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Accounting Policies of Inani Marbles & Industries Ltd. Company

Mar 31, 2015

2.1 BASIS OF ACCOUNTING:

The financial statements of the Company are consistently prepared and presented under historical cost convention on as accrual basis in accordance with the generally accepted accounting principles in India (Indian GAAP) . The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under section 133 of the Companies act, 2013, read together with Rule 7 of the Companies (Accounts) Rules , 2014 and the relevant provisions of the Companies Act, 2013 In accordance with first proviso to section 129(1) of the companies act, 2013 (the Act), and clause 6 of the General Instruction given in Schedule III to the Act the items contained in the enclosed financial statements are in accordance with the Accounting Standards as referred to herein. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

All the assets and liabilities 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 to the Companies Act, 2013 based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current-non - current classification of assets and liabilities.

2.2 SYSTEM OF ACCOUNTING:

1) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of significant uncertainties.

2) Financial Statements are prepared under the Historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

3) Estimated and Assumptions used in the preparation of the financial statements and disclosures are based upon management's evaluation of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date.

2.3 USE OF ESTIMATES:

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto Differences between actual results and estimates are recognized in the period in which the results are known/materializes.

2.4 TANGIBLE FIXED ASSETS:

Fixes assets, are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the assets to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses related to existing fixed assets, including day-to-day repair ind maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the assets is derecognized.

2.5 DEPRECIATION:

(a) Depreciation on Fixed assets is provided on straight line method, except Mining Equipments on which depreciation is provided on written down value method. Depreciation is provided based on useful life of assets as prescribed in Schedule II to the Company Act, 2013.

(b) Cost of lease hold land is not being amortized over the period of lease.

2.6 INVESTMENTS:

Current investments are carried at lower of cost and quoted/fair value, computed category -wise-. Non Current investments are. Stated at cost. Provision for diminution in the value of non Current investments is made only if such a decline is other than temporary.

2.7 IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS:

Carrying amount of cash generating units/assets is reviewed for impairment. Impairment, if any, is recognized where the carrying amount exceeds the recoverable amounts being the higher of net realizable price and value in use. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

There was no impairment loss on fixed assets during the year on the basis of review carried out by the management in accordance with AS-28 issued by the Institute of Chartered Accountants of India.

2.8 VALUATION OF INVENTORIES:

i. Raw Material - At weighted average cost

ii. Stores, Spares & Tools - At cost

iii. Finished Goods - At lower of cost or net realizable value

iv. Goods in transit - At cost on the Basis of Bill

Cost comprises of cost of acquisition and all other costs attributable in bringing inventories to the condition of their intended use.

2.9 REVENUE RECOGNITION:

i. Sales are recognized at the time of dispatch. Sales exclude excise duty.

ii. Job work receipts are recognized on completion of work.

iii. Interest income is recognized on accrual basis.

2.10 EXCISE DUTY:

Excise Duty payable on production is accounted for only at the time of dispatch of goods from the factory. Cenvat credit on Raw material and Capital Goods has been accounted for by reducing the purchase cost of Raw material and Capital Goods respectively.

2.11

(A) FOREIGN CURRENCY TRANSACTIONS:

i. Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transaction.

ii. Foreign currency denominated assets and liabilities are translated into INR at the rates of exchange prevailing on the date of Balance Sheet.

iii. Any income or expense on account of exchange differences, either on settlement or on translation is recognized in the Statement of Profit and Loss.

(B) HEDGING OF FOREIGN CURRENCY TRANSACTIONS

i. Premium or discount on foreign exchange forward and currency option contracts are amortized and recognized in the statement of profit and loss over the period of the contract. Foreign exchange forward and currency option contracts outstanding at the balance sheet date, other than designated cash flow hedges, are stated at fair values and any gains or losses are recognized in the statement * of profit and loss..

2.12 TAXES ON INCOME:

i. Current Tax:

Provision for current tax is made on the basis of taxable income for the current accounting year in accordance with the provisions of Income Tax Act, 1961.

ii. Deferred Tax:

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and lavys that have been substantially enacted as on the Balance Sheet date.

2.13 BORROWING COSTS:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

2.14 PROVISION, CONTINGENT LIABILITES AND CONTINGENT ASSETS:

Provisions are recognized in terms of Accounting Standard (AS-29) Provisions, Contingent Liabilities and Contingent Assets notified pursuant to Companies (Accounting Standards) Rules, 2006, when there is present legal or statutory obligation as result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation can not be measured in terms of future outflow of resources or where a realizable estimate of the obligation cannot be made. Obligations are assessed on an on going basis and only those having largely probable outflow of resources are provided for.

2.15 EMPLOYEE BENEFITS:

Contribution made to Provident Fund is charged to Profit and Loss account every month. The Company has taken a policy with Life Insurance Corporation of India (LIC) to cover the gratuity liability of the employees and premium paid to the LIC is charged to Profit & Loss Account.

2.16 EARNING PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of the equity shares outstanding during the year.

For the purpose of calculating diluted earning per share, net profit or loss for the period attributable ot equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

2.17 DISCOUNTINUED OPERATIONS:

Assets and Liabilities of discontinued operations are assessed at each Balance Sheet date. Impacts of any impairments and write backs are dealt with in the Profit and Loss Account.

Impacts of discontinued operations are distinguished from the ongoing operations of the Company, so that their impact on the Profit and Loss Account for the year can be perceived.

2.18 PROVISIONS:

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provision are not discounted to their present value of and determined based on the best estimate required to settle the obligation at the reporting date. These estimated are reviewed at each reporting period and adjusted to reflect the current best estimated.

2.19 CASH AND CASH EQUIVALENTS:

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

2.20 CONTINGENT LIABILITIES:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it can not be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.






Mar 31, 2014

1.1 BASIS OF ACCOUNTING:

These financial statements have been prepared in accordance with the generally accepted accounting principles in India, on the basis of going concern under the historical cost convention and also on accrual basis. These financial statements comply, in all material aspects, with the provisions of the Companies Act, 1956 and the Companies Act, 2013 (to the extent applicable) and also accounting standards prescribed by the Companies (Accounting Standard) Rules, 2006 which continue to be applicable in respect of Section 133 of the Companies Act, 2013 in terms of General Circular 15/2013 dated September 13, 2013 of the Ministry of Corporate Affairs.

All the assets and liabilities have been classified as current or non-current as per the normal operating cycle of the Company and other criteria set out in Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle being a period within 12 months for the purpose of current and non-current classification of assets and liabilities.

1.2 SYSTEM OF ACCOUNTING:

1) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of significant uncertainties.

2) Financial Statements are prepared under the Historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

3) Estimated and Assumptions used in the preparation of the financial statements and disclosures are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date.

1.3 USE OF ESTIMATES:

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto Differences between actual results and estimates are recognized in the period in which the results are known/materializes.

1.4 TANGIBLE FIXED ASSETS:

Fixes assets, are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the assets to its working condition for the intended use. Any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses related to existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are Incurred.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of profit and loss when the assets is derecognized.

1.5 DEPRECIATION:

(a) Depreciation on Fixed assets is provided on straight line method, except Mining Equipments on which depreciation is provided on written down value method. Depreciation is produced in accordance with the provision of Sec 205(2) (b) and at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

(b) Cost of lease hold land is not being amortized over the period of lease.

1.6 INVESTMENTS:

Investments are classified as Non Current & Current as per the AS-13 (Accounting for Investments) issued by the Institute of Chartered Accountants of India. Non Current Investments are stated at Cost (ess permanent diminution in value, if any, and hence does not call for provision there against.

1.7 IMPAIRMENT OF TANGIBLE AND INTANGIBLE ASSETS:

Carrying amount of cash generating units/assets is reviewed for impairment. Impairment, if any, is recognized where the carrying amount exceeds the recoverable amounts being the higher of net realizable price and value in use. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

There was no impairment loss on fixed assets during the year on the basis of review carried out by the management in accordance with AS-28 issued by the Institute of Chartered Accountants of India.

1.8 VALUATION OF INVENTORIES:

i. Raw Material - At weighted average cost

ii. Stores, Spares & Tools - At cost

iii. Finished Goods - At lower of cost or net realizable value

iv. Goods in transit - At cost on the Basis of Bill

Cost comprises of cost of acquisition and alt other costs attributable in bringing inventories to the condition of their intended use.

1.9 REVENUE RECOGNITION:

i. Sales are recognized at the time of dispatch. Sales exclude excise duty.

ii. Job work receipts are recognized on completion of work.

iii. Interest income is recognized on accrual basis.

1.10 EXCISE DUTY:

Excise Duty payable on production is accounted for only at the time of dispatch of goods from the factory.

1.11

(A) FOREIGN CURRENCY TRANSACTIONS:

i. Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transaction.

ii. Foreign currency denominated assets and liabilities are translated into INR at the rates of exchange prevailing on the date of Balance Sheet.

iii. Any income or expense on account of exchange differences, either on settlement or on translation is recognized in the Statement of Profit and Loss.

(B) HEDGING OF FOREIGN CURRENCY TRANSACTIONS

i. Premium or discount on foreign exchange forward and currency option contracts are amortized and recognized in the statement of profit and loss over the period of the contract. Foreign exchange forward and currency option contracts outstanding at the balance sheet date, other than designated cash flow hedges, are stated at fair values and any gains or losses are recognized in the statement of profit and loss.

1.12 TAXES ON INCOME:

i. Current Tax:

Provision for current tax is made on the basis of taxable income for the current accounting year in accordance with the provisions of Income Tax Act, 1961.

ii. Deferred Tax:

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantially enacted as on the Balance Sheet date.

1.13 BORROWING COSTS:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for Its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

1.14 PROVISION, CONTINGENT LIABILITIES AND CONTINGENT ASSETS:

Provisions are recognized in terms of Accounting Standard (AS-29) Provisions, Contingent Liabilities and Contingent Assets notified pursuant to Companies (Accounting Standards) Rules, 2006, when there is present legal or statutory obligation as result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation can not be measured in terms of future outflow of resources or where a realizable estimate of the obligation cannot be made. Obligations are assessed on an on going basis and only those having largely probable outflow of resources are provided for.

1.15 EMPLOYEE BENEFITS:

Contribution made to Provident Fund is charged to Profit and Loss account every month. The Company has taken a policy with Life Insurance Corporation of India (LIC) to cover the gratuity liability of the employees and premium paid to the LIC is charged to Profit & Loss Account.

1.16 EARNING PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of the equity shares outstanding during the year.

For the purpose of calculating diluted earning per share, net profit or loss for the period attributable of equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

1.17 DISCONTINUED OPERATIONS:

Assets and Liabilities of discontinued operations are assessed at each Balance Sheet date. Impacts of any impairments and write backs are dealt with in the Profit and Loss Account.

Impacts of discontinued operations are distinguished from the ongoing operations of the Company, so that their impact on the Profit and Loss Account for the year can be perceived.

1.18 PROVISIONS:

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provision are not discounted to their present value of and determined based on the best estimate required to settle the obligation at the reporting date. These estimated are reviewed at each reporting period and adjusted to reflect the current best estimated.

1.19 CASH AND CASH EQUIVALENTS:

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

1.20 CONTINGENT LIABILITIES:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it can not be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.


Mar 31, 2013

1.1 BASIS OF ACCOUNTING:

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) (Companies (Accounting Standards) Rules, 2006, as amended) and the other relevant provisions of the Companies Act, 1956.

1.2 SYSTEM OF ACCOUNTING:

1) The Company follows the mercantile system of accounting and recognizes income and expenditure on an accrual basis except in case of significant uncertainties.

2) Financial Statements are prepared under the Historical cost convention. These costs are not adjusted to reflect the impact of changing value in the purchasing power of money.

3) Estimated and Assumptions used in the preparation of the financial statements and disclosures are based upon management''s evaluation of the relevant facts and circumstances as of the date of the financial statements, which may differ from the actual results at a subsequent date.

1.3 USE OF ESTIMATES:

The preparation of financial statement requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and notes thereto Differences between actual results and estimates are recognized in the period in which the results are known/materializes.

1.4 TANGIBLE FIXED ASSETS:

Fixes assets, are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost comprises purchase price, borrowing costs if capitalization criteria are met and directly attributable cost of bringing the assets to its working condition for the intended use. Any trade discountsand rebates are deducted in arrivingatthe purchase price.

Subsequent expenditure related to an item of fixed assets is added to its book value only if it increases the future benefits from the existing asset beyond its previously assessed standard of performance. All other expenses related to existing fixed assets, including day-to-day repair and maintenance expenditure and cost of replacing parts, are charged to the statement of profit and loss for the period during which such expenses are incurred.

Gains or losses arising from de-recognition of fixed assets are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in the statement of prof it and loss when the assets is derecognized.

1.5 DEPRECIATION:

(a) Depreciation on Fixed assets is provided on straight line method, except Mining Equipments on which depreciation is provided on written down value method. Depreciation is produced in accordance with the provision of Sec 205(2) (b) and at the rates and in the manner prescribed in Schedule XIV to the Companies Act, 1956.

(b) Cost of lease hold land is not being amortized over the period of lease.

1.6 INVESTMENTS: :

Investments are classified as Non Current & Current as per the AS-13 (Accounting for investments) issued by the Institute of Chartered Accountants of India. Non Current Investments are stated at Cost less permanent diminution in value, if any, and hence does not call for provision there against.

1.7 IMPAIRMENTOFTANGIBLE AND INTANGIBLE ASSETS:

Carrying amount of cash generating units/assets is reviewed for impairment. Impairment, if any, is recognized where the carrying amount exceeds the recoverable amounts being the higher of net realizable price and value in use. An impairment loss is charged to Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

There was no impairment loss on fixed assets during the year on the basis of review carried out by the management in accordance with AS-28 issued by the Institute of Chartered Accountants of India.

1.8 VALUATION OF INVENTORIES:

i. RawMaterial - At weighted average cost

ii. Stores, Spares & Tools - Atcost

iii. FinishedGoods - Atlowerofcostornetrealizablevalue

iv. Goods in transit - At cost on the Basis of Bill

Cost comprises of cost of acquisition and all other costs attributable in bringing inventories to the condition of their intended use.

1.9 REVENUE RECOGNITION:

i. Sales are recognized at the time of dispatch. Sales exclude excise duty.

ii. Job work receipts are recognized on completion of work.

iii. Interest income is recognized on accrual basis.

1.10 EXCISE DUTY:

Excise Duty payable on production is accounted for only at the time of dispatch of goods from the factory.

1.11

(A) FOREIGN CURRENCYTRANSACTIONS:

i. Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transaction.

ii. Foreign currency denominated assets and liabilities are translated into INR at the rates of exchange prevailing on the date of Balance Sheet.

iii. Any income or expense on account of exchange differences, either on settlement or on translation is recognized in the Statement of Profit and Loss.

(B) HEDGING OF FOREIGN CURRENCYTRANSACTIONS

i. Premium or discount on foreign exchange forward and currency option contracts are amortised and recognized in the statement of profit and loss over the period of the contract. Foreign exchange forward and currency option contracts outstanding at the balance sheet date, other than designated cash flow hedges, are stated at fair values andany gains or losses are recognized in the statement of profit and loss.

1.12 TAXES ON INCOME:

i. CurrentTax:

Provision for current tax is made on the basis of taxable income for the current accounting year in accordance with the provisions of Income Tax Act, 1961.

ii. Deferred Tax:

The deferred tax for timing differences between the book profits and tax profits for the year is accounted for, using the tax rates and laws that have been substantially enacted as on the Balance Sheet date.

1.13 BORROWING COSTS:

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalized as part of the cost of the respective asset. All other borrowing costs are expensed in the period they occur.

1.14 PROVISION, CONTINGENT LIABILITES AND CONTINGENT ASSETS:

Provisions are recognized in terms of Accounting Standard (AS-29) Provisions, Contingent Liabilities and Contingent Assets notified pursuant to Companies (Accounting Standards) Rules, 2006, when there is present legal or statutory obligation as result of past events, where it is probable that there will be outflow of resources to settle the obligation and when a reliable estimate of the amount of the obligation can be made.

Contingent liabilities are recognized only when there is obligation arising from past events due to occurrence or non-occurrence of one or more uncertain future events not wholly within the control of occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or where any present obligation can not be measured in terms of future outflow of resources or where a realizable estimate of the obligation cannot be made. Obligations are assessed on an on going basis and only those having largely probable outflow of resources are provided for.

1.15 EMPLOYEE BENEFITS:

Contribution made to Provident Fund is charged to Profit and Loss account every month. The Company has taken a policy with Life Insurance Corporation of India (LIC) to cover the gratuity liability of the employees and premium paid to the LIC is charged to Profit & Loss Account.

Accounting policies not specifically referred to otherwise are consistent and in consonance with Generally Accepted Accounting Principles and are in accordance with the applicable Accounting Standards specified U/s 211 (3C) of the Companies Act, 1956.

1.16 EARNING PER SHARE:

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of the equity shares outstanding during the , year.

For the purpose of calculating diluted earning per share, net profit or loss for the period attributable ot equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effect of all dilutive potential equity shares.

1.17 DISCOUNTINUED OPERATIONS:

Assets and Liabilities of discontinued operations are assessed at eac.h Balance Sheet date. Impacts of any impairments and write backs are dealt with in the Profit and Loss Account.

Impacts of discontinued operations are distinguished from the ongoing operations of the Company, so that their impact on the Profit and Loss Account for the year can be perceived.

1.18 PROVISIONS:

A provision is recognized when the Company has a present obligation as a result of past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provision are not discounted to their present value of and determined based on the best estimate required to settle the obligation at the reporting date. These estimated are reviewed at each reporting period and adjusted to reflect the current best estimated.

1.19 CASH AND CASH EQUIVALENTS:

Cash and cash equivalents for the purpose of cash flow statement comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

1.20 CONTINGENT LIABILITIES:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it can not be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

1.21 BASIS OF CASSIFICATION OF CURRENT AND NON CURRENT:

Assets and Liabilities in the balance sheet have been classified as either current or non-current based upon the requirements of Revised Schedule VI notified under the Companies Act 1956.

An asset has been classified as current if (a) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle; or (b) it is held primarily for the purpose of being traded; or (c) it is expected to be realized within twelve 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 twelve months after me reporting date. All other assets have been classified as non-current.

A liability has been classified as current when (a) it is expected to be settled in the Company''s normal operating cycle; or (b)"it is held primarily for the purpose of being traded; or (c) it is due to be settled within twelve months after the reporting date: or (d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. All other liabilities have been classified as non-current.

An operating cycle is the time between the acquisition of assets for processing and their realization in cash or cash equivalents.

1.22 MEASUREMENTOF EBITDA:

As permitted by the Guidance Note on the Revised Schedule VI to the Companies Act, 1956 the company has elected to present earnings before interest, tax, depreciation and amortization (EBITDA) as a separate line item on the face of the statement of profit and loss. The Company measures EBITDA on the basis of profit/floss) from continuing operations. In its measurement, the Company does not include depreciation and amortization expense, finance costs and tax expense.


Mar 31, 2011

(i) BASIS OF ACCOUNTING:

The Financial Statements are prepared under the historical cost convention on accrual basis and are in accordance with the requirement of the Companies Act, 1956.

(ii) FIXED ASSETS:

Fixed Assets are stated at cost less depreciation.

(iii) DEPRECIATION:

(a) Depreciation on Fixed assets is provided on straight line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956. Except on mining equipments depreciation has been provided on written down value method at the rates and manner prescribed in schedule XIV to the Companies Act. 1956.

(b) Cost of lease hold land is not being amortized over the period of lease.

(v) SALES:

Sales are recognized at the time of dispatch Job Work receipts on Completion of Works.

(vi) EXCISE DUTY:

Excise Duty Payable on production is accounted for only at the time of dispatch of goods from the factory. However excise duty on closing stocks is accounted at the end of year for valuation of stock in view of Accounting Standard 2 (Revised). Modvat Credit available is accounted by recording machinery/materials purchased at net of excise duty.

(vii) FOREIGN CURRENCY TRANSACTIONS :

Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transaction. Foreign currency denominated assets and liabilities are translated into rupees at the rates of exchange prevailing on the date of balance sheet. All exchange differences are dealt with in the statement of profit and loss account.

(viii) INCOME TAX:

Provision for current tax is made on the basis of taxable income for the current accounting . year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been substantially enacted as of the balance sheet date.

(ix) RETIREMENT BENEFITS:

(a) Contribution made to Provident Fund is charged to Profit and Loss account every month.

(b) The Company has taken a policy with Life Insurance Corporation of India (LIC) to cover the gratuity liability of the employees and premium paid to the LIC is charged to Profit & Loss Account.

(x) INVESTMENTS:

Investments are classified as long term as per the AS-13 on Accounting for Investments issued by the Institute of Chartered Accountants of India, New Delhi and hence, valued at cost and diminution in the value of investments, if any does not call for provision there against.

(xi) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the Company and are in accordance with the applicable Accounting Standards as specified U/s 211 (3C) of the Companies Act 1956.


Mar 31, 2010

(i) BASIS OF ACCOUNTING:

The Financial Statements are prepared under the historical cost convention on accrual basis and are in accordance with the requirement of the Companies Act, 1956.

(ii) FIXED ASSETS:

Fixed Assets are stated at cost less depreciation.

(iii) DEPRECIATION:

(a) Depreciation on Fixed assets is provided on straight line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956. Except on mining equipments depreciation has been provided on written down value method at the rates and manner prescribed in schedule XIV to the Companies Act. 1956.

(b) Cost of lease hold land is not being amortised over the period of lease.

(iv) VALUATION OF INVENTORIES

Raw Material - At Average cost

Stores, Spares & Tools - At Cost

Finished Goods - At lower of cost or net realisable value

Goods in transit - At cost on the Basis of Bill

(v) SALES:

Sales are recognised at the time of dispatch.

(vi) EXCISE DUTY:

Excise Duty not Payable during the year.

(vii) FOREIGN CURRENCY TRANSACTIONS:

Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transaction. Foreign currency denominated assets and liabilities are translated into rupees at the rates of exchange prevailing on the date of balance sheet. All exchange differences are dealt with in the statement of profit and loss account.

(viii) INCOME TAX:

Provision for current tax is made on the basis of taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been substantially enacted as of the balance sheet date.

(ix) RETIREMENT BENEFITS:

(a) Contribution made to Provident Fund is charged to Profit and Loss account every month.

(b) The Company has taken a policy with Life Insurance Corporation of India (LIC) to cover the gratuity liability of the employees and premium paid to the LIC is charged to Profit & Loss Account.

(x) INVESTMENTS:

Investments are classified as long term as per the AS-13 on Accounting for Investments issued by the Institute of Chartered Accountants of India, New Delhi and hence, valued at cost and diminution in the value of investments, if any does not call for provision there against.

(xi) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the Company and are in accordance with the applicable Accounting Standards as specified U/s 211 (3C) of the Companies Act 1956.


Mar 31, 2009

(i) BASIS OF ACCOUNTING :

The Financial Statements are prepared under the historical cost convention on accrual basis and are in accordance with the requirement of the Companies Act, 1956.

(ii) FIXED ASSETS:

Fixed Assets are stated at cost less depreciation.

(iii) DEPRECIATION:

(a) Depreciation on Fixed assets is provided on straight line method at the rates and in the manner prescribed in schedule XIV to the Companies Act, 1956. Except on mining equipments depreciation has been provided on written down value method at the rates and manner prescribed in schedule XIV to the Companies Act. 1956.

(b) Cost of lease hold land is not being amortised over the period of lease.

(iv) VALUATION OF INVENTORIES

Raw Material - At Average cost

Stores, Spares & Tools - At Cost

Finished Goods - At lower of cost or net realisable value

Goods in transit - At cost on the Basis of Bill

(v) SALES:

Sales are recognised at the time of dispatch.

(vi) EXCISE DUTY :

Excise Duty not Payable during the year.

(vii) FOREIGN CURRENCY TRANSACTIONS :

Foreign currency transactions during the year are recorded at rates of exchange prevailing on the date of transaction. Foreign currency denominated assets and liabilities are translated into rupees at the rates of exchange prevailing on the date of balance sheet. All exchange differences are dealt with in the statement of profit and loss account.

(viii) INCOME TAX :

Provision for current tax is made on the basis of taxable income for the current accounting year in accordance with the Income Tax Act, 1961. The deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been substantially enacted as of the balance sheet date.

(ix) RETIREMENT BENEFITS:

(a) Contribution made to Provident Fund is charged to Profit and Loss account every month.

(b) The Company has taken a policy with Life Insurance Corporation of India (LIC) to cover the gratuity liability of the employees and premium paid to the LIC is charged to Profit & Loss Account.

(x) INVESTMENTS:

Investments are classified as long term as per the AS-13 on Accounting for Investments issued by the Institute of Chartered Accountants of India, New Delhi and hence, valued at cost and diminution in the value of investments, if any does not call for provision there against.

(xi) Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles followed by the Company and are in accordance with the applicable Accounting Standards as specified U/s 211 (3C) of the Companies Act 1956.

 
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