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, 2012
(A) Change in accounting policy
Presentation and disclosure of financial statements
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 of its financial statements. The adoption of revised
schedule VI does not impact recognition and measurement principles
followed for preparation of financial statements. However, it has
significant impact on 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. For further details, refer note 36.
B. 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 à 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 gratuity 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 retirement. 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
BUSINESS SEGMENTS
The Company has Two reportable business segments and one geographical
segment under Accounting Standard 17 on Segment Reporting.
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 BORROWINGCOSTS
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.