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Accounting Policies of Monnet Industries Ltd. Company

Mar 31, 2015

I. Basis of preparation of financial statements:

These financial statements have been prepared to comply with Accounting Principles Generally accepted in India (Indian GAAP), the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements are prepared on accrual basis under the historical cost convention. The financial statements are presented in Indian rupees rounded off to the nearest rupees

II. Use of estimates:

The preparation of financial statements in conformity with Indian GAAP requires judgements, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognized in the period in which the results are known/materialized.

III. Tangible & Intangible Fixed Assets:

a) Tangible assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction/installation less accumulated amortization and impairment loss, if any. CENVAT/ VAT credit availed on capital equipment is accounted for by credit to respective fixed assets.

b) Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/ depletion and impairment loss, if any.

IV. Depreciation and amortization:

Depreciation / amortization on tangible and intangible fixed assets is provided to the extent of depreciable amount on the straight line (SLM) Method. Depreciation is provided at the rates and in the manner prescribed in Schedule II to the Companies Act, 2013

V. Investments:

Long-term investments are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary.

VI. Inventories:

Items of inventories are measured at lower of cost and net realizable value after providing for obsolescence. Cost of inventories comprises of cost of purchase, cost of conversion and other costs including manufacturing overheads incurred in bringing them to their respective present location and condition.

Inventories are valued on the following basis:

a) Stores and Spares - at moving weighted average basis.

b) Raw Materials - at moving weighted average basis.

c) Work-in-Process - at estimated cost

d) Finished Goods - at lower of cost or net realizable value

VII. Revenue Recognition:

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services and excise duty, adjusted for discounts (net).

Dividend received is accounted for as and when it is declared. However, dividend accrued on non-convertible cumulative redeemable preference shares is accounted for on accrual basis.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

VIII. Excise Duty:

Excise duty is accounted on the basis of both, payments made in respect of goods cleared and provision made for goods lying in bonded warehouses.

IX. Foreign Currency Transactions:

a) Transactions denominated in foreign currencies are recorded at the exchange rates prevailing on the date of the transaction or that approximates the actual rate at the date of the transaction.

b) Monetary items denominated in foreign currencies at the year end are restated at year end rates, except in cases covered by forward exchange contracts.

c) Any income or expense on account of exchange difference either on settlement or on translation is recognized in the profit and loss account.

X. Employee Benefits:

Liability for Gratuity & Leave encashment benefits has been provided on arithmetical basis on gross liability on balance date. The management is of the view that it is in compliance of AS-15.

XI. Provision, Contingent Liabilities and Contingent Assets:

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

XII. Unless specifically stated to be otherwise, these policies are consistently followed.


Mar 31, 2014

1. Basis of Accounting

The Company has prepared its financial statements in accordance with generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

2. Income and Expenditure

Accounting of Income & Expenditure is done on accrual basis.

3. Revenue in respect of claims are recognized only when the same are reasonably ascertained.

4. Fixed Assets & Depreciation

a) Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction & installation.

b) Depreciation is charged on Written Down Value (WDV) Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 in respect of assets in use only.

c) In respect of Assets Leased out as on 31st March, 2014 the cost of leased assets is depreciated over the primary lease Year in line with the method recommended by the Institute of Chartered Accountants of India.

5 Investments

Long Term Investments are stated at cost.

6. Retirement Benefits

Liability for Gratuity & Leave encashment benefits has been provided on arithmetical basis on gross liability on balance date. The management is of the view that it is in compliance of AS-15.

7. Cash and Cash equivalents

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank and in hand and short term investments with an original maturity of three months or less.

8. Contingent Liabilities

Contingent Liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.

9. Dividend received is accounted for as and when it is declared. However, dividend accrued on non-convertible commutative redeemable preference shares is accounted for on accrual basis.

10. Unless specifically stated to be otherwise, these policies are consistently followed.

DISCLOSURES REGARDING LONG TERM BORROWINGS

a) The term loan is secured against First pari passu charge by way of hypothecation and mortage over entire present & future movable & immovable fixed assets of the Company

b) The loan is further secured by exclusive charge by way of mortage over the immovable property at 10-11, Masjid Moth G.K.-II New Delhi owned by M/s Pace Enterprises Pvt. Ltd. & M/s Cambridge Construction ( Delhi ) Ltd.

c) The loan is further secured by pledge of CRPS issued by M/s Monnet Ispat & Energy Ltd. and all rights under the CRPS.

d) The loan is further secured by personal gurantee of Sh. Sandeep Jajodia and corporate gurantee of M/s Pace Enterprises Pvt. Ltd. & M/s Cambridge Construction ( Delhi ) Ltd.

e) The loan is repayable in 3 equal instalment payable at the end of 3th, 4th & 5th years from the date of disbursement. The loan is carrying interest rate between 11.5% to 12.75 %.

f) There has been no continuing default on the balance sheet date in repayment of loan and interest.

g) The total amount of borrowing has been invested in 6.5% Non Convertible Cumulative Reedemable Preference shares of M/s Monnet Ispat & Energy Ltd. @ Rs.100/- per Share


Mar 31, 2011

1. Basis of Accounting

The Company has prepared its financial statements in accordance with generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

2. Income and Expenditure

Accounting of Income & Expenditure is done on accrual basis.

3.Revenue in respect of claims are recognised only when the same are reasonably ascertained.

4. Fixed Assets & Depreciation

a) Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction & installation.

b) Depreciation is charged on Written Down Value (WDV) Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 in respect of assets in use only.

c) In respect of Assets Leased out as on 31 st March, 2011 the cost of leased assets is depreciated over the primary lease Year in line with the method recommended by the Institute of Chartered Accountants of India.

d) Modvat credit availed on capital goods is accounted for by credit to respective fixed assets and henceforth depreciation has been charged on net cost of Fixed Assets.

5 Investments

Long Term Investments are stated at cost.

6 Excise Duty

Modvat credit, to the extent availed, is adjusted towards cost of materials.

MONNET INDUSTRIES LIMITED Standalone Balance Sheet for period 01/04/2010 to 31/03/2011

7. Gratuity/Retirement Benefits:

Retirement benefits are accounted for on accrual basis.

8. Contingent Liabilities

Contingent Liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.

9.Dividend received is accounted for as and when it is declared.

10.Unless specifically stated to be otherwise, these policies are consistently followed.


Mar 31, 2010

1. Basis of Accounting

The Company has prepared its financial statements in accordance with generally accepted accounting principles and also in accordance with the requirements of the Companies Act, 1956.

2. Income and Expenditure

Accounting of Income & Expenditure is done on accrual basis.

3. Revenue in respect of claims are recognised only when the same are reasonably ascertained.

4. Fixed Assets & Depreciation

a) Fixed assets are stated at their original cost of acquisition inclusive of inward freight, duties and expenditure incurred in the acquisition, construction & installation.

b) Depreciation is charged on Written Down Value (WDV) Method at the rates and in the manner prescribed in Schedule XIV of the Companies Act, 1956 in respect of assets in use only.

c) In respect of Assets Leased out as on 31st March, 2010 the cost of leased assets is depreciated over the primary lease Year in line with the method recommended by the Institute of Chartered Accountants of India.

d) Modvat credit availed on capital goods is accounted for by credit to respective fixed assets and henceforth depreciation has been charged on net cost of Fixed Assets.

5. Investments

Long Term Investments are stated at cost.

6. Excise Duty

Modvat credit, to the extent availed, is adjusted towards cost of materials.

7. Gratuity/Retirement Benefits

Retirement benefits are accounted for on accrual basis.

8. Contingent Liabilities

Contingent Liabilities are determined on the basis of available information and are disclosed by way of notes to the accounts.

9. Dividend received is accounted for as and when it is declared.

10. Unless specifically stated to be otherwise, these policies are consistently followed.

 
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