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Accounting Policies of JK Cement Ltd. Company

Mar 31, 2014

1. ACCOUNTING CONCEPTS

The financial statements are prepared under the historical cost convention (except for fixed assets which are revalued) on an accrual basis and in accordance with the applicable mandatory Accounting Standards.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of Financial Statements and the results of operation during the reporting period end. Although these estimates are based upon management''s best knowledge of current event and actions, actual results could differ from these estimates.

3. FIXED ASSETS

Fixed assets are stated at cost adjusted by revaluation of fixed assets. Cost comprises the purchase price and attributable cost of bringing the asset to its working condition for its intended use.

4. DEPRECIATION AND AMORTIZATION

I) Tangible Assets

i) Depreciation is provided on straight line method at the rates specified in the Schedule XIV to the Companies Act, 1956.

ii) Depreciation on additions/deductions to fixed assets is being provided on pro-rata basis from the month of acquisition.

iii) Depreciation on additional value of Revalued Assets is provided on the basis of life determined by the valuers. An amount equivalent to depreciation on additional values resulting from revaluation is withdrawn from Revaluation Reserve and credited to Profit & Loss Account.

iv) Leasehold land is amortised over the period of lease.

II) Intangible Assets

i) Computer Software cost is amortised over a period of three years.

ii) Good will is amortised over a period often years.

5. IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at each balance sheet date. If there is any indication of impairment based on internal and external factors, an impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the asset''s net selling price and value in use. In assessing value the estimated future cash flows are discounted to their present value at the weighted average cost of capital . For the purpose of accounting of impairment due consideration is given to revaluation of reserves, if any.

After impairment depreciation is provided on the revised carrying amount of the assets over remaining useful life.

6. GOVERNMENT SUBSIDIES

Government grants/subsidies are accounted for only when there is a certainty of receipt.

7. INVESTMENTS

Current investments are stated at lower of cost or fair market value. Long term investments are stated at cost after deducting provisions made for other than temporary diminution in the value, if any

8. INVENTORIES

Inventories are valued at "cost or net realizable value, whichever is lower". Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on a moving weighted average basis(Store Spare parts etc and Raw materials). In respect of work in process and finished goods cost is determined on a monthly moving weighted average basis.

9. SALES

Sale of goods is recognized at the point of sale to customer Sale includes excise duty In order to comply with the accounting interpretation(ASI-l4) issued by the Institute of Chartered Accountants of India, sales(including excise duty ) and net sales(excluding excise duty) is disclosed in Profit & Loss Account.

10. BORROWING COST

Interest and other costs in connection with the borrowing of the funds to the extent related/attributed to the acquisition/ construction of qualifying fixed assets are capitalized upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit & Loss Account.

11. RETIREMENT BENEFITS

The Company''s contributions to Provident Fund and Superannuation Fund are charged to Profit & Loss Account. Contributions to Gratuity Fund are made on actuarial valuation and Provision for Leave encashment are made on the basis of actuarial valuation and charged to Profit & Loss Account.

12. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are accounted at equivalent rupee value earned/incurred. Year end balance in current assets/ liabilities is accounted at applicable rates. Exchange difference arising on account of fluctuation in the rate of exchange is recognized in the Profit & Loss Account.

Investment in subsidiary company is expressed in Indian Rupees at the rate of exchange prevailing at the date of investment.

13. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future. Permanent timing difference adjustments are not accounted for in provisions.

14. MINES RESTORATION EXPENDITURE

The expenditure on restoration of the mines based on technical estimates by Internal/External specialists is recognized in the accounts. The total estimated restoration expenditure is apportioned over the estimated quantity of mineral resources(likely to be made available) and provision is made in the accounts based on minerals mined during the year

15. OPERATING LEASES

Leases where significant portion of risk and reward of ownership are retained by the lessor are classified as operating leases and lease rentals thereon are charged to the Profit & Loss Account.

16. PROVISION/CONTINGENCY

A provision is recognized when there is a present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation in respect of which a reliable estimate can be made. These are reviewed at each Balance sheet date and adjusted to reflect the current best estimates. Contingent Liabilities are disclosed.


Mar 31, 2013

1. Accounting Concepts

The Financial Statements Are Prepared Under The Historical Cost Convention (Except For Fixed Assets Which Are Revalued) On An Accrual Basis And In Accordance With The Applicable Mandatory Accounting Standards.

2. Use OF ESTIMATES

The Preparation Of Financial Statements In Conformity With Generally Accepted Accounting Principles Requires Management To Make Estimates And Assumption That Affect The Reported Amounts Of Assets And Liabilities And Disclosure Of Contingent Liabilities At The Date Of Financial Statements And The Results Of Operation During The Reporting Period End. Although These Estimates Are Based Upon Management''s Best Knowledge Of Current Event And Actions, Actual Results Could Differ From These Estimates.

3. Fixed Assets

Fixed Assets Are Stated At Cost Adjusted By Revaluation Of Fixed Assets. Cost Comprises The Purchase Price And Attributable Cost Of Bringing The Asset To Its Working Condition For Its Intended Use.

4. Depreciation AND AMORTISATION:

I) Tangible Assets

I) Depreciation Is Provided On Straight Line Method At The Rates Specified In The Schedule XIV To The Companies Act, 1956.

Ii) Depreciation On Additions To Fixed Assets Is Being Provided On Pro-Rata Basis From The Month Of Acquisition.

Iii) Depreciation On Additional Value Of Revalued Assets Is Provided On The Basis Of Life Determined By The Valuers. An Amount Equivalent To Depreciation On Additional Values Resulting From Revaluation Is Withdrawn From Revaluation Reserve And Credited To Profit & Loss Account.

Iv) Leasehold Land Is Amortised Over The Period Of Lease.

II) Intangible Assets

I) Computer Software Cost Is Amortised Over A Period Of Three Years.

Ii) Good Will Is Amortised Over A Period Of Ten Years.

5. IMPAIRMENT OF ASSETS

The Carrying Amount Of Assets Is Reviewed At Each Balance- Sheet Date. If There Is Any Indication Of Impairment Based On Internal And External Factors, An Impairment Loss Is Recognised Whenever The Carrying Amount Of An Asset Exceeds Its Recoverable Amount.The Recoverable Amount Is The Greater Of The Asset''s Net Selling Price And Value In Use. In Assessing Value The Estimated Future Cash Flows Are Discounted To Their Present Value At The Weighted Average Cost Of Capital . For The Purpose Of Accounting Of Impairment Due Consideration Is Given To Revaluation Of Reserves, If Any.

After Impairment Depreciation Is Provided In The Revised Carrying Amount Of The Assets Over Remaining Useful Life.

6. Government Subsidies

Government Grants/Subsidies Are Accounted For Only When There Is A Certainty Of Receipt.

7. Investments

Current Investments Are Stated At Lower Of Cost Or Fair Market Value. Long Term Investments Are Stated At Cost After Deducting Provisions Made For Other Than Temporary Diminution In The Value, If Any.

8. Inventories

Inventories Are Valued At ''Cost Or Net Realisable Value, Whichever Is Lower''. Cost Comprises All Cost Of Purchase, Cost Of Conversion And Other Costs Incurred In Bringing The Inventories To Their Present Location And Condition. Cost Is Determined On A Moving Weighted Average Basis (Store Spare Parts Etc And Raw Materials). In Respect Of Work In Process And Finished Goods Cost Is Determined On A Monthly Moving Weighted Average Basis.

9. SALES

Sale Of Goods Is Recognised At The Point Of Sale To Customer. Sale Includes Excise Duty. In Order To Comply With The Accounting Interpretation(ASI-14) Issued By The Institute Of Chartered Accountants Of India, Sales (Including Excise Duty) And Net Sales(Excluding Excise Duty) Is Disclosed In Profit & Loss Account.

10. Borrowing Cost

Interest And Other Costs In Connection With The Borrowing Of The Funds To The Extent Related/Attributed To The Acquisition/ Construction Of Qualifying Fixed Assets Are Capitalised Up To The Date When Such Assets Are Ready For Its Intended Use And Other Borrowing Costs Are Charged To Profit & Loss Account.

11. RETIREMENT BENEFITS

The Company''s Contributions To Provident Fund And Superannuation Fund Are Charged To Profit & Loss Account. Contributions To Gratuity Fund Are Made On Actuarial Valuation And Provision For Leave Encashment Are Made On The Basis Of Actuarial Valuation And Charged To Profit & Loss Account.

12. FOREIGN EXCHANGE TRANSACTIONS

Foreign Currency Transactions Are Accounted At Equivalent Rupee Value Earned/Incurred. Year End Balance In Current Assets/Liabilities Is Accounted At Applicable Rates. Exchange Difference Arising On Account Of Fluctuation In The Rate Of Exchange Is Recognised In The Profit & Loss Account.

Investment In Subsidiary Company Is Expressed In Indian Rupees At The Rate Of Exchange Prevailing At The Date Of Investment.

13. Provision For Current And Deferred Tax

Provision For Current Tax Is Made On The Basis Of Estimated Taxable Income For The Current Accounting Period And In Accordance With The Provisions As Per Income Tax Act, 1961.

Deferred Tax Resulting From ''Timing Difference'' Between Book And Taxable Profit For The Year Is Accounted For Using The Tax Rates And Laws That Have Been Enacted Or Substantially Enacted As On The Balance Sheet Date. The Deferred Tax Asset Is Recognised And Carried Forward Only To The Extent That There Is A Reasonable Certainty That The Assets Will Be Adjusted In Future. Permanent Timing Difference Adjustments Are Not Accounted For In Provisions.

14. Mines Restoration Expenditure

The Expenditure On Restoration Of The Mines Based On Technical Estimates By Internal/External Specialists Is Recognised In The Accounts. The Total Estimated Restoration Expenditure Is Apportioned Over The Estimated Quantity Of Mineral Resources (Likely To Be Made Available) And Provision Is Made In The Accounts Based On Minerals Mined During The Year.

15. Operating Leases

Leases Where Significant Portion Of Risk And Reward Of Ownership Are Retained By The Lessor Are Classified As Operating Leases And Lease Rentals Thereon Are Charged To The Profit & Loss Account.

16. Provision/Contingency

A Provision Is Recognised When There Is A Present Obligation As A Result Of Past Event And It Is Probable That An Outflow Of Resources Embodying Economic Benefit Will Be Required To Settle The Obligation In Respect Of Which A Reliable Estimate Can Be Made. These Are Reviewed At Each Balance-Sheet Date And Adjusted To Reflect The Current Best Estimates. Contingent Liabilities Are Disclosed.


Mar 31, 2012

1. ACCOUNTING CONCEPTS

The financial statements are prepared under the historical cost convention (except for fixed assets which are revalued) on an accrual basis and in accordance with the applicable mandatory Accounting standards.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of Financial statements and the results of operation during the reporting period end. Although these estimates are based upon management's best knowledge of current event and actions, actual results could differ from these estimates.

3. FIXED ASSETS

Fixed assets are stated at cost adjusted by revaluation of fixed assets. Cost comprises the purchase price and attributable cost of bringing the asset to its working condition for its intended use.

4. DEPRECIATION AND AMORTISATION

I) Tangible Assets

i) Depreciation is provided on straight line method at the rates specified in the schedule XIV to the companies Act, 1956.

ii) Depreciation on additions to fixed assets is being provided on pro-rata basis from the month of acquisition.

iii) Depreciation on additional value of Revalued Assets is provided on the basis of life determined by the valuers.

An amount equivalent to depreciation on additional values resulting from revaluation is withdrawn from Revaluation Reserve and credited to Profit & Loss Account.

iv) Leasehold land is amortised over the period of lease.

II) Intangible Assets

i) computer software cost is amortised over

ii) Good will is amortised over a period of ten years.

5. IMPAIRMENT OF ASSETS

The carrying amount of assets is reviewed at each balance-sheet date. If there is any indication of impairment based on internal and external factor, an impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount.The recoverable amount is the greater of the asset's net selling price and value in use.

In assessing value the estimated future cash flows are discounted to their present value at the weighted average cost of capital . For the purpose of accounting of impairment due consideration is given to revaluation of reserves, if any.

After impairment depreciation is provided in the revised carrying amount of the assets over remaining useful life.

6. GOVERNMENT SUBSIDIES

Government grants/subsidies are accounted for only when there is a certainty of receipt.

7. INVESTMENTS

current investments are stated at lower of cost or fair market value. Long term investments are stated at cost after deducting provisions made for other than temporary diminution in the value, if any.

8. INVENTORIES

Inventories are valued at "cost or net realisable value, whichever is lower". cost comprises all cost of purchase, cost of conversion and other costs incurred in bringing the inventories to their present location and condition. cost is determined on a moving weighted average basis(store spare parts etc and Raw materials). In respect of work in process and finished goods cost is determined on a monthly moving weighted average basis.

9. SALES

sale of goods is recognized at the point of sale to customer. sale includes excise duty. In order to comply with the accounting interpretation(Asi-14) issued by the Institute of chartered Accountants of india, sales(including excise duty ) and net sales(excluding excise duty) is disclosed in Profit & Loss Account.

10. BORROWING COST

interest and other costs in connection with the borrowing of the funds to the extent related/ attributed to the acquisition/construction of qualifying fixed assets are capitalised upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit & Loss Account.

11. RETIREMENT BENEFITS

The company's contributions to Provident Fund and Superannuation Fund are charged to Profit & Loss Account. contributions to Gratuity Fund are made on actuarial valuation and Provision for Leave encashment are made on the basis of actuarial valuation and charged to Profit & Loss Account.

12. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are accounted at equivalent rupee value earned/incurred. Year end balance in current assets/liabilities is accounted at applicable rates. Exchange difference arising on account of fluctuation in the rate of exchange is recognised in the Profit & Loss Account.

Investment in subsidiary company is expressed in indian Rupees at the rate of exchange prevailing at the date of investment.

13. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per income Tax Act, 1961.

Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognised and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future. Permanent timing difference adjustments are not accounted for in provisions.

14. MINES RESTORATION EXPENDITURE

The expenditure on restoration of the mines based on technical estimates by internal/ External specialists is recognised in the accounts. The total estimated restoration expenditure is apportioned over the estimated quantity of mineral resources(likely to be made available) and provision is made in the accounts based on minerals mined during the year.

15. OPERATING LEASES

Leases where significant portion of risk and reward of ownership are retained by the lessor are classified as operating leases and lease rentals thereon are charged to the Profit & Loss Account.

16. PROVISION/CONTINGENCY

A provision is recognised when there is a present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefit will be required to settle the obligation in respect of which a reliable estimate can be made. These are reviewed at each Balance-sheet date and adjusted to reflect the current best estimates. contingent Liabilities are disclosed.


Mar 31, 2011

1 ACCOUNTING CONCEPTS

The financial statements are prepared underthe historical cost convention (except for fixed assets which are revalued) on an accrual basis and in accordance with the applicable mandatory Accounting Standards.

2. USE OF ESTIMATES

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumption that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of Financial Statements and the results of operation during the reporting period end. Although these estimates are based upon managements best knowledge of current event and actions, actual results could differ from these estimates.

3. FIXED ASSETS

Fixed assets are stated at cost (including expenses related to acquisition and installation) adjusted by revaluation of fixed assets.

4. DEPRECIATION AMD AMORTIZATION

I) TANGIBLE ASSETS:

i) Depreciation is provided on straight line method at the rates specified in the Schedule XIV to the Companies Act, 1956.

ii) Depreciation on additions/deductions to fixed assets is being provided on pro-rata basis from/to the month of acquisition/ disposal.

iii) Depreciation on additional value of Revalued Assets is provided on the basis of life determined by the valuers. An amount equivalent to depreciation on additional values resulting from revaluation is withdrawn from Revaluation Reserve and credited to Profit & Loss Account.

v) Leasehold land is amortised over the period of lease.

II) INTANGIBLE ASSETS:

i) Computer Software cost is amortised over a period of three years.

ii) Good will is amortised over a period often years.

5. IMPAIRMENT OF ASSETS

The carrying amount of assets are reviewed at each balance-sheet date. If there is any indication of impairment based on internal external factor, an impairment loss is recognized wheneverthe carrying amount of an asset exceeds its recoverable amount. The recoverable amount is the greater of the assets net selling price and value in use. In assessing value

the estimated future cash flows are discounted to their present value at the weighted average cost of capital. For the purpose of accounting of impairment due consideration is given to revaluation of reserves, if any.

After impairment depreciation is provided on the revised carrying amount of the assets over remaining useful life.

6. GOVERNMENT SUBSIDIES

Government grants/subsidies are accounted for only when there is a certainty of receipt.

7. INVESTMENTS

Current investments are stated at lower of cost or fair market value. Long term investments are stated at cost after deducting provisions made for permanent diminution in the value, if any.

8. IMVEMTORIES

Inventories are valued at "cost or net realizable value, whichever is lower". Cost comprises all cost of purchase, cost of conversion and other costs incurred in bringingthe inventories to their present location and condition. First-in-First-out or Average cost method is followed for determination of cost.

9. SALES

Sale of goods is recognized at the point of sale to customer. Sale includes excise duty and value added tax/sales-tax. In order to comply with the accounting interpretation(ASI-14) issued by the Institute of Chartered Accountants of India, sales(including excise duty and sales-tax) and net sales(excluding excise duty and sales-tax) is disclosed in Profit &< Loss Account.

10. SORROWING COST

Interest and other costs in connection with the borrowing of the funds to the extent related/ attributed to the acquisition/construction of qualifying fixed assets are capitalized upto the date when such assets are ready for its intended use and other borrowing costs are charged to Profit &t Loss Account.

11. RETIREMENT BENEFITS

The Companys contributions to Provident Fund and Superannuation Fund are charged to Profit & Loss Account. Contribution to Gratuity Fund are made on actuarial valuation and Provision for Leave encashment are made on the basis of actuarial valuation and charged to Profit & Loss Account.

12. FOREIGN EXCHANGE TRANSACTIONS

Foreign currency transactions are accounted at equivalent rupee value earned/incurred. Year end balance in current assets/liabilities is accounted at applicable rates. Exchange difference arising on account of fluctuation in the rate of exchange is recognized in the Profit & Loss Account.

Investment in subsidiary company is expressed in Indian Rupees at the rate of exchange prevailing at the date of investment.

13. MISCELLANEOUS EXPENDITURE

Preliminary expenses are amortised over a period of five years from the year of commencement of manufacturing activity.

Deferred Revenue Expenses:

Expenses on Mines Development/overburden removal is deferred and amortised over a period of Lease/ extraction from Mines.

14. PROVISION FOR CURRENT AND DEFERRED TAX

Provision for Current Tax is made on the basis of estimated taxable income for the current accounting period and in accordance with the provisions as per Income Tax Act, 1961.

Deferred tax resulting from "timing difference" between book and taxable profit for the year is accounted for using the tax rates and laws that have been enacted or substantially enacted as on the balance sheet date. The deferred tax asset is recognized and carried forward only to the extent that there is a reasonable certainty that the assets will be adjusted in future.Permanent timing difference adjustments are not accounted for in provisions.

15. CONTINGENT UABILITES

Contingent liabilities are not provided and are disclosed in Notes on accounts.





 
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