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Accounting Policies of Kachchh Minerals Ltd. Company

Mar 31, 2014

GENERAL:

A The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) under the historical cost convention on an accrual basis in compliance with All material aspect of the Accounting Standard (AS) Notified by Companies Accounting Standard Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year

B All 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 VI to the Companies Act, 1956.

1.2 FIXED ASSETS:

Fixed Assets and additions thereto are capitalized & disclosed at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and borrowing cost upto its use.

1.3 DEPRECIATION:

A Depreciation on assets is provided on written down value method applying the rates specified in Schedule XIV to the Companies Act, 1956.

B Depreciation on additions to fixed assets is provided on pro-rata basis from the date of assets put to use.

C Depreciation on deletion / sale / dispose of assets has been calculated on pro-rata basis up to the

date of deletion / sale / disposal.

1.4 INVENTORIES:

Inventories at the year end are valued as under:

a) Raw material at cost.

b) Finished goods at cost or market value whichever is less.

c) Stores and tools, if significant & material at cost.

1.5 RETIREMENTBENEFIT:

Retirement benefit, gratuity payments for which no provisions made and the same is accounted on payment basis, if any.

1.6 REVENUE RECOGNITION:

SALES & OTHER INCOME:

Revenue from sales of goods is recognized upon passage of title to the customer which generally coincides with their delivery of goods. Other Income recognized on accrual basis on substantial completion of work.

1.7 BORROWING COST:

i) Borrowing cost that are attributable to the acquisition of qualifying assets are capitalized as a part of the cost of such fixed assets up to the date when such assets are ready for its intended use.

ii) All other borrowing cost not attributed to any assets is charged to revenue.

iii) Amount of borrowing cost capitalized as per AS-16 during the year was NIL.

1.8 SEGMENT REPORTING:

The Company is basically operating in one segment i.e. mining materials. Hence, no segment wise disclosure as per AS-17 is provided.

1.9 DEFERRED TAX:

As per AS-22 issued by ICAI, the Company has not credited any Deferred lax assets as availability of future taxable profit to realize deferred tax assets cannot be estimated with virtual certainty. Since Deferred Tax Assets exceeds Deferred Tax Liabilities, no provision has been made for Deferred Tax Liabilities.

1.10 IMPAIRMENT OF ASSETS fAS-281:

An Asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.11 Investments are generally shown at cost. However there is no investment at the end of the year

1.13 SUBSIDY.

(a) As per AS-12 total subsidy amount of Rs. 60 lacs is taken as deferred income in proportion of depreciation over the estimated useful life of assets i.e. 15 years for plant and machinery and 30 years for building. This method is consistently followed since many years.


Mar 31, 2013

1. SIGNIFICANT ACCOUNTING POLICIES

GENERAL :

A The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) under the historical cost convention on an accrual basis in compliance with All material aspect of the Accounting Standard (AS) Notified by Companies Accounting Standard Rules, 2006 (as amended) and the relevant provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

B All 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 VI to the Companies Act, 1956.

1.2 FIXED ASSETS :

Fixed Assets and additions thereto are capitalized & disclosed at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and borrowing cost upto its use.

1.3 DEPRECIATION :

A Depreciation on assets is provided on written down value method applying the rates specified in Schedule XIV to the Companies Act, 1956. B Depreciation on additions to fixed assets is provided on pro-rata basis from the date of assets put to use. C Depreciation on deletion / sale / dispose of assets has been calculated on pro-rata basis up to the date of deletion / sale / disposal.

1.4 INVENTORIES :

Inventories at the year end are valued as under:

a) Raw material at cost.

b) Finished goods at cost or market value whichever is less.

c) Stores and tools, if significant & material at cost.

1.5 RETIREMENT BENEFIT :

Retirement benefit, gratuity payments for which no provisions made and the same is accounted on payment basis, if any.

1.6 REVENUE RECOGNITION : SALES & OTHER INCOME :

Revenue from sales of goods is recognized upon passage of title to the customer, which generally coincides with their delivery of goods. Other Income recognized on accrual basis on substantial completion of work.

1.7 BORROWING COST :

i) Borrowing cost that are attributable to the acquisition of qualifying assets are capitalized as a part of the cost of such fixed assets up to the date when such assets are ready for its intended use.

ii) All other borrowing cost not attributed to any assets is charged to revenue.

iii) Amount of borrowing cost capitalized as per AS-16 during the year was NIL.

1.8 SEGMENT REPORTING :

The Company is basically operating in one segment i.e. mining materials. Hence, no segment wise disclosure as per AS-17 is provided.

1.9 DEFERRED TAX :

As per AS-22 issued by ICAI, the Company has not credited any Deferred Tax assets as availability of future taxable profit to realize deferred tax assets cannot be estimated with virtual certainty. Since Deferred Tax Assets exceeds Deferred Tax Liabilities, no provision has been made for Deferred Tax Liabilities.

1.10 IMPAIRMENT OF ASSETS (AS-28) :

An Asset is to be treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.11 Investments are generally shown at cost. However, there is no investment at the end of the year.

1.13 SUBSIDY:

(a) As per AS-12 total subsidy amount of Rs. 60 lacs is taken as deferred income in proportion of depreciation over the estimated useful life of assets i.e. 15 years for plant and machinery and 30 years for building. This method is consistently followed since many years.


Mar 31, 2011

1.1 GENERAL :

A The accounts are prepared under the historical cost convention & accrual basis, -ccounts are made in accordance with the generally accepted accounting principle and the provisions of the Companies Act, 1956 as adopted earlier and consistently followed by the Company. The provision for retirement liabilities has not been made. The same was required to be made under confirmation with AS-15. The accounts confirm in all material aspects with Accounting Standards except AS-15 & AS-26 issued by the Institute of Chartered Accountants of India. Howevei; the following cases are accounted on cash basis. :

Expenses related : Retirement benefit, gratuity paid are accounted on payment basis, if any. This is required to be provided as per AS-15, has not been provided.

B Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principle.

2.2 FIXED ASSETS :

Fixed Assets and additions thereto are capitalized & disclosed at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and borrowing cost upto its use. The assets sold for which balance was written off.

2:3 DEPRECIATION :

A Depreciation on assets is provided on written down value method applying the rates specified in Schedule XIV to the Companies Act, 1956.

B Depreciation on additions to fixed assets is provided on pro-rata basis from the date of assets put to use.

C Depreciation on deletion / sale / dispose of assets has been calculated on pro-rata basis up to the date of deletion / sale / disposal.

2:4 CURRENT ASSETS:

Inventories :

Inventories at the year end are valued as under:

a) Raw material at cost.

b) Finished goods at cost or market value whichever is less.

c) Stores and tools, if significant & material at cost.

Advances :

Advances are stated at cost.

2:5 RETIREMENT BENEFIT :

Retirement benefit, gratuity payments for which no provisions made and the same is accounte on payment basis, if any.

2:6 REVENUE RECOGNITION :

SALES & OTHER INCOME :

Revenue from sales of goods is recognized upon passage of title to the customer whicr generally coincides with their delivery of goods. Other Income recognized on accrual basis 01 substantial completion of work.

2:7 BORROWING COST :

i) Borrowing cost that are attributable to the acquisition of qualifying assets are capitalize as a part of the cost of such fixed assets up to the date when such assets are ready for it intended use.

ii) All other borrowing cost not attributed to any assets is charged to revenue,

iii) Amount of borrowing cost capitalized as per AS-16 during the year was NIL.

2:8 SEGMENT REPORTING :

The Company is basically operating in one segment i.e. mining materials. Hence, no segmen wise disclosure as per AS-17 is provided.

2:9 DEFERRED TAX :

As per AS-22 issued by ICAI, the Company has not credited any Deferred Tax assets as availabilit of future taxable profit to realize deferred tax assets cannot be estimated with virtual certainty Since Deferred Tax Assets exceeds Deferred Tax Liabilities, no provision has been made foi Deferred Tax Liabilities.

2:10 Impairment of Assets :

An Asset is treated as impaired when the carrying cost of assets exceeds its recoverable value An impairment loss is charged to the profit and loss account in the year in which an asset i identified as impaired. The impairment loss recognized in prior accounting period is reversed i there has been a change in the estimate of recoverable amount.

2:11 Investments are generally shown at cost. Howevef there is no investment at the end of the year

2:13 SUBSIDY:

(a) As per AS-12 total subsidy amount of Rs. 60 lacs is taken as deferred income in proportion of depreciation over the estimated useful life of assets i.e. 15 years for plant and machinery and 30 years for building. This method is consistently followed since many years.


Mar 31, 2010

1 The financial statements have been prepared on assumption that the company is a going concern.

2.1 GENERAL :

A The accounts are prepared under the historical cost convention & accrual basis. Accounts are

made in accordance with the generally accepted accounting principle and the provisions of the Companies Act, 1956 as adopted earlier and consistently followed by the Company. Provision for retirement liabilities has not been made. The same was required to be made under confirmation with AS-15. The accounts confirm in all material aspects with Accounting Standards except AS-15 & AS-26 issued by the Institute of Chartered Accountants of India. However, the following cases are accounted on cash basis. :

Expenses related : Retirement benefit, gratuity paid are accounted on payment basis, if any. This is required to be provided as per AS-15, has not been provided.

B Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principle.

2.2 FIXED ASSETS :

Fixed Assets and additions thereto are capitalized & disclosed at cost inclusive of freight, duties, taxes and all incidental expenses related thereto and borrowing cost upto its use. The assets sold for which balance was written off.

2:3 DEPRECIATION :

A Depreciation on assets is provided on written down value method applying the rates specified in Schedule XIV to the Companies Act, 1956. B Depreciation on additions to fixed assets is provided on pro-rata basis from the dat of assets put to use. C Depreciation on deletion / sale / dispose of assets has been calculated on pro-rata basis up to the date of deletion / sale / disposal.

2:4 CURRENT ASSETS :

Inventories :

Inventories at the year end are valued as under:

a) Raw material at cost.

b Finished goods at cost or market value whichever is less.

c) Stores and tools, if significant & material at cost.

Advances :

Advances are stated at cost.

2:5 RETIREMENT BENEFIT :

Retirement benefit, gratuity payments for which no provisions made and the same is accounted on payment basis, if any

2:6 REVENUE RECOGNITION :

SALES & OTHER INCOME:

Revenue from sales of goods is recognized upon passage of title to the customer, which generally coincides with their delivery of goods. Other Income recognized on accrual basis on substantial completion of work.

2:7 BORROWING COST:

i) Borrowing cost that are attributable to the acquisition of qualifying assets are capitalized as a part of the cost of such fixed assets up to the date when such assets are ready for its

ii) AlfoTh ed borrowing cost not attributed to any assets is charged to revenue. iii) Amount of borrowing cost capitalized as per AS-16 during the year was NIL.

2:8 SEGMENT REPORTING :

The Company is basically operating in one segment i.e. mining materials. Hence, no segment wise disclosure as per AS -17 is provided.

2:9 DEFERRED TAX :

As per AS-22 issued by ICAI,the Company has not credited any Deferred Tax assets as availability . of future taxable profit to realize deferred tax assets cannot be estimated with virtual certainty Since Deferred Tax Assets exceeds Deferred Tax Liabilities, no provision has been made for

2:10 Impairment of Assets:

An Asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

2:11 Investments are generally shown at cost. However, there is no investment at the end of the

2:12 SUBSIDY:

(a) As per AS-12 total subsidy amount of Rs. 60 lacs is taken as deferred income in proportion of depreciation over the estimated useful life of assets i.e. 15 years for plant and machinery and 30 years for building. This method is consistently followed since many years.

3: PROVISIONS. CONTINGENT LIABILITIES & CONTINGENT A SSETS ( AS-29) :

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past events & 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 recoqnized nor disclosed in the financial statements.

 
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