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Accounting Policies of Gujarat Sidhee Cement Ltd. Company

Mar 31, 2015

1.1 Basis Of Accounting :

The financial statements are prepared as under :

(a) on the historical cost convention,

(b) on a going concern basis,

(c) in accordance with the generally accepted accounting principles,

(d) on an accrual system of accounting,

(e) in accordance with the Accounting Standards specified in Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014.

1.2 Use Of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting year, the reported amounts of assets and liabilities and the disclosures of contingent liabilities as on the date of the financial statements. Examples of such estimates include useful life of Fixed Assets, provision for doubtful debts/ advances, deferred tax, etc. Actual results could differ from those estimates. Such difference is recognised in the year in which the results are known / materialised.

1.3 Revenue Recognition :

(a) Sales are accounted on dispatch of goods to customers. Sales figures are inclusive of excise duty, but are net of sales tax, value added tax, sales returns and adjustment in respect of discounts, rate difference, etc.

(b) Export Sales are accounted on the basis of bills of lading / mates receipt dates.

(c) Export incentives are accounted for on export of goods, if the entitlement can be estimated with reasonable accuracy and conditions precedent to their claims are fulflled.

(d) Claims for Insurance are accounted on certainty of acceptance thereof by the Insurer.

(e) Octroi refund claims are accounted for on receipt basis.

1.4 Fixed Asset And Depreciation :

(a) Fixed assets include all expenditure of capital nature and are stated at cost (net of Cenvat, wherever applicable) less accumulated depreciation.

(b) Depreciation on fixed assets is provided on straight-line method over useful life of assets as prescribed in Part C of Schedule II to the Companies Act, 2013.

(c) In respect of addition and sales of assets during the year, depreciation is provided on prorate basis.

(d) Intangible assets are stated at cost of acquisition less accumulated amortisation and accumulated impairment loss, if any. Amortisation is provided over their respective individual assets' estimated useful lives on the straight line basis commencing from the year of assets available for use to the company.

1.5 Impairment Of Fixed Assets :

(a) Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

(b) Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exists or have decreased.

1.6 Investments :

Investments that are intended to be held for more than a year from the date of acquisition are classified as long-term investments and are stated at its cost of acquisition. Diminution, other than temporary, in the value of such investments is provided. Investments other than long-term investments, being current investments, are valued at the lower of cost and fair value, determined on an individual basis.

1.7 Inventories:

(a) Inventories are stated at cost or net realizable value, whichever is lower. For this purpose cost has been arrived at on the basis of moving weighted average. Cost of finished goods include all direct cost, other related factory overheads and excise duty.

(b) Provision for obsolescence is made wherever considered necessary.

1.8 Foreign Currency Transactions :

(a) Transactions in foreign currency (Monetary or Non-monetary items) are recorded at the exchange rate prevailing on the date of the transaction.

(b) Monetary items (i.e. receivables, payables etc.), which are denominated in foreign currency are translated and reported using the exchange rates prevailing on the date of the Balance Sheet.

(c) Non-monetary items which are carried at historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.

(d) Exchange differences arising on the settlement of monetary items or on reporting at rates different from those at which they were initially recorded during the year, or reported in previous financial statements, are recognised as income or expenses in the year in which they arise.

1.9 Employee Benefits :

(a) Defined contribution plan: The Company's superannuation scheme and state governed provident fund scheme are defend contribution plans. The contribution paid/payable under the schemes is recognised during the year in which the employees renders the related service.

(b) Defined benefit plan - Gratuity : In accordance with applicable Indian Laws, the Company provides for gratuity, a defend benefit retirement plan ("Gratuity Plan") covering all employees. The Gratuity Plan provides a lump sum payment to vested employees, at retirement or termination of employment, an amount based on the respective employees last drawn salary and the years of employment with the Company. Liability with regard to Gratuity Plan is accrued based on actuarial valuation at the Balance Sheet date, carried out by an independent Actuary. Actuarial gain or loss is recognised immediately in the Statement of Profit and Loss as Income or Expense.

(c) Compensated Absences : As per policy of the Company, it allows for the encashment of absence or absence with pay to its employees. The employees are entitled to accumulate such absences subject to certain limits, for the future encashment or absence. The Company records an obligation for Compensated absences in the year in which the employees renders the services that increases this entitlement. The Company measures the expected cost of compensated absences as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the Balance Sheet date on the basis of an independent Actuarial valuation.

1.10 Provisions, Contingent Liabilities and Contingent assets :

(a) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

(b) 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" notified under the Companies (Accounts) Rules, 2014.

1.11 Borrowing Cost :

Borrowing costs, attributable to the acquisition / construction of qualifying assets, are capitalized. Other borrowing costs are charged to Statement of Profit and Loss.

1.12 Taxation :

(a) Income tax charge or credit comprises current tax and deferred tax charge or credit.

(b) Current Income tax is measured at the amount expected to be paid to Tax authorities in accordance with the provisions of Income Tax Act, 1961.

(c) Deferred tax asset or liability on timing difference are recognised using current rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised to the extent there exists a virtual certainty that these assets can be realised in future. Deferred tax assets and liabilities are reviewed at each Balance Sheet date.

(d) Minimum Alternate Tax (MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the Statement of Profit and Loss and shown as MAT credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.13 Earnings Per Share

Basic earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares.

1.14 General :

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.


Mar 31, 2014

1.1 Basis of Accounting :

The financial statements are prepared as under :

(a) on the historical cost convention,

(b) on a going concern basis,

(c) in accordance with the generally accepted accounting principles,

(d) on an accrual system of accounting,

(e) in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 which have been prescribed by the Companies (Accounting Standards) Rules, 2006 read with General Circular 15/2013 dated 13th September, 2013 issued by Ministry of Corporate Affairs in respect of Section 133 of the Companies Act, 2013.

1.2 Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting year, the reported amounts of assets and liabilities and the disclosures of contingent liabilities as on the date of the financial statements. Examples of such estimates include useful life of Fixed Assets, provision for doubtful debts/ advances, deferred tax, etc. Actual results could differ from those estimates. Such difference is recognised in the year in which the results are known / materialised.

1.3 Revenue Recognition :

The Company generally follows accrual system of accounting as required under Section 209(3) (b) of the Companies Act, 1956. However, considering uncertainties and / or difficulties involved in estimation of liabilities and / or final determination of refund claims filed by the Company, the following items are considered to be accrued and accounted only when settled or agreed to with the party and / or receipts of amount.

(a) Claim against Railways for shortages / damages for cement in transit

(b) Insurance Claims

(c) Scrap Sales

(d) Octroi Refund Claims

1.4 Fixed Asset and Depreciation :

(a) Fixed assets include all expenditure of capital nature and are stated at cost (net of Cenvat, wherever applicable) less accumulated depreciation.

(b) Depreciation on fixed assets is provided on straight-line method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(c) In respect of addition and sales of assets during the year, depreciation is provided on prorata monthly basis.

(d) Intangible assets are stated at cost of acquisition less accumulated amortisation and accumulated impairment loss, if any. Amortisation is provided over their respective individual estimated useful lives on the straight line basis commencing from the year of assets available for use to the Company.

1.5 Impairment of Fixed Assets :

(a) Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

(b) Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exists or have decreased.

1.6 Investments :

Investments that are intended to be held for more than a year from the date of acquisition are classified as long-term investments and are stated at its cost of acquisition. Diminution, other than temporary, in the value of such investments is provided. Investments other than long-term investments, being current investments, are valued at the lower of cost and fair value, determined on an individual basis, including held by the Subsidiaries for long-term purposes is provided. Diminution in the value of other investments is provided.

1.7 Inventories :

(a) Inventories are stated at cost or net realizable value, whichever is lower. For this purpose cost has been arrived at on the basis of moving weighted average. Cost of finished goods include all direct cost, other related factory overheads and excise duty.

(b) Provision for obsolescence is made wherever considered necessary.

1.8 Sales :

(a) Sales figures are inclusive of excise duty, but are net of sales tax, sales returns and rate difference adjustment.

(b) Export sales are accounted on the basis of the rate of foreign exchange prevailling on dates of bills of lading / mate receipts.

(c) Export benefits on account of entitlement to import duty free materials are recognized in the year of export.

1.9 Foreign Currency Transactions :

Transactions of foreign currency are recorded at the exchange rate as applicable at the date of transaction. Monetary Assets / liabilities outstanding at the close of the financial year are stated at the contracted and / or appropriate exchange rate at the close of the year and the gain / loss is credited / charged to Statement of Profit & Loss.

1.10 Employee Benefits :

(a) Short term employee benefits are charged off in the year in which the related service is rendered.

(b) Post employment employee benefits under defined contribution plans are charged off in the year in which the employee has rendered services. In respect of Defined Benefit Plans, the amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit & Loss.

1.11 Provisions, Contingent Liabilities and Contingent Assets :

(a) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

(b) 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" notified under the Companies (Accounting Standards) Rules, 2006.

1.12 Borrowing Cost :

Borrowing costs, attributable to the acquisition / construction of qualifying assets, are capitalized. Other borrowing costs are charged to Statement of Profit and Loss.

1.13 Taxation :

(a) Income tax charge or credit comprises current tax and deferred tax charge or credit.

(b) Current Income tax is measured at the amount expected to be paid to Tax authorities in accordance with the Income Tax Act, 1961.

(c) Deferred tax asset or liability on timing difference are recognised using current rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised to the extent there exists a virtual certainty that these assets can be realised in future. Deferred tax assets and liabilities are reviewed at each Balance Sheet date.

(d) Minimum Alternate Tax (MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the Statement of Profit and Loss and shown as MAT credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.14 General :

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

(e) Rights, preferences and restrictions :

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

(ii) Dividends, if any, is declared and paid in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(iii) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive residual assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

(f) Details of shares in the Company held by each shareholder holding more than 5 per cent shares :

*As stated in note no. 34 pursuant to the order of Hon''ble BIFR, the Company has received share application money from a Promoter Company. 50,00,000 equity shares have been alloted at par on May 09, 2014.

Term loans from HDFC Bank Ltd., Yes Bank Ltd. and NBFCs in respect of finance availed for purchase of vehicles are secured by hypothecation of vehicles financed by them. The Loans are repayable in monthly equated installments over 3 to 5 years.

6 Deferred Ta x Liabilities / Assets

In accordance with Accounting Standard 22 "Accounting for Taxes on Income" notified under the Companies (Accounting Standards) Rules, 2006, the Company has reviewed its Deferred Tax Liabilities (DTL) and Deferred Tax Assets (DTA) upto March 31, 2014.

Accordingly the Company has computed Deferred Tax Assets of Rs. 822.59 Lacs and Deferred Tax Liabilities of Rs. 1,521.49 Lacs as on March 31, 2014 on the following items of timing differences :

The Company''s gratuity plan and leave encashment are not funded. The following table sets out the status of the gratuity plan and Leave Encashment as required under Accounting Standard 15 "Employee Benefits" and the reconciliation of opening balances of the present value of the defined benefit obligation.

Trade Payable includes dues to small and medium enterprises, which require the following disclosure in accordance with Section 22 of Micro, Small and Medium Enterprises Development Act, 2006 :

The above information has been determined to the extent such parties could be identified on the basis of information available with the Company regarding the status of suppliers under the MSME.


Mar 31, 2013

1.1 Basis of Accounting :

The financial statements are prepared as under:

(a) on the historical cost convention,

(b) on a going concern basis,

(c) in accordance with the generally accepted accounting principles,

(d) on an accrual system of accounting,

(e) in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 which have been prescribed by the Companies (Accounting Standards) Rules, 2006,

1.2 Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting year, the reported amounts of assets and liabilities and the disclosures of contingent liabilities as on the date of the financial statements. Examples of such estimates include useful life of Fixed Assets, provision for doubtful debts/ advances, deferred tax, etc. Actual results could differ from those estimates. Such difference is recognised in the year in which the results are known / materialised.

1.3 Revenue Recognition :

The Company generally follows accrual system of accounting as required under Section 209(3) (b) of the Companies Act, 1956. However, considering uncertainties and / or difficulties involved in estimation of liabilities and / or final determination of refund claims filed by the Company, the following items are considered to be accrued and accounted only when settled or agreed to with the party and / or receipts of amount.

(a) Claim against Railways for shortages / damages for cement in transit

(b) Insurance Claims

(c) Scrap Sales

(d) Octroi Refund Claims

1.4 Fixed Asset and Depreciation :

(a) Fixed assets include all expenditure of capital nature and are stated at cost (net of Cenvat, wherever applicable) less accumulated depreciation.

(b) Depreciation on fixed assets is provided on straight-line method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(c) In respect of addition and sales of assets during the year, depreciation is provided on prorata monthly basis.

(d) Intangible assets are stated at cost of acquisition less accumulated amortisation and accumulated impairment loss, if any. Amortisation is provided over their respective individual estimated useful lives on the straight line basis commencing from the year of assets available for use to the company.

1.5 Impairment of Fixed Assets :

(a) Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company''s fixed assets. If any indication exists, an asset''s recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

(b) Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exists or have decreased.

1.6 Inventories:

(a) Inventories are stated at cost or net realizable value, whichever is lower. For this purpose cost has been arrived at on the basis of moving weighted average. Cost of finished goods include all direct cost, other related factory overheads and excise duty.

(b) Provision for obsolescence is made wherever considered necessary.

1.7 Sales:

(a) Sales figures are inclusive of excise duty, but are net of sales tax, sales returns and rate difference adjustment.

(b) Export sales are accounted on the basis of the rate of foreign exchange prevailing on dates of bills of lading / mate receipts.

(c) Export benefits on account of entitlement to import duty free materials are recognized in the year of export.

1.8 Foreign Currency Transactions:

Transactions of foreign currency are recorded at the exchange rate as applicable at the date of transaction. Monetary Assets / liabilities outstanding at the close of the financial year are stated at the contracted and / or appropriate exchange rate at the close of the year and the gain / loss is credited / charged to Statement of Profit & Loss.

1.9 Employee Benefits :

(a) Short term employee benefits are charged off in the year in which the related service is rendered.

(b) Post employment employee benefits under defined contribution plans are charged off in the year in which the employee has rendered services. In respect of Defined Benefit Plans, the amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit & Loss.

1.10 Provisions, Contingent Liabilities and Contingent Assets :

(a) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

(b) 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" notified under the Companies (Accounting Standards) Rules, 2006.

1.11 Borrowing Cost:

Borrowing costs, attributable to the acquisition / construction of qualifying assets, are capitalized. Other borrowing costs are charged to Statement of Profit and Loss.

1.12 Taxation:

(a) Income tax charge or credit comprises current tax and deferred tax charge or credit.

(b) Current Income tax is measured at the amount expected to be paid to Tax authorities in accordance with the Income Tax Act, 1961.

(c) Deferred tax asset or liability on timing difference are recognised using current rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised to the extent there exists a virtual certainty that these assets can be realised in future. Deferred tax assets and liabilities are reviewed at each Balance Sheet date.

(d) Minimum Alternate Tax (MAT) Credit is recognized as an asset only when and to the extent there is convincing evidence that the company will pay normal income tax during the specified period. In the year in which the MAT Credit becomes eligible to be recognized as an asset in accordance with the recommendations contained in Guidance Note issued by the Institute of Chartered Accountants of India, the said asset is created by way of credit to the Statement of Profit and Loss and shown as MAT credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT Credit Entitlement to the extent there is no longer convincing evidence to the effect that Company will pay normal Income Tax during the specified period.

1.13 General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.


Mar 31, 2012

1.1 Basis of Accounting :

The financial statements are prepared as under :

(a) on the historical cost convention,

(b) on a going concern basis,

(c) in accordance with the generally accepted accounting principles,

(d) on an accrual system of accounting,

(e) in accordance with the Accounting Standards referred to in Section 211 (3C) of the Companies Act, 1956 which have been prescribed by the Companies (Accounting Standards) Rules, 2006,

1.2 Use of Estimates:

The preparation of the financial statements in conformity with the generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting year, the reported amounts of assets and liabilities and the disclosures of contingent liabilities as on the date of the financial statements. Examples of such estimates include useful life of Fixed Assets, provision for doubtful debts/ advances, deferred tax, etc. Actual results could differ from those estimates. Such difference is recognised in the year/s in which the results are known / materialised.

1.3 Revenue Recognition :

The Company generally follows accrual system of accounting as required under Section 209(3) (b) of the Companies Act, 1956. However, considering uncertainties and / or difficulties involved in estimation of liabilities and / or final determination of refund claims filed by the Company, the following items are considered to be accrued and accounted only when settled or agreed to with the party and / or receipts of necessary amount.

(a) Claim against Railways for shortages / damages for cement in transit

(b) Insurance Claims

(c) Scrap Sales

(d) Octroi Refund Claims

1.4 Fixed Asset and Depreciation :

(a) Fixed assets include all expenditure of capital nature and are stated at cost (net of Cenvat, wherever applicable) less accumulated depreciation.

(b) Depreciation on fixed assets is provided on straight-line method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

(c) In respect of addition and sales of assets during the year, depreciation is provided on prorata monthly basis.

1.5 Impairment of Fixed Assets :

(a) Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Company's fixed assets. If any indication exists, an asset's recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

(b) Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exists or have decreased.

1.6 Inventories :

(a) Inventories are stated at cost or net realizable value, whichever is lower. For this purpose cost has been arrived at on the basis of moving weighted average. Cost of finished goods include all direct cost, other related factory overheads and excise duty.

(b) Provision for obsolescence is made wherever considered necessary.

1.7 Sales :

(a) Sales figures are inclusive of excise duty, but are net of sales tax, sales returns and rate difference adjustment

(b) Export sales are accounted on the basis of the rate of foreign exchange prevailling on dates of bills of lading / mate receipts.

(c) Export benefits on account of entitlement to import duty free materials are recognized in the year of export.

1.8 Foreign Currency Transactions :

Transactions of foreign currency are recorded at the exchange rate as applicable at the date of transaction.

Monetary Assets / liabilities outstanding at the close of the financial year are stated at the contracted and / or appropriate exchange rate at the close of the year and the gain / loss is credited / charged to Statement of Profit & Loss.

1.9 Employee Benefits :

(a) Short term employee benefits are charged off in the year in the which the related service is rendered.

(b) Post employment employee benefits under defined contribution plans are charged off in the year in which the employee has rendered services. In respect of Defined Benefit Plans, the amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Statement of Profit & Loss.

1.10 Provisions, Contingent Liabilities and Contingent Assets :

(a) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

(b) 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" notified under the Companies (Accounting Standards) Rules, 2006.

1.11 Borrowing Cost :

Borrowing costs, attributable to the acquisition / construction of qualifying assets, are capitalized. Other borrowing costs are charged to Statement of profit and loss.

1.12 Taxation :

(a) Income tax charge or credit comprises current tax and deferred tax charge or credit.

(b) Current Income tax is measured at the amount expected to be paid to Tax authorities in accordance with the Income Tax Act, 1961.

(c) Deferred tax asset or liability on timing difference are recognised using current rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised to the extent there exists a virtual certainty that these assets can be realised in future. Net deferred tax asset is recognised based on the principles of prudence. Deferred tax assets and liabilities are reviewed at each Balance Sheet date.

1.13 General :

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.

(e) Rights, preferences and restrictions :

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

(ii) Dividends, if any, is declared and paid in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(iii) In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assests of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

(i) Trade payables include Rs NIL (Previous year Rs NIL) due to creditors registered with the Micro, Small and Medium Enterprises Development Act, 2006 (MSME).

(ii) No interest is paid / payable during the year to Micro, Small and Medium Enterprises.

(iii) The above information has been determined to the extent such parties could be identified on the basis of information available with the Company regarding the status of suppliers under the MSME.

(i) Term loan of Rs 11.59 lacs from a Financial Institution shown under Current maturities of long-term debts is secured by first mortgage on all movable and immovable assets of the Company, both present and future. The balance is under reconciliation and payable immediately after reconciliation.


Mar 31, 2011

1 Historical Cost Basis :

The Financial statements are prepared under the historical cost convention and in accordance with applicable mandatory Accounting Standards.

2 Revenue Recognition :

The Company generally follows accrual system of accounting as required under Section 209(3) (b) of the Companies Act, 1956. However, considering uncertainties and / or difficulties involved in estimation of liabilities and / or final determination of refund claims filed by the Company, the following items are considered to be accrued and accounted only when settled or agreed to with the party and / or receipts of necessary amount.

i) Claim against Railways for shortages / damages for cement in transit

ii) Insurance Claims

iii) Scrap Sales

iv) Octroi Refund Claims

3 Fixed Asset and Depreciation :

a) Fixed assets include all expenditure of capital nature and are stated at cost (net of Cenvat, wherever applicable) less accumulated depreciation.

b) Depreciation on fixed assets is provided on straight-line method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

c) In respect of addition and sales of assets during the year, depreciation is provided on prorata monthly basis.

4 Impairment of Fixed Assets :

a) Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

b) Reversal of impairment losses recognized in prior years is recorded when there is an indication that the impairment losses recognized for the asset no longer exists or have decreased.

5 Inventories :

a) Inventories are stated at cost or net realizable value, whichever is lower. For this purpose cost has been arrived at on the basis of moving weighted average. Cost of finished goods include all direct cost, other related factory overheads and excise duty.

b) Provision for obsolescence is made wherever considered necessary.

6 Sales:

a) Sales figures are inclusive of excise duty, but are net of sales tax, sales returns and rate difference adjustment.

b) Export sales are accounted on the basis of the rate of foreign exchange prevailing on dates of bills of lading/ mate receipts.

c) Export benefits on account of entitlement to import duty free materials are recognized in the year of export.

7 Foreign Exchange Transaction :

Transactions of foreign currency are recorded at the exchange rate as applicable at the date of transaction. Monetary Assets / liabilities outstanding at the close of the financial year are stated at the contracted and / or appropriate exchange rate at the close of the year and the gain / loss is credited / charged to Profit & Loss Account.

8 Employee Benefits :

a) Short term employee benefits are charged off in the year in the which the related service is rendered.

b) Post employment employee benefits under defined contribution plans are charged off in the year in which the employee has rendered services. In respect of Defined Benefit Plans, the amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Profit & Loss Account.

9 Provisions, Contingent Liabilities and Contingent Assets :

a) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

b) 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" notified under the Companies (Accounting Standard) Rules, 2006.

10 Borrowing Cost :

Borrowing costs, attributable to the acquisition / construction of qualifying assets, are capitalized. Other borrowing costs are charged to profit and loss account.

11 Taxation :

a) Income tax charge or credit comprises current tax and deferred tax charge or credit.

b) Current Income tax is measured at the amount expected to be paid to Tax authorities in accordance with the Income Tax Act, 1961.

c) Deferred tax asset or liability on timing difference are recognised using current rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised to the extent there exists a virtual certainty that these assets can be realised in future. Net deferred tax asset is recognised based on the principles of prudence. Deferred tax assets and liabilities are reviewed at each Balance Sheet date.

12 General :

Accounting policies not specifically referred to are consistent with generally accepted accounting practice.


Mar 31, 2010

1. Historical Cost Basis:

The Financial statements are prepared under the historical cost convention and in "accordance with applicable mandatory Accountins Standards.

2. Revenue Recognition:

The Company generally follows accrual system of accounting as required under Section 209(3)(b) of the Companies Act, 1956. However, considering uncertainties and / or difficulties involved in estimation of liabilities and / or final determination of refund claims filed by the Company, the following items are considered to be accrued and accounted only when settled or agreed to with the party and / or receipts of necessary amount,

i) Claim against Railways for shortages / damages for cement in transit,

ii) Insurance Claims, and

iii) Scrap Sales

iv) Octroi Refund Claims

3. Fixed Asset and Depreciation:

a) Fixed assets include all expenditure of capital nature and are stated at cost (net of Cenvat, wherever applicable) less accumulated depreciation.

b) Depreciation on fixed assets is provided on straight-line method at the rates prescribed in Schedule XIV to the Companies Act, 1956.

c) In respect of addition and sales of assets during the period, depreciation is provided on prorata monthly basis.

4. Impairment of Fixed Assets:

a) Consideration is given at each balance sheet date to determine whether there is any indication of impairment of the carrying amount of the Companys fixed assets. If any indication exists, an assets recoverable amount is estimated. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount,

b) Reversal of impairment losses recosnized in prior years is recorded when there is an indication that the impairment losses recosnized for the asset no longer exists or have decreased.

5. Inventories:

a) Inventories are stated at cost or net realizable value, whichever is lower. For this purpose cost has been arrived at on the basis of moving weighted average. Cost of finished goods include all direct cost, other related factory overheads and excise duty.

b) Provision for obsolescence is made wherever considered necessary.

6. Sales:

a) Sales figures are inclusive of excise duty, but are net of sales tax, sales returns, and rate difference adjustment.

b) Export sales are accounted on the basis of the rate of foreign exchange prevailing on dates of bills of lading.

c) Export benefits on account of entitlement to import duty free materials are recognized in the year of export.

7. Foreign Exchange Transaction:

Transactions of foreign currency are recorded at the exchange rate as applicable at the date of transaction. Monetary Assets / liabilities outstanding at the close of the financial year are stated at the contracted and / or appropriate exchange rate at the close of the year and the gain / loss is credited / charged to Profit S> Loss Account.

8. Employee Benefits:

a) Short term employee benefits are charged off in the year in which the related service is rendered.

b) Post employment employee benefits under defined contribution plans are charged off in the year in which the employee has rendered services, In respect of Defined Benefit Plans, the amount charged off is recognised at the present value of the amounts payable determined using actuarial valuation techniques. Actuarial gains and losses in respect of post employment and other long term benefits are charged to Profit & Loss Account.

9. Provisions, Contingent Liabilities and Contingent Assets.

a) Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements,

b) Provisions, Contingent Liabilities and Contingent Assets are reviewed at each Balance Sheet date in accordance with the Accounting Standard A5-29 on "Provisions, Contingent Liabilities And Contingent Assets" notified under the Companies Accounting Standard Rules, 2006,

10. Borrowing Cost:

Borrowing costs, attributable to the acquisition / construction of qualifying assets, are capitalized. Other borrowing costs are charged to profit and loss account.

11. Taxation:

a) Income tax charge or credit comprises current tax and deferred tax charge or credit.

b) Current Income tax and Fringe Benefit tax are measured at the amount expected to be paid to Tax authorities in accordance with the Income Tax Act.

c) Deferred tax asset or liability on timing difference are recognised using current rates and tax laws that have been

enacted or substantively enacted by the Balance Sheet date. Deferred tax assets are recognised to the extent there exists a virtual certainty that these assets can be realised in future. Net deferred tax asset is recognised based on the principles of prudence. Deferred tax assets and liabilities are reviewed at each Balance Sheet date.

12. General:

Accounting policies not specifically referred to are consistent with generally accepted accounting practice,



 
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