect the reported amounts of assets, liabilities, (including contingent liabilities) revenues and expenses during the reporting period. Although such estimates and assumptions are made on a reasonable and prudent basis taking into account all available information, actual results could differ from the estimates and assumptions and such differences are recognized in the period in which the results are known /materialized.

(c) Fixed Assets:

i) To state assets at cost of acquisition inclusive of Inward Freight, Taxes and Incidental expenses related to acquisition but exclusive of taxes & duties for which credit is availed, Interest on Loans, during the period of construction, is added to the cost of Fixed Assets.

ii) Fixed Assets exclude items individually costing of Rs.5,000/- or less which are not capitalized.

(d) Capitalization of Project:

To capitalize all related pre-operational and direct expenditure (including temporary facilities) during construction period. Direct financing cost, if any is also capitalized.

(e) Depreciation:

i) To provide for Depreciation on Fixed Assets under the ''Straight line method'' at the rates & manner provided by and in accordance with schedule XIV to the Companies Act 1956.

ii) To charge Depreciation on pro-rata basis on all additions/deletions and on the assets that are put to use.

(f) Prior period and Extra-ordinary Debits/Credits:

i) To consider Income and Expenditure over Rs.5,000 only, in each case, pertaining to prior items arising, in the current period, because of errors and omissions, as prior period credit/ debits.

ii) To disclose separately extra-ordinary items which are material.

(g) Disclosure of other Income etc.:

i) To disclose items of Income and Expenditure at the net of payments and related collections, wherever they occur.

ii) To recognize interest income etc., upon receipt of confirmation from concerned agency.

(h) Amortization and Write Offs :

i) To amortize Preliminary Expenses and Public Issue Expenses, over a period of Ten years, from the year of commencement of commercial production of plant.

ii) To write off Deferred Revenue Expenditure depending upon the nature and the expected period future benefits.

(i) Foreign Currency Transactions:

To initially record monetary items, of Foreign Currency in Rupees, by applying the Exchange Rate prevailing at the time of transaction. To recognize as expense or income the amount short or excess realized / incurred because of settlement / conversion by transferring to Exchange Rate Variation Account and in the period in which they arise.

(j) Sales & Purchases:

i) To disclose all sales at net of sales tax.

ii) To account for all purchases exclusive of taxes & duties for which credit is availed.

iii) To disclose sale of DEPB licenses at the time of realization.

(k) Valuation of Inventories:

i) To value all raw materials, stores and spare parts, loose tools, packing materials, finished goods etc., at lower of cost or net realizable value.

ii) To determine cost on the basis of

Finished Goods - Weighted Average cost

Raw materials & Others - FIFO

iii) To account for all empties, scrap and waste upon realization.

(l) Valuation of Investments:

Current Investments are valued at lower of cost and fair value, and long-term investments at cost. Where applicable provision is made in case of other than temporary diminution in value of investments.

(m) Employee Benefits:

To recognize actuarial gains and losses on defined benefit plans during the year.

(n) Taxes on Income:

Provision for current tax is made for the amount of tax payable in respect of taxable income for the year under the Income Tax Act, 1961.

Deferred tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or subsequent periods, subject to consideration of prudence.

(o) No value is attributed to Silica which, in the opinion of the Management, is a process waste and has no guaranteed market value (net realizable value), except for the quantities which are being disposed off on as is where is basis to parties on irregular quantities and prices.

(p) Impairment of Assets:

The entire plant is considered as a cash-generating unit. As the recoverable amount of the Cash Generating Unit, being its value in use, is in excess of its carrying mount there is no impairment loss in terms of Account Standard 28 - Impairment of Assets.

(q) Leases:

Since the lease transaction of the company, are incidental to the company''s main business of production of Aluminum Fluoride, specific disclosures as per Accounting Standard 19 on ''Leases'' are not considered necessary

(r) The Company has re-classified previous year''s to confirm to this year''s classifications. However, the adoption of revised Schedule VI does not impact recognition, measurement, principles - presentation and disclosures.

(s) Derivative Instruments: Derivative contracts entered into by the company for hedging of foreign currency fluctuation risks on certain firm commitments & forecasted transactions, or otherwise outstanding as on the year end are marked to market. Changes in values thereof and on closed contracts are recognized in the Statement of Profit & Loss based on the principles of prudence as enunciated in Accounting Standard -1 (AS-1) "Disclosure of Accounting Policies".

The Company has only one class of shares referred to as equity shares having a par value of Rs.10/- Each holder of equity shares is entitled to one vote per share.

Reconciliation of number of equity shares and amount outstanding of the beginning and at the end of the year:

Based on the information available with the Company, there are no dues/interest outstanding to Micro, Small and Medium enterprises, as defined under the MSMED Act, 2006 as on 31 March, 2014 (as on 31 March, 2013 - Nil).

Information relating to ''supplier'' under the provisions of Micro, Small and Medium Enterprise Development Act, 2006.

Disclosure of Sundry Creditors is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006".

Trade Investments - Investments in Mutual funds & Equity shares of listed companies, which are traded in exchanges

(Miscellaneous receipts includes Sale of Silica (By-product) of Rs.73,24,108/- (previous year Rs.72,51,805/-) and Sale of Coal dust (rejections) of Rs.1,84,30,394/- (previous year Rs. 1,29,31,272/-) which is net off from coal dust transfer price and both products sale price is inclusive of excise duty)

i) General Description of the Post Employment Benefits - Defined Benefit Plans

a) Gratuity: Payable to employees, who render continuous service of 5 years or more, on separation, at 15 days of last drawn pay for each completed year of service.

b) Compensated Absence: Encashment of accumulated earned leave, subject to maximum permissible limits as per the terms of appointment, will be paid to the employee on separation.

i). Reconciliation of present value of defined benefit obligations


Mar 31, 2013

(a) Fixed Assets:

(i) To state assets at cost of acquisition inclusive of Inward Freight, Taxes and Incidental expenses related to acquisition but exclusive of taxes & duties for which credit is availed, Interest on Loans, during the period of construction, is added to the cost of Fixed Assets.

(ii) Fixed Assets exclude items individually costing of Rs.5,000/- or less which are not capitalized.

(b) Capitalization of Project:

To capitalize all related pre-operational and direct expenditure (including temporary facilities) during construction period. Direct financing cost, if any is also capitalized. . _

(c) Depreciation:

i) To provide for Depreciation on Fixed Assets under the ''Straight line method'' at the rates provided , by and in accordance with schedule XIV to the Companies Act, 1956.

ii) To charge Depreciation on pro-rata basis on all additions/deletions and on the assets that are put to use. ,

(d) Prior period and Extra-ordinary Debits/Credits:

i) To consider Income and Expenditure over Rs.5,000/- only, in each case, pertaining to prior items . arising, in the current period, because of errors and omissions, as prior period credit/ debits.

ii) To disclose separately extra-ordinary items which are material.

(e) Disclosure of other Income etc.:

i) To disclose items of Income and Expenditure at the net of payments and related collections, wherever they occur.

ii) To recognize interest income etc., upon receipt of confirmation from concerned agency.

(f) Amortization and Write Offs :

i) To amortize Preliminary Expenses and Public Issue Expenses, over a period of Ten years, from the year of commencement of commercial production of plant.

ii) To write off Deferred Revenue Expenditure depending upon the nature and the expected period future benefits.

(g) Foreign Currency Transactions:

To initially record monetary items, of Foreign Currency in Rupees, by applying the Exchange Rate prevailing at the time of transaction. To recognize as expense or income the amount short or excess realized / incurred because of settlement / conversion by transferring to Exchange Rate Variation Account and in the period in which they arise.

(h) Sales & Purchases:

i) To disclose all sales at net of sales tax. .

ii) To account for all purchases exclusive of taxes & duties for which credit is availed.

iii) To disclose sale of DEPB licenses at the time of realization.

(i) Valuation of Inventories:

i) To value all raw materials, stores and spare parts, loose tools, packing materials, finished goods etc., at lower of cost or net realizable value.

ii) To determine cost on the basis of

Finished Goods - Weighted Average cost

Raw materials/utilities - FIFO if) To account for all empties, scrap and waste upon realization.

(j) Valuation of Investments:

Current Investments are valued at lower of cost and fair value, and long-term investments at cost.

Where applicable provision is made in case of other than temporary diminution in value of investments.

(k) Employee Benefits:

To recognize actuarial gains and losses on defined benefit plans during the year.

(I) Taxes on Income:

Provision for current tax is made for the amount of tax payable in respect of taxable income for the year under the Income Tax Act, 1961.

Deferred tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or subsequent '' periods, subject to consideration of prudence. ''

(m) No value is attributed to Silica which, in the opinion of the Management, is a process waste and has no guaranteed market value (net realizable value), except for the quantities which are being disposed off on as is where is basis to parties on irregular quantities and prices.

(n) Impairment of Assets:

The entire plant is considered as a cash-generating unit. As the recoverable amount of the Cash Generating Unit, being its value in use, is in excess of its carrying mount there is no impairment loss in terms of Account Standard 28 - Impairment of Assets.

(o) Leases:

Since the lease transaction of the company, are incidental to the company''s main business of production of Aluminum Fluoride, specific disclosures as per Accounting Standard 19 on ''Leases'' are not considered necessary

(p) The Company has re-classified previous year''s to confirm to this year''s classifications. However, the adoption of revised Schedule VI does not impact recognition, measurement, principles -presentation and disclosures.

(q) Derivative Instruments: Derivative contracts entered into by the company for hedging of foreign currency fluctuation risks on certain firm commitments & forecasted transactions, or otherwise outstanding as on the year end are marked to market. Changes in values thereof and on closed contracts are recognized in the Statement of Profit & Loss based on the principles of prudence as '' enunciated in Accounting Standard-1 (AS-1) "Disclosure of Accounting Policies",

The Company has only one class of shares referred to as equity shares having a par value of Rs.10/-Each holder of equity shares is entitled to one vote per share.

Reconciliation of number of equity shares and amount outstanding of the beginning and at the end of the year:

Based on the information available with the Company, there are no dues/interest outstanding to Micro, Small and Medium enterprises, as defined under the MSMED Act, 2006 as on 31 March, 2013 (as on 31 March, 2012 - Nil).

Information relating to ''supplier'' under the provisions of Micro, Small and Medium Enterprise Development Act, 2006.

Disclosure of Sundry Creditors is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006". .

(Miscellaneous receipts includes Sale of Silica (By-product) of Rs.72,51,805/- (previous year Rs.98,64,307/-) and Sale of Coal dust (rejections) of Rs.1,29,31,272/- (previous year Rs.1,21,79,281/-) which is net off from coal dust transfer price and both products sale price is inclusive of excise duty)

(Excludes compensation paid to employees, Hospitalization and medical expenses of Rs.46,36,127/-due to accident) 25 Employee Benefits: .

i) General Description of the Post Employment Benefits - Defined Benefit Plans

a) Gratuity: Payable to employees, who render continuous service of 5 years or more, on separation, at 15 days of last drawn pay for each completed year of service.

b) Compensated Absence: Encashment of accumulated earned leave, subject to maximum permissible limits as per the terms of appointment, will be paid to the employee on separation.


Mar 31, 2012

(a) Fixed Assets:

To state assets at cost of acquisition inclusive of Inward Freight, Taxes and Incidental expenses related to acquisition but exclusive of taxes & duties for which credit is availed, Interest on Loans, during the period of construction, is added to the cost of Fixed Assets.

(b) Capitalization of Project:

To capitalize all related pre-operational and direct expenditure (including temporary facilities) during construction period. Direct financing cost, if any is also capitalized.

(c) Depreciation:

i) To provide for Depreciation on Fixed Assets under the 'Straight line method' at the rates provided by and in accordance with schedule XIV to the Companies Act, 1956.

ii) To charge Depreciation on pro-rata basis on all additions/deletions and on the assets that are put to use.

(d) Prior period and Extra-ordinary Debits/Credits:

i) To consider Income and Expenditure over Rs.5,000/- only, in each case, pertaining to prior items arising, in the current period, because of errors and omissions, as prior period credit/ debits.

ii) To disclose separately extra-ordinary items which are material.

(e) Disclosure of other Income etc.:

i) To disclose items of Income and Expenditure at the net of payments and related collections,

wherever they occur.

ii) To recognize interest income etc., upon receipt of confirmation from concerned agency.

(f) Amortization and Write Offs :

i) To amortize Preliminary Expenses and Public Issue Expenses, over a period of Ten years, from the year of commencement of commercial production of plant.

ii) To write off.Deferred Revenue Expenditure depending upon the nature and the expected period of future benefits.

(g) Foreign Currency Transactions:

To initially record monetary items, of Foreign Currency in Rupees, by applying the Exchange Rate prevailing at the time of transaction. To recognize as expense or income the amount short or excess realized / incurred because of settlement / conversion by transferring to Exchange Rate Variation Account and in the period in which they arise.

(h) Sales & Purchases:

i) To disclose all sales at net of sales tax.

ii) To account for all purchases exclusive of taxes & duties for which credit is availed.

iii) To disclose sale of DEPB licenses at the time of realization.

(i) Valuation of Inventories: -

i) To value all raw materials, stores and spare parts, loose tools, packing materials, finished goods etc., at lower of cost or net realizable value.

ii) To determine cost on the basis of

Finished Goods - Weighted Average cost Raw materials/utilities - FIFO

iii) To account for all empties, scrap and waste upon realization.

(j) Valuation of Investments:

Current Investments are valued at lower of cost and fair value, and long-term investments at cost. Where applicable provision is made in case of other than temporary diminution in value of investments.

(k) Employee Benefits:

To recognize actuarial gains and losses on defined benefit plans during the year.

(I) Taxes on Income:

Provision for current tax is made for the amount of tax payable in respect of taxable income for the year under the Income Tax Act, 1961.

Deferred tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or subsequent periods, subject to consideration of prudence.

(m) No value is attributed to Silica which, in the opinion of the Management, is a process waste and has no guaranteed market value (net realizable value), except for the quantities which are being disposed off on an as is where is basis to parties on a irregular basis, quantities and prices.

(n) Impairment of Assets:

The entire plant is considered as a cash-generating unit. As the recoverable amount of the Cash Generating Unit, being its value in use, is in excess of its carrying mount there is no impairment loss in terms of Account Standard 28 - Impairment of Assets.

(o) Leases:

Since the lease transaction of the company, are incidental to the Company's main business of production of Aluminum Fluoride, specific disclosures as per Accounting Standard 19 on 'Leases' are not considered necessary. '

(p) Till the year ended 31 March, 2011, the Company was using pre-revised Schedule VI to Companies , Act, 1956 for preparation and presentation of its financial statements. During the year ended 31 March, 2012, the revised schedule VI notified under the Companies Act, 1956, has become applicable to the Company.

The Company has re-classified previous year's to confirm to this year's classifications. However, the adoption of revised Schedule VI does not impact recognition, measurement, principles - presentation and disclosures.

The Company has only one class of shares referred to as equity shares having a par value of Rs.10/- Each holder of equity shares is entitled to one vote per share.

Reconciliation of number of equity shares and amount outstanding of the beginning and at the end of the year:

Based on the information available with the Company, there are no dues/interest outstanding to Micro, Small and Medium enterprises, as defined under the MSMED Act, 2006 as on 31 March, 2012 (as on 31 March, 2011 - Nil).

Information relating to 'supplier' under the provisions of Micro, Small and Medium Enterprise Development Act, 2006.


Mar 31, 2010

(a) Fixed Assets :

To state assets at cost of acquisition inclusive of Inward Freight, Taxes and Incidental expenses related to acquisition but exclusive of taxes & duties for which credit is availed, Interest on Loans, during the period of construction, is added to the cost of Fixed Assets.

(b) Capitalization of Project:

To capitalize all related pre-operational and direct expenditure (including temporary facilities) during construction period. Direct financing cost, if any is also capitalized.

(c) Depreciation:

i) To provide for Depreciation on Fixed Assets under theStraight line methodat the rates provided by and in accordance with schedule XIV to the Companies Act 1956.

ii) To charge Depreciation on pro-rata basis on all additions/deletions and on the assets that are put to use.

(d) Prior period and Extra-ordinary Debits/Credits:

i) To consider Income and Expenditure over Rs.5,000/- only, in each case, pertaining to prior items arising, in the current period, because of errors and omissions, as prior period ceedit/ debits.

ii) To disclose separately extra-ordinary items which are material.

(e) Disclosure of other Income etc.,:

i) To disclose items of Income and Expenditure at the net of payments and related collections, wherever they occur.



ii) To recognize interest income etc., upon receipt of confirmation from concerned agency.

(f) Amortization and Write Offs :

i) To amortize Preliminary Expenses and Public Issue Expenses, over a period of ten years, from the year of commencement of commercial production of plant.

ii) To. write off Differed Revenue Expenditure depending upon the nature and the expected period of future benefits.

(g) Foreign Currency Transactions :

To initially record monetary items, of Foreign Currency in Rupees, by applying the Exchange Rate prevailing at the time of transaction. To recognize as expense or income the amount short or excess realized / incurred because of settlement / conversion by transferring to Exchange Rate Variation Account and in the period in which they arise.

(h) Sales & Purchases :

i) To disclose all sales at net of sales tax:

ii) To accounHor all purchases exclusive of taxes & duties for which credit is availed.

iii) To disclose sale of DEPB licenses at the time of realization.

(i) Valuation of Inventories :

i) To value all raw materials, stores and spare parts, loose tools, packing materials, finished goods etc., at lower of cost or net realizable value.

ii) To determine cost on the basis of

Finished Goods - Weighted Average cost

Raw materials/utilities - FIFO

iii) To account for all empties, scrap and waste upon realization.

(j) Valuation of Investments:

Current Investments are valued at lower of cost and fair value, and long term investments at cost. Where applicable provision is made in case of other than temporary diminution in value of investments.

(k) Employee Benefits :

To recognize actuarial gains and losses on defined benefit plans during the year.

(l) Taxes on Income :

Provision for current tax is made for the amount of tax payable in respect of taxable income for the year under the Income Tax Act, 1961.

Deferred tax is recognized on timing differences being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or subsequent • periods, subject to consideration of prudence.