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Accounting Policies of Midwest Gold Ltd. Company

Mar 31, 2015

1. Corporate Information

Midwest Gold Limited (the company) is a public company domiciled in India and incorporated under the provisions of the companies Act, 1956. Its Shares are listed on stock exchanges in India. The company is presently engaged in the trading business of Granite, Marbles and Gold.

2. Basis of Preparation

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 133 of Companies Act 2013 [As on date the notified accounting standards are, the Companies (Accounting Standards) Rules, 2006, as amended] and the other relevant provisions of the Companies Act, 2013.

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 III to the Companies Act, 2013. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, period of 12 months is taken as a operating cycle for the purpose of current - non current classification of assets and liabilities."

II FIXED ASSETS AND DEPRECIATION:

Tangible Assets are stated at acquisition cost, net of accumulated depreciation and accumulated impairment losses.

Subsequent expenditures related to an item of fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Items of fixed assets that have been retired from active use and are held for disposal are stated at the lower of their net book value and net realisable value and are shown separately in the financial statements. Any expected loss is recognised immediately in the Statement of Profit and Loss.

Losses arising from the retirement of, and gains or losses arising from disposal of fixed assets which are carried at cost are recognised in the Statement of Profit and Loss.

Machinery spares which are specific to particular item of Fixed Assets and its use is expected to be irregular are classified as Mandatory spares and are shown separately under Fixed Assets. "Depreciation is provided on a straight line method, at the rates and manner prescribed in Schedule II of the Companies Act, 2013.

All assets have been depreciated at 95% of their cost and the remaining 5% has not been depreciated as the same will form part of Scrap value..

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses:

Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VI TRANSACTIONS IN FOREIGN CURRENCY :

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fixed Assets or charged to the Profit and Loss Account, as the case may be.

VII RETIREMENT BENEFITS FOR EMPLOYEES

EMPLOYEE BENEFITS

Defined Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defined contribution retirement benefit fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost, as per the statute, to the retirement benefit schemes to fund the benefits. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defined Benefit Plan

For Defined Benefit Plant the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Profit and Loss Account for the period in which they occur.

(a) Gratuity

Liability towards gratutity is provided for on actuarial Valuation Basis.

(b) Leave Encashment Benefits

The Companyextends benefits of leave to the employees while in service as well as on retairement. Provision for leave encashment benefit is being made on the cash basis.

(c) Short Term Employee Benefits.

Short term employee benefits are recognized as expenses as per Companies scheme based on expected obligation

VIII RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

IX CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts.

X BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XI TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.


Mar 31, 2014

I. Corporate Information

Midwest Gold Limited (the company) is a public company domiciled in India and incorporated under the provisions of the companies Act, 1956. Its Shares are listed on stock exchanges in India. The company is presently engaged in the trading business of Granite, Marbles and Gold.

1. Basis of Preparation

The financial statements of the company have been prepared in accordance with 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 the companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provision of the companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

2. The Accounts are prepared on a historical cost convention, all the expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

II FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are Stated at Cost less Depreciation.

2. Depreciation on all Assets, other than leasehold Land / free hold quarry Land is provided on straight line method in accordance with the provision of schedule XIV of the Companies Act, 1956.

3. Depreciation on Free Hold Quarry land has been provided taking economic life of the quarries on 20 Years. In case of abandoning a quarry the remaining book value will be written off in the year it is abandoned.

4. Depreciation on the Fixed Assets added during the year has been provided with reference to the date of acquisition thereof.

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

1. Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses: Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VI TRANSACTIONS IN FOREIGN CURRENCY:

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fixed Assets or charged to the Profit and Loss Account, as the case may be.

VII RETIREMENT BENEFITS FOR EMPLOYEES EMPLOYEE BENEFITS

Defined Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defined contribution retirement benefit fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost, as per the statute, to the retirement benefit schemes to fund the benefits. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defined Benefit Plan

For Defined Benefit Plant the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Profit and Loss Account for the period in which they occur.

(a) GRATUITY

Liability towards gratutity is provided for on actuarial Valuation Basis.

(b) Leave Encashment Benefits

The Company extends benefits of leave to the employees while in service as well as on retairement. Provision for leave encashment benefit is being made on the cash basis.

Short Term Employee Benefits.

Short term employee benefits are recognized as expenses as per Companies scheme based on expected obligation

VIII RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

IX CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts

X BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XI TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.


Mar 31, 2013

I. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below.

The Accounts are prepared on a historical cost convention, all the expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

II FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are Stated at Cost less Depreciation.

2. Depreciation on all Assets, other than leasehold Land / free hold quarry Land is provided on straight line method in accordance with the provision of schedule XIV of the Companies Act, 1956.

3. Depreciation on Free Hold Quarry land has been provided taking economic life of the quarries on 20 Years. In case of abandoning a quarry the remaining book value will be written off in the year it is abandoned.

4. Depreciation on the Fixed Assets added during the year has been provided with reference to the date of acquisition thereof.

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

1. Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses :

Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VI TRANSACTIONS IN FOREIGN CURRENCY

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fixed Assets or charged to the Profit and Loss Account, as the case may be.

VII RETIREMENT BENEFITS FOR EMPLOYEES

EMPLOYEE BENEFITS

Defined Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defined contribution retirement benefit fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost, as per the statute, to the retirement benefit schemes to fund the benefits. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defined Benefit Plan

For Defined Benefit Plant the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Profit and Loss Account for the period in which they occur.

(a) Gratuity

Liability towards gratutity is provided for on actuarial Valuation Basis.

(b) Leave Encashment Benefits

The Company extends benefits of leave to the employees while in service as well as on retairement. Provision for leave encashment benefit is being made on the cash basis.

Short Term Employee Benefits.

Short term employee benefits are recognized as expenses as per Companies scheme based on expected obligation

VIII RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

IX CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts

X BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XI TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.


Mar 31, 2010

I The Accounts are prepared on a historical cost convention, all the expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

II FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are Stated at Cost less Depreciation.

2. Depreciation on all Assets, other than leasehold Land / free hold quarry Land is provided on straight line method in accordance with the provision of schedule XIV of the Companies Act, 1956.

3. Depreciation on Free Hold Quarry land has been provided taking economic life of the quarries on 20 Years. In case of abandoning a quarry the remaining book value will be written off in the year it is abandoned.

4. Depreciation on the Fixed Assets added during the year has been provided with reference to the date of acquisition thereof.

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

1. Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses:

Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VII TRANSACTIONS IN FOREIGN CURRENCY :

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fxed Assets or charged to the Proft and Loss Account, as the case may be.

VIII RETIREMENT BENEFITS FOR EMPLOYEES IV EMPLOYEE BENEFITS

Defned Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defned contribution retirement beneft fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specifed percentage of payroll cost, as per the statute, to the retirement beneft schemes to fund the benefts. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defned Beneft Plan

For Defned Beneft Plant the cost of providing benefts is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Proft and Loss Account for the period in which they occur .

(a) GRATUITY

Provision for Gratuity is made as determined actuarially under group gratuity scheme of Life Insurance Corporation of India(LIC)

(b) Leave Encashment Benefts

The Company extends benefts of leave to the employees while in service as well as on retirement.

Short Term Employee Benefts.

Short term employee benefts are recognized as expenses as per Companies scheme based on expected obligation

IX RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Proft and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

X CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts

XI BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XII TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Proft and proft as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that suffcient future taxable profts will be available against which such deferred tax assets can be realized.


Mar 31, 2009

I The Accounts are prepared on a historical cost convention, all the expenses and income to the extent considered payable and receivable, unless stated otherwise, have been accounted for on accrual basis.

II FIXED ASSETS AND DEPRECIATION:

1. Fixed Assets are Stated at Cost less Depreciation.

2. Depreciation on all Assets, other than leasehold Land / free hold quarry Land is provided on straight line method in accordance with the provision of schedule XIV of the Companies Act, 1956.

3. Depreciation on Free Hold Quarry land has been provided taking economic life of the quarries on 20 Years. In case of abandoning a quarry the remaining book value will be written off in the year it is abandoned.

4. Depreciation on the Fixed Assets added during the year has been provided with reference to the date of acquisition thereof.

III VALUATION OF INVENTORIES ARE MADE AS UNDER

1. Raw Material - At Cost (Weighted Average)

2. Stores & Spares - At Cost (FIFO)

3. Consumables - At Cost (FIFO)

4. Work In Progress - Lower of Cost or Estimated Realizable Value

5. Finished Goods - Lower of Cost or Net Realizable Value

6. Stock in Trade - Lower of Cost or Net Realizable Value

IV SALES

1. Sales are accounted for on passing of title to the customers. Returns and rebates and discounts against goods sold are recognized as and when ascertained and deducted from sales of the respective year.

V MISCELLANEOUS EXPENDITURE

1. Preliminary & Public Issue Expenses:

Preliminary & Public Issue Expenses incurred by the Company will be charged to revenue on a deferred basis over a period of 10 Years on a Commencement of Commercial Production.

2. Quarry Development Expenditure:

Expenditure incurred on quarry development is treated as deferred revenue expenditure to be written off over a period of ten years after commencing regular quarrying Operation. In the event of abandoning the quarrying operation with in the period of Ten Years, the Same shall be written off in that year.

VI TRANSACTIONS IN FOREIGN CURRENCY :

1. Foreign currency transactions are recorded on the basis of exchange rates prevailing on the date of their occurrence.

2. Foreign currency balances as on the Balance Sheet date are realigned in the accounts on the basis of exchange rates prevailing at the close of the year and exchange difference arising there from, is adjusted to the cost of fixed Assets or charged to the Profit and Loss Account, as the case may be.

VII RETIREMENT BENEFITS FOR EMPLOYEES

VIII EMPLOYEE BENEFITS

Defined Contribution Plan

The Company makes contribution towards Provident Fund and Employee State Insurance as a defined contribution retirement benefit fund for qualifying employees.

The Provident Fund plan is operated by the Regional Provident Fund Commissioner. Under this scheme, the Company is required to contribute a specified percentage of payroll cost, as per the statute, to the retirement benefit schemes to fund the benefits. Employee State Insurance is remitted to Employee State Insurance Corporation.

Defined Benefit Plan

For Defined Benefit Plant the cost of providing benefits is determined using the Projected Unit Credit Method with actuarial valuation being carried out at each Balance Sheet date. Actuarial gains or losses are recognized in full in the Profit and Loss Account for the period in which they occur.

(a) GRATUITY

Provision for Gratuity is made as determined actuarially under group gratuity scheme of Life Insurance Corporation of India(LIC)

(b) Leave Encashment Benefits

The Company extends benefits of leave to the employees while in service as well as on retairement.

Short Term Employee Benefits.

Short term employee benefits are recognized as expenses as per Companies scheme based on expected obligation

IX RESEARCH AND DEVELOPMENT EXPENDITURE

Research and development expenditure of revenue nature are charged to the Profit and Loss Account, while capital expenditure are added to Fixed Assets in the year in which they are incurred.

X CONTINGENCIES

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of Notes to Accounts

XI BORROWING COSTS

Borrowings costs incurred in relation to the acquisition, construction of assets are capitalized as part of the costs of such assets up to the date when such assets are ready for intended use. Other borrowing costs are charges as an expense in the year in which these are incurred.

XII TAXES ON INCOME

a. Provision for Tax for current year has been made on the basis of estimated taxable income computed in accordance with the provisions as per Income Tax Act, 1961.

b. Deferred Tax resulting from all timing differences between Book Profit and profit as per Income Tax Act, 1961 is accounted for, at the enacted rate of Tax, to the extent that the timing difference as expected to crystallize. Deferred tax assets are recognized only to the extent that there is a reasonable certainty that sufficient future taxable profits will be available against which such deferred tax assets can be realized.



 
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