Home  »  Company  »  Lloyds Metals & Ener  »  Quotes  »  Accounting Policy
Enter the first few characters of Company and click 'Go'

Accounting Policies of Lloyds Metals & Energy Ltd. Company

Mar 31, 2015

A) System of Accounting

These financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on the accrual basis except for certain financial instruments which are measured at fair values. GAAP comprises mandatory accounting standards as prescribed under Section 133 of the Companies Act, 2013 ('Act') read with Rule 7 of the Companies (Accounts) Rules, 2014, the provisions of the Act (to the extent notified). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

B) Fixed Assets

i) All fixed assets are valued at cost net of Cenvat unless if any assets are revalued and for which proper disclosure is made in the Accounts.

ii) In the case of ongoing projects, all pre-operative expenses for the project incurred upto the date of commercial production are capitalized and apportioned to the cost of respective assets.

C) Depreciation

Depreciation on all the assets has been provided on Straight Line Method ("SLM")as per Schedule II of the Companies Act, 2013. Assets individually costing Rs.5,000 or less are depreciated fully in the year of purchase.

D) Inventories

The general practice adopted by the Company for valuation of inventory is as under

Raw materials : *At lower of cost and net realizable value. Store & spares : At cost (weighted average cost)

Work in process : At cost

Finished goods : At cost or net realizable value, which ever is lower (Also refer Accounting Policy G) Traded goods : At cost Scrap material : At cost or net realizable value, which ever is lower

*Material and other supplies held for use in the production of the inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.

E) Investments

Investments are valued at cost of acquisition, which includes charges such as Brokerage, Fees and Duties.

F) Expenditure during construction period

Expenditure incurred on projects under implementation are being treated as pre-operative expenses pending allocation to the assets which are being apportioned on commencement of commercial production.

G) Excise Duty

The Excise duty payable on finished goods dispatches is accounted on the clearance thereof from the factory premises. Excise duty is provided on the finished goods lying at the factory premises and not yet dispatched as at the year end as per the Accounting Standard 2 "Valuation of Inventories"

H) Customs Duty

Customs Duty payable on imported raw materials, components and stores and spares is recognized to the extent assessed by the customs department.

I) Foreign Currency Transaction

Foreign currency transactions during the accounting year are translated at the rates prevalent on the transaction date. Exchange differences arising from foreign currency fluctuations are dealt with on the date of payment/receipt. Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year end rate. The exchange difference is credited / charged to Profit & Loss Account in case of revenue items and capital items.

J) Provision for Gratuity

Provision for Gratuity is made on the basis of actuarial valuation based on the provisions of the Payment of Gratuity Act, 1972.

K) Leave Salary

Provision is made for value of unutilized leave due to employees at the end of the year.

L) Customs Duty Benefit

Customs duty entitlement eligible under pass book scheme / DEPB is accounted on accrual basis. Accordingly, import duty benefits against exports affected during the year are accounted on estimate basis as incentive till the end of the year in respect of duty free imports of raw material yet to be made.

M) Amortization of Expenses

i) Equity Issue Expenses :

Expenditure incurred in equity issue is being treated as Deferred Revenue Expenditure to be amortized over a period of ten years.

ii) Preliminary Expenses :

Preliminary expenses are amortized over a period of ten years.

iii) Debenture Issue Expenses :

Debenture Issue expenditure is amortized over the period of the Debentures.

N) Impairment of Assets

The Company determines whether a provision should be made for impairment loss on fixed assets (including Intangible Assets), by considering the indications that an impairment loss may has occurred in accordance with Accounting Standard - 28 "Impairment of Assets". Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made.

O) Revenue Recognition

Sales/Income of contracts/orders are booked based on work billed. Sales are net of sales return & trade discounts.

P) Contingent Liability :

1 Unprovided Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantum of such liabilities.


Mar 31, 2013

A) System of Accounting :

The financial statements are prepared and presented under the historical cost convention on the accrual basis of accouting in accordance with accounting principal generally accepted in india and comply with the Accounting Standards notified under sub- section (3C) of section 211 of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

B) Fixed Assets :

i) All fixed assets are valued at cost net of Cenvat unless if any assets are revalued and for which proper disclosure is made in the Accounts.

ii) In the case of ongoing projects, all pre-operative expenses for the project incurred up to the date of commercial production are capitalized and apportioned to the cost of respective assets.

C) Depreciation :

Depreciation on all the assets has been provided on Straight Line Method as per

Schedule XIV of the Companies Act, 1956.Lease hold land will be amortized on the expiry of Lease Agreement.

D) Inventories :

The general practice adopted by the company for valuation of inventory is as under :

Raw materials : *At lower of cost and net realizable value. Store & spares : At cost (weighted average cost)

Work in process : At cost

Finished goods : At cost or net realizable value, which ever is lower (Also refer Accounting Policy G)

Traded goods : At cost

Scrap material : At cost or net realizable value, which ever is lower

-Material and other supplies held for use in the production of the inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.

E) Investments :

Investments are valued at cost of acquisition, which includes charges such as Brokerage, Fees and Duties.

F) Expenditure during construction period:

Expenditure incurred on projects under implementation are being treated as pre-operative expenses pending allocation to the assets which are being apportioned on commencement of commercial production.

G) Excise Duty :

The Excise duty payable on finished goods dispatches is accounted on the clearance thereof from the factory premises. Excise duty is provided on the finished goods lying at the factory premises and not yet dispatched as per the Accounting Standard

2 "Valuation of Inventories"

H) Customs Duty :

Customs Duty payable on imported raw materials, components and stores and spares is recognized to the extent assessed by the customs department.

I) Foreign Currency Transaction :

Foreign currency transactions during the accounting year are translated at the rates prevalent on the transaction date. Exchange differences arising from foreign currency fluctuations are dealt with on the date of payment/receipt. Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year end rate. The exchange difference is credited / charged to Profit & Loss Account in case of revenue items and capital items.

J) Provision for Gratuity :

Provision for Gratuity is made on the basis of actuarial valuation based on the provisions of the Payment of Gratuity Act, 1972.

K) Leave Salary :

Provision is made for value of unutilized leave due to employees at the end of the year.

L) Customs Duty Benefit :

Customs duty entitlement eligible under pass book scheme / DEPB is accounted on accrual basis. Accordingly, import duty benefits against exports affected during the year are accounted on estimate basis as incentive till the end of the year in respect of duty free imports of raw material yet to be made.

M) Amortization of Expenses :

i) Equity Issue Expenses :

Expenditure incurred in equity issue is being treated as Deferred Revenue Expenditure to be amortized over a period of ten years.

ii) Preliminary Expenses :

Preliminary expenses are amortized over a period of ten years.

iii) Debenture Issue Expenses :

Debenture Issue expenditure is amortized over the period of the Debentures.

N) Impairment of Assets :

The company determines whether a provision should be made for impairment loss on fixed assets (including Intangible Assets), by considering the indications that an impairment loss may has occurred in accordance with Accounting Standard - 28 "Impairment of Assets". Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made.

O) Revenue Recognition :

Sales/Income of contracts/orders are booked based on work billed. Sales are net of sales return & trade discounts.

P) Contingent Liability :

Unprovided Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantum of such liabilities.


Mar 31, 2010

A) System of Accounting :

The financial statements are prepared under the historical cost convention and comply in all material aspects with the applicable accounting principles in India, Accounting Standards notified under sub-section (3C) of section 211 of the Companies Act, 1956 and the relevant provisions of the Companies Act, 1956.

B) Fixed Assets:

i) All fixed assets are valued at cost net of Cenvat unless if any assets are revalued and for which proper disclosure is made in the Accounts.

ii) In the case of ongoing projects, all pre-operative expenses for the project incurred upto the date of commercial production are capitalised and apportioned to the cost of respective assets.

C) Depreciation:

Depreciation on all the assets has been provided on Straight Line Method as per Schedule XIV of the Companies Act, 1956.Lease hold land will be amortised on the expiry of Lease Agreement.

D) Inventories:

The general practice adopted by the company for valuation of

inventory is as under :

Raw materials *At lower of cost and net realisable value.

Store & spares At cost (weighted average cost)

Work in process : At cost

Finished goods At lower of cost and net realisable value.

(Also refer Accounting Policy G) Traded goods At cost

"Material and other supplies held for use in the production of the inventories are not written down below cost if the finished goods in which they will be incorporated are expected to be sold at or above cost.

E) Investments:

Investments are valued at cost of acquisition, which includes charges such as Brokerage, Fees and Duties.

F) Expenditure during construction period:

Expenditure incurred on projects under implementation are being treated as pre-operative expenses pending allocation to the assets which are being apportioned on commencement of commercial production.

G) Excise Duty:

The Excise duty payable on finished goods dispatches is accounted on the clearance

thereof from the factory premises. Excise duty is provided on the finished goods lying at the factory premises and not yet dispatched as per the Accounting Standard 2 "Valuation of Inventories"

H) Customs Duty:

Customs Duty payable on imported raw materials, components and stores and spares is recognised to the extent assessed by the customs department.

I) Foreign Currency Transaction:

Foreign currency transactions during the accounting year are translated at the rates prevalent on the transaction date. Exchange differences arising from foreign currency fluctuations are dealt with on the date of payment/receipt. Assets and Liabilities related to foreign currency transactions remaining unsettled at the end of the year are translated at the year end rate. The exchange difference is credited / charged to Profit & Loss Account in case of revenue items and capital items.

J) Provision for Gratuity :

Provision for Gratuity is made on the basis of actuarial valuation based on the provisions of the Payment of Gratuity Act, 1972.

K) Leave Salary :

Provision is made for value of unutilised leave due to employees at the efid of the year.

L) Customs Duty Benefit:

Customs duty entitlement eligible under pass book scheme / DEPB is accounted on accrual basis. Accordingly, import duty benefits against exports effected during the year are accounted on estimate basis as incentive till the end of the year in respect of duty free imports of raw material yet to be made. .-.«-

M) Amortisation of Expenses:

i) Equity Issue Expenses : - '

Expenditure incurred in equity issue is being treated as Deferred Revenue Expenditure to be amortised over a period of ten years. ii) Preliminary Expenses : .' Preliminary expenses are; amortised over a period often years. iii) Debenture Issue Expenses:

Debenture Issue expenditure is amortised over the period of the Debentures.

N) Impairment of Assets:

The company determines whether a provision should be made for impairment loss on fixed assets (including Intangible Assets), by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard - 28 "Impairment of Assets". Where the recoverable amount of any fixed assets is lower than its carrying amount, a provision for impairment loss on fixed assets is made.

O) Revenue Recognition:

Sales/Income in case of contracts/orders spreading over more than one financial year are booked to the extent of work billed. Sales include export benefits & net of sales return & trade discounts. Export benefits accrue on the date of export, which are utilized for custom duty free impprt of material / transferred for consideration.

P) Contingent Liability:

Unprovided Contingent Liabilities are disclosed in the accounts by way of notes giving the nature and quantum of such liabilities.

 
Subscribe now to get personal finance updates in your inbox!