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Accounting Policies of Asian Granito India Ltd. Company

Mar 31, 2016

The Significant accounting policies to the extent applicable the companies are as under:

(i) System of Accounting :-

The Financial statements are prepared on historical cost basis and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory accounting standards including the Accounting standards notified under the relevant of the Companies Act, 2013.

(ii) Use of Estimates :-

The preparation of financial statements requires the management of the company to make estimates and assumptions that affect the balances of assets and liabilities and disclosures relating to the contingent liability as at the date of the financial statements and reported amounts of income and expenses like provision for doubtful debts, allowances for slow or non moving inventories, useful lives of fixed assets, provision for taxation and provision of employee benefits, etc., during the period. Management believes the estimates used in the preparation of the financial statements are prudent and reasonable. Future results may vary from these estimates.

(iii) Revenue Recognition :-

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

Sales of products is recognized when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer at price includes insurance, freight etc. but excludes Excise, VAT and Sales Return if any and adjusted for discounts.

The presentation of financial statements require estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

(iv) Fixed Asset :-Tangible Assets :-

Cost of Fixed assets comprises of its purchase price including import duties and other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs of bringing the asset to its working condition for the purpose of use for the business.

CENVAT Credit available on Capital goods has been reduced from cost of purchases of fixed assets and depreciation thereon has been calculated on the balance amount net off CENVAT credit available.

Capital Work in progress comprises of cost of capital expenditure incurred for the proposed machinery which is yet to put to use.

Intangible Assets :-

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use and net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the intangible assets.

(v) Depreciation :-

[a] Tangible Assets :-

Depreciation is provided on straight line method based useful life of the assets as prescribed in Schedule II to the Companies Act, 2013 expect in respect of the following assets, where useful life is different than those prescribed in Schedule II are used. Depreciation rate prescribed in Companies Act,2013 prorate basis with reference to the date of acquisition/ installation.

Investments :-

Investments are shown at their cost plus incidental expenses if any. Investments are classified as long term & Current investments. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary.

- Raw Materials At cost or net realizable value whichever is less.

- Finished Goods At cost or net realizable value whichever is less.

- Stores & Spares At cost or net realizable value whichever is less.

- Fuel and Packing materials At cost or net realizable value whichever is less.

- Work-in-progress At Cost of production

- Stock in trade At lower of cost or estimated realizable value.

The cost of inventory is determined on FIFO cost formula method on relevant categories of inventories after providing for obsolete, slow moving and defective inventories where ever necessary.

CENVAT Credit / VAT Credit :

CENVAT credit / VAT credit available on stores and spares and Raw Materials reduced from cost of purchases and balance has been shown in "Loans & Advances" under Current Assets in the Balance Sheet.

The Excise duty payable on the finished goods is accounted on the clearance of goods from factory premises.

(vii) Provisions and Contingent liabilities :-

1) Provisions are recognized for liabilities that can be measured only by using a substantial degree of estimation, if

a) The Company has a present obligation as a result of a past event.

b) Probable outflow of resources is expected to settle the obligation and

c) The amount of obligation can be reliably estimated

2) Contingent liability is stated in the case of :

a) A present obligation arising from a past event, when it is not probable that an outflow of resources will be required to settle the obligation.

b) A possible obligation, unless the probability of outflow of resources is remote.

3) Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

4) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard AS-29 on "Provisions, Contingent Liabilities and Contingent Assets" issued by the Institute of Chartered Accountants of India.

(viii) Retirement and other Employee Benefits :-Provident fund :-

Retirement benefits in the form of Provident Fund are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

Leave Benefits :-

There is no Unutilized Leave to be encased hence provision for Leave encashment liability does not arise as on 31st March 2016.

Gratuity :-

During the year the Company has a scheme of Retirement Benefit namely ''Group Gratuity Fund'' recognized by the Income Tax authorities. This fund is administered through Trustees and the Company''s contribution thereto is charged to revenue.

Contributions to Provident fund are made on accrual basis.

(ix) Impairment of Fixed Assets :-

Factors giving rise to any indication of impairment of the carrying amounts of the Company''s Assets are appraised at each Balance Sheet date to determine and provide/reverse an impairment loss. There is no impairment in the carrying amounts of Company''s Assets.

(x) Foreign currency transaction :-

Transactions in foreign Currency are recorded in rupees by applying the exchange rate at the date of the transaction and adjusted appropriately to capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year. Gains or Losses on settlement of the transactions are recognized under the head currency rate difference in the Profit and loss account.

Current Assets and Liabilities (monetary items) are translated at the exchange rate prevailing on the last day of the year.

The Company enters into derivative contracts strictly for hedging purposes and not for trading or speculation. Derivative transactions are being considered as off balance sheet date transactions and accordingly the gains/losses arising there from are recognized under respective heads of accounts as and when the settlement takes place with the terms of the respective contracts.

(xi) Provision for Current and Deferred Tax :-

The tax expense comprises of Current Tax & Deferred Tax charged or credited to the profit and loss account for the year. Current Tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognized using the tax rates applicable as on the date of balance sheet. Deferred Tax assets are recognized only if there is virtual certainty of realization of such assets. At balance sheet date, recognized and unrecognized Deferred Tax assets are reviewed.

(xii) Borrowing Cost :-

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of acquisition/construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized, at its capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete.

(xiii) Branch Accounting :-

Stock transfer at various branches, are done at a rate inclusive of Excise, education cess and freight charges. When the Sales from branches effected, above transfer value is nullified. Sales values of branches are accounted inclusive of VAT / CST charged by respective branches.

Further system of accounting of all branch expenses and C & F expenses are centralized and booked on the basis of vouchers and supporting sent by C & F and branches.

(xiv) Leases :-

Where the Company is the lessee

Leases, wherein the lesser effectively retains substantially all the risks and benefits of ownership of the leases item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a straight-line basis over the lease term as per Lease Agreement.

(xv) Central Excise Duty :-

Excise duty is accounted on the basis of payments made in respect of goods cleared


Mar 31, 2014

The Significant accounting policies to the extent applicable the companies are as under:

(i) System of Accounting :-

The Financial statements are prepared on historical cost basis and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory accounting standards referred to in sub section (3c) of section 211 of the Companies Act, 1956 and guidance notes, etc. issued by The Institute of Chartered Accountants of India and the other provisions of The Companies Act, 1956.

(ii) Revenue Recognition :-

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

Sales of products is recognised when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer at price includes insurance, freight etc. but excludes Excise, VAT and Sales Return if any and adjusted for discounts.

The presentation of financial statements require estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognised in the period in which the results are known / materialised.

(iii) Fixed Asset :-

Cost of Fixed assets comprises of its purchase price including import duties and other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs of bringing the asset to its working condition for the purpose of use for the business.

CENVAT Credit available on Capital goods has been reduced from cost of purchases of fixed assets and depreciation thereon has been calculated on the balance amount net off CENVAT credit available.

Capital Work in progress comprises of cost of capital expenditure incurred for the proposed machinery which is yet to put to use.

(iv) Depreciation :-

Depreciation has been provided on straight line method in accordance with the provision of section 205(2) (b) of Companies Act, 1956 at the rates prescribed in Schedule XIV of the Companies Act, 1956 on prorata basis with reference to the date of acquisition/ installation.

(v) Investments :-

Investments are shown at their cost plus incidental expenses if any. Investments are classified as long term & Current investments. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary.

(vi) Valuation of Inventories :-

- Raw Materials : At cost or net realizable value whichever is less.

- Finished Goods : At cost or net realizable value whichever is less.

- Stores & Spares : At cost or net realizable value whichever is less.

- Fuel and Packing materials : At cost or net realizable value whichever is less.

- Work-in-progress : At Cost of production

- Stock in trade : At lower of cost or estimated realizable value.

The cost of inventory is determined on FIFO cost formula method on relevant categories of inventories after providing for obsolete, slow moving and defective inventories where ever necessary.

CENVAT Credit / VAT Credit :

CENVAT credit / VAT credit available on stores and spares and Raw Materials reduced from cost of purchases and balance has been shown in "Loans & Advances" under Current Assets in the Balance Sheet.

The Excise duty payable on the finished goods is accounted on the clearance of goods from factory premises.

(vii) Provisions and Contingent liabilities :-

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved.

Provisions and contingent liability are reviewed at each balance sheet date and events occurring after balance sheet date which are adjusted to reflect the current best estimates.

(viii) Retirement and other Employee Benefits :- Provident fund :-

Retirement benefits in the form of Provident Fund are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

Leave Benefits :-

There is no Unutilised Leave to be encashed hence provision for Leave encashment liability does not arise as on March 31, 2014.

Gratuity :-

During the year the Company has a scheme of Retirement Benefit namely "Group Gratuity Fund" recognised by the Income Tax authorities. This fund is administered through Trustees and the Company''s contribution thereto is charged to revenue.

Contributions to Provident fund are made on accrual basis.

(ix) Impairment of Fixed Assets :-

Factors giving rise to any indication of impairment of the carrying amounts of the Company''s Assets are appraised at each Balance Sheet date to determine and provide/ reverse an impairment loss. There is no impairment in the carrying amounts of Company''s Assets.

(x) Foreign currency transaction :-

Transactions in foreign Currency are recorded in rupees by applying the exchange rate at the date of the transaction and adjusted appropriately to capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year. Gains or Losses on settlement of the transactions are recognised under the head currency rate difference in the Profit and loss account.

Current Assets and Liabilities (monetary items) are translated at the exchange rate prevailing on the last day of the year.

The Company enters into derivative contracts strictly for hedging purposes and not for trading or speculation. Derivative transactions are being considered as off balance sheet date transactions and accordingly the gains/losses arising there from are recognised under respective heads of accounts as and when the settlement takes place with the terms of the respective contracts.

(xi) Provision for Current and Deferred Tax :-

The tax expense comprises of Current Tax & Deferred Tax charged or credited to the profit and loss account for the year. Current Tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognised using the tax rates applicable as on the date of balance sheet. Deferred Tax assets are recognised only if there is virtual certainty of realization of such assets. At balance sheet date, recognised and unrecognised Deferred Tax assets are reviewed.

(xii) Borrowing Cost :-

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of acquisition/construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised, at its capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete.

(xiii) Deferred Revenue Expenditure :-

Deferred Revenue Expenses includes Expenditure towards Advertisement, Brand Promotion & Exhibition of new products and mega event show charges are amortised over a period of Five years.

(xiv) Branch Accounting :-

Stock transfer at various branches, are done at a rate inclusive of Excise, education cess and freight charges. When the Sales from branches effected, above transfer value is nullified. Sales values of branches are accounted inclusive of VAT / CST charged by respective branches.

Further system of accounting of all branch expenses and C & F expenses are centralised and booked on the basis of vouchers and supporting sent by C & F and branches

(xv) Leases :-

Where the Company is the lessee

Leases, wherein the lesser effectively retains substantially all the risks and benefits of ownership of the leases item, are classified as operating leases. Operating lease payments are recognised as an expense in the Profit and Loss Account on a straight-line basis over the lease term as per Lease Agreement.

(xvi) Central Excise Duty :-

Excise duty is accounted on the basis of payments made in respect of goods cleared.


Mar 31, 2013

(i) System of Accounting :-

The Financial statements are prepared on historical cost basis and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory accounting standards referred to in sub section (3c) of section 211 of the companies Act.1956 and guidance notes, etc. issued by The Institute of Chartered Accountants of India and the other provisions of The Companies Act, 1956.

(ii) Revenue Recognition :-

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

Sales of products is recognized when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer at price includes insurance, freight etc. but excludes Excise, VAT and Sales Return if any and adjusted for discounts.

The presentation of financial statements require estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

(iii) Fixed Asset :-

Cost of Fixed assets comprises of its purchase price including import duties and other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs of bringing the asset to its working condition for the purpose of use for the business.

CENVAT Credit available on Capital goods has been reduced from cost of purchases of fixed assets and depreciation thereon has been calculated on the balance amount net off CENVAT credit available.

Capital Work in progress comprises of cost of capital expenditure incurred for the proposed machinery which is yet to put to use.

(iv) Depreciation :-

Depreciation has been provided on straight line method in accordance with the provision of section 205(2) (b) of Companies Act, 1956 at the rates prescribed in Schedule XIV of the companies Act, 1956 on prorata basis with reference to the date of acquisition/ installation.

(v) Investments :-

Investments are shown at their cost plus incidental expenses if any. Investments are classified as long term & Current investments. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary.

(vi) Valuation of Inventories :-

- Raw Materials - At cost or net realizable value whichever is less.

- Finished Goods - At cost or net realizable value whichever is less.

- Stores & Spares - At cost or net realizable value whichever is less.

- Fuel and Packing materials - At cost or net realizable value whichever is less.

- Work-in-progress - At Cost of production

- Stock in trade - At lower of cost or estimated realizable value.

The cost of inventory is determined on FIFO cost formula method on relevant categories of inventories after providing for obsolete, slow moving and defective inventories where ever necessary.

CENVAT Credit / VAT Credit:

CENVAT credit / VAT credit available on stores and spares and Raw Materials reduced from cost of purchases and balance has been shown in "Loans & Advances" under Current Assets in the Balance Sheet.

The Excise duty payable on the finished goods is accounted on the clearance of goods from factory premises.

(vii) Provisions and Contingent liabilities :-

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved.

Provisions and contingent liability are reviewed at each balance sheet date and events occurring after Balance Sheet dates which are adjusted to reflect the current best estimates.

(viii) Retirement and other Employee Benefits :- Provident fund:

Retirement benefits in the form of Provident Fund are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

Leave Benefits :

There is no Unutilized Leave to be encashed hence provision for Leave encashment liability does not arise as on 31st March 2013.

Gratuity :

During the year the Company has a scheme of Retirement Benefit namely ''Group Gratuity Fund'' recognized by the Income Tax authorities. This fund is administered through Trustees and the Company''s contribution thereto is charged to revenue. Contributions to Provident fund are made on accrual basis.

(ix) Impairment of Fixed Assets :-

Factors giving rise to any indication of impairment of the carrying amounts of the Company''s Assets are appraised at each Balance Sheet date to determine and provide/reverse an impairment loss. There is no impairment in the carrying amounts of Company''s Assets.

(x) Foreign currency transaction :-

Transactions in foreign Currency are recorded in rupees by applying the exchange rate at the date of the transaction and adjusted appropriately to capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year. Gains or Losses on settlement of the transactions are recognized under the head currency rate difference in the Profit and loss account.

Current Assets and Liabilities (monetary items) are translated at the exchange rate prevailing on the last day of the year. The Company enters into derivative contracts strictly for hedging purposes and not for trading or speculation. Derivative transactions are being considered as off balance sheet date transactions and accordingly the gains/losses arising there from are recognized under respective heads of accounts as and when the settlement takes place with the terms of the respective contracts.

(xi) Provision for Current and Deferred Tax :-

The tax expense comprises of Current Tax & Deferred Tax charged or credited to the profit and loss account for the year. Current Tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognized using the tax rates applicable as on the date of balance sheet. Deferred Tax assets are recognized only if there is virtual certainty of realization of such assets. At balance sheet date, recognized and unrecognized Deferred Tax assets are reviewed.

(xii) Borrowing Cost :-

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of acquisition/construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized, at its capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete.

(xiii) Deferred Revenue Expenditure :-

Deferred Revenue Expenses includes Expenditure towards Exhibition of new products and mega event show charges are amortized over a period of three years.

(xiv) Branch Accounting :-

Stock transfer at various branches, are done at a rate inclusive of Excise, education cess and freight charges. When the Sales from branches effected, above transfer value is nullified. Sales values of branches are accounted inclusive of VAT / CST charged by respective branches.

Further system of accounting of all branch expenses and C & F expenses are centralized and booked on the basis of vouchers and supporting sent by C & F and branches.

(xv) Leases :- Where the Company is the lessee

Leases, wherein the lesser effectively retains substantially all the risks and benefits of ownership of the leases item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a straight-line basis over the lease term as per Lease Agreement.

(xvi) Central Excise Duty :-

Excise duty is accounted on the basis of payments made in respect of goods cleared.


Mar 31, 2012

(i) System of Accounting

The Financial statements are prepared on historical cost basis and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory accounting standards referred to in sub section (3c) of section 211 of the companies Act., 1956 and guidance notes, etc. issued by The Institute of chartered Accountants of India and the other provisions of The Companies Act, 1956.

(ii) Revenue Recognition :-

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

Sales of products is recognized when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer at price includes insurance, freight etc. but excludes excise, vat and sales return if any and adjusted for discounts.

The presentation of financial statements require estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

(iii) Fixed Asset :-

Cost of Fixed assets comprises of its purchase price including import duties and other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs of bringing the asset to its working condition for the purpose of use for the business.

Net charges on foreign exchange contracts and adjustments arising from exchange rate variations attributable to the fixed assets are capitalized.

Cenvat Credit available on Capital goods has been reduced from cost of purchases of fixed assets and depreciation thereon has been calculated on the balance amount net off cenvat credit available.

Capital Work in progress comprises of cost of capital expenditure incurred for the proposed machinery which is yet to put to use.

(iv) Depreciation :

Depreciation has been provided on straight line method in accordance with the provision of section 205(2) (b) of Companies Act, 1956 at the rates prescribed in Schedule XIV of the companies Act, 1956 on pro-rata basis with reference to the date of acquisition/ installation.

(v) Investments:

Investments are shown at their cost plus incidental expenses if any. Investments are classified as long term & Current investments. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary.

(vi) Valuation of Inventories:

- Raw Materials - At cost or net realizable value whichever is less.

- Finished Goods - At cost or net realizable value whichever is less.

- Stores & Spares - At cost or net realizable value whichever is less.

- Fuel and Packing materials- At cost or net realizable value whichever is less.

- Work-in-progress - At Cost of production.

- Stock in trade - At lower of cost or estimated realizable value.

The cost of inventory is determined on FIFO cost formula method on relevant categories of inventories after providing for obsolete, slow moving and defective inventories where ever necessary.

Cenvat Credit / Vat credit:

Cenvat Credit / vat credit available on stores and spares and Raw Materials reduced from cost of purchases and balance has been shown in 'Loans & Advances" under Current Assets in the Balance Sheet.

The excise duty payable on the finished goods is accounted on the clearance of goods from factory premises.

(vii) Provisions and Contingent liabilities:

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved.

Provisions and contingent liability are reviewed at each balance sheet date and events occurring after balance sheet date which are adjusted to reflect the current best estimates.

(viii) Retirement and other Employee Benefits:

Provident fund:

Retirement benefits in the form of Provident Fund are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

Leave Benefits:.

There is no Unutilized Leave to be encashed hence provision for Leave encashment liability does not arise as on 31st March 2012. Gratuity:-

During the year the Company has a scheme of Retirement Benefit namely 'Group Gratuity Fund' recognized by the Income Tax authorities. This fund is administered through Trustees and the Company's contribution thereto is charged to revenue. Contributions to Provident fund are made on accrual basis.

(ix) Impairment of Fixed Assets:

Factors giving rise to any indication of impairment of the carrying amounts of the Company's Assets are appraised at each Balance Sheet date to determine and provide/reverse an impairment loss. There is no impairment in the carrying amounts of Company's Assets.

(x) Foreign currency transaction:

Transactions in foreign Currency are recorded in rupees by applying the exchange rate at the date of the transaction and adjusted appropriately to capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year. Gains or Losses on settlement of the transactions are recognized under the head currency rate difference in the Profit and loss account except in case of long term liabilities, where they relate to acquisition of fixed assets, in which case they are adjusted to the carrying cost of such assets.

Current Assets and Liabilities (monetary items) are translated at the exchange rate prevailing on the last day of the year.

The Company enters into derivative contracts strictly for hedging purposes and not for trading or speculation. Derivative transactions are being considered as off balance sheet date transactions and accordingly the gains/losses arising there from are recognized under

respective heads of accounts as and when the settlement takes place with the terms of the respective contracts.

(xi) Provision for current and Deferred Tax:

The tax expense comprises of current tax & deferred tax charged or credited to the profit and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognized using the tax rates applicable as on the date of balance sheet. Deferred tax assets are recognized only if there is virtual certainty of realization of such assets. At balance sheet date, recognized and unrecognized deferred tax assets are reviewed.

(xii) Borrowing Cost:

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of acquisition/construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized, at its capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete.

(xiii) Deferred Revenue Expenditure:

Deferred Revenue Expenses includes Expenditure towards Exhibition of new products and mega event show charges are amortized over a period of three years.

(xiv) Branch Accounting:

Stock transfer at various branches, are done at a rate inclusive of excise, education cess and freight charges. When the sales from branches effected, above transfer value is nullified. Sales values of branches are accounted inclusive of Vat / CST charged by respective branches.

Further system of accounting of all branch expenses and C & f expenses are centralized and booked on the basis of vouchers and supporting sent by C & F and branches.

(xv) Initial Public Offer Expenses (Net) :

Initial Public Offer Expenses are written off over a period of 5 years in accordance with the provision of section 35D of Income Tax Act,1961 and shown as Misc. expenses written off. The un- amortized expenses are shown under Misc Expenses (to the extent not w/off or adjusted).

(xvi) Leases:

Where the Company is the lessee

Leases, wherein the lesser effectively retains substantially all the risks and benefits of ownership of the leases item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a straight-line basis over the lease term as per Lease Agreement.

(xvii) Central Excise Duty:

Excise duty is accounted on the basis of payments made in respect of goods cleared.


Mar 31, 2011

(i) System of Accounting :-

The Financial statements are prepared on historical cost basis and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory accounting standards referred to in sub section (3c) of section 211 of the companies Act., 1956 and guidance notes, etc. issued by Institute of chartered Accountants of India and the other provisions of the companies Act, 1956.

(ii) Revenue Recognition :-

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

Sales revenue is recognized when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer at price and includes excise duty, sales tax, insurance, freight etc. but excludes sales return if any.

The presentation of financial statements require estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized

(iii) Fixed Asset :-

Cost of Fixed assets comprises of its purchase price including import duties and other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs of bringing the asset to its working condition for the purpose of use for the business. Cenvat Credit available on Capital goods has been reduced from cost of purchases of fixed assets and depreciation thereon has been calculated on the balance amount net off cenvat credit available. Capital Work in progress comprises of cost of capital expenditure incurred for the proposed Godown for Storage of Trading Goods which is under construction and yet to be commenced. It includes other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs.

(iv) Depreciation :

Depreciation has been provided on straight line method in accordance with the provision of section 205(2) (b) of Companies Act, 1956 at the rates prescribed in Schedule XIV of the companies Act, 1956 on prorate basis with reference to the date of acquisition/ installation.

(v) Investments:

Investments are shown at their cost plus incidental expenses if any. Investments are classified as long term & Current investments. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary.

(vi) Valuation of Inventories:

- Raw Materials - At cost or net realizable value whichever is less.

- Finished Goods - At cost or net realizable value whichever is less.

- Stores & Spares - At cost or net realizable value whichever is less.

- Fuel and Packing materials - At cost or net realizable value whichever is less.

- Work-in-progress - At Cost of production

The cost of inventory is determined on FIFO cost formula method on relevant categories of inventories after providing for obsolete, slow moving and defective inventories where ever necessary.

Cenvat Credit / Vat credit:

Cenvat Credit / vat credit available on stores and spares and Raw Materials reduced from cost of purchases and balance has been shown in ‘Loans & Advances" under Current Assets in the Balance Sheet.

The excise duty payable on the finished goods is accounted on the clearance of goods from factory premises.

(vii) Provisions and Contingent Liabilities:

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved. Provisions and contingent liability are reviewed at each balance sheet date and events occurring after balance sheet date which are adjusted to reflect the current best estimates.

(viii) Retirement Benefits. Provident fund:

Retirement benefits in the form of Provident Fund are charged to the Profit and Loss Account of the year when the contributions to the respective funds are due.

Leave Benefits:

There is no Unutilized Leave to be encashed hence provision for Leave encashment liability does not arise as on 31st March 2011.

Gratuity:

During the year the Company has a scheme of Retirement Benefit namely 'Group Gratuity Fund' recognized by the Income Tax authorities. This fund is administered through Trustees and the Company's contribution thereto is charged to revenue. Contributions to Provident fund are made on accrual basis.

(ix) Impairment of Fixed Assets.

Factors giving rise to any indication of impairment of the carrying amounts of the Company's Assets are appraised at each Balance Sheet date to determine and provide/reverse an impairment loss. There is no impairment in the carrying amounts of Company's Assets.

(x) Foreign currency transaction:

Transactions in foreign Currency are recorded in rupees by applying the exchange rate at the date of the transaction and adjusted appropriately to capital or revenue, with the difference in the rate of exchange arising on actual receipt/ payment during the year. Gains or Losses on settlement of the transactions are recognized under the head currency rate difference in the Profit and loss account.

Current Assets and Liabilities (monetary items) are translated at the exchange rate prevailing on the last day of the year. The Company enters into derivative contracts strictly for hedging purposes and not for trading or speculation. Derivative transactions are being considered as off balance sheet date transactions and accordingly the gains/losses arising there from are recognized under respective heads of accounts as and when the settlement takes place with the terms of the respective contracts.

(xi) Miscellaneous Expenditure:-

In accordance with the provisions of section 35D of Income Tax Act 1961, the Company has written off one-fifth of expenses.

(xii) Provision for current and Deferred Tax:

The tax expense comprises of current tax & deferred tax charged or credited to the profit and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognized using the tax rates applicable as on the date of balance sheet. Deferred tax assets are recognized only if there is virtual certainty of realization of such assets. At balance sheet date, recognized and unrecognized deferred tax assets are reviewed.

(xiii) Borrowing Cost:

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of acquisition/construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized, at its capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete.

(xiv) Deferred Revenue Expenditure:-

Deferred Revenue Expenses includes Advertisement expenditure incurred, expenditure incurred for new Catalogue & Folder printing for new product, Expenditure towards Exhibition of new products and mega event show charges are amortized over a period of three years. It also includes deferred forward contract premium expense for hedging of forward transaction in foreign currency.

(xv) Branch Accounting:-

Stock transfer at various branches, are done at a rate inclusive of excise, education cess and freight charges. When the sales from branches effected, above transfer value is nullified. Sales values of branches are accounted inclusive of Vat / CST charged by respective branches.

Further system of accounting of all branch expenses and C & f expenses are centralized and booked on the basis of vouchers and supporting sent by C & F and branches.

(xvi) Initial Public Offer Expenses (Net) :

Initial Public Offer Expenses are written off over a period of 5 years in accordance with the provision of section 35D of Income Tax Act,1961 and shown as Misc. expenses written off. The un-amortized expenses are shown under Misc Expenses (to the extent not w/off or adjusted).

(xvii)Pre Operative Expenses :-

Expenses incurred for Marble Quartz Plant is shown under the pre operative expeneses and correspondingly pre operative expenses is transferred to Fixed assets of the Quartz plant in respective proportion.

(xviii)Leases:

Where the Company is the lessee

Leases, wherein the lessor effectively retains substantially all the risks and benefits of ownership of the leases item, are classified as operating leases. Operating lease payments are recognized as an expense in the Profit and Loss Account on a straight-line basis over the lease term as per Lease Agreement.

(xix) Central Excise Duty :

Excise duty is accounted on the basis of payments made in respect of goods cleared.


Mar 31, 2010

(i) System of Accounting :-

The Financial statements are prepared on historical cost basis and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory accounting standards referred to in sub section (3c) of section 211 of the companies Act., 1956 and guidance notes, etc. issued by Institute of chartered Accountants of India and the other provisions of the companies Act, 1956.

(ii) Revenue Recognition :-

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

Sales revenue is recognized when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer at price and includes excise duty, sales tax, insurance, freight etc. but excludes sales return if any.

The presentation of financial statements require estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

(iii) Fixed Asset :-

Cost of Fixed assets comprises of its purchase price including import duties and other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs of bringing the asset to its working condition for the purpose of use for the business.

Cenvat Credit available on Capital goods has been reduced from cost of purchases of fixed assets and depreciation thereon has been calculated on the balance amount net off cenvat credit available.

Capital Work in progress comprises of cost of capital expenditure incurred for the proposed Godown for Storage of Trading Goods which is under construction and yet to be commenced. It includes other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs.

(iv) Depreciation :

Depreciation has been provided on straight line method in accordance with the provision of section 205(2) (b) of Companies Act, 1956 at the rates prescribed in Schedule XIV of the companies Act, 1956 on prorate basis with reference to the date of acquisition/ installation.

(v) Investments:

Investments are shown at their cost plus incidental expenses if any. Investments are classified as long term & Current investments. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary.

(vi) Valuation of Inventories:

- Raw Materials - At cost or net realizable value whichever is less.

- Finished Goods - At cost or net realizable value whichever is less.

- Stores & Spares - At cost or net realizable value whichever is less.

- Fuel and Packing materials - At cost or net realizable value whichever is less.

- Work-in-progress - At Cost of production

The cost of inventory is determined on FIFO cost formula method on relevant categories of inventories after providing for obsolete, slow moving and defective inventories where ever necessary.

Cenvat Credit / Vat credit:

Cenvat Credit / vat credit available on stores and spares and Raw Materials reduced from cost of purchases and balance has been shown in ‘Loans & Advances” under Current Assets in the Balance Sheet.

The excise duty payable on the finished goods is accounted on the clearance of goods from factory premises.

(vii) Provisions and Contingent liabilities:

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved. Provisions and contingent liability are reviewed at each balance sheet date and events occurring after balance sheet date which are adjusted to reflect the current best estimates.

(viii) Retirement Benefits.

Provision for Leave encashment liability is provided on the basis of calculation of earned leave as on 31st March 2010. During the year the Company has a scheme of Retirement Benefit namely Group Gratuity Fund recognized by the Income Tax authorities. This fund is administered through Trustees and the Companys contribution thereto is charged to revenue. Contributions to Provident fund are made on accrual basis.

(ix) Impairment of Fixed Assets.

Factors giving rise to any indication of impairment of the carrying amounts of the Companys Assets are appraised at each Balance Sheet date to determine and provide/reverse an impairment loss. There is no impairment in the carrying amounts of Companys Assets.

(x) Foreign currency transaction:

Transactions in foreign Currency are recorded in rupees by applying the exchange rate at the date of the transaction and adjusted appropriately to capital or revenue, with the difference in the rate of exchange arising on actual receipt/ payment during the year. Gains or Losses on settlement of the transactions are recognized under the head currency rate difference in the Profit and loss account.

Current Assets and Liabilities (monetary items) are translated at the exchange rate prevailing on the last day of the year. The Company enters into derivative contracts strictly for hedging purposes and not for trading or speculation. Derivative transactions are being considered as off balance sheet date transactions and accordingly the gains/losses arising there from are recognized under respective heads of accounts as and when the settlement takes place with the terms of the respective contracts.

(xi) Miscellaneous Expenditure:-

In accordance with the provisions of section 35D of Income Tax Act 1961, the company has written off one- fifth of expenses.

(xii) Provision for current and Deferred Tax:

The tax expense comprises of current tax & deferred tax charged or credited to the profit and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognized using the tax rates applicable as on the date of balance sheet.Deferred tax assets are recognized only if there is virtual certainty ofrealization of such assets. At balance sheet date, recognized and unrecognized deferred tax assets are reviewed.

(xiii) Borrowing Cost:

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of acquisition/construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized, at its capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete.

(xiv) Deferred Revenue Expenditure:-

Deferred Revenue Expenses includes Advertisement expenditure incurred, expenditure incurred for new Catalogue & Folder printing for new product, Expenditure towards Exhibition of new products and mega event show charges are amortized over a period of three years.

Certain advertisement expense towards New Product display charges incurred during the year are amortized over a period of two year looking to its enduring benefit available. It also includes deferred forward contract premium expense for hedging of forward transaction in foreign currency.

(xv) Branch Accounting:-

Stock transfer at various branches, are done at a rate inclusive of excise, education cess and freight charges. When the sales from branches effected, above transfer value is nullified. Sales values of branches are accounted inclusive of Vat / CST charged by respective branches.

Further system of accounting of all branch expenses and C & f expenses are centralized and booked on the basis of vouchers and supporting sent by C & F and branches.

(xvi) Initial Public Offer Expenses (Net) :

Initial Public Offer Expenses are written off over a period of 5 years in accordance with the provision of section 35D of Income Tax Act,1961 and shown as Misc. expenses written off. The un- amortized expenses are shown under Misc Expenses (to the extent not w/off or adjusted).

(xvii)Pre Operative Expenses :-

Expenses incurred upto the trial run production for Wall Tiles Expansion Plant i.e up to 17th March,2010 is shown under pre operative expenses and correspondingly pre operative expenses is transferred to Fixed assets of the expansion plant in respective proportion. Expenditure incurred towards new Agro Project upto 20th November,2009 is shown under pre operative expenses and corresponding pre operative expenses of Agro Project are transferred to Fixed assets of the plant in respective proportion.


Mar 31, 2009

(i) System of Accounting :-

The Financial statements are prepared on historical cost basis and on the accounting principles of going concern in accordance with generally accepted accounting principles comprising of the mandatory accounting standards referred to in sub section (3C) of section 211 of the companies Act., 1956 and guidance notes, etc. issued by Institute of chartered Accountants of India and the other provisions of the companies Act, 1956.

(ii) Revenue Recognition :-

All known income and expenditure quantifiable till the date of finalization of accounts are accounted on accrual basis when virtual certainty is established.

Sales revenue is recognized when property in the goods with all risk rewards and effective control of goods usually associated with ownership are transferred to buyer at price and includes excise duty, sales tax, insurance, freight etc. but excludes sales return if any.

The presentation of financial statements require estimates and assumptions to be made that effect the reported amount of assets and liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual result and estimates are recognized in the period in which the results are known / materialized.

(iii) Fixed Asset :-

Cost of Fixed assets comprises of its purchase price including import duties and other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs of bringing the asset to its working condition for the purpose of use for the business.

Cenvat Credit available on Capital goods has been reduced from cost of purchases of fixed assets and depreciation thereon has been calculated on the balance amount net off cenvat credit available.

[Capital Work in progress comprises of cost of capital expenditure incurred for the proposed expansion of the project which is yet to be commenced and new office expenditure. It includes cost of relevant borrowing cost and other non refundable taxes or levies, expenditure incurred in the course of construction or acquisition and any directly attributable costs.]

(iv) Depreciation :

Depreciation has been provided on straight line method in accordance with the provision of section 205(2) (b) of Companies Act, 1956 at the rates prescribed in Schedule XIV of the companies Act, 1956 on pro rata basis with reference to the date of acquisition/ installation.

(v) Investments:

Investments are shown at their cost plus incidental expenses if any. Investments are classified as long term & Current investments. Provision for diminution in the value of long-term investment is made only if such decline is other than temporary.

(vi) Valuation of Inventories:

- Raw Materials - At cost or net realizable value whichever is less.

- Finished Goods - At cost or net realizable value whichever is less.

- Stores & Spares - At cost or net realizable value whichever is less.

- Fuel and Packing materials - At cost or net realizable value whichever is less.

- Work-in-progress - At Cost of production

The cost of inventory is determined on FIFO cost formula method on relevant categories of inventories after providing for obsolete, slow moving and defective inventories where ever necessary.

Cenvat Credit / Vat credit:

Cenvat Credit / vat credit available on stores and spares reduced from cost of purchases and balance has been shown in

‘Loans & Advances” under Current Assets in the Balance Sheet.

The excise duty payable on the finished goods is accounted on the clearance of goods from factory premises.

(vii) Provisions and Contingent liabilities:

Contingent liabilities are disclosed after careful evaluation of facts and legal aspects of the matter involved.

Provisions and contingent liability are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

(viii) Retirement Benefits.

Provision for Leave encashment liability is provided on the basis of calculation of earned leave as on 31st March 2009.

During the year the Company has a scheme of Retirement Benefit namely ’Group Gratuity Fund’ recognized by the Income Tax authorities. This fund is administered through Trustees and the Company’s contribution thereto is charged to revenue. The provision of Gratuity liability in the erstwhile ATL has not been made and in absence of details the amount could not be ascertained.

Contributions to Provident fund are made on accrual basis.

(ix) Impairment of Fixed Assets.

Factors giving rise to any indication of impairment of the carrying amounts of the Company’s Assets are appraised at each Balance Sheet date to determine and provide/reverse an impairment loss. There is no impairment in the carrying amounts of Company’s Assets.

(x) Foreign currency transaction:

Transactions in foreign Currency are recorded in rupees by applying the exchange rate at the date of the transaction and adjusted appropriately to capital or revenue, with the difference in the rate of exchange arising on actual receipt/payment during the year.

Gains or Losses on settlement of the transactions are recognized under the head currency rate difference in the Profit and loss account.

Current Assets and Liabilities are translated at the exchange rate prevailing on the last day of the year.

(xi) Miscellaneous Expenditure:-

In accordance with the provisions of section 35D of Income Tax Act 1961, the company has written off one- fifth of expenses.

(xii) Provision for current and Deferred Tax:

The tax expense comprises of current tax & deferred tax charged or credited to the profit and loss account for the year. Current tax is calculated in accordance with the tax laws applicable to the current financial year. The deferred tax charge or credit is recognized using the tax rates applicable as on the date of balance sheet. Deferred tax assets are recognized only if there is virtual certainty of realization of such assets. At balance sheet date, recognized and unrecognized deferred tax assets are reviewed.

(xiii) Borrowing Cost:

Borrowing cost directly attributable and/or funds borrowed generally and used for the purpose of acquisition/construction of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized, at its capitalization rate to expenditure on that assets, for the period, until all activities necessary to prepare qualifying assets for its intended use are complete.

(xiv) Deferred Revenue Expenditure:-

Opening balances of deferred Revenue Expenses includes Advertisement expenditure incurred for Brand Promotion, exhibition and mega event show, display charges are amortized over a period of five years. It also includes bank pre payment charges which are amortized over a period of five years.

Certain advertisement expense towards New Product display charges incurred during the year are amortized over a period of two year.

(xv) Branch Accounting:-

Stock transfer at various branches , are done at a rate inclusive of excise, education cess and freight charges. When the sales from branches effected, above transfer value is nullified. Sales values of branches are accounted inclusive of Vat / CST charged by respective branches.

Further system of accounting of all branch expenses and C & f expenses are centralized and booked on the basis of vouchers and supporting sent by C & F and branches.

(xvi) Initial Public Offer Expenses (Net) :

Initial Public Offer Expenses are written off over a period of 5 years in accordance with the provision of section 35D of Income Tax Act,1961 and shown as Misc. expenses written off. The un- amortized expenses are shown under Misc Expenses (to the extent not w/off or adjusted).

(xvii) Pre Operative Expenses :-

Expenses incurred upto the trial run production for new Marble Plant i.e up to 28th February,2009 is shown under pre operative expenses and correspondingly pre operative expenses is transferred to Fixed assets of the new plant in respective proportion.

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