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Accounting Policies of Jain Marmo Industries Ltd. Company

Mar 31, 2014

The financial statements of the company have been prepared in accordance with Generally Accepted Accounting Policies in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevent provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis under the historical cost conventon.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous years.


Mar 31, 2013

1 General

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2. Revenue Recognition

In accordance with provisions of Section 209(3) of the Companies Act, 1956, the company follow accrual system of accounting.

3. Fixed Assets

Fixed assets are stated at their original cost & inclusive' of incidental and /or installation expense related to acquisition & installation of the concerned' assets.

4. Depreciation

Depreciation on all Fixed Assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 on prorate basis.

5 Investments

All investment other then those specifically classified as current are considered as long term investments. Long-term investments are carried at cost and current investments are carried at lower of cost or market price. Temporary diminution in the value of investments meant to be held for a long term is not recognized.

6 Valuation of Inventories

Raw Material : At Weighted average cost Consumable & Fuel : At cost ( FIFO )

Finished Goods : At lower of cost or net realizable value

Cost for the purpose of valuation of finished goods includes direct cost of material, Manufacturing expenses, Depreciation on Plant & Machinery, Factory Building and Cost of Sawing, Dressing etc.

7. Turnover

Sales include excise duty but does not include sales tax, freight & handling charges if any realized from customers.

8. Consumption

Consumption of consumable and fuels has been arrived at by adding purchases to opening stock and deducting dosing stock there from,

9 Employee Benefits

(I) Short term employee benefits are recognized as expenses at the undiscounted amount in the Profit & Loss Account of the year in which (lie related service is rendered

(II) Post employment and other long term employee benefits are recognized as an expenses in the profit & loss account for the year in which the employee has rendered service expect for leave encashment which is accounted for at the time of payment The expense is recognize at the present value of the amount payable determined using actuarial valuation technique. Actuarial gains and loss in the respect of post employment and other long term benefits are charges to the profit & loss Account

10. Royalty

Royally is provided on the basis of dispatch.

11. Taxation

a) Current tax is the provision made for income tax liability if any on the profits in accordance with the provisions of the Income Tax Act 1961

b) Deferred tax is recognized on timing differences being the difference resulting from the recognition of items in the financial statement and in estimating current Income Tax Provision

c) Deferred fax Assets are recognized on unabsorbed depreciation and on expenses not to be allowed on payment basis as per the Income Tax Act 1961

d) Deferred Tax Assets and Liabilities are measured using the tax rate and the tax law that have been enacted on the balance sheet date.

12. Foreign Currency Transaction

Transactions denominated in foreign currencies are normally recorded at exchange rate prevailing at the time of transaction. Foreign currency monetary items at the year end are reported using the closing rate. Exchange differences arising on the settlement of monetary items or on reporting the same at the closing rate as al the balance sheet date are recognized as income or expenses in the period in which they arise except in the case of liabilities incurred for the purpose of acquiring the fixed assets from out side India in which case such exchange differences are adjusted in the carrying amount of fixed assets.

13. Borrowing Costs

Borrowing cost attributable to the fixed Assets during their const ruction/ renovation and modernization are capitalized, such borrowing costs are apportioned on the average basic of capital work in progress for the year, other borrowing costs are recognized as an expenses in the which they are incurred.

14. Impairment of Assets

Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from continuing use of the assets and it eventual disposal. The impairment loss to be expensed is determined as the excess of the Carrying amount over the higher of the assets net sale price or present value. Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired.

15. Provisions, Contingent Liabilities and contingent Assets

Provision are recognized for liabilities that can be measured only be using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event.

b) a probable outflow of recourses is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required lo settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent Liability is disclosed in the case of

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

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

Contingent Assets are neither recognized nor disclosed


Mar 31, 2012

1) General

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles.

2) Revenue Recognition

In accordance with provisions of Section 209(3) of the Companies Act, 1956, the company follow accrual system of accounting.

3) Fixed Assets

fixed assets are stated at their original cast & inclusive of incidental and /or installation expense related to acquisition & installation of the concerned assets.

4) Depreciation

Depreciation on all Fixed Assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 on prorate basis.

5) Investments

All investment other then those specifically classified as current are considered as long-term investments. Long term investments are carried at cost and current investments are carried at lower of cost or market price. Temporary diminution in the value of investments meant to be held for a long term is not recognized.

6) Valuation of Inventories

Raw Material : At Weighted average cost

Consumable & Fuel : At cost (FIFO)

Finished Goods : At lower of cost or net realizable value

Cost for the purpose of valuation of finished goods includes direct cost of material, Manufacturing expenses, Depreciation on Plant & Machinery, Factory Building and Cost of Sawing, Dressing etc.

7) Turnover

Sales include excise duty but does not include sales tax, freight & handling charges if any realized from customers.

8) Consumption

Consumption of consumable and fuels has been arrived at by adding purchases to opening stock and deducting closing stock there from.

9) Employee Benefits

(i) Short term employee benefits are recognized as expenses at the undiscounted amount in the Profit & Loss Account of the year in which the related service is rendered.

(II) Post employment and other long term employee benefits are recognized as an expenses in the profit & loss account for the year in which the employee has rendered service expect for leave encashment which is accounted for at the time of payment. The expense is recognize at the present value of the amount payable determined using actuarial valuation technique Actuarial gains and loss in the respect of post employment and other long term benefits are charges to the profit & loss Account

10)Royalty

Royalty is provided on the basis of dispatch,

11)Taxation

a) Current tax is the provision made for income tax liability, if any on the profits in accordance with the provisions of the Income Tax Act, 1961

b) Deferred lax is recognized, on timing differences, being the difference resulting from the recognition of items in the financial statement and in estimating current Income Tax Provision

c) Deferred Tax Assets are recognized on unabsorbed depreciation and on expenses not to be allowed on payment basis as per the Income Tax Act 1961.

d) Deferred Tax Assets and Liabilities are measured using the tax rate and the tax law that have been enacted on the balance sheet date.

12) Foreign Currency Transaction

Transactions denominated in foreign currencies are normally recorded at exchange rate prevailing at the time of transaction. Foreign currency monetary items at the year end are reported using the closing rate. Exchange differences arising on the settlement of monetary items or on reporting the same at the closing rate as at the balance sheet date are recognized as income or expenses in the period in which they arise except in the case of liabilities incurred for the purpose of acquiring the fixed assets from out side India In which case such exchange differences are adjusted in the carrying amount of fixed assets,

13) Borrowing Costs

Borrowing cost attributable to the Fixed Assets during their construction/renovation and modernization are capitalized, such borrowing costs are apportioned on the average basic of capital work in progress for the year, other borrowing costs are recognized as an expenses in the which they are incurred,

14) Impairment of Assets

Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from continuing use of the assets and it eventual disposal. The impairment loss to be expensed is determined as the excess of the Carrying amount over the higher of the assets net sale price or present value. Management periodically assesses using external and internal sources whether there is an indication that an asset may be Impaired,

15) Provisions, Contingent Liabilities and contingent Assets

Provision are recognized for liabilities that can be measured only be using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event.

b) a probable outflow of recourses is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

16) Contingent Liability is disclosed in the case of

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

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

Contingent Assets are neither recognized nor disdoser

17) Note - Loan from Canara Bank for Plant and Machinery and Stock yard (Shed) carries interest @12 25% The Loans are repayble in 60 monthlyinstallements.

18) Note - Loan from Tata Capital Financial Services Limited for Vehicle carries interest @ 7.71% The Loans are repayble in 24 monthly installements. All the above Loans are Secured by hypothecation of respective assets

19) In line with the notification dated 31st March, 2009 issued by The Ministry of Corporate Affairs, amending Accounting Standard AS11 -''Effects of Changes in Foreign Exchange Rates'', the Company has chosen to exercise the option under paragraph 46 Inserted in the standard by the notification. Accordingly, the company has adjusted the foreign currency exchange differences on amounts outstanding for acquisition of fixed assets, to the carrying cost of fixed assets

20) Debit & Credit Balances appearing under Sundry Debtors, Advance Receivables in Cash or in Kind , Unsecured Loans, Sundry Creditors are subject to confirmation & reconciliation, Adjustment, if any, in these accounts will be made as & when finally reconciled & confirmed. Trade Receivables & Trade Payables have been taken at their Book Value after making necessary adjustment on account of foreign exchange fluctuation except in cases of some old balances lying in account.

21) Contingent Liabilities & Commitments

NIL

22) During the year ended 31 March 2012, the revised Schedule VI notified under the Companies Act 1956, has become applicable to the Company, for preparation and presentation of its Financial statements. The adoption of revised Schedule VI did not have any impart on recognition and measurement principles followed for preparation of financial statements. However, it has significantly impacted the presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable In the current year.

23) which came into force w.e.f. October 2, 2006. The Company is required to identify the Micro & Small Enterprises & pay them interest on overdue beyond the specified period irrespective of the terms agreed with the enterprises. The Company has initiated the process of identification of such suppliers. In view of no, of suppliers & no receipt of critical Inputs & response from several such potential parties, the liability of interest cannot be reliable estimated nor can required disclosure be made. Accounting in this regard will be carried out after process is complete and reliable estimate con be made in this regard. Since the Company is regular in making payments to all suppliers, the management does not anticipate any significant interest liability.

24) Previous year figures vave been rearranged / regrouped where ever considered necessary

25) figures are rounded off to the nearest rupee.


Mar 31, 2011

1 General

Accounting policies not specifically referred to otherwise are consistent and in consonance with generally accepted accounting principles

2 Revenue Recognition

In accordance with provisions of Section 209(3) of the Companies Act. 1956. the company follow accrual system of accounting

3 Fixed Assets

Fixed assets are stated at their original cost & inclusive of incidental and /or installation expense related to acquisition & installation of the concerned assets.

A Depreciation

Depreciation on all Fixed Assets is provided on straight line method at the rates prescribed under Schedule XIV to the Companies Act, 1956 on prorate basis.

5 Investments

All investment other then those specifically classified as current are considered as long-term investments Long-term investments are carried at cost and current investments are carried at lower of cost or market price. Temporary diminution in the value of investments meant to be held for a long term is not recognized

6 Valuation of Inventories

Raw Material : At Weighted average cost Consumable & Fuel : At cost ( FIFO ) Finished Goods : At lower of cost or net realizable value

Cost for the purpose of valuation of finished goods includes direct cost of material. Manufacturing expenses, Depreciation on Plant & Machinery, Factory Building and Cost of Sawing, Dressing etc.

7. Turnover

Sales include excise duty but does not include sales tax. freight & handling charges if any realized from customers.

8. Consumption

Consumption of consumable and fuels has been arrived at by adding purchases to opening stock and deducting closing stock there from.

9 Employee Benefits

(I) Short term employee benefits are recognized as expenses at the undiscounted amount in the Profit & Loss Account of the year in which the related service is rendered.

(II) Post employment and other long term employee benefits are recognized as an expenses in the profit & loss account for the year in which the employee has rendered service expect for leave encashment which is accounted for at the time of payment. The expense is recognize at the present value of the amount payable determined using actuarial valuation technique Actuarial gains and loss in the respect of post employment and other long term benefits are charges to the profit & loss Account

10. Royalty

Royalty is provided on the basis of dispatch.

11. Taxation

a) Current tax is the provision made for income tax liability, if any on the profits in accordance with the provisions of the Income Tax Act. 1961

b) Deferred tax is recognized, on timing differences, being the difference resulting from the recognition of items in the financial statement and in estimating current Income Tax Provision.

c) Deferred Tax Assets are recognized on unabsorbed depreciation and on expenses not to be allowed on payment basis as per the Income Tax Act 1961.

d) Deferred Tax Assets and Liabilities are measured using the tax rate and the tax law that have been enacted on the balance sheet date.

12. Foreign Currency Transaction

Transactions denominated in foreign currencies are normally recorded at exchange rate prevailing at the time of transaction. Foreign currency monetary items at the year end are reported using the closing rate. Exchange differences arising on the settlement of monetary items or on reporting the same at the closing rate as at the balance sheet date are recognized as income or expenses in the period in which they arise except in the case of liabilities incurred for the purpose of acquiring the fixed assets from out side India in which case such exchange differences are adjusted in the canwig amount of fixed assets

13. Borrowing Costs

Borrowing cost attributable to the fixed Assets during their construction/renovation and modernization are capitalized, such borrowing costs are apportioned on the average basic of capital work in progress for the year, other borrowing costs are recognized as an expenses in the which they are incurred

14. Impairment of Assets

Impairment occurs where the carrying value exceeds the present value of future cash flows expected to arise from continuing use of the assets and it eventual disposal The impairment loss to be expensed is determined as the excess of the Carrying amount over the higher of the assets net saie price or present value Management periodically assesses using external and internal sources whether there is an indication that an asset may be impaired.

15. Provisions, Contingent Liabilities and contingent Assets

Provision are recognized for liabilities that can be measured only be using a substantial degree of estimation, if

a) the company has a present obligation as a result of a past event.

b) a probable outflow of recourses is expected to settle the obligation and

c) the amount of the obligation can be reliably estimated.

Reimbursement expected in respect of expenditure required to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent Liability is disclosed in the case of

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

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

Contingent Assets are neither recognized nor discloser

 
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