Mar 31, 2015
A) Accounting Convention
The Financial Statement are prepared under the historical cost
convention on the accrual basis of accounting and in accordance with
Accounting principles generally accepted in India and comply with the
accounting standards notified by the central Government of India and
relevant provisions of the Companies Act, 2013.
All assets & liabilites have been classified as current or non-current
as per the Company's normal operating cycle and other criteria set out
in the Schedule III of the Companies Act, 2013.
b) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenue and expenses during the reporting period. Difference between
actual results and estimates are recognised in the period in which the
results are known/ materialised.
Current and Non-current classification
All assets and liabilities are classified into current and non-current
Assets
An asset is classified as current when it satisfies any of the
following criteria :
a) It is expected to be realised in, or is intended for sale or
consumption in, the company's normal operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is expected to be realised within 12 months after the reporting
date; or
d) It is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after
the reporting date.
Current assets include the current portion of non-current financial
assets.
All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the
following criteria;
a) It is expected to be settled in the company's normal operating
cycle;
b) It is held primarily for the purpose of being traded;
c) It is due to be settled within 12 months after the reporting date;
or
d) The company does not have an unconditional right to defer settlement
of liability for at least 12 months after the reporting date.
Terms of a liability that could, at the option of the counter party,
result in its settlement by issue of equity instruments do not affects
its classification.
Current liability include current portion of non-current financial
liabilities.
All other liabilities are classified as non-current.
Operating cycle
Operating cycle is the time between the acquisition of assets for
processing and their realisation in cash or cash equivalents.
c) Fixed Assets
Fixed Assets are stated at cost. Cost includes cost of acquisition,
non-refundable levies, directly attributable cost of bringing the
assets to the working condition for intended use, expenditure during
construction period and interest up to the date the assets is put to
use. (And also refer note g).
d) Depreciation
Depreciation on Fixed Assets is charged on Straight Line Method as per
Schedule II of the companies Act, 2013, except in case of assets added
or disposed off it is charged on prorata basis with reference to the
date of addition/deletion.
Intangible assets are amortized on straight line basis over the
estimated useful life of the assets. Consequent to the applicability
of the Companies Act, 2013, with effect from 1st April, 2014,
depreciation for the year ended 31st March, 2015, debited to the
statement of Profit & Loss is lesser by Rs. 51.04 lacs.
e) Borrowing cost
Borrowing cost that are attributable to the acquisition or construction
of qualifying assets is capitalised as part of the cost of such assets.
All other borrowing costs are charged to revenue.
f) Amortisation :
Leasehold quarries and housing tenaments acquired under lease cum sale
agreement shall be amortised after execution of Sale Deeds. Expenditure
incurred on acquisition and development of leasehold quarries are
amortised over the unexpired period of their lease after these become
operational. The company has purchased a Time Sharing Holiday Resort
from Club Mahindra Holidays. The same is effective from April 2003 for
a period of 25 years and will be amortised equally over a period of 25
years. Capital issue expenses are amortised over a period of 5 years.
g) Intangible Assets :
Intangible assets comprises of application software stated at its
acquisition cost less accumulated depreciation.
h) Impairment of Assets :
In accordance with Accounting Standard 28 AS ( 28) on 'Impairment of
Assets' where there is an indication of impairment of the Company's
assets, the carrying amount of the company's assets are reviewed at
each balance sheet date to determine whether there is any impairment.
The recoverable amount of the assets (or where applicable that of the
cash generating unit to which the asset belongs) is estimated at higher
of its net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the assets and from its disposal at the end of its
useful life. An Impairment loss is charged to the Profit & Loss Account
in the year in which the carrying amount of the asset or a cash
generating unit exceeds its recoverable amount .The Impairment loss
recognised in prior accounting period is reversed if there has been a
change in the estimate of recoverable amount.
i) Investment :
Investment are valued at acquisition cost.
j) Inventories :
i) Raw materials is valued at actual cost or net realisable value
whichever is lower. Stores and spares, fuel & packaging materials are
valued at weighted average cost or net realisable value whichever is
lower.
ii) Work In Progress and Finished Products are valued at estimated cost
or net realisable value whichever is lower.
iii) Scraps & Rejects are valued at estimated realisable value.
Finished goods and WIP include cost of conversion and other costs
incurred in bringing the inventories to the present location and
condition.
Estimated realisable value is calculated on the basis of current
selling price less the normal selling expenses incurred in making the
sale.
k) Foreign Currency Transaction :
The transaction in foreign currencies on revenue account are stated at
the rates of exchange prevailing on the date of transaction.
Outstanding Foreign currency assets / liabilities are not covered by
forward contracts and are translated at the exchange rate prevailing as
on Balance Sheet date. Gains or losses on these assets & liabilities
relating to the acquisition of fixed assets are adjusted to the cost of
such fixed assets and those relating to other accounts are recognised
in the Profit & Loss Account.
l) Revenue Recognition :
(i) Revenue /Income and Cost/Expenditure are generally accounted for on
accrual basis as they are earned or incurred, except, in case of
significant uncertainties.
(ii) Subsidy receivable against an expense is deducted from such
expense.
(iii) Domestic Sales is exclusive of excise duty.
(iv) Revenue from services is recognised as and when services are
rendered and related costs are incurred.
(v) Interest income is recognised on a time proportion basis taking
into account the amount outstanding and the interest rate applicable.
m) Retirement Benefits :
Defined contribution scheme : Company's contribution towards Provident
Fund and Superannuation Fund paid/payable during the year are charged
to Profit & Loss Account.
Defined Benefit Plan :The company has a defined benefit gratuity plan
covering all its employees. Gratuity is covered under a scheme of LIC
and contribution in respect of such scheme are recognized in Profit &
Loss Account. The liability at the Balance Sheet date is provided for
based on actuarial valuation carried out by Life Insurance Corporation
of India in accordance with AS 15 of employee benefits issued by the
Institute of Chartered Accountants of India.
Disclosure in respect of DCS and DBS as required under AS 15 have been
given in Note 5 below to the extent practical and the availability of
information.
n) Leases :
Lease rentals under an operating lease, are recognised as an expense in
the statement of profit and loss on a straight line basis over the
lease term.
o) Expenditure on Expansion :
Expenditure directly related to construction activity is capitalised.
Indirect expenditure (including borrowing cost) directly related to
construction or incidental thereto is allocated amongst the assets
created on pro-rata basis.
p) Governments Grants :
Government grants in the nature of State Investment subsidy are
accounted for on cash basis and treated as capital reserve.
q) Taxation :
Income - tax expense comprises Current tax and Deferred tax charge or
credit. Provision for current tax is made on the assessable income at
the tax rate applicable to the relevant assessment year. The Deferred
tax Asset and Deferred tax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax Assets arising mainly on account of
brought forward losses and unabsorbed depreciation under tax laws, are
recognised, only if there is a virtual certainty of its realisation,
supported by convincing evidence. Deferred tax Assets on account of
other timing differences are recognised, only to the extent there is a
reasonable certainty of its realisation. At each Balance Sheet date,
the carrying amount of Deferred Tax Assets are reviewed to reassure
realisation.
r) Earning per share :
Basic and diluted earning per share are computed by dividing the net
profit after tax attributable to equity shareholders for the year, with
the weighted number of equity shares outstanding during the year.
s) Contingent Liabilities and Provisions :
Contingent liabilities are not provided for and are generally disclosed
by way of notes to accounts. Provisions are recognized when the
Company has legal/constructive obligation and on management discretion,
as a result of a past event for which it is probable that a cash
outflow may be required and a reliable estimate can be made for the
amount of obligation.
Mar 31, 2014
A) Accounting Convention :
The Financial Statement are prepared under the historical cost
convention on the accrual basis of accounting and in accordance with
Accounting principles generally accepted in India ^ and comply with
the accounting standards notified by the Central Government of India
and relevant provisions of the Companies Act, 1956.
Ail assets & liabilites have been classified as current or non-current
as per the Company''s normal operating cycle and other criteria set
out in the Revised Schedule VI to the Companies Act, 1956
b) Use of Estimates :
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenue and expenses during the reporting period. Difference between
actual results and estimates are recognised in the period in which the
results are known/ materialised.
Current and Non-current classification *
All assets and liabilities are classified into current and non-current
Assets
An asset is classified as current when it satisfies any of the
following criteria:
a) It is expected to be realised in, or is intended for sale or
consumption in, the company''s normal operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is expected to be realised within 12 months after the reporting
date; or
d) It is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after
the reporting date.
Current assets include the current portion of non-current financial
assets.
All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the
following criteria;
a) It is expected to be settled in the company''s normal operating
cycle
b) It is held primarily for the purpose of being traded.;
c) It is due to be settled within 12 months after the reporting date;
or
d) The company does not have an unconditional right to defer
settlement of liability for at least 12 months after the reporting
date.
Terms of a liability that could, at the option of the counterparty,
result in its settlement by issue of equity instruments do not affects
its classification.
Current liability include current portion of non-current financial
liabilities.
All other liabilities are classified as non-current.
Operating cycle
Operating cycle is the time between the acquisition of assets for
processing and their realisation in cash or cash equivalents.
c) Fixed Assets :
Fixed Assets are stated at cost. Cost includes cost of acquisition,
non-refundable levies, directly attributable cost of bringing the
assets to the working condition for intended use, expenditure during
construction period and interest up to the date the assets is put to
use. (And also refer note i).
d) Depreciation :
Depreciation on Fixed Assets is charged on Straight Line Method as per
Schedule XIV of the Companies Act, 1956, except in case of assets
added or disposed off it is charged on prorata basis with reference to
the date of addition/deletion.
Assets costing Rs. 5000/- or less are being fully depreciated in the
year of acquisition. Intangible assets are amortized on straight line
basis over the estimated usefull life of the ^ assets.
e) Borrowing cost :
Borrowing cost that are attributable to the acquisition or
construction of qualifying assets is capitalised as part of the cost
of such assets. All other borrowing costs are charged to revenue.
f) Amortisation :
Leasehold quarries and housing tenaments acquired under lease cum sale
agreement shall be amortised after execution of Sale Deeds.
Expenditure incurred on acquisition, and development of leasehold
quarries are amortised over the unexpired period of their lease after
these become operational. The company has purchased a Time Sharing
Holiday Resort from Club Mahindra Holidays. The same is effective from
April 2003 for a period of 25 years and will be amortised equally over
a period of 25 years. Capital issue expenses are amortised over a
period of 5 years.
g) Intangible Assets :
Intangible assets comprises of application software stated at its
acquisition cost less accumulated depreciation.
h) Impairment of Assets :
In accordance with Accounting Standard 28 (AS-28) on ''Impairment of
Assets'' where there is an indication of impairment of the Company''s
assets, the carrying amount ofthe company''s assets are reviewed at
each balance sheet date to determine whether there is any impairment.
The recoverable amount of the assets (or where applicable that of the
cash generating unit to which the asset belongs) is estimated at
higher of its net selling price and its value in use. Value in use is
the present value of estimated future cash flows expected to arise
from the continuing use of the assets and from its disposal at the end
of its useful life. An Impairment loss is charged to the Profit & Loss
Account in the year in which the carrying amount of the asset or a
cash generating unit exceeds its recoverable amount. The Impairment
loss recognised in prior accounting period is reversed if there has
been a change in the estimate of recoverable amount. ''
i) Investment :
Investment are valued at acquisition cost.
j) Inventories :
i) Raw materials is valued at actual cost or net realisable value
whichever is lower. Stores and spares & packaging materials are
valued at weighted average cost or net realisable value whichever is
lower.
ii) Work In Progress and Finished Products are valued at estimated
cost or net realisable value whichever is lower
iii) Scraps & Rejects are valued at estimated realisable value.
Finished goods and WIP include cost of conversion and other costs
incurred in bringing the inventories to the present location and
condition.
Estimated realisable value is calculated on the basis of current
selling price less the normal selling expenses incurred in making the
sale.
k) Foreign Currency Transaction :
The transaction in foreign currencies on revenue account are stated at
the rates of exchange prevailing on the date of transaction.
Outstanding Foreign currency assets/liabilities are not covered by
forward contracts and are translated at the exchange rate prevailing
as on Balance Sheet date. Gains or losses on these assets &
liabilities relating to the acquisition
of fixed assets are adjusted to the cost of such fixed assets and
those relating to other accounts are recognised in the Profit & Loss
Account.
l) Revenue Recognition :
(I) Revenue /Income and Cost/Expenditure are generally accounted for
on accrual basis as they are earned or incurred, except,in case of
significant uncertainties.
(II) Subsidy receivable against an expense is deducted from such
expense.
(iii) Domestic Sales is exclusive of excise duty
(iv) Revenue from services is recognised as and when services are
rendered and related costs are incurred.
(v) Interest income is recognised on a time proportion basis taking
into account the amount outstanding and the interest rate applicable.
m) Retirement Benefits :
Defined contribution scheme : Company''s contribution towards
Provident Fund and Superannuation Fund paid/payable during the year
are charged to Profit & Loss Account. Defined Benefit Plan : The
company has a defined benefit gratuity plan covering all its
employees. Gratuity is covered under a scheme of LIC and contribution
in respect of such scheme are recognized in Profit & Loss Account. The
liability at the Balance Sheet date is provided for based on actuarial
valuation carried out by Life Insurance Corporation of India in
accordance with AS 15 of employee benefits issued by the Institute of
Chartered Accountants of India.
Disclosure in respect of DCS and DBS as required under AS 15 have been
given in Note 5 below to the extent practical and the availability of
information.
n) Leases :
Lease rentals under an operating lease, are recognised as an expense
in the statement of profit and loss on a straight line basis over the
lease term.
o) Expenditure on Expansion :
Expenditure directly related to construction activity is capitalised.
Indirect expenditure (including borrowing cost) directly related to
construction or incidental thereto is allocated amongst the assets
created on pro-rata basis.
p) Governments Grants :
Government grants in the nature of State Investment subsidy are
accounted for on cash basis and treated as capital reserve.
q) Taxation :
Income - tax expense comprises Current tax and Deferred tax charge or
credit. Provision for current tax is made on the assessable income at
the tax rate applicable to the relevant assessment year. The Deferred
tax Asset and Deferred tax Liability is calculated by applying tax
rate and tax laws that have been enacted or substantively enacted by
the Balance Sheet date. Deferred tax Assets arising mainly on account
of brought forward losses and unabsorbed depreciation under tax laws,
are recognised,only if there is a virtual certainty of its
realisation, supported by convincing evidence. Deferred tax Assets on
account of other timing differences are recognised,only to the extent
there is a reasonable certainty of its realisation. At each Balance
Sheet date, the carrying amount of Deferred Tax Assets are reviewed to
reassure realisation.
r) Earning per share :
Basic and diluted earning per share are computed by dividing the net
profit after tax attributable to equity shareholders for the year,
with the weighted number of equity shares outstanding during the year.
s) Contingent Liabilities and provisions :
Contingent liabilities are not provided for and are generally
disclosed by way of notes to accounts. Provisions are recognized when
the Company has legal/constructive obligation and on management
discretion, as a result of a past event for which it is probable that
a cash outflow may be required and a reliable estimate can be made for
the amount of obligation.
Mar 31, 2013
A) Accounting Convention :
The Financial Statement are prepared under the historical cost
convention on the accrual basis of accounting and in accordance with
Accounting principles generally accepted in India and comply with the
accounting standards notified by the central Government of India and
relevant provisions of the Companies Act, 1956.
All assets & liabilites have been classified as current or non-current
as per the Company''s normal operating cycle and other criteria set out
in the Revised Schedule VI to the Companies Act, 1956.
b) Use of Estimates :
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenue and expenses during the reporting period. Difference between
actual results and estimates are recognised in the period in which the
results are known/ materialised.
Current and Non-current classification
All assets and liabilities are classified into current and non-current
Assets
An asset is classified as current when it satisfies any of the
following criteria:
a) It is expected to be realised in, or is intended for sale or
consumption in, the company''s normal operating cycle;
b) It is held primarily for the purpose of being traded;
c) It is expected to be realised within 12 months after the reporting
date; or
d) It is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least 12 months after
the reporting date.
Current assets include the current portion of non-current financial
assets.
All other assets are classified as non-current.
Liabilities
A liability is classified as current when it satisfies any of the
following criteria;
a) It is expected to be settled in the company''s normal operating cycle
b) It is held primarily for the purpose of being traded.;
c) It is due to be settled within 12 months after the reporting date;
or
d) The company does not have an unconditional right to defer settlement
of liability for at least 12 months after the reporting date.
Terms of a liability that could, at the option of the counterparty,
result in its settlement by issue of equity instruments do not affects
its classification.
Current liability include current portion of non-current financial
liabilities.
All other liabilities are classified as non-current.
Operating cycle
Operating cycle is the time between the acquisition of assets for
processing and their realisation in cash or cash equivalents.
c) Fixed Assets :
Fixed Assets are stated at cost. Cost includes cost of acquisition,
non-refundable levies, directly attributable cost of bringing the
assets to the working condition for intended use, expenditure during
construction period and interest up to the date the assets is put to
use. (And also refer note i).
d) Depreciation :
Depreciation on Fixed Assets is charged on Straight Line Method as per
Schedule XIV of the companies Act, 1956, except in case of assets added
or disposed off it is charged on prorata basis with reference to the
date of addition/deletion.
Assets costing Rs. 5000/- or less are being fully depreciated in the
year of acquisition
Intangible assets are amortized on straight line basis over the
estimated usefull life of the assets.
e) Borrowing cost :
Borrowing cost that are attributable to the acquisition or construction
of qualifying assets is capitalised as part of the cost of such assets.
All other borrowing costs are charged to revenue.
f) Amortisation :
Leasehold quarries and housing tenaments acquired under lease cum sale
agreement shall be amortised after execution of Sale Deeds. Expenditure
incurred on acquisition and development of leasehold quarries are
amortised over the unexpired period of their lease after these become
operational. The company has purchased a Time Sharing Holiday Resort
from Club Mahindra Holidays. The same is effective from April 2003 for
a period of 25 years and will be amortised equally over a period of 25
years. Capital issue expenses are amortised over a period of 5 years.
g) Intangible Assets :
Intangible assets comprises of application software stated at its
acquisition cost less accumulated depreciation.
h) Impairment of Assets :
In accordance with Accounting Standard 28 (AS-28) on ''Impairment of
Assets'' where there is an indication of impairment of the Company''s
assets, the carrying amount of the company''s assets are reviewed at
each balance sheet date to determine whether there is any impairment.
The recoverable amount of the assets (or where applicable that of the
cash generating unit to which the asset belongs) is estimated at higher
of its net selling price and its value in use. Value in use is the
present value of estimated future cash flows expected to arise from the
continuing use of the assets and from its disposal at the end of its
useful life. An Impairment loss is charged to the Profit & Loss Account
in the year in which the carrying amount of the asset or a cash
generating unit exceeds its recoverable amount .The Impairment loss
recognised in prior accounting period is reversed if there has been a
change in the estimate of recoverable amount.
i) Investment :
Investment are valued at acquisition cost.
j) Inventories :
i) Raw materials is valued at actual cost or net realisable value
whichever is lower.
Stores and spares & packaging materials are valued at weighted average
cost or net realisable value whichever is lower.
ii) Work In Progress and Finished Products are valued at estimated cost
or net realisable value whichever is lower
iii) Scraps & Rejects are valued at estimated realisable value.
Finished goods and WIP include cost of conversion and other costs
incurred in bringing the inventories to the present location and
condition.
Estimated realisable value is calculated on the basis of current
selling price less the normal selling expenses incurred in making the
sale.
k) Foreign Currency Transaction :
The transaction in foreign currencies on revenue account are stated at
the rates of exchange prevailing on the date of transaction.
Outstanding Foreign currency assets/liabilities are not covered by
forward contracts and are translated at the exchange rate prevailing as
on Balance Sheet date. Gains or losses on these assets & liabilities
relating to the acquisition of fixed assets are adjusted to the cost of
such fixed assets and those relating to other accounts are recognised
in the Profit & Loss Account. I) Revenue Recognition :
(I) Revenue /Income and Cost/Expenditure are generally accounted for on
accrual basis as they are earned or incurred, exceptjn case of
significant uncertainties.
(II) Subsidy receivable against an expense is deducted from such
expense.
(iii) Domestic Sales is exclusive of excise duty
(iv) Revenue from services is recognised as and when services are
rendered and related costs are incurred.
(v) Interest income is recognised on a time proportion basis taking
into account the amount outstanding and the interest rate applicable.
m) Retirement Benefits :
Defined contribution scheme : Company''s contribution towards Provident
Fund and Superannuation Fund paid/payable during the year are charged
to Profit & Loss Account.
Defined Benefit Plan : The company has a defined benefit gratuity plan
covering all its employees. Gratuity is covered under a scheme of LIC
and contribution in respect of such scheme are recognized in Profit &
Loss Account. The liability at the Balance Sheet date is provided for
based on actuarial valuation carried out by Life Insurance Corporation
of India in accordance with AS 15 of employee benefits issued by the
Institute of Chartered Accountants of India.
Disclosure in respect of DCS and DBS as required under AS 15 have been
given in Note 5 below to the extent practical and the availability of
information.
n) Leases :
Lease rentals under an operating lease, are recognised as an expense in
the statement of profit and loss on a straight line basis over the
lease term.
o) Expenditure on Expansion :
Expenditure directly related to construction activity is capitalised.
Indirect expenditure (including borrowing cost) directly related to
construction or incidental thereto is allocated amongst the assets
created on pro-rata basis.
p) Governments Grants :
Government grants in the nature of State Investment subsidy are
accounted for on cash basis and treated as capital reserve.
q) Taxation :
Income - tax expense comprises Current tax and Deferred tax charge or
credit.Provision for current tax is made on the assessable income at
the tax rate applicable to the relevant assessment year. The Deferred
tax Asset and Deferred tax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax Assets arising mainly on account of
brought forward losses and unabsorbed depreciation under tax laws, are
recognised.only if there is a virtual certainty of its
realisation,supported by convincing evidence. Deferred tax Assets on
account of other timing differences are recognised.only to the extent
there is a reasonable certainty of its realisation.At each Balance
Sheet date, the carrying amount of Deferred Tax Assets are reviewed to
reassure realisation.
r) Earning per share :
Basic and diluted earning per share are computed by dividing the net
profit after tax attributable to equity shareholders for the year, with
the weighted number of equity shares outstanding during the year.
s) Contingent Liabilities and provisions :
Contingent liabilities are not provided for and are generally disclosed
by way of notes to accounts. Provisions are recognized when the Company
has legal/constructive obligation and on management discretion, as a
result of a past event for which it is probable that a cash outflow may
be required and a reliable estimate can be made for the amount of
obligation.
Mar 31, 2011
A) Accounting Convention
The financial statements are prepared in accordance wltn applicable
Accounting Standards in India. A summary of important accounting
policies, which have been applied consistently is S9t out below.
b) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of Financial statements and reported amount to
revenue and expenses during the reporting period. Difference between
actual results and estimates are recognised in trie period in which the
results are known/ materialised.
c) Fixed Assets
Fixed Assets are stated at cost, Cost includes cost of acquisition,
non-refundable levies. directly attributable cost ot bringing the
assets to the working condition for intended use, i expenditure during
construction period and interest up to the date the assets is put to
use. ! (And also refer note 0-
d) Depreciation
Depreciation on fixed Assets is charged on Straight Line Method as per
Schedule XIV of the companies lies Act, 1956, except in case of assets
added or disposed off it is charged ; on prorate basis with reference
to the date of addition/deletion',
Leasehold quarries and housing tenements acquired under lease cum sale
agreement shall be amortised after execution of Sale Deeds. Expenditure
incurred on acquisition and development of leasehold quarries are
amortised over the unexpired period of their lease after these become
operational. The company has purchased a Time Sharing Holiday Resort
from Club Mahindra Holidays. The same is effective from April 2003 for
a period ] of 25 years and wilt be amortised equally over a period of
25 years. Capital Issue expenses are amortised over a period of 5
years, f) Impairment of_ Assets, An asset is treated as impaired when
the carrying cost of assets exceeds its recoverable value. An
impairment loss is charged to the Profit & Loss Account in the year in
Winch the assets is identified as impaired, The Impairment loss
recognised in prior accounting period is reversed if there has been a
change in the estimate of recoverable amount. j
Investments are valued at acquisition cost. j
e) Inventories
i) Raw materials is valued at actual cost or net realisable value
whichever is lower. Stores j and spares & packaging materials are
valued at weighted average cost or net realisable value whichever is
lower.
ii) Work In Progress and Finished Products are valued at estimated cost
or net realisable value whichever is lower
iii) Scraps & Rejects are valued at estimated realisable value.
Finished goods and WIP include cost of conversion and other cost
incurred in bringing the inventories to the present location and
condition.
Estimated realisable value is calculated on the basis of current
selling price less the normal selling expenses incurred in making the
sale.
f) Foreign Currency Transaction :
The transaction in foreign currencies on revenue account are stated at
the rates of exchange prevailing on the date of transaction.
Outstanding Foreign currency assets/ I abilities are translated at the
exchange rate prevailing as on Balance Sheet date. Gains or losses on
these assets & liabilities relating to the acquisition of fixed assets
are adjusted to the cost of such fixed assets 3rd those relating to
other accounts are recognised in the Profit & Loss Account,
g) Revenue Recognition :
(i) Rovenue/hcome and Cost/Expenditure are generally accounted for on
accrual basis as they are earned or incurred, except in case of
significant uncertainties
(ii) Subsidy receivable against an expense is deducted from such
expense.
(iii) Domestic Safes is exclusive of excise duty.
h) Retirement Benefits :
Defined contribution scheme : Company's contribution towards Provident
Fund and Superannuation Fund paid/payable during the year are charged
to Profit & Loss Account. Defined Benefit Plan ; The company has a
defined benefit gratuity plan covering all its employees. Gratuity is
covered under a scheme of LlC and contribution in respect of such
scheme are recognized in Profit & Loss Account. The liability at the
Balance Sheet date is provided for based on actuarial valuation earned
out oy Life Insurance Corporation of India in accordance with AS 15 of
employee benefits issued by the Institute of Chartered Accountants of
India.
Disclosure in respect of CCS and DBS as required under AS 15 have been
given in Note 5 below to the extent practical and the availability of
information.
i) Expenditure on Expansion ;
Expenditure directly related to construction activity is capitalised.
Indirect expenditure (including borrowing cost) directly related to
construction or incidental thereto is allocated amongst the assets
created on pro-rata basis
j) Governments Grants:
Government grants in the nature of State Investment subsidy are
accounted for on cash basis and treated as capital reserve.
k) Taxation :
income lax expense comprises Current tax and Deferred lax charge or
credit. Provision for current tax is made on the assessable income at
the tax rate applicable to the relevant assessment year The Deterred
tax Asset and Deterred lax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax Assets arising mainly on account o1
through forward losses and unabsorbed depreciation under tax laws arc
recognised, only if here is 3 virtual certainty of its realisation,
supposed by convincing evidence Deferred tax Assets on account of other
timing differences are recognised, only to the extent there is a
reasonable certainty of its realisation.
A) each Balance Sheet date, the carrying amount of Deferred Tax Assets
are reviewed to reassure realisation.
b) Contingent liabilities ;
Contingent liabilities are not provided for and are generally disclosed
by way of rotes to accounts, Contingent liabilities are not provided for
in respect of :
i) Liabilities on account of unexpired letter of credit Fls,39,00,496/-
(Previous year Rs.25,73,645/-)
ii) Demand for Rs.3,30,000/- (Previous year Rs.3,30.000/*) in respect of
entry tax has not been accepted by the company and the company has filed
appeals before the appropriate authorities against the same
iii) Pending outcome of legal and cither claims filed by the company,
additional liabilities that may arise in this respect on final
settlement is currently not ascertainable and has accordingly not been
provided for,
iv) Demand for ESI amounting to Fts.121391 (previous year 12139)
has not beer accepted by the company and an appeal has been fled before
appropriate authorities against the same. Rs.60696 (previous year
-60696/-) paid against the same is included in Loan and Advances.
Mar 31, 2010
A) Accounting Convention
The financial statements are prepared in accordance with applicable
Accounting Standards in India, except as mentioned in paragraph j
below. A summary of important accounting policies, which have been
applied consistently is set out below.
b) Use of Estimates
The preparation of financial statements requires estimates and
assumptions to be made that affect the reported amount of assets and
liabilities on the date of financial statements and reported amount of
revenue and expenses during the reporting period. Difference between
actual results and estimates are recognised in the period in which the
results are known/ materialised.
c) Fixed Assets
Fixed Assets are stated at cost. Cost includes cost of acquisition,
non-refundable levies, directly attributable cost of bringing the
assets to the working condition for intended use, expenditure during
construction period and interest up to the date the assets is put to
use. (And also refer note i).
d) Depreciation
Depreciation on Fixed Assets is charged on Straight Line Method as per
Schedule XIV of the Companies Act, 1956, except in case of assets added
or disposed off it is charged on prorata basis with reference to the
date of addition/deletion.
e) Amortisation
Leasehold quarries and housing tenements acquired under lease cum sale
agreement shall be amortised after execution of Sale Deeds. Expenditure
incurred on acquisition and development of leasehold quarries are
amortised over the unexpired period of their lease after these become
operational. The company has purchased a Time Sharing Holiday Resort
from Club Mahindra Holidays. The same is effective from April 2003 for
a period of 25 years and will be amortised equally over a period of 25
years. Capital issue expenses are amortised over a period of 5 years.
f) Impairment of Assets
An asset is treated as impaired when the carrying cost of assets
exceeds its recoverable value. An Impairment loss is charged to the
Profit & Loss Account in the year in which the assets is identified as
impaired. The Impairment loss recognised in prior accounting period is
reversed if there has been a change in the estimate of recoverable
amount.
g) Investments
Investments are valued at acquisition cost.
h) Inventories
i) Raw materials, stores and spares & packaging materials are valued
at cost or net realisable value whichever is lower.
ii) Work In Progress and Finished Products are valued at estimated cost
or net realisable value whichever is lower
iii) Scraps & Rejeots are valued at estimated realisable value.
The cost of raw material is computed at actual cost and stock and
spares and packing material at weighted average basis.
Finished goods and WIP include cost of conversion and other cost
incurred in bringing the inventories to the present location and
condition.
Estimated realisable value is calculated on the basis of current
selling price less the normal selling expenses incurred in making the
sale.
i) Foreign Currency Transaction :
The transaction in foreign currencies on revenue account are stated at
the rates of exchange prevailing on the date of transaction.
Outstanding Foreign currency assets/ liabilities are translated at the
exchange rate prevailing as on Balance Sheet date. Gains or losses on
these assets & liabilities relating to the acquisition of fixed assets
are adjusted to the cost of such fixed assets and those relating to
other accounts are recognised in the Profit & Loss Account. j) Revenue
Recognition :
(i) Revenue /Income and Cost/Expenditure are generally accounted for on
accrual basis as they are earned or incurred, except, in case of significant
uncertainties. (ii) Subsidy receivable against an expense is deducted
from such expense. (iii) The basis of accounting of Cenvat Credit for
Service Tax on Input services has been changed from acceptance/ receipt
of claims basis to accrual basis. This change has resulted in an increase
in profit by Rs.586787.
However claim for the period up to 31st March 2009 is continued to be
accounted for on acceptance/receipt basis and accordingly claim received
for the period prior to that date will be accounted for as Service Tax
refund received under other income in Profit & Loss Account.
(iv) Domestic Sales is exclusive of custom duty.
k) Retirement Benefits :
Defined contribution scheme : Companys contribution towards Provident
Fund and Superannuation Fund paid/payable during the year are charged
to Profit & Loss Account. Defined Benefit Plan :The company has a
defined benefit gratuity plan covering all its employees. Gratuity is
covered under a scheme of LIC and contribution in respect of such
scheme are recognized in Profit & Loss Account. The liability at the
Balance Sheet date is provided for based on actuarial valuation carried
out by Life Insurance Corporation of India in accordance with AS 15 of
employee benefits issued by the Institute of Chartered Accountants of
India.
Disclosure in respect of DCS and DBS as required under AS 15 have been
given in Note 5 below to the extent practical and the availability of
information.
l) Expenditure on Expansion :
Expenditure directly related to construction activity is capitalised.
Indirect expenditure including borrowing cost directly related to
construction or incidental thereto is allocated amongst the assets
created on pro-rata basis.
m) Governments Grants :
Government grants in the nature of State Investment subsidy are
accounted for on cash basis and treated as capital reserve.
n) Taxation :
Income tax expense comprises Current tax and Deferred tax charge or
credit. Provision for current tax is made on the assessable income at
the tax rate applicable to the relevant assessment year. The Deferred
tax Asset and Deferred tax Liability is calculated by applying tax rate
and tax laws that have been enacted or substantively enacted by the
Balance Sheet date. Deferred tax Assets arising mainly on account of
brought forward losses and unabsored depreciation under tax laws, are
recognised, only if there is a virtual certainty of its realisation,
supported by convincing evidence. Deferred tax Assets on account of
other timing differences are recognised, only to the extent there is a
reasonable certainty of its realisation. At each Balance Sheet date,
the carrying amount of Deferred Tax Assets are reviewed to reassure
realisation.
o) Contingent Liabilities
Contingent liabilities are not provided for and are generally disclosed
by way of notes to accounts.
Disclaimer: This is 3rd Party content/feed, viewers are requested to use their discretion and conduct proper diligence before investing, GoodReturns does not take any liability on the genuineness and correctness of the information in this article