Mar 31, 2018
Note : 1 Significant Accounting Policies :
1. Basis of Preparation
These financial statements are separate financial statements prepared in accordance with Indian Accounting Standards ("Ind AS"), the provisions of the Companies Act, 2013 ("the Act") (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). The Ind AS are prescribed under section 133 of the Act read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendments Rules, 2016.
The Company has adopted all the applicable Ind AS and the adoption was carried out in accordance with Ind AS 101 - First time adoption of Indian Accounting Standards. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Sec 133 of the Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP), which was the previous GAAP. These are the Company''s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016.
2. Use of estimates and judgement
In the application of the Company''s accounting policies, the directors of the Company are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
The key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
3. Income
i) Sales are net of returns and exclusive of taxes. Sales are accounted for on dispatch basis.
ii) Other Income is accounted on accrual basis.
4. Expenses
All expenditures are accounted on accrual basis after reducing any specific income attributable to such expenditure.
5. Property, plant and Equipment
The cost of property, plant and equipment comprises its purchase price net of any trade discounts and rebates, any import duties and other taxes (other than those subsequently recoverable from the tax authorities), any directly attributable expenditure on making the asset ready for its intended use, including relevant borrowing costs for qualifying assets and any expected costs of decommissioning. Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and maintenance, are charged to the Statement of Profit and Loss in the period in which the costs are incurred. Major shut-down and overhaul expenditure is capitalized as the activities undertaken improve the economic benefits expected to arise from the asset.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in Statement of Profit and Loss.
Depreciation commences when the assets are ready for their intended use
Depreciable amount for assets is the cost of an asset, or other amount substituted for cost, less its estimated residual value. Depreciation is recognized so as to write off the cost of assets (other than freehold land and properties under construction) less their residual values over their useful lives, using straight-line method as per the useful life prescribed in Schedule II to the Companies Act, 2013 except in respect of Plant and Machinery, in whose case the life of the assets has been assessed as under based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturers warranties and maintenance support, etc. Depreciation is provided on estimated useful lives of the assets as per Schedule - II of the Companies Act, 2013 except for the following assets where the useful life has been estimated based on the technical estimate.
Assets Estimated Life Life as per Schedule-II
Plant & Machinery 25-30 Years 20 Years
Amounts spent on Site preparation at Quarry for mining of Clay have been capitalized under the head Building -
Others and Depreciation provided accordingly.
The Company reviews the residual value, useful lives and depreciation method annually and, if expectations differ from previous estimates, the change is accounted for as a change in accounting estimate on a prospective basis.
6. Inventories :
Finished goods are valued at lower of cost or market value. Cost is inclusive of all overheads (including interest) incurred by the Company in bringing the goods to the finished stage. Raw materials, components and spare parts are valued at average cost. Average cost is calculated at weighted cost per unit after taking into account receipts at actual cost. Consumption and / or other stock diminution are accounted for at the aforesaid weighted cost.
7. Investments :
Investments are valued at cost and income thereon is accounted for when received.
8. Gratuity :
Gratuity has been paid through an approved gratuity fund managed by the LIC of India. Premium paid thereon is accounted as expenditure. The Company has also provided for gratuity as per actuarial valuation.
9. Bonus :
Minimum Bonus payable as per the Payment of Bonus Act has been provided in the accounts.
10. Leave Encashment :
Leave encashment has been determined based on the actuarial valuation, available leave entitlement at the end of each calendar year. The incremental amount so calculated each year is debited to Salaries and Wages - leave encashment.
11. Deferred Income Tax :
Deferred income tax is provided using the liability method on all timing differences at the balance sheet date between tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the tax rates and tax laws substantively enacted at the balance sheet date.
12. Financial Instruments
The Company recognizes financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on initial recognition, except for trade receivables which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through Statement of Profit and Loss, are added to the fair value on initial recognition.
13. Borrowings and Borrowing Cost
Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption value is recognized in the income statement over the period of the borrowings using the effective interest rate method. Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognized in statement of profit and loss in the period in which they are incurred.
14. Earnings per share
Basic earnings per share is computed by dividing profit or loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the year. The weighted average number of shares outstanding during the year is adjusted for events of bonus issue and share split.
Diluted earnings per share is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented.
15. Cash and cash equivalents
Cash and cash equivalent in the Balance Sheet comprise cash at banks and on hand.
16. FIRST-TIME ADOPTION - MANDATORY EXEMPTIONS, OPTIONAL EXEMPTIONS
DISCLOSURES REQUIRED AS PER INDIAN ACCOUNTING STANDARD (IND AS) 101- FIRST TIME ADOPTION OF INDIAN ACCOUNTING STANDARD TRANSITION TO IND AS
These are the Company''s first financial statements prepared in accordance with Ind AS. The accounting policies set out in note have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS Balance Sheet as at April 1, 2016 (the Company''s date of transition)
In preparing its opening Ind AS Balance Sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''previous GAAP'' or ''Indian GAAP'') except in case of optional exemptions and mandatory exemptions availed as under
a. Exemption availed
Carrying amount of such investments in associates as on transition date has been taken as deemed cost.
b. Exceptions applied
- Estimates
The estimates at 1st April 2016 and 31st March 2017 are consistent with estimates made for the same date in accordance with IGAAP.
- Classification and measurement of financial assets
The company has classified the financial assets in accordance with IND AS 109 on the basis of facts and conditions existed on IND AS transition date.
Mar 31, 2016
Note : 1 Corporate Information :
Murudeshwar Ceramics Limited (the Company) was established during the year 1983. The Company is manufacturing Ceramic and Vitrified Tiles. The registered office of the Company is at 604/B, Murudeshwar Bhavan, Gokul Road, Hubli - 580 030 and the Corporate Office is at Naveen Complex, 7th Floor, 14, M.G.Road, Bengaluru - 560 001. The Company is having 2 manufacturing plants at Krishnapur Village, Hubli and Karaikal, Pondicherry. The Company started Trading activities for outsourcing of Vitrified Tiles and Ceramic Tiles. The Company''s products are branded as âNaveen Ceramic Tilesâ and âNaveen Diamontileâ. The Company is having well established marketing network all over the country.
Note : 2 Significant Accounting Policies :
1. Basis of Preparation :
The Company adopts generally accepted Accounting policies excepting those which have been specifically stated herein. The Financial statements have been drawn up according to the accounting standards prescribed under Section 133 of The Companies Act, 2013.
Finished stock lying at the factory has been valued inclusive of excise duty which has no impact on the profits of the company. This accounting policy is in conformity with the Accounting Standard issued by the Institute of Chartered Accountants of India.
2. Income :
i) Sales are net of returns and inclusive of excise duty. Sales are accounted for on dispatch basis.
ii) Other Income is accounted on accrual basis.
3. Expenses :
All expenditures are accounted on accrual basis after reducing any specific income attributable to such expenditure.
4. Fixed Assets :
Fixed Assets are stated at the historical cost which is inclusive of freight, installation cost and duties and other incidental expenses up to the date of commencement of commercial production.
Depreciation is provided on estimated useful lives of the assets as per Schedule - II of the Companies Act, 2013 except for the following assets where the useful life has been estimated based on the technical estimate.
Plant & Machinery
Amounts spent on Site preparation at Quarry for mining of Clay have been capitalized under the head Building - Others and Depreciation provided accordingly.
5. Inventories :
Finished goods are valued at lower of cost or market value. Cost is inclusive of all overheads (including interest) incurred by the Company in bringing the goods to the finished stage. Raw materials, components and spare parts are valued at average cost. Average cost is calculated at weighted cost per unit after taking into account receipts at actual cost. Consumption and / or other stock diminution is accounted for at the aforesaid weighted cost.
6. Investments :
Investments are valued at cost and income thereon is accounted for when received.
7. Gratuity :
Gratuity has been paid through an approved gratuity fund managed by the LIC of India. Premium paid thereon is accounted as expenditure. The Company has also provided for gratuity as per actuarial valuation.
8. Bonus :
Minimum Bonus payable as per the Payment of Bonus Act has been provided in the accounts.
9. Leave Encashment :
Leave encashment has been determined based on the actuarial valuation, available leave entitlement at the end of each calendar year. The incremental amount so calculated each year is debited to Salaries and Wages -leave encashment.
10. Deferred Income Tax :
Deferred income tax is provided using the liability method on all timing differences at the balance sheet date between tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the tax rates and tax laws substantively enacted at the balance sheet date.
Mar 31, 2015
1. Basis of Preparation :
The Company adopts generally accepted Accounting policies excepting
those which have been specifically stated herein. The Financial
statements have been drawn up according to the accounting standards
prescribed under Section 133 of The Companies Act, 2013.
Finished stock lying at the factory has been valued inclusive of excise
duty which has no impact on the profits of the company. This accounting
policy is in conformity with the Accounting Standard issued by the
Institute of Chartered Accountants of India.
2. Income :
i) Sales are net of returns and inclusive of excise duty. Sales are
accounted for on despatch basis.
ii) Other Income is accounted on accrual basis.
3. Expenses :
All expenditures are accounted on accrual basis after reducing any
specific income attributable to such expenditure.
4. Fixed Assets :
Fixed Assets are stated at the historical cost which is inclusive of
freight, installation cost and duties and other incidental expenses up
to the date of commencement of commercial production.
Depreciation is provided on estimated useful lives of the assets as per
Schedule - II of the Companies Act, 2013 except for the following
assets where the useful life has been estimated based on the technical
estimate. Assets Estimated Life Life as per
Schedule - II
Plant & Machinery 25 Years 20 Years
Amounts spent on Site preparation at Quarry for mining of Clay have
been capitalized under the head Building - Others and Depreciation
provided accordingly.
5. Inventories :
Finished goods are valued at lower of cost or market value. Cost is
inclusive of all overheads (including interest) incurred by the Company
in bringing the goods to the finished stage. Raw materials, components
and spare parts are valued at average cost. Average cost is calculated
at weighted cost per unit after taking into account receipts at actual
cost. Consumption and / or other stock diminution is accounted for at
the aforesaid weighted cost.
6. Investments :
Investments are valued at cost and income thereon is accounted for when
received.
7. Gratuity :
Gratuity has been paid through an approved gratuity fund managed by the
LIC of India. Premium paid thereon is accounted as expenditure. The
Company has also provided for gratuity as per actuarial valuation.
8. Bonus :
Minimum Bonus payable as per the Payment of Bonus Act has been provided
in the accounts.
9. Leave Encashment :
Leave encashment has been determined based on the actuarial valuation,
available leave entitlement at the end of each calendar year. The
incremental amount so calculated each year is debited to Salaries and
Wages - leave encashment.
10. Deferred Income Tax :
Deferred income tax is provided using the liability method on all
timing differences at the balance sheet date between tax bases of
assets and liabilities and their carrying amounts for financial
reporting purposes at the tax rates and tax laws substantively enacted
at the balance sheet date.
Mar 31, 2014
1. Basis of Preparation :
The Company adopts generally accepted Accounting policies excepting
those which have been specifically stated herein. The Financial
statements have been drawn up according to the accounting standards
prescribed under Section 211(3C) of The Companies Act, 1956.
Finished stock lying at the factory has been valued inclusive of excise
duty which has no impact on the profits of the company. This accounting
policy is in conformity with the Accounting Standard issued by the
Institute of Chartered Accountants of India.
2. Income :
i) Sales are net of returns and inclusive of excise duty. Sales are
accounted for on despatch basis. ii) Other Income is accounted on
accrual basis.
3. Expenses :
All expenditures are accounted on accrual basis after reducing any
specific income attributable to such expenditure.
4. Fixed Assets :
Fixed Assets are stated at the historical cost which is inclusive of
freight, installation cost and duties and other incidental expenses up
to the date of commencement of commercial production.
Depreciation is provided on straight line basis at the rate as
prescribed under Schedule XIV of The Companies Act, 1956 as amended by
Notification issued by the Department of Company Affairs in this regard
dated 16.12.1993.
Amounts spent on Site preparation at Quarry for mining of Clay have
been capitalized under the head Building  Others and Depreciation
provided accordingly.
5. Inventories :
Finished goods are valued at lower of cost or market value. Cost is
inclusive of all overheads (including interest) incurred by the Company
in bringing the goods to the finished stage. Raw materials, components
and spare parts are valued at average cost. Average cost is calculated
at weighted cost per unit after taking into account receipts at actual
cost. Consumption and / or other stock diminution is accounted for at
the aforesaid weighted cost.
6. Investments :
Investments are valued at cost and income thereon is accounted for when
received.
7. Gratuity :
Gratuity has been paid through an approved gratuity fund managed by the
LIC of India. Premium paid thereon is accounted as expenditure.
8. Bonus :
Minimum Bonus payable as per the Payment of Bonus Act has been provided
in the accounts.
9. Leave Encashment :
Leave encashment has been determined based on the available leave
entitlement at the end of each calendar year. The incremental amount
so calculated each year is debited to Salaries and Wages - leave
encashment.
10. Deferred Income Tax :
Deferred income tax is provided using the liability method on all
timing differences at the balance sheet date between tax bases of
assets and liabilities and their carrying amounts for financial
reporting purposes at the tax rates and tax laws substantively enacted
at the balance sheet date.
Notes : (i) Reconciliation of the number of shares and amount
outstanding at the beginning and at the end of the reporting period:
Note : (i) Balances with banks include deposits amounting to Rs. 9.21
Lacs (As at 31 March, 2013 Rs. 7.85 Lacs) which have an original maturity
of more than 12 months.
11.1 Monies received against share warrants
As approved by the shareholder at the Extra Ordinary General Meeting
held on March 14, 2012, the Board of Directors at their meeting held on
March 21, 2012 alloted 39,70,000 Convertible Share Warrants at a price
of Rs.17/- per Convertible Share Warrants in accordance with SEBI
Guidelines at Murdeshwar Power Corporation Ltd. 25% price of
convertible Share Warrants which amounts to Rs.1,68,72,500/- was received
by them. On 19.03.2013, Murdeshwar Power Corporation Limited converted
its first trenche of 19,35,000 Convertible Share Warrants into
19,35,000 Equity Shares by paying the balance 75% amount to
Rs.2,46,71,250/-. The second trenche of 20,35,000 Convertible Share
Warrants was converted into 20,35,000 Equity Shares on 30.07.2013 by
paying 75% balance amount of Rs.2,59,46,250/-.
Mar 31, 2013
1. Basis of Preparation :
The Company adopts generally accepted Accounting policies excepting
those which have been specifically stated herein. The Financial
statements have been drawn up according to the accounting standards
prescribed under Section 211(3C) of The Companies Act, 1956.
Finished stock lying at the factory has been valued inclusive of excise
duty which has no impact on the profits of the company. This accounting
policy is in conformity with the Accounting Standard issued by the
Institute of Chartered Accountants of India.
2. Income :
i) Sales are net of returns and inclusive of excise duty. Sales are
accounted for on despatch basis. ii) Other Income is accounted on
accrual basis.
3. Expenses :
All expenditures are accounted on accrual basis after reducing any
specific income attributable to such expenditure.
4. Fixed Assets :
Fixed Assets are stated at the historical cost which is inclusive of
freight, installation cost and duties and other incidental expenses up
to the date of commencement of commercial production.
Depreciation is provided on straight line basis at the rate as
prescribed under Schedule XIV of The Companies Act, 1956 as amended by
Notification issued by the Department of Company Affairs in this regard
dated 16.12.1993. Amounts spent on Site preparation at Quarry for
mining of Clay have been capitalized under the head Building - Others
and Depreciation provided accordingly.
5. Inventories :
Finished goods are valued at lower of cost or market value. Cost is
inclusive of all overheads (including interest) incurred by the Company
in bringing the goods to the finished stage. Raw materials, components
and spare parts are valued at average cost. Average cost is calculated
at weighted cost per unit after taking into account receipts at actual
cost. Consumption and / or other stock diminution is accounted for at
the aforesaid weighted cost.
6. Investments :
Investments are valued at cost and income thereon is accounted for when
received.
7. Gratuity :
Gratuity has been paid through an approved gratuity fund managed by the
LIC of India. Premium paid thereon is accounted as expenditure.
8. Bonus :
Minimum Bonus payable as per the Payment of Bonus Act has been provided
in the accounts.
9. Leave Encashment :
Leave encashment has been determined based on the available leave
entitlement at the end of each calendar year. The incremental amount
so calculated each year is debited to Salaries and Wages - leave
encashment.
10. Deferred Income Tax :
Deferred income tax is provided using the liability method on all
timing differences at the balance sheet date between tax bases of
assets and liabilities and their carrying amounts for financial
reporting purposes at the tax rates and tax laws substantively enacted
at the balance sheet date.
Mar 31, 2012
1. Basis of Preparation :
The Company adopts generally accepted Accounting policies excepting
those which have been specifically stated herein. The Financial
statements have been drawn up according to the accounting standards
prescribed under Section 211(3C) of The Companies Act, 1956.
Finished stock lying at the factory has been valued inclusive of excise
duty which has no impact on the profits of the company. This accounting
policy is in conformity with the Accounting Standard issued by the
Institute of Chartered Accountants of India.
2. Income :
i) Sales are net of returns and inclusive of excise duty. Sales are
accounted for on despatch basis.
ii) Other Income is accounted on accrual basis.
3. Expenses :
All expenditures are accounted on accrual basis after reducing any
specific income attributable to such expenditure.
4. Fixed Assets :
Fixed Assets are stated at the historical cost which is inclusive of
freight, installation cost and duties and other incidental expenses up
to the date of commencement of commercial production.
Depreciation is provided on straight line basis at the rate as
prescribed under Schedule XIV of The Companies Act, 1956 as amended by
Notification issued by the Department of Company Affairs in this regard
dated 16.12.1993. Amounts spent on Site preparation at Quarry for
mining of Clay have been capitalized under the head Building - Others
and Depreciation provided accordingly.
5. Inventories :
Finished goods are valued at lower of cost or market value. Cost is
inclusive of all overheads (including interest) incurred by the Company
in bringing the goods to the finished stage. Raw materials, components
and spare parts are valued at average cost. Average cost is calculated
at weighted cost per unit after taking into account receipts at actual
cost. Consumption and / or other stock diminution is accounted for at
the aforesaid weighted cost.
6. Investments :
Investments are valued at cost and income thereon is accounted for when
received.
7. Gratuity :
Gratuity has been paid through an approved gratuity fund managed by the
LIC of India. Premium paid thereon is accounted as expenditure.
8. Bonus :
Minimum Bonus payable as per the Payment of Bonus Act has been provided
in the accounts.
9. Leave Encashment :
Leave encashment has been determined based on the available leave
entitlement at the end of each calendar year. The incremental amount
so calculated each year is debited to Salaries and Wages - leave
encashment.
10. Deferred Income Tax :
Deferred income tax is provided using the liability method on all
timing differences at the balance sheet date between tax bases of
assets and liabilities and their carrying amounts for financial
reporting purposes at the tax rates and tax laws substantively enacted
at the balance sheet date.
Mar 31, 2011
The Company adopts generally accepted Accounting policies excepting
those which have been specifically stated herein. The Financial
statements have been drawn up according to the accounting standards
prescribed under Section 211(3C) of The Companies Act, 1956.
During the year the company has changed accounting policy with regard
to valuation of finished stock lying in the factory to comply with the
Accounting Standard AS-2 issued by the ICAI. Finished stock lying at
the factory has been valued inclusive of excise duty during the year
which has no impact on the profits of the company. This change in
accounting policy is in conformity with the Accounting Standard issued
by the Institute of Chartered Accountants of India.
2. Income :
i) Sales are net of returns and inclusive of excise duty. Sales are
accounted for on despatch basis.
ii) Other Income is accounted on accrual basis.
3. Expenses :
All expenditures are accounted on accrual basis after reducing any
specific income attributable to such expenditure.
4. Fixed Assets :
Fixed Assets are stated at the historical cost which is inclusive of
freight, installation cost and duties and other incidental expenses up
to the date of commencement of commercial production.
Depreciation is provided on straight line basis at the rate as
prescribed under Schedule XIV of The Companies Act, 1956 as amended by
Notification issued by the Department of Company Affairs in this regard
dated 16.12.1993. Amounts spent on Site preparation at Quarry for
mining of Clay have been capitalized under the head Building - Others
and Depreciation provided accordingly.
5. Inventories :
Finished goods are valued at lower of cost or market value. Cost is
inclusive of all overheads (including interest) incurred by the Company
in bringing the goods to the finished stage. Raw materials, components
and spare parts are valued at average cost. Average cost is calculated
at weighted cost per unit after taking into account receipts at actual
cost. Consumption and / or other stock diminution is accounted for at
the aforesaid weighted cost.
6. Investments :
Investments are valued at cost and income thereon is accounted for when
received.
7. Gratuity :
Gratuity has been paid through an approved gratuity fund managed by the
LIC of India. Premium paid thereon is accounted as expenditure.
8. Bonus :
Minimum Bonus payable as per the Payment of Bonus Act has been provided
in the accounts.
9. Leave Encashment :
Leave encashment has been determined based on the available leave
entitlement at the end of each calendar year. The incremental amount
so calculated each year is debited to Salaries and Wages - leave
encashment.
10. Deferred Income Tax :
Deferred income tax is provided using the liability method on all
timing differences at the balance sheet date between tax bases of
assets and liabilities and their carrying amounts for financial
reporting purposes at the tax rates and tax laws substantively enacted
at the balance sheet date.
Mar 31, 2010
1.The Company adopts generally accepted Accounting policies excepting
those which have been specifically stated herein. The Financial
statements have been drawn up according to the accounting standards
prescribed under Section 211 (3C) of The Companies Act, 1956.
2. Income:
i) Sales are net of returns and inclusive of excise duty. Sales are
accounted for on despatch basis. ii) Other Income is accounted on
accrual basis.
3. Expenses:
All expenditures are accounted on accrual basis after reducing any
specific income attributable to such expenditure.
4. Fixed Assets:
Fixed Assets are stated at the historical cost which is inclusive of
freight, installation cost and duties and
other incidental expenses up to the date of commencement of commercial
production.
Depreciation isprovided on straight line basis at the rate as
prescribed under Schedule XIV of The Companies
Act, 1956 as amended by Notification issued by the Department of
Company Affairs in this regard dated
16.12.1993.
Amounts spent on Site preparation at Quarry, for mining of Clay have
been capitalized under the head
Building - Others and Depreciation provided accordingly.
5. Inventories:
Finished goods are valued at lower of cost or market value. Cost is
inclusive of all overheads (including interest) incurred by the Company
in bringing the goods to the finished stage. Raw materials, components
and spare parts are valued at average cost. Average cost is calculated
at weighted cost per unit after taking into account receipts at actual
cost. Consumption and / or other stock diminution is accounted for at
the aforesaid weighted cost.
Excise Duty on Finished Goods lying at factory amounting to Rs.184.36
lacs has not been included in the closing stock, which is not in
accordance with Accounting Standard - 2. However the same has no impact
on the profit of the business. This has been consistently followed.
6. Investments:
Investments are valued at cost and income thereon is accounted for when
received.
7. Gratuity:
Gratuity has been paid through an approved gratuity fund managed by the
LIC of India. Premium paid thereon is accounted as expenditure.
8. Bonus:
Minimum Bonus payable as per the Payment of Bonus Act has been provided
in the accounts.
9. Leave Encashment:
Leave encashment has been determined based on the available leave
entitlement at the end of each calendar year. The incremental amount so
calculated each year is debited to Salaries and Wages - leave
encashment.
10. Deferred Income Tax :
Deferred income tax is provided using the liability method on all
timing differences at the balance sheet date between tax bases of
assets and liabilities and their carrying amounts for financial
reporting purposes at the tax rates and.tax laws substantively enacted
at the balance sheet date.